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Washington Public Treasurers Association Preconference ... › conf › 2017 › session...
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Washington Public Treasurers Association
Preconference WorkshopApril 12, 2017
Introduction to Lean Methodology: Making and Sustaining Organizational Improvements
Debra Hentz, BSME, MPA
Lean Specialist
Local Government Performance Center
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 2
SAO – LGPC – Lean Academy
Lean: simple and straightforward
Lean: more in-depth and technical
Starting and/or continuing your Lean journey
Questions
Introduction to Lean Methodology: Making and Sustaining Organizational Improvements
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Lean keeps long term goals front & center.
3
SAO
Government that works better, costs less, and earns greater
public trust.
WPTA
Promote education & networking to improve the quality of service
to citizens
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 4
LGPC Lean Academies
San Juan CountyIsland CountyPort TownsendSequimGrays Harbor County
BellinghamSnohomish CountyMarysvilleLynnwoodAlderwood Water District
Kittitas CountyGrant CountyGrant Integrated ServicesBBCCollege
Whitman CountyWalla Walla CountyBenton CountyBenton-Franklin Health District
Cowlitz CountyRidgefieldBattlegroundVancouver
KirklandEdmondsAuburnBurienSeattle Housing Olympia
LaceyAWCThurston County
Skamania CountyKlickitat CountyCamas
C-TranPort of Camas Washougal
Pierce CountyCPTCollegeTacomaDupont
PermittingLicensingLeasingHiringPayingBillingPurchasingReceiptingReconcilingEnrollingGrant-trackingImmunizing
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Value Stream Mapping helps people:
• understand how the process works today
• understand and reach agreement on how well the process is working
• uncover waste and problems with flow in the value stream
• reach agreements on what changes need to be made to improve the process
• reach agreements on how to ensure that those changes are made
Lean Academy uses Value Stream Mapping
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 6
Lean: simple and straightforward
Creating flow through the elimination of waste
Lean when thinking about a
process
RECEIVE something from
someone
DO something that adds “value”
GIVE something to someone
Process is a repeatable series of activities that:
FlowHow do we determine VALUE??
Lean is a word, not an acronym.
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 7
Lean focuses on VALUE of process activities.
Process Activities
Value Add
Flow
Non Value Add
Unnecessary
Eliminate
Non-Value Add
Required
Optimize
Customer Supplier Waste
INPUT Received Gives OUTPUT
CustomerSupplier
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 8
Lean focuses on VALUE of process activities.
Process Activities
Value Add
Flow
Non Value Add
Unnecessary
Eliminate
Non-Value Add
Required
Optimize
Customer Supplier Waste
INPUT Received Gives OUTPUT
Supplier Customer
Is it easy to identify waste?
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 9
Lean identifies WASTE, then determines change.
Waste
Is it easy to identify waste?
Small• Impacts only me
• Internal changes
System
• No shifting work to others
• Subject-Matter-Expert team
$$$• Long term vision
• Optimize current Lean doesn’t solve all problems. Transformation takes time. Lean is simple, but it’s not easy.
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Why choose Lean methodology?
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• Employee
empowerment
• Organizational capacity
• Sustainable success
• Short-term fixes
• Time to delivery
• Waste
Lean is a holistic
approach to reduce the
unnecessary and
increase value for the
customer.
Eliminates
Grows
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 11
Lean: simple and straightforward
Creating flow through the elimination of waste
Lean when thinking about a
process
Why not
implement
Lean?
Need to be ready.
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 12
Lean: more in-depth and technical
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 13
Lean: more in-depth and technical
Lean is a set of principles and tools that help people learn-to-see and eliminate waste following a methodology that is customer focused and employee driven.
Lean as a Management
System
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 14
Building Lean Culture
Discipline+
Playfulness
Experts+
Broad Thinkers
Focused+Chaotic
High Standards
+Tolerates
Failure
Lean Culture
Lean is 90% culture-based, 10% tools-based.
Culture:
is learned and shared,
is often unconscious,
structures our perceptions,
and shapes our behavior.
Action Oriented
+Strategic
Future
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 15
Toyota Production System becomes Lean
Toyota Production System
Problems Solved
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 16
Lean is Based on the 4 P’s
Purpose = vision, values, strategies
Process = efficient flow of customer value with standardization to eliminate waste
People = engaged and involved to continuously solve problems and improve processes
Problems Solved = capability to identify problems and find system-wide solutions Customer Focused
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Alignment Around Common Principles
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4 P’s
Customer defines Value
Systems, not Silos
Processes, not People
Tops Down; Bottoms Up
Identify and Eliminate Waste
Measure and Prove it
Slow down to go Fast
Iterate and Experiment
Principles are a System
Coaching Leadership is Key
Fail Fast ForwardTime for Training
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Taking a Lean Perspective
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4 P’s
Leadership establishes the Lean culture.
The work of government is noble.The people of government are amazing.The systems of government are a mess.
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 19
Remember this from earlier?
Creating flow through the elimination of waste
Lean when thinking about a
process
RECEIVE something from
someone
DO something that adds “value”
GIVE something to someone
Process is a repeatable series of activities that:
Flow
Lean is a word, not an acronym.
4 P’s
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Lean focuses on input & output
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Value Stream MappingIdentify clear start and end points
Input Output
Supplier Customer
Lean confirms needed steps and eliminates unnecessary ones thereby creating more capacity for employees.
4 P’s
Customer Outcome
Finding waste?
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 21
The Original 7 Lean Wastes
Waste = anything other than the minimum amount of product or service value.
4 P’s
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Leader Determined Employee Driven
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Select where to focus improvement efforts
Define process excellence and set goals
Assign resources with realistic expectations
Monitor progress and accountability
Clear obstacles for team
Recognize and celebrate accomplishments
Subject Matter Experts
Work together as a team
Collect data
Speak truth to power
Propose solutions
Implement plans
Leadership Role
4 P’s
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Leader Determined Employee Driven
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Lean is 90% culture/people-based and 10% tools-based.
The Organization The Workgroup The Individual
Respect the People Grow the People
4 P’s
7 People Assets:
Teamwork Leadership Communication Problem Solving Engagement Reward Knowledge
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Lean Logic Model
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Empowered and Engaged EmployeesLean is based on:• Communication• Trust• Transparency
Which increases employee engagement
Which leads to increased efficiencyand improved team environment
Which adds more knowledge to decision making and ideas for improvement
Customer Satisfaction
4 P’s
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 25
PDCA becomes part of daily life
You may not reach your target condition with your
first effort,but PDCA is iterative and
leads the Lean practitioner down the path of
continuous improvement.
PDCA (Plan-Do-Check-Act) Critical Thinking Elements
Culture = the way we do things
4 P’s
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 26
Lean “Process” Tools
5 Why’s
Pull System
Poka-Yoke
Kaizen
KanbanValue Stream Maps
Pareto Charts
Standard Work
One Piece Flow
Visual Management
Spaghetti Diagrams
Root CauseFishbone DiagramVoice of the Customer
Frame of Reference
A3
5 S
Gemba Walk
Brainstorming
Charter Document
Affinity Diagram
4 P’s
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 27
Starting and continuing your Lean journey
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 28
Classic Approach versus Lean Methodology
System One Thinking (natural)
our brains immediately go from problem to solution; members traditionally solve a problem individually from their perspective
System Two Thinking (discipline)
(1) what is important issue? (2) mutual goal for group? (3) list the hurdles (4) list all possible solutions (5) choose best solution selection
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 29
No one right way to build a lean culture. (identify your organization’s unique needs and strengths)
Can’t policy and procedure your way to passion of purpose. (#1 job is motivating people; written statements are not the answer)
Experts believe that 30% or less of Lean initiatives succeed. (success through planning; realistic expectations; beware change fatigue)
Lean makes small changes resulting in large improvement. (aka slow and steady wins the race; eliminate individual frustrations)
Lean does not focus on monetary savings; it’s about building capacity in your current workforce. (save money over time by building a stable, motivated and knowledgeable staff)
Starting and continuing your Lean journey
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 30
1. Establish a sense of urgency
2. Create the guiding coalition
3. Develop a vision and strategy
4. Communicate the change vision
5. Empower board-based action
6. Generate short-term wins
7. Consolidate gains and produce more change
8. Anchor new behaviors in the culture
John Kotter: 8 Steps for Leading Change
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 31
o Leadership doesn’t need to know the answers, but they do need to know the “right questions” to ask.• Lean = SMEs have the answers.
o Questions are asked in a systematic order• Lean = objectives, requirements, current state and then solution
alternatives.
o Visible team thinking • Lean = captures what was covered to eliminate the waste of
going back over the same things multiple times.
o Common language is critical.• Lean = effective and efficient communication with transparency.
Most success is based on prep work!
Kepner-Tregoe Problem Solving Guidelines
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 32
Lean leadership is told to:
1. motivate people through action
2. keep it simple
3. provide relevant training
4. use tools correctly
5. focus on building staff capacity
Value of Kaizen
Lean kaizens:
team process mapping
small changes in one process
experiential-applied learning
facilitated SMEs w/Sponsor
SME proposals = Standardize process for the majority of
the customer base Streamline and make self-service for
most customers Frees up time to help the exceptions
Kai = "change“ zen = “good”
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Current State Mapping
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Current State Mapping identifies problems and clarifies waste that may not be recognized by individuals.
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 34
Sometimes Lean doesn’t feel very lean I will have more work to do when I get back to the office!
What about the work I won’t get done while we are improving ONE process.
Making the change will be complex! I need to do my regular work AND implement the changes.
The new process sounds complicated! How do I learn the skills I need for the new process steps?
There will be resistance from others! Some in the office won’t understand the change while others will simply be against it.
What if we don’t achieve what we hope! It takes work by Leadership and SMEs to maintain the changes.
Clarify the problem statement - motivate people - and keep it simple!
Remember Lean is operational and serves your mission. Establish strategic goals first; then Lean improves your mission processes.
Implementing a Successful Plan
Credit: Carlos Venegas
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r 35
In Summary
Lean is about
Clarity• Vision, mission, and goals• Roles and responsibilities• Targets and expectations (what success looks like)
Being Visual• Metrics and progress• Customer involved processes• Accomplishments and celebration
Sustainability• Slow and steady wins the race.• PDCA• Long term commitment
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O f f i c e o f t h e W a s h i n g t o n S t a t e A u d i t o r
Local Government Performance Center
The State Auditor's Office has created the Local Government Performance Center to help local governments evaluate their programs and services, and improve results.
The Performance Center website provides more than 100 tools, templates and resources you can browse, share and download to use or customize for your own jurisdiction.
Contact the Center
www.sao.wa.gov/performancecenter
(360) 725-9745
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Debra HentzLean Specialist
Sherrie ArdManager
Local Government Performance [email protected]
Website: www.sao.wa.gov
Twitter: www.twitter.com/LocalGovPerform
Heidi WalterProgram Specialist