LEAN in Minnesota Presentation PDF

Presenters:
Laurie Klupacs, Deputy Director & Toni Smith, Education Director

Association of Minnesota Counties
This workshop will cover:
How and Why AMC started a LEAN education
effort in Minnesota.
Portions of AMCs training program we use in
Minnesota so you understand basic
components of LEAN.
Examples of how counties are approaching
LEAN in Minnesota.
Examples of how Kaizen events have saved
Minnesota counties time and money.
"LEAN in Minnesota" presented by the Association of Minnesota Counties

This workshop will introduce you to LEANs
basic concepts to see if its a good fit for
your county, but will not teach you how to
conduct an actual LEAN event.
1. Welcome Who is Audience?
2. What is LEAN?
3. Why LEAN now in county government?
4. How is LEAN used in Minnesota
Counties?
5. Question and Answer
Why Should You Care About LEAN?
Declining budget dollars and a shrinking workforce
mean that many counties are being asked
to do more with less.
How do counties continue to How often do you believe your
provide quality services to county staff have done serious
citizens as demand grows and examination as to why county
resources become more scarce? processes are designed the way
they are? In many counties the
Baby-Boomers are retiring and
response is, we dont have time to do
that means institutional that kind of analysis.
memory is walking out the
door. How much of their work is We say: You dont have time to
standardized and ready for new staff NOT do that analysis and LEAN
to step right in and keep things can help.
moving efficiently?

Whats Using person-on-the-
street interviews, we
Your introduce county
Perspective employees to a cast of
characters that not
on only share how we
Change? should deal with
change, but encourage
them to put their
thoughts into action.

What is LEAN?
LEAN is a time-tested set of tools, and an organizational desire to
improve its operations by engaging employees to reduce waste and
defects within processes to increase productivity, reliability, staff
morale, and customer service.
LEAN characterizes activities as value-added
or non value-added from the customers view.
What are the value-creating elements of your process?

Define the Value Stream.
LEAN Emphasizes
Efficiency
Reducing Cost and Time
Action

LEAN is NOT
An Acronym
The Newest Fix All The County Problems Program
A Quick Fix
An Org Chart Shuffle

Changing Lines On The Org Chart Does Not Improve Process!
Easy
Its Simple, But Easy Does Not Exist!
About Laying Off Staff

Staff may need to do different work.

Where Did LEAN Come From?
Most closely associated
with Toyota; sometimes
referred to as the Toyota
Production System (TPS).
Now being applied in

office and manufacturing
environments; private and
public sectors.

If I were given one hour to
save the world, I would
spend 59 minutes
defining the
problem and
one minute
solving it.
-Albert Einstein
Why Focus On Examining
Processes In Your County?
Nearly every tangible output; service or
product, is created as the result of a
process or series of processes (a
system).
Its been shown that over 85% of the
opportunity to improve those outputs,
while reducing time and cost lie within
the process itself.
Process forms the base of
the majority of your county services.
County
Department
Program within
that department
Processes that make that

program work

A bad process will beat
a good person
every time.
-W. Edwards Deming

The work of government
is noble.
Government employees
are amazing.
The systems of government

are a mess.
-Ken Miller, Extreme Government Makeover
Straighten the Pipes!
Ken Millers Ideas
Are the pipes crooked in your county?
How did they get that way?
What can you do to

straighten them?

Customers Judge Services By:
SPEED How quickly do I receive it once
I request it?
ACCURACY The information is correct,
and relevant to my request.
UNDERSTANDABLE The information is
easy to read and understand.
CONVENIENT I can get it when I want
it, not when you are willing to give it to
me.
We Work To Identify
WAST E In Our Systems..
Waste is:
Any action, task, process or product
that adds time and cost, without
adding value as perceived by the
customer.

Non-Value Added = Waste

Typical Symptoms of Waste:
Excessive Cycle, Lead or Flow Time
Excessive costs
Poor quality
Excessive inventories
Dependency on work-around methods
Reactive fire-fighting
Daily management by exception

Value-Added Activities
Transform materials and information
into products or services per the needs
of the customer.
Operations that consume resources
(labor and materials), but dont create
value for the customer.

8 Wastes We Focus On
1. Overproduction
2. Transportation
3. Motion
4. Defects
5. Waiting
6. Inventory
7. Extra processing
8. Underutilized creativity

WASTES DEFINITION WORK AREA APPLICATIONS
Overproduction Generating more Creating reports no one reads
information and Batch production
products than needed Unnecessary meetings
Transportation Movement of products Retrieving or storing files

and Carrying documents to and from
information that does shared equipment
not add value
Motion Movement of people Searching for files

that Clearing away files on the desk
does not add value Gathering information
Looking for tools, parts, and
equipment to perform a job
Waiting Idle time created when Waiting for the system to come back
material, information, up
people or equipment is Waiting for inspection
Waiting for paint or seal to dry
not ready
Copy machine
A handed-off file to come back
WASTES DEFINITION WORK AREA APPLICATIONS
Processing Efforts that create no Creating reports
value Use of inappropriate software
from the end-users
viewpoint
Inventory More information and/or Files waiting to be worked on
material on hand than Open projects
the Just-in-Case inventory anticipated
end-user needs right E-mails waiting to be read
now Unused records in the database
Defects Work that contains Missing information

errors, Lost records
rework, mistakes or
lacks
something necessary

Follow the Bouncing Paperwork

Kaizen Toast Video
1. Watch for examples of
the seven wastes in the
following video.
2. Make a note of what

you would do differently
if you were making the
toast.

What
Methodology for
creating a clean,
is
safe, orderly, high
performance work
environment
5S?
The 5 Ss
Sort
Set In Order
Shine
Standardize
Sustain

Before

After

1S SORT
When in doubt, move it out.

1S Sort: Electronic files
Email
Files on:
Hard drive
Personal drive
Shared Drive
Archiving

1S Shared Drive
1. Develop a file structure to include
projects, meeting minutes, commonly
shared files, etc.
2. Develop a consistent file naming

scheme for folders.
3. Assign responsibility to clean out on a

monthly basis.

2S SET IN ORDER
A place for everything,

and everything in its place.

2S Set in Order Why?
Immediately recognize items out of place,
and an excessive or insufficient amount of
items.
Eliminate time wasted locating items.
Improve customer service.

2S Visual Management
A communication device that tells, at a
glance, how work should be done.
1. Where items belong

2. How many items
3. Standard procedure
4. Work in progress
There is only one place to put each item.

3S SHINE
The best
cleaning is to
not need
cleaning.

3S Shine
Boost employee
morale.
Improve health and
safety of employees.
Develop sense of
ownership in the office.
Identify and eliminate
root causes of
cleanliness issues.

4S STANDARDIZE
See and recognize
what needs to be
done.

4S Standardize What is it?
Makes Sort, Set in order and Shine
habitual.
Commitment from team members.
Incorporate 5S into regular work

routine.

5S SUSTAIN
Effective, ongoing application of 5S in order
to improve organizational performance.
Maintaining a commitment to 5S.
Sustaining improvements is the most difficult

part.

5S Sustain Process Steps
Keep it fun!
Friendly competition
Teamwork
Before and after
photographs
Positive reinforcement
Individual recognition or
rewards

Are You Ready To Be A LEAN Leader?
Become a skeptic who is An analyst who is able to dissect
unwilling to accept either the a process down to its core
status quo or the newly defined elements.
process that materializes from a
A modest leader who is never
Kaizen event. Once in place, it
overly impressed with success
becomes another target for
and is not deterred by failure---
improvement.
things can always be done
An optimist who sees better, and usually are, by
opportunity everywhere. someone else.
A critical thinker who relies on A team player who doesnt rely
substantiating data and on himself or herself.
information, and never assumes
A servant who is willing to share
anything.
knowledge for the most
Gwinnett Countys Department of Financial Services Embraces important reason.selfless
LEAN by Richard Reagan, Government Finance Review, servitude.
December 2011

Where there is
no standard,
there can be
no Kaizen.
-Taiichi Ohno
Vice-President, Toyota Motor Company

STANDARDIZAT ION
To standardize a method is to choose out of
the many methods the best one, and use it.
Todays standardization, instead of being a

barricade against improvement, is the
necessary foundation on which tomorrows
improvement will be based.

Not Everything is a Kaizen Event

Fishbone Diagram
5. Metrics - How are we measuring this (gauge r&r, capability)?
6. Mother Nature - What environmental impacts are there (weather, air quality, heat)?
On each branch of the fishbone diagram, you begin to write all the specific potential causes that could influence your effect. For example, in the Machine
branch, you might have several causes related to the equipment, such as machine breakdown, start-up, differences between machines. Depending on the
process, you may have a lot of information on one branch and very little on another. It's ok. The purpose of the fishbone diagram is to guide your team,
using a structured approach, not to make a pretty picture.
Cause 1? People Cause 2? Process Management? Category
cause cause cause

cause
cause cause cause

cause
cause cause cause
cause
cause cause cause
cause HEAD of the FISH

cause cause cause
EFFECT
cause cause OR
cause cause
PROBLEM
cause
cause cause cause
cause
cause cause
cause
cause
cause cause
cause
cause
cause cause
cause
Procedures Mandates? Facilities? Category

"LEAN in Minnesota" presented by
the Association of Minnesota
Counties
What is Kaizen?
A facilitated, rapid
improvement event.
Employee-driven
improvements.

Standardize Define the
the new operation to
operation be improved
Follows Demings
6 1 cycle of Plan, Do,
Check, Act (PDCA)
Innovate to
meet the
requirements
5 Kaizen 2
Standardize
the
operation
To take it apart,
and put it back
4 3
together in a better
Gauge
Measure the
way.
measurements
standardized
against the
requirements operation

When Should You Use Kaizen?
A LEAN Kaizen event aims to systematically
improve a process. Pick a process or portion of
a process that meets all the following criteria.
Kaizen Criteria:
Suffers from chronic customer (internal or external
customers) complaints or issues.
Involves medium to high volume of workload.
Is highly visible to staff or customers.
Has obvious potential for dramatic improvement.
Has data already available or that can be obtained.

Determine When To Use Kaizen
The ideal process should have the potential of
reaching all the following goals after the Kaizen.
Kaizen Goals:
Reduce staff workload and/or reduce product/service
lead time.
Improve customer (internal or external customers)
satisfaction.
Simplify the process.
Ensure staff and customer safety.

Kaizen Event
3-5 day improvement event:
Select Sponsor
Set Goals
Determine Team
Gather data/metrics
Maps a current
process
Identifies waste
Brainstorms
improvements
Maps future process
Assigns tasks

We Use Swim Lane Mapping
To Break Down The Process
Three Elements:
1. Time
2. People (job functions)
3. Tasks/Process
Swim Lane Mapping
Helps us see all components of the process documenting
every TASK, DECISION,WAIT,STORAGE, and HANDOFF.
We do that by documenting the CURRENT STATE and the
FUTURE STATE with

Swim Lane Icons
Task DECISION
(Y or N)
Time to
Complete
(in minutes)

Swim Lane Icons
Storage / File
Wait / Delay
Wait Time
(in days
or weeks)

Swim Lane Icons
Handoff
Electronic, Physical
(e.g. passing a
phone, or fax
paper item
back and
forth)

Minnesota County Kaizen Event
Example of a Kaizen Scope
FOCUS: Improving Septic System
Permitting Process
From the point of the first contact by the
applicant; whether phone, email, website, in
person, etc.
To the point the completed permit, after all
inspections, is filed in Land Services Office.

Observations of Current State
What they knew about the current septic process.
Key Points Supported Through Data/Metrics:

Long process with many tasks.
Zone inspectors are performing repetitive

required tasks.
Very labor intensive.
A lot of hand offs in the recording process.

Blue Earth County, MN, Kaizen Event

Mille Lacs County, MN, Kaizen Event

Current & Future Process
Swim Lane Metrics
76.2 % reduction in total process time!

Recommendations
Issue: Issue:
The initial application process Multiple onsite visits for
was lengthy, confusing, and inspectors
often incomplete Solution(s):
Solution(s): Consolidate inspections from 5
Utilize technology (miracle to potentially 3 with training
program) to streamline the and education of contractors
application process and general public
Issue:
Contractors were waiting for Issue:
the permit and the Certificate of Recording document was very
Compliance for up to one time consuming, costly, and of
month little benefit
Solution(s): Solution(s):
Condensed the process to Eliminate the recording
provide services within 10 requirement
business days

USING LEAN IN YOUR COUNT Y
What are your ideas for Kaizen
or 5S Events?
LEAN methods and tools apply to any process where
an employee:
Chases information in order to complete a task.
Must jump through multiple decision loops.
Is constantly interrupted when trying to complete a task.
Is engaged in expediting (of reports, purchases, materials, etc.).
Does work in batches.
Finds work lost in the "white space" between organizational silos.
Doesn't know what they don't know.
*From LEAN Six Sigma for Service by Michael L. George

USING LEAN IN YOUR COUNT Y
What could be the benefits in your
county?
Using LEAN tools an organization can expect to:
Eliminate or dramatically reduce backlogs.
Reduce lead times by more than 50%.
Decrease the complexity of processes.
Improve the quality of applications and the consistency of
reviews or inspections.
Allocate more staff time to "mission critical" work.
Improve staff morale and process transparency.

Building A LEAN
Transformation
Successful Strategy
Increasing Organizational Value

Leadership
LEAN Sustainment
Transformation Kaizen
Training
Planning
7 Wastes 5S Standard Work

LEAN Statewide in Minnesota
Collaborative with the New Kaizen
State of Minnesota, experiential training.
Department of
Administration, Office Development of state
of Continuous website.
Improvement.
Increase pool of
Sponsored multiple facilitators and
three-day Train the encourage cross
Trainer sessions. county sharing.
Consisting of one day
LEAN 101 training and
two day Kaizen
facilitator training.

Minnesota County LEAN Efforts
Crow Wing County LEAN Video:

http://crowwing.us/MediaCenter.aspx?VID=Lean-for-County-Government-16
Winona County LEAN Impact PowerPoint:

http://www.co.winona.mn.us/sites/winonacounty.new.rschooltoday.com/file
s/LEAN_Update_to_Board_04-09-13.pdf

Additional Resources
Minnesota State LEAN Website:
www.lean.state.mn.us/index.htm
King County, Washington (Seattle):

www.kingcounty.gov/employees/Lean/Toolkit.aspx
Brown County, Wisconsin:

www.co.brown.wi.us/departments/?department=9828882e1158
General Resources:
www.lean.org
www.leangovcenter.com/govweb.htm
www.abcnewspapers.com/2012/03/19/county-taking-lean-approach-to-government/
LOOK FOR AMCS LEAN WEB SIT E COMING SOON!

www.mncountylean.org

The LEAN Philosophy is Based
on Three Simple Tenets:
1. Be humble enough to see
the need to improve.
2. Be courageous enough to
improve.
3. Be disciplined enough to
never stop improving.

Q & A
Contact Information
Laurie Klupacs Toni Smith
AMC Deputy Director AMC Education Director
lklupacs@mncounties.org tsmith@mncounties.org
651-789-4329 651-789-4335

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Presenters:

Laurie Klupacs, Deputy Director & Toni Smith, Education Director

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

What are the value-creating elements of your process?

"LEAN in Minnesota" presented by the Association of Minnesota Counties

The Newest Fix All The County Problems Program

An Org Chart Shuffle

About Laying Off Staff

"LEAN in Minnesota" presented by the Association of Minnesota Counties

Now being applied in

"LEAN in Minnesota" presented by the Association of Minnesota Counties

Processes that make that

"LEAN in Minnesota" presented by the Association of Minnesota Counties

-W. Edwards Deming

"LEAN in Minnesota" presented by the Association of Minnesota Counties

The systems of government

How did they get that way?

What can you do to

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

Transportation Movement of products Retrieving or storing files

not add value

Motion Movement of people Searching for files

Defects Work that contains Missing information

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

2. Make a note of what

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

When in doubt, move it out.

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

2. Develop a consistent file naming

3. Assign responsibility to clean out on a

"LEAN in Minnesota" presented by the Association of Minnesota Counties

A place for everything,

"LEAN in Minnesota" presented by the Association of Minnesota Counties

Eliminate time wasted locating items.

Improve customer service.

"LEAN in Minnesota" presented by the Association of Minnesota Counties

1. Where items belong

There is only one place to put each item.

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

Commitment from team members.

Incorporate 5S into regular work

"LEAN in Minnesota" presented by the Association of Minnesota Counties

Maintaining a commitment to 5S.

Sustaining improvements is the most difficult

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties

"LEAN in Minnesota" presented by the Association of Minnesota Counties