Lean Thinking and Lean Government - Virginia...

Lean Thinking and Lean Government

Jeff Fuchs

Lean Thinking Defined

• Lean can improve any process in any organization• Lean is satisfying customers better, more efficiently & hassle‐free• A philosophy – a way you do everything, not another thing to do• A journey vs a destination: becoming lean vs achieving lean• Lean is an organization‐wide habit of learning and adaptation

Lean Thinking is precisely defining value byspecific product/service, identifying the valuestream for each, making value flow one-by-one without interruptions, letting eachcustomer pull value from the producer, andcontinuously pursuing perfection.

- adapted from Womack and Jones

The Lineage of Lean Thinking

The EarlyToyota

ProductionSystem(TPS)

Lean Thinking:Generic TPS

TPS + The Toyota Way

SakichiToyoda

HenryFord

TrainingWithin

Industry

TheQuality

Movement

The Toyota Way

Continuous Improvement

Respect forPeople

The Toyota Way is a set of principles and behaviors that underlie Toyota’s managerial approach and production system.

The Evolution of Lean Thinking

Lean Automotive

Lean Manufacturing / Service

Lean Construction

Lean Healthcare

1960 1980 2000

Lean Gov’t

Lean AerospaceOperations

Supply Chain

Lean Office / Service

ProductDevelopment

Accounting

Sales &

Mktg

Lean Is About:

Cycles of PDCA

Customer Value, Less Waste

Total Culture Change

The Way You WorkEvery Day

Systematically

Solving Problems

Everybody

“SSPEED”

Continuous Improvement Family Tree

The Scientific Method

Lean Is About The Scientific Method

Using the Scientific Method for “non‐sciencey stuff”

XPS: The _____________Performance System

Lean Is About The Scientific Method

Lean Is About The Scientific Method

• What is the current process performance?• What is the target process performance?• What is causing the performance gap?• What is your hypothesis for closing the gap?• What is your improvement experiment?• Do actual results match predicted results?• What did you learn?

Toyota Meals per Hourhttps://www.youtube.com/watch?v=EedMmMedj3M

Lean Is About Problem‐Solving Abilities

Toyota is a company that is totally focused on developing the problem‐solving abilities of its people.

(And they also make cars.)

Everybody, Every Day

TraditionalImprovement

[Dis]continuousImprovement

True ContinuousImprovement

The State of the Lean Union

Lean Government Case Study:Michigan Dept of Environmental Quality

• Major Permits: 422 to 98 days (77% faster)• Minor Permits: 143 to 50 days (65% faster)• Application C&A: 82% to 95% (16% better)• Staff time redirected to mission‐critical work• Improved relationships, better communication with industry applicants

• Improved staff morale

Lean Government Case Study:Minnesota Services for the Blind

• Employee Work Time: 13.7 to 7.2 hours (47% less)• Handoffs: 11 to 6 (45% fewer)• Filing Steps: 4 to 2 (50% fewer)• Decision Reviews: 3 to 1 (66% fewer)• Processing Time: 70 to 20 days (71% faster)

Lean Government Case Study:Jacksonville FL Sheriff’s Office

• Complete, people‐centric lean transformation• “We took over $30M out of our budget because of lean.” (Excluding cost avoidances)

• Elected to a third term as Sheriff “based largely on results achieved through lean.”

http://results.wa.gov/what‐we‐do/measure‐results/results

• 2000 attendees (1500 from 58 state agencies, boards and commissions, 10 counties)

• 127 private sector partners

Challenges to Lean Government

• No Profit Motive• Employee Complacency• Bureaucracy• Systemic Push‐Back• Leadership Turnover• Poor Process Measures• Public Scrutiny• Regulatory Compliance

Keys to Lean Government Success• Lean Thinking: Not a Program ‐ a Philosophy• Lean Is a Way to Improve Every Process Anywhere• Lean, Not Mean! Improvement + Respect for People• Target Performance: Growth, Value, Service • Build an Empowered, Involved Improvement Culture• Develop People To Do Lean; Don’t Do Lean to People• Build Habits, Practice, Learn, Tolerate “Failure”• Lean Transformation = Leadership Transformation• Change the System That Drives BehaviorSystematically Solving Problems, Everybody, Every Day

Jeff Fuchsjeff@leanmaryland.com

Cell: 443.865.2198Twitter: @JBFuchs

To Learn More:

Lean TransformationRequires Lean Leadership

Traditional LeanDirector FacilitatorAnswers QuestionsManager CoachResults ProcessProcess People

Short‐Term Long‐TermTransactional Transformational