School Board Work Session: Resource Stewardship, Process Improvement, and Lean Charles Wright Deputy Superintendent

January 14, 2015

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Pre-Read: Why Process Improvement?

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How Problems are Often Solved

Most organizations do not really solve problems, they just transfer them to another area.

Why Process Improvement?

• A process is a systematic series of actions directed to some end (e.g., service, product)

• The products and/or services an organization produces and/or delivers are likely guided by one or more processes involving multiple teams and/or groups of people.

• Processes can go awry for a variety of reasons causing waste (investment of time or resources that without adequate return), which often impacts the quality, frequency, timeliness, reliability, and cost of the service

• So, why process improvement? – We hear from families, principals, and many other staff that many of our systems/processes are ad

hoc, fragmented, inequitable, and unpredictable – We currently do not have a common methodology for helping the multiple central district

teams/groups serve schools, students, and parents more efficiently

• This presentation provides a high-level overview of LEAN, a methodology for

accelerating process improvement, and provides a summary of the types of waste that can exist in an organizing

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What is Lean?

Lean is a methodology that allows organizations to drastically improve product and services by improving processes and monitoring everyday business activities to reduce errors in ways that increase value and minimize work, non-customer value-added tasks, and waste while increasing customer satisfaction based on idea that faster processes yield less waste, less cost, less work in process, less complexity, higher quality, and happier customers.

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What is Lean?: The 5 principles

1. Define Value

• From customer perspective

2. Understand the Way Work Gets Done (referred to as Value Stream)

• Map the process and information flow that products and services go through

3. Standardize a Way of Work that is Efficient (referred to as Continuous Flow)

• Product, service and information to flow smoothly through the process without delay or disruption

• Reduce all forms of Waste - Non value-added steps

4. Just in Time (referred to as Continuous Pull)

• Provide or create products and services only when customer need them

5. Seek Perfection

• Never-ending pursuit of improvement

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Lean Principles

• Lean is not a method for telling people how to do their jobs more effectively

• Lean empowers people to plan how and when they will implement changes or improvements that make it easier to meet customer demands

• Stop doing it to them and start doing it with them

• Make decisions based on data

• Problem solving performed systematically by a group of people focusing on the work that they do – Not stress inducing

– Not dehumanizing

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Facts about Waste:

1. Waste exists in all work and at all levels in the organization

2. Identification and Elimination of Waste is the central focus of a lean system

3. Successful implementation requires that ALL Employees must be trained to identify and eliminate waste from their work

Identification and Elimination of Waste

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8 Types of Waste Lean Helps to Reduce/Eliminate

Overproducing

Making more than is immediately required

Transport

Moving products, forms, or information that does not add

value

Inventory

Producing any more than the minimum to get the job done

Waiting

Waiting on people, process, services or information

Poor process

Inconsistent, not documented not followed, over processing

process

Defects

Making more than once: repair or rework

Motion

Movement of people that does not add value

Underutilized personnel

Not fully utilizing time and talents of people

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Waiting

Waiting on people, process, services or information

Symptoms:

• People waiting on systems (e.g. copier), parts, information, tasks or approvals

• People waiting on others for action or information

Sign offs, approvals

Edit, review

Client input

Compliance / legal

Causes: • Inconsistent work methods • Inefficient process • Inappropriate metrics • Insufficient or lack of training • Poor communication • Lack of information to complete a process

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Defects

Any product, service or information that needs to be done more than once (rework) to fulfill a customer requirement

Symptoms:

• Redoing forms due to missing or changing information

• Multiple people inspecting, approving forms, tasks

• Multiple people assigned to check or re-do

• Constant emergencies (Reactive organization, fire fighting vs. fire prevention)

• Inspection and change control prevalent

• Not meeting customer requirements (multiple complains)

Causes: • Insufficient or lack of training • Inadequate tools / equipment • Lack of documentation • Inadequate resources for the level of

workload • Bad input data • Poor communication • Poor process design (Excessive complexity)

Delete Trash

Poor process

3-D Color

Copies

Any step which adds no value to a service (over processing)

Symptoms:

• Inconsistent process (different answers for the same question)

• Redundant/multiple approvals

• Redundant/multiple data entry

• Reports with too much information

• Reports never used or not needed

• Excessive distribution lists (e-mail)

• Creating, collecting data never used

• Excessive number of meetings

• Presentations created but not used

• Assignment of “projects” that are not needed

Causes: • Ineffective policies and procedures • Lack of customer input concerning

requirements • Decision making at inappropriate levels • Inconsistencies in processing • New technology used inappropriately

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Overproducing

Extra Files

Extra Slides

3-D Color

Copies

Making more than what is immediately required

Symptoms:

• Extra copies / equipment

• Extra storage for duplicate files, drawings, and slides

• Working ahead of deadlines, just-in-case

• Producing un-needed services, systems, or tools

Causes: • Lack of communication • Lack of consistent schedules • Lack of flexibility • Focus on expectation versus Customer

Demand • Bonus systems that reward production

(overtime pay)

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Underutilized personnel and creativity

Not fully utilizing the time, experience and talents of people

Symptoms:

• Few improvements

• “Not MY job" mentality

• Lack of employee involvement

• Lack of team activities

• Poor morale

Causes: • Focusing on who made the error, not why the

error occurred (Blame the person, not the process)

• Hide the problems • Status quo never challenged • Poor suggestion program • Lack of accountability • Lack of employee engagement • Lack of communication

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Transport Form filled,

delivered

Entered

Verified Filed

Approved Entered

Returned

Filed

Department A

Verified

Department B

Department C Department C

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Excess movement of what flows in the process (product, material, documents, or information)

Symptoms:

• Wrong information

• Complex information management

• Loss or misinterpretation of information

• Information that is relayed up & down the organization ladder

• Information handoffs (separates knowledge, responsibility, and action)

• Hand carried documents

• Process tracking and expediting reports

Causes: • Large lot processing • Inconsistent / undefined process • Lack of work place organization • Improper work area layout • Incorrect assumptions • Information handoffs (separates knowledge,

responsibility, and action)

Department B

Motion

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Movement of people that does not add value

Symptoms:

• Looking to find information or supplies

• Excessive reaching/bending (poor layout)

• Customers/suppliers too far apart (travel or delivery time)

• Confusing motion with work (busy instead of productive)

• Traveling vs. conference call

• Processing transactions using multiple systems, tools

• Mouse clicks needed to access information

Causes: • Equipment, office layout • Lack of work place organization • Inconsistent work methods • Large batch sizes

Inventory

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Producing any more products or services than the minimum to get the job done

Symptoms:

• Piles (backlogs) of work waiting to be processed

• Massive re-do campaigns when problems surface

• Additional resources to handle Information Slow response to changes in customer demands

• Retaining information not needed – Intranet, Outlook, Network, Client information, Document systems

• Creating product before demand

• Excessive supplies

• Personal data bases, systems

• Obsolescence

Causes: • Incapable processes (bottlenecks) • Incapable suppliers (including internal suppliers) • Management decisions • Local optimization (silos) • Inaccurate forecasting systems • Economy of scale – limited production • Over used storage areas

QUESTIONS?

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