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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.
2.
3.
4.

Welcome Who is Audience?


What is LEAN?
Why LEAN now in county government?
How is LEAN used in Minnesota
Counties?
5. Question and Answer
"LEAN in Minnesota" presented by the Association of Minnesota Counties

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
provide quality services to
citizens as demand grows and
resources become more scarce?
Baby-Boomers are retiring and
that means institutional
memory is walking out the
door. How much of their work is
standardized and ready for new staff
to step right in and keep things
moving efficiently?

How often do you believe your


county staff have done serious
examination as to why county
processes are designed the way
they are? In many counties the
response is, we dont have time to do
that kind of analysis.

We say: You dont have time to


NOT do that analysis and LEAN
can help.

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

Whats
Your
Perspective
on
Change?

Using person-on-thestreet interviews, we


introduce county
employees to a cast of
characters that not
only share how we
should deal with
change, but encourage
them to put their
thoughts into action.

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

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 in Minnesota" presented by the Association of Minnesota Counties

An Acronym

LEAN is NOT

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.

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

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.

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

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

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

Process forms the base of


the majority of your county services.
County
Department

Program within
that department
Processes that make that
program work

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

A bad process will beat


a good person
every time.
-W. Edwards Deming

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

The work of government


is noble.
Government employees
are amazing.

The systems of government


are a mess.
-Ken Miller, Extreme Government Makeover
"LEAN in Minnesota" presented by the Association of Minnesota Counties

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

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

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

Non-Value Added = Waste

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

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

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.

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

8 Wastes We Focus On
1.
2.
3.
4.
5.
6.
7.
8.

Overproduction
Transportation
Motion
Defects
Waiting
Inventory
Extra processing
Underutilized creativity

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

WASTES

DEFINITION
Generating more
information and
products than needed

WORK AREA APPLICATIONS

Creating reports no one reads


Batch production
Unnecessary meetings

Transportation

Movement of products
and
information that does
not add value

Retrieving or storing files


Carrying documents to and from
shared equipment

Motion

Movement of people
that
does not add value

Searching for files


Clearing away files on the desk
Gathering information
Looking for tools, parts, and
equipment to perform a job

Waiting

Idle time created when


material, information,
people or equipment is
not ready

Waiting for the system to come back


up
Waiting for inspection
Waiting for paint or seal to dry
Copy machine
A handed-off file to come back

Overproduction

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

WASTES
Processing

DEFINITION
Efforts that create no
value
from the end-users
viewpoint

WORK AREA APPLICATIONS

Creating reports
Use of inappropriate software

Inventory

More information and/or


material on hand than
the
end-user needs right
now

Files waiting to be worked on


Open projects
Just-in-Case inventory anticipated
E-mails waiting to be read
Unused records in the database

Defects

Work that contains


errors,
rework, mistakes or
lacks
something necessary

Missing information
Lost records

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

Follow the Bouncing Paperwork

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

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.

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

What
is
5S?

Methodology for
creating a clean,
safe, orderly, high
performance work
environment

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

The 5 Ss
Sort
Set In Order
Shine
Standardize
Sustain

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

Before

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

After

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

1S

SORT

When in doubt, move it out.

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

1S

Sort: Electronic files

Email
Files on:
Hard drive
Personal drive
Shared Drive

Archiving

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

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.

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

2S SET IN ORDER
A place for everything,
and everything in its place.
"LEAN in Minnesota" presented by the Association of Minnesota Counties

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.

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

2S

Visual Management

A communication device that tells, at a


glance, how work should be done.
1.
2.
3.
4.

Where items belong


How many items
Standard procedure
Work in progress

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

3S

SHINE
The best
cleaning is to
not need
cleaning.

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

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

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

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

4S

Standardize What is it?

Makes Sort, Set in order and Shine


habitual.
Commitment from team members.
Incorporate 5S into regular work
routine.
"LEAN in Minnesota" presented by the Association of Minnesota Counties

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.

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

5S

Sustain Process Steps

Keep it fun!
Friendly competition
Teamwork
Before and after
photographs
Positive reinforcement
Individual recognition or
rewards

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

Are You Ready To Be A LEAN Leader?


Become a skeptic who is
unwilling to accept either the
status quo or the newly defined
process that materializes from a
Kaizen event. Once in place, it
becomes another target for
improvement.
An optimist who sees
opportunity everywhere.
A critical thinker who relies on
substantiating data and
information, and never assumes
anything.

An analyst who is able to dissect


a process down to its core
elements.
A modest leader who is never
overly impressed with success
and is not deterred by failure--things can always be done
better, and usually are, by
someone else.
A team player who doesnt rely
on himself or herself.

A servant who is willing to share


knowledge for the most
important reason.selfless
Gwinnett Countys Department of Financial Services Embraces
LEAN by Richard Reagan, Government Finance Review,
servitude.
December 2011

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

Where there is
no standard,
there can be
no Kaizen.
-Taiichi Ohno
Vice-President, Toyota Motor Company
"LEAN in Minnesota" presented by the Association of Minnesota Counties

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.

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

Not Everything is a Kaizen Event

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

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

cause

cause

Management?

cause

cause

Category

cause

cause

cause

cause
cause

cause

cause

cause
cause

cause

cause

HEAD of the FISH

cause
cause

cause

cause

EFFECT
cause

cause

cause

cause

OR
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.

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

Standardize
the new
operation

Define the
operation to
be improved

Innovate to
meet the
requirements

Kaizen

Gauge
measurements
against the
requirements

Measure the
standardized
operation

Follows Demings
cycle of Plan, Do,
Check, Act (PDCA)

Standardize
the
operation

To take it apart,
and put it back
together in a better
way.

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

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.

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

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.


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

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

We Use Swim Lane Mapping


To Break Down The Process

Three Elements:
1. Time
2. People (job functions)
3. Tasks/Process
"LEAN in Minnesota" presented by the Association of Minnesota Counties

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

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

Swim Lane Icons


Task

DECISION
(Y or N)

Time to
Complete
(in minutes)

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

Swim Lane Icons


Wait / Delay

Storage / File

Wait Time
(in days
or weeks)

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

Swim Lane Icons

Handoff
Electronic,
phone, or fax

Physical
(e.g. passing a
paper item
back and
forth)

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

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

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.


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

Blue Earth County, MN, Kaizen Event

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

Mille Lacs County, MN, Kaizen Event

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

Current & Future Process


Swim Lane Metrics

76.2 % reduction in total process time!


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

Recommendations
Issue:
The initial application process
was lengthy, confusing, and
often incomplete
Solution(s):
Utilize technology (miracle
program) to streamline the
application process

Issue:
Contractors were waiting for
the permit and the Certificate of
Compliance for up to one
month
Solution(s):
Condensed the process to
provide services within 10
business days

Issue:
Multiple onsite visits for
inspectors
Solution(s):
Consolidate inspections from 5
to potentially 3 with training
and education of contractors
and general public

Issue:
Recording document was very
time consuming, costly, and of
little benefit
Solution(s):
Eliminate the recording
requirement

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

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

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

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.

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

Building A
Successful
LEAN
Transformation

Strategy
Leadership
Sustainment
Kaizen
Training
Planning
7 Wastes

5S

Standard Work

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

Increasing Organizational Value

LEAN
Transformation

LEAN Statewide in Minnesota


Collaborative with the
State of Minnesota,
Department of
Administration, Office
of Continuous
Improvement.
Sponsored multiple
three-day Train the
Trainer sessions.
Consisting of one day
LEAN 101 training and
two day Kaizen
facilitator training.

New Kaizen
experiential training.
Development of state
website.
Increase pool of
facilitators and
encourage cross
county sharing.

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

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

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

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

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

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.

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

Q & A
Contact Information
Laurie Klupacs
AMC Deputy Director
lklupacs@mncounties.org
651-789-4329

Toni Smith
AMC Education Director
tsmith@mncounties.org
651-789-4335

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