department of human services (vic)€¦ · work with our project teams to implement projects and...

www.bevingtongroup.com Business Model Design Process Improvement Change Management

Australia and NZ patents, US and Canadian Patents pending

Change Network, July 2012

The objective of the Change Network is a simple one;

to allow those of you managing change to exchange lessons

Department of Human Services (Vic)

Motor Vehicle Collisions & Claims Performance Project

© Bevington Group. All rights reserved.

This case study will explain how DHS achieved outstanding fleet management results in collisions and claims reduction

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Reduced elapsed time, reduction in defects and variation

– Average time to lodge claims has been reduced by 80%

Pro-activity in prevention strategies, behavioural change and process improvement

- Reduced claims per vehicle by approx 30%

- Reduced cost to repair – by 9%

Improved processes – proactive Fleet Officers now involved in physical

safety improvements and staff education strategies


Human Services Portfolios

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Community Services

Human Services Portfolios

Mental Health

Housing Health

• Mental Health • Drug Services

• Acute Health services • Ambulance services • Primary and Dental Health • Small Rural Services • Public Health

• Child protection and family services Juvenile Justice and Youth Services • Concessions • Aged and Home Care • Disability Services

• Housing assistance

Outputs


DHS: Key Dimensions

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Department

Total FTE staff 11,491

Regions 8 (5 rural, 3 metro)

Divisions 9

Budget $12.45b

Total Assets $21.1b

Funded Sector

Total external agency staff 90,856 (inc. hospitals)

Entities funded 1,158

Victorian locations approx 3,000

Funding $8.8b


Where did the Doing Business Better strategy originate?

Wide ranging consultation was the key:

Met over 60 private sector companies, state, federal and local government organisations

Asked each of these organisations one key question

“what do you do to improve organisational performance?”

We drew upon their best experiences and improved on these efforts where we could, to develop a strategy that would “best fit” our culture

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The Lean strategy in DHS

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Eliminating wasted effort

+ Simplifying processes

+ Removing duplication of effort

+ Improving quality

+ Containing costs

= Doing Business Better


Why Lean Thinking in Government?

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Traditional approach

Government agencies downsized, rationalised and cut services to meet budget pressures or savings targets

Alternative approach

Examining processes and eliminating all forms of waste through engagement with staff. Lean contains costs, improves quality and client satisfaction


The change methods and tools landscape can be confusing…

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What to apply? Where to apply it? What

are the underlying principles?

You may need more than ‘Six Sigma’ or ‘Lean’ because they each

have some limitations

Six Sigma Value Stream Mapping Spaghetti diagram

5S 5 Whys

Visual controls Root Cause Analysis Deming PDCA

Brainstorming Pareto Cause and Effect


…So partner with business improvement specialists

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Business improvement specialists will:

work with our project teams to implement projects and harvest the benefits

provide individualised support, information, technical skills and expertise

in the field of process improvement

develop in-house expertise for future projects

transfer knowledge into the department and retain the skills


Start with simplifying our processes

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Opportunities to improve are all around us


We Learn by doing, just in time

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Source: i2e Innovation Insights


Momentum is building…

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We have over 200 business improvement ideas

6 projects have been completed

4 projects are in progress

31 further business cases are being completed

We ensure that we define the return on investment or pay back

The web site enables over 11,000 staff to submit an improvement idea

Interest is growing, word is spreading and results are starting to show


Doing Business Better


The Aim – Create a Virtuous Cycle

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Operational Process Waste Absorbs time

Reduced collisions

Reinvest in collision

prevention (value-add

activity)

Free up process time


Project Objectives - in Summary

Reduce the number of collisions

Reduce operational costs

Improve safety of staff and clients

Improve Fleet management processes (reduce wasted effort, simplify processes, remove duplication, add in proactive actions to prevent collisions)

Improve the quality of service performance

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These complicated issues required a project managed on FOUR fronts…

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1.XeP3 Process Improvement

2.Staff Attitude Survey

3.*CRU/Car Park Visual Audit

4.Human Factors Advice

To REDUCE

collisions &

IMPROVE service

Idea Generation & Recommendations

*CRU Community Residential Unit


We collected detailed data from Fleet Staff across the Department

(Equivalent to >3,300 hrs per month of staff time across Fleet Management )

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Central North and West Eastern Southern

Loddon/Mallee Hume

Barwon / South West

Gippsland

Lonsdale St Footscray Preston Box Hill Dandenong

Cheltenham

Frankston Glenroy Fitzroy

Bendigo

Swan Hill

Wodonga

Shepparton

Traralgon / Morwell

Benalla Seymour Wangaratta

Geelong

Hamilton Colac Warrnambool

Grampians

Ballarat

Stawell Ararat

Horsham

= sites visited


The staff were interviewed to understand what they do

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was broken down into

Main Activities…

Each Task…

and Sub- Activities

…


We looked for defects in our processes

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The location

of the collision

was

inconclusive


Fleet staff have little time to do value-adding activity

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Examples of DISCRETIONARY

•Conduct weekly condition inspection - Access every car and check thoroughly horn, lights, indicators etc

•Photocopy authorised Stat Dec and file in Central Infringements file with any relevant documentation

Examples of SUPPORT

•Find appropriate keys and log book and give to staff member

•Enter on system (VBS) that car has been ‘delivered’

Examples of WASTE

•If booked car not available, shuffle bookings to find an alternative car

•If no car available at all, place on waiting list

•If cannot read log sheet, contact staff member to get mileage reading

Examples of VALUE-ADD

•Analyse traffic infringements to reduce high risk incidents (eg red light camera)

•Rotate vehicles to maximise utilisation

•Conduct driver orientation to vehicle and operational features


Most of the Noise was in areas that DHS staff should have been doing themselves…

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565

479

332

107

792

332

244

111

91

4

157

117

282

115

37

15

124

41

101

46

84

65

134

67

359

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Book Vehicles Deliver

Vehicles

Return

Vehicles Maintain

Vehicles

Clean

Vehicles

Handle Vehicle

Breakdowns &

Minor Issues in

Transit

Handle

Collisions &

Damage to

Vehicles

1. Coordinate Vehicle Pool Operations

1.1 1.2 1.3 1.4 1.5 1.6 1.7

TOTAL HOURS NOISE

Order New

Vehicles

Commission

New Vehicles

into Fleet

Decommission

Old Vehicles

Manage

Utilisation of

Vehicles across

the Fleet

2.1 2.2 2.3 2.4

2. Manage Vehicle Fleet Assets

Handle Traffic

Infringements

Other

Miscellaneous

3.1 3.2

3. Other Administrative

TOTAL HOURS NOISE

85% Noise


We found 76 different ‘Noise Drivers’ (causes of waste)

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Here are the TOP FIFTEEN Noise Drivers (by total hours/month of Noise)

And the top SEVEN of these all relate to two highest areas of

Noise in the Process, 1.1 Booking and 1.3 Returning Vehicles


In the survey there was strong support for increased/improved driver training

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Ideas to reduce collisions

14

16

16

22

25

26

26

53

53

309

0 50 100 150 200 250 300 350

Staff are rushed to attend meetings

Keep a register of repeat offenders

Be more OHS proactive to educate drivers that drive on

long distances

Implement accountability on staff

Increase staff awareness of Fleet performance data

Reduce the number of different vehicle models

Purchase smaller vehicles

Improve staff and management accountability

Improve car park design and layout

Driver training


20% of the issues cause 80% of the problems - focus on the 20%

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Co

un

t o

f a

ccid

en

ts

Pe

rce

nt

Causes of accidents

Count 19

Percent 27.1 21.8 15.7 12.3 9.4 6.0 2.5 2.5

185

2.8

Cum % 27.1 48.9 64.6 76.9 86.2 92.2 94.7 97.2

149

100.0

107 84 64 41 17 17

Other

Hit b

y ob

ject

All o

thers

Hit s

tatio

nary veh

icle

Righ

t of W

ay

Hit r

ear

Damag

e whislt

parke

d

Hit o

bjec

t

Reve

rsing

700

600

500

400

300

200

100

0

100

80

60

40

20

0

DHS Accidents for the period July 2006 to end May 2007

Source: Lumley Claims data

1. Reversing

2. Hit Object

3. Damaged while parked

4. Hit rear


Given the multiple factors in play…we wanted an holistic approach to improvement

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Vehicle Factors

Human Factors

Environmental Factors

Skills

Attitudes


Two Idea Generation Workshops were held with the cross-functional team

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The Noise Drivers were used to generate 250+ ideas with the Fleet Staff

The Staff Attitude Survey generated another 50+ ideas, and reinforced all of the ideas generated from other sources

The Car Park / CRU Visual Audit generated over 250 recommendations

The Change Imperatives were then determined


The Ideas were grouped into five change imperatives

1. Realign fleet staff focus from the urgent (reactive) to the important (proactive) = Process Change

2. Improve driver skills

3. Improve driver attitudes

4. Reduce risks from physical infrastructure

5. Improve management accountability and financial sustainability

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There were plenty of opportunities for rapid improvement…

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The Visual Audit / Risk Assessment was undertaken (in conjunction with VMIA) to identify opportunities to improve layout, design and hazard reduction in car parks and at CRU’s


Some things were easy – some were wide-ranging and more complicated

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Simple improvements could be made immediately eg: widen CRU gates, signage, paint pillars and posts illuminated colours from floor to ceiling


The easy things could be done right away

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Solution: Regular pruning

or removal of shrubs

near driveway

Problem: Bus scrapes

on overgrown trees and shrubs

CRU Improvements


We also worked in partnership with ….

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Victorian Managed Insurance Authority (VMIA) inspected DHS leased car parks and provided documented risk assessments

together with recommendations for improvement. This enabled DHS to negotiate with the car park owners

entered a co-funding opportunity to engage a dedicated, accredited driver trainer (for Community Residential Unit staff in the first instance). Will then be extended to include Child Protection workforce and the broader DHS population


And in partnership with…..

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Lumley Insurance

support to improve our processes

information about collision prevention activity in other organisations

a complementary online driver skills development and simulation program (“Fleet Driver Safety”)

Lumley Insurance has offered their full support for the project, commended the Department for their initiative, advised that project is the most significant work of its kind that they are aware of, and that they are of the view that this project will reduce the rate of collisions in DHS


The Outcomes


We have only just started, BUT it is already a highly successful project

Reduced elapsed time, reduction in defects and variation

– Av Time to lodge claims has been reduced by 80%

Pro-activity in prevention strategies, behavioural change and process improvement

- Reduced claims per vehicle by approx 30%

- Reduced cost to repair – by 9%

Improved processes – proactive Fleet Officers now involved in physical safety improvements and staff education strategies

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80% improvement in monthly performance of ‘time to lodge a claim’

2003/04 2004/05 2005/06 2006/07 YTD end April 08 Current

performance

level

Average Days to Lodge Insurance Claim

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Massive improvement in rate of claims per vehicle - minimum 30%

DHS Average Claims Rate per Vehicle

2003/04 2004/05 2005/06 2006/07 2007/08 Projected

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Average number of claims per vehicle is the lowest it’s been in 5 years

Projected Improvement


Reduction in cost-to-repair AND in number of claims

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'06/07' Pre-project

Projected 07/08

Current

estimate

'06/07' Pre-project

Projected 07/08

Current

estimate

9% Improvement on projected

07/08

Potential for more improvement next year as

only in early phase of implementation

12% Improvement on projected

07/08

COST

#CLAIMS


Implementation is tracked weekly – for individuals…

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Action Step Implementation - Hoy, Michael

0

5

10

15

20

25

30

35

9/05

/200

8

16/0

5/200

8

23/0

5/200

8

30/0

5/200

8

6/06

/200

8

13/0

6/200

8

20/0

6/200

8

27/0

6/200

8

Acti

on

Ste

ps

Actual Performance Planned Performance Worry Line

Number of actions Planned for completion

‘Worry Line’ set @ 60% completion as

an indicator of issues or inactivity

Actual Completion Rate of weekly action

steps (some slippage)

Staff Member A


… And Implementation actions achieved overall

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Wave 1 Action Step Implementation - Overall

0

20

40

60

80

100

120

140

160

180

30/0

3/200

8

25/0

4/200

8

9/05

/200

8

16/0

5/200

8

23/0

5/200

8

30/0

5/200

8

6/06

/200

8

13/0

6/200

8

20/0

6/200

8

27/0

6/200

8

Acti

on

Ste

ps

Actual Performance Planned Performance Worry Line

• Overall there has been a drop off in completion rate

• This is due to process owners taking leave

• Several PO’s are managers – some flexibility needed

• Also some delays from external parties

• Some to be delayed to Wave 2 (more complicated)


We have not yet finished, BUT it is already a highly successful project

Reduced collisions

Reduced costs

Improved behaviour

Improved processes

Improved accountability

Improved safety

Improved vehicle availability & utilisation

Improved morale in Fleet Management Team

An emergent shift in the culture…Lean thinking

Driver trainer starting August

‘Safer Driver’ online program

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department of human services (vic)€¦ · work with our project teams to implement projects and...

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