Lean Government by Operational Excellence Consulting

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Lean Government is a management philosophy based on the Toyota Production System (TPS). With Lean Government, you will be able to enhance value for your customers/citizens by improving public service delivery and eliminating waste. Simply put, by becoming a Lean organization, you will be able to increase productivity and create greater customer value with less resources. This training presentation is especially tailored for the public sector. By teaching this presentation to public sector employees, they will have a better understanding of the Lean principles and approach to eliminating waste, and will be more forthcoming to lead and participate in the Lean implementation process. LEARNING OBJECTIVES  1. Understand the principles and key concepts of Lean Government 2. Acquire knowledge on the key Lean methods and tools and their applications to eliminate waste and create increased value for customers/citizens 3. Identify ways to develop “Kaizen eyes” to look for improvement opportunities 4. Describe the various Lean roles To download this presentation, visit: http://www.oeconsulting.com.sg

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LEAN Government:

© Operational Excellence Consulting. All rights reserved. LEAN Government

Learning Objectives  :

Learning Objectives   By the end of the program, you would be able to: Understand the principles and key concepts of Lean Government Acquire knowledge on the common Lean methods and tools and their applications to eliminate waste and create more value for customers/citizens Identify ways to develop “Kaizen eyes” to look for improvement opportunities Describe the various Lean roles Copyrights of all the pictures used in this presentation are held by their respective owners

Outline   :

Outline   Introduction to Lean Thinking Key Concepts & Principles of Lean Common Lean Methods & Tools Ways to develop “Kaizen Eyes” Lean Roles Sustaining a Lean Culture NOTE: This is a PARTIAL PREVIEW . To download the complete presentation, please visit: http:// www.oeconsulting.com.sg

Why Lean Government?:

Why Lean Government? Rising expectations of customers (the citizens) Perception that public sector lags behind the private sector in terms of quality of service and responsiveness Effective and efficient use of tax payers’ money in the provision of public services Continuous improvement of public services

Lean has been adopted in many different environments since its creation:

Lean has been adopted in many different environments since its creation Toyota Automotive Industrial products High fashion Medical devices Consumer products Aerospace Shipbuilding Pharma Food production Pulp and paper Chemicals Airlines Railways Naval operations & maintenance Healthcare Insurance Banking Retail Store Upstream E&P High Tech Consulting Law Firms Hospitality ITO/BPO Services Process industries Manufacturing Time Complexity

What is Lean?:

What is Lean? Value streams or processes Focused on improving government processes Clear view of end state Lean methods and tools are available Employee involvement Learn-by-doing approach Culture of continuous improvement Lean is a management philosophy based on the Toyota Production System (TPS) Eliminate everything that does not add value (waste) in the customer’s eyes Objective Focus and scope Approach and tools

Lean Principles:

Lean Principles Specify value – from the standpoint of the end customer Identify the value stream – all process steps across departmental boundaries (the value stream), eliminating steps that do not create value Make value flow continuously – eliminate causes of delay, such as batches and quality problems Let customers pull value – avoid pushing work onto the next process or department; let work and supplies be pulled as needed Pursue perfection – through continuous improvement

What Lean IS NOT:

What Lean IS NOT Laying off employees by the bus load Only applies to manufacturing companies A cost cutting program Delivering less or working harder Just a set of “tools” like 5S, kaizen events, etc. Automation or implementing an IT system Another “extracurricular activities”

Lean Facilitates a Culture Change:

Lean Facilitates a Culture C hange Work Systems & Processes Behavior Attitude Culture The way we act The way we think Waste elimination

Lean Management Framework (a.k.a. Toyota Production System):

Lean Management Framework (a.k.a. Toyota Production System) Source: Adapted from Toyota Production System Stability Heijunka Standardized Work Kaizen Just-In-Time Continuous flow Takt time Pull system Flexible workforce Jidoka Separate man & machine work Abnormality Identification Poka yoke Goals: highest quality, lowest cost, shortest lead times Involvement Stability Standardization Just-In-Time Jidoka Involvement 1 2 3 4 5 1 2 3 4 5 Focuses on Quantity and “Flow” Focuses on Quality and Prevention

Benefits of Lean Government:

Benefits of Lean Government Improved customer service (internal and external) Improved quality and consistency of work processes Improved productivity Reduced paperwork Reduced staff stress (e.g. searching for information) Engaged employees

Who are the Customers of Public Services?:

Who are the Customers of Public Services?

The “Customers” of Public Services:

The “Customers” of Public Services Source: ‘Lean for the Public Sector’, Bert Teeuwen Portrait of a Citizen Customer User Subject Voter Administrator Partner Taxpayer

Critical Quality Parameters Regardless of the Citizen’s Role:

Critical Quality Parameters Regardless of the Citizen’s Role 1 2 3 4 Speed Punctuality Correctness Clarity

Value in the Eyes of a Citizen:

Value in the Eyes of a Citizen Value Added The action is done right the first time A transformation takes place The customer is willing to pay for it Non-Value Added (Waste or Muda ) Any activity that does not add form, fit or function or is not necessary No benefit to the citizen Things not necessary to deliver public service

Eight Types of Waste in Public Sector:

Eight Types of Waste in Public Sector Over-production Producing more than what the customer needs Inventory Building and storing extra products the customer has not ordered Transportation Moving documents or traveling from one place to another Defects Data errors or missing information in documents Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process, equipment or person Waste

Types of Waste:

Types of Waste Waiting to be served Waiting for information from the applicant Waiting for information from other departments Waiting for colleagues who are absent for other reasons Seeking clarifications (due to unclear communications) Equipment/System downtime Waiting

Types of Waste:

Types of Waste Sending emails and ccing the entire organization Reclaiming $1.62 from a member of the public Cultural grants for shows playing to empty venues Repeated manual entry of data Multiple formats for the same information Check and double check E xcessive reporting Over-Processing

Explanation of the Three MUs:

Explanation of the Three MUs The Three MUs Meaning in English Explanation (using example of Capacity versus Load) Muda Waste Capacity exceeds Load Mura Unevenness Inconsistency Variation Capacity sometimes exceeds the Load Load sometimes exceeds the Capacity Muri Overburden Irrationality Load exceeds Capacity

The Gemba Framework provides an approach to identifying waste:

The Gemba Framework provides an approach to identifying waste Source: Gemba Kaizen by Masaaki Imai, 1997

What is 5S?:

What is 5S? Principles General Description 1S Sort Remove what is not needed and keep what is needed 2S Set in Order Arrange essential items in order for easy access 3S Shine Keep things clean and tidy; no trash or dirt in the workplace 4S Standardize Establish standards and guidelines to maintain a clean workplace 5S Sustain Make 5S a habit and teach others to adhere to established standards

Office Desk – Before & After 5S:

Office Desk – Before & After 5S An office desk before and after conducting 5S Sort and Set In Order. Clutter and unused items have been removed leaving only what is needed. Before After

Everyday Visual Management:

Everyday Visual Management

Examples of Visual Control:

Examples of Visual Control Color codes for project status reporting Queuing system for counter services Labeling of disposal bins Form submission boxes for walk-in customers and those by appointment

Value stream mapping provides an overview of the end-to-end administrative process:

Creates an end-to-end view of the system Demonstrates interaction between material/work and information flow Provides a common visual language for understanding a complex system Supplier/ Customer Management Control Customer Work & Information Flow Information flow Value stream mapping provides an overview of the end-to-end administrative process

Value Streams in Government:

Value Streams in Government Value Streams Primary Governing Auxiliary Interested Parties Citizens (in the 7 roles) Management Councils Secretaries Staff Public servants Departments Management Councils Examples Granting permits and licenses Levying tax Writing tickets Subsidy processes Planning and control processes Policy processes Mail processing Invoice processing Salary processing

Standard Work:

Standard Work Make it the only way: No alternatives left Warning: Warns for abnormalities Showing: One-point-lesson Visual information Reading: Manuals Procedures instructions Fail-safe Visual control tools Visual aids Procedures, Instructions and Manuals The Compliance Pyramid

Heijunka – Lean Levers Can Be Applied to Reduce Waste:

Heijunka – Lean Levers Can Be Applied to Reduce Waste Segmenting complexity Redistribute activities Flexible manpower systems Reduce incoming work Reduce NVA work Standardize operations Form separate channels for complicated tasks so that simple ones are not held up Align activities with appropriate skill set and group Balance processing capacity with the ongoing demand by moving people to where the work activity is Eliminate tasks from a person by reducing the actual work activity arising Eliminate work that does not directly add value to the end customer Establish best practices to execute a task 1 2 4 5 6 7 Pool resources Utilize existing skills and resources to reach economies of scale 3

Poka Yoke (Error-proofing):

Poka Yoke (Error-proofing) Error-proofing refers to techniques that make it impossible to make errors Also known as Poka Yoke in Japanese Error-proofing helps people and processes work right the first time

PDCA 5–step Problem Solving Process:

PDCA 5 –step Problem S olving P rocess

Example of 5 Whys:

Example of 5 Whys Why? Because… 1 Why is Tom injured? …he had a fall 2 Why did he fall? …the floor was wet 3 Why was the floor wet? …there was a leaking valve 4 Why was the valve leaking? …there was a seal failure 5 Why did the seal fail? …it was not maintained 1 3 4 5 2 A continuum of causes

A Simple Lean Implementation Roadmap:

A Simple Lean Implementation Roadmap Create Awareness Build Capability Operations Management & Improvement Lean Thinking Training Lean Leadership Training Build Lean Activity Board Kaizen #1: 5S Kaizen #2: Waste Elimination Value Stream Mapping for K ey Processes Train-the-Trainer Training Information Sessions for Whole O rganization Senior Management Awareness Kaizen #3: Standardization Month 1 Lean Methods & Tools Training Month 3 Month 2 Daily Management Meeting Lean Update in Monthly Newsletter & Intranet

Challenges of Lean Government:

Challenges of Lean Government Overcoming the “people aren’t widgets” mentality Size and complexity of public services “Work around” culture Underestimating leadership commitment Lack of patience; change is slow and can be extremely frustrating

Sustaining a Lean Culture:

Sustaining a Lean Culture Management commitment Alignment to vision and mission Availability of resources Address “what is in it for me” Success measures and KPIs Management review Rewards and recognition

About Operational Excellence Consulting:

About Operational Excellence Consulting

About Operational Excellence Consulting:

About Operational Excellence Consulting Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg

END OF PREVIEW To download this presentation, please visit: www.oeconsulting.com.sg:

END OF PREVIEW To download this presentation, please visit: www.oeconsulting.com.sg

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