Process Improvement Steering Committee · • A means to see and eliminate waste in organizational...

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Next Meeting: July 27th, Building 1, Conference Room 350, 3:00 p.m.

Process Improvement Steering Committee July 13, 201, 3:00 p.m. Building 1, Conference Room 350

Committee Members:

Tuck Bowie - Chair, Dan Brockwell – Vice Chair, David Browning, Bill Brunke, Wanda Cooper, Barry Ezell, Brad Martin, Osmay Torres, Bob Dyer. Catheryn Whitesell - Staff

Agenda 1. Welcome and Call to Order

2. Introduction Public Comment

Review of Public Input (i.e. email, phone calls etc.)

3. Old Business Review and Approval of the June 20th meeting minutes

4. New Business/Discussion Items Mr. Torres will provide an overview of Lean Six Sigma

Ms. Whitesell will discuss current activities of the City in areas of survey’s,

process improvement, program evaluations, and efficiencies

5. Announcements Next Meeting: July 27th, Building 1, Conference Room 350, 3:00 p.m. –

Management Leadership will be in attendance to have a brainstorming

session concerning the processes for the Committee to consider.

6. Adjournment

Process Improvement Steering Committee July 13, 201, 3:00 p.m. Building 1, Conference Room 350

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1. Purpose of Meeting

The committee shall serve in an advisory capacity to City Council. The function of the committee will be to work in harmony with City Council and City management to identify problems and barriers that may have negative impact on City operations, efficiency and effectiveness and facilitate solutions.

2. Attendees

Name Name

Tuck Bowie - Chair Dan Brockwell – Vice Chair

David Browning Bill Brunke

Wanda Cooper Brad Martin

Osmay Torres Bob Dyer

Vacant Seat

Catheryn Whitesell - Staff Monica Dudek (Recorder)

3. Agenda

1.) Welcome and Call to Order 2.) Introduction - Guests: Councilman Glen Davis, Bill Dore – Housing, Kenny Pravitz – Fire,

Frank Sacramento – Student, Nas Kalel - Student 3.) Old Business 4.) New Business/Discussion Items 5.) Announcements 6.) Adjournment

4. Meeting Notes, Decisions, Issues

• It was asked of staff to provide a summary of the Blue Ribbon Committee recommendations and the

Green Ribbon Committee recommendations. The Blue Ribbon Committee suggestions were provided to the group and attached to these minutes.

• Michael Blair, a black belt in Lean Six Sigma, gave an overview presentation of what Lean Six Sigma is and how it can be used in the workplace. Lean Six Sigma is: A strategy for achieving significant continuous improvement in performance through the elimination of waste and variation in resources and business process value streams. This PowerPoint is attached to these minutes. Afterwards Mr. Blair answered questions and provided some guidance.

• Committee members had an open discussion on creating a process of identification needs and expectations on time which will be worked on at the next meeting, July 27th, when the MLT will be able to provide insight.

Process Improvement Steering Committee July 13, 201, 3:00 p.m. Building 1, Conference Room 350

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• Catheryn Whitesell did a presentation on current realities and what City departments are doing internally and externally to provide process improvement (PowerPoint attached). Members thought it was important to look over what Quality Organization SIT was doing so that duplicate work would not happen.

• Barry Ezell resigned. Councilman Dyer asked the group to think about a replacement. Considerations

for a candidate would be no politics, chemistry with existing members, and possibly a higher education contact.

5. Next Meeting

DATE: July 27, 2011 TIME: 3:00 LOCATION: Bldg. 1, Conference Room 350 Agenda:

• Welcome and Call to Order • Introduction – Public Comment and Review of Public Input • Old Business – Review and approval of July 13th minutes • New Business - Brainstorming session with the Management Leadership Team concerning

possible processes for the committee to consider. • Announcements • Adjournment

1

TODAY’S AGENDA What is Lean Six Sigma Define and describe Lean Define and describe Six Sigma How would you deploy Lean Six Sigma

Lean Six Sigma Case Study

Questions?

LEAN SIX SIGMA!

A strategy for achieving significant continuous improvement in

performance through the elimination of waste and variation in resources and

business process value streams

Lean Six Sigma is?• A means to see and eliminate waste in

organizational processes• A means to standardize and reduce variation in

organizational processes• A means to establish and control processes

within the organization• An operating principle – simplify how material

and information flow• A means to recognize organizational resources

vs. the demand placed on them.• A means to identify and address issues based

off of data and not emotion• A way of thinking across the workforce

Lean Six Sigma is not?

• A program to Manage• A program to Manage People• Automated• A Software Solution• Better, Faster, Cheaper• A tool to cut personnel and resources• A tool to do more with less

5

TODAY’S AGENDA Lean Six Sigma Philosophy Define and describe Lean Define and describe Six Sigma How would you deploy Lean Six Sigma

Lean Six Sigma Case Study

Questions?

Five Principles of Lean Thinking

• Specify Value of the product from your customer’s perspective

• Identify the Value Stream for each product

• Enable product to Flow without interruptions

• Allow the customer to Pull value from the producer

• Continuously improve…pursue Perfection

The First Principle: Value• Value is specified from our customer’s perspective • Value is activity which the customer is willing to pay for• Value is only meaningful when expressed in terms of..

A specific product or service which meets …• The customer’s needs…• At a specific price…• In the correct quantity…• And at a specific time

Value Added Activity

• Activities that change form, fit or function of a product /service, and

• Activities which the customer is willing to pay for, and

• Activities done right the first time.

9

Voice of the Customer

The value definition is the baseline for determining what activity is “non-value added”

• Understand who are the customers?

• What is the value to customer/end-user?

• Make sure that what we do provides value from the perspective of the customer(s)

Non-value Added Activity

Activities causing no value to be created but exist based on current technology or processes.

These activities are called Required Waste (RW),

orPure Waste (PW)--when the operator and/or the product is idle.

Forms Of Waste

• Excess Inventory

• Transportation

• Over-Processing (Too many steps to complete a job)

• Waiting/Queue Time

• Unnecessary Motion

• Defects

• Over-Production (Producing too much or too soon)

• Injuries

Too Much Inventory

■ Definition■ Any supplies, documentation,

or material on hand that will not be consumed immediately

■ Characteristics■ Long process lead times ■ Build up of material between

processes (queues)■ Extensive rework or scrap

due to TDs or quality problems

■ Additional material handling

Transportation

■ Definition■ Any material or information

conveyance

■ Characteristics■ Multiple moves of material■ Multiple storage locations■ Damaged materials■ Poor facility layout■ Lost material

Over-Processing

■ Definition■ Effort which adds no value to a

product or service■ Work that can be combined

with other processes■ Enhancements that are

transparent to the end-user

■ Characteristics■ Lack of clear end-user

expectations■ Redundant approvals■ Extra copies and excessive

information■ Inefficient policies and

procedures

Waiting

■ Definition■ Idle time in which no value

added activities take place■ People wait time■ Product wait time

■ Characteristics■ People waiting for ________?■ People watching machines run■ Machine or material waiting for

a person■ Inconsistent work methods■ Lack of proper equipment or

materials

Unnecessary Motion

■ Definition■ Any movement of people which

does not add value to the process

■ Characteristics■ Looking for tools and data■ Excessive reaching or bending■ Material too far apart■ Picking up things only to set

them back down■ Poor facility layout

The Cost of Defects

InspectionRe-

assembly

During Testing

By Department

Induction/teardown

?The goal is to eliminate the defect as

far upstream as possible.

When a defect is foundoften has a correlation

to the cost of thedefect!

Overproduction

■ Definition■ Producing more than

immediately needed

■ Characteristics■ Inventory stockpiles■ Extra equipment■ Unbalanced material flow; confusion ■ about priority■ Extra storage locations

Injuries

■ Definition■ Work-related personnel injuries■ Major causes of missed work

■ Characteristics■ Injured personnel■ Near misses■ Lost work days■ Poor flow of goods and

services

The Second Principle: Value Stream

• A Value Stream is the specific activities required to design, build or repair, and deliver a specific product or service into the hands of the end-user

• A Value Stream starts with raw materials or initial requirements

• A Value Stream ends with your end-customer

• Most Value Streams involve several functional organizations

What is a Value Stream?

Identify the Value Stream

• Value Stream• Everything that goes into creating and delivering

value to the end customer…including waste!• Functions are vertical; value streams are horizontal• Typically, nobody considers the “end-to-end” process

Functions

Value Streams

Ex: Contracting, Manpower,

Maintenance, Program Office, etc

Process Flow Chart

A Process Flow Chart is a visual tool for the team to “see” how a process functions.

Traditional Results

Traditional Results

• Value-Added work steps

• Non-Value Added work steps

• Better tools, machines, instructions

• Results: Small time savings

Lean Approach

Savings or Improvement

• Make all of the Value Stream Visible

• Reduce or eliminate Non-Value-Added portions of the process• Results: Large time savings

Non-Value-Added portions Before

After

Your role in the Value Stream

• Take the action to map your value stream

• Know your value stream – Walk it!

• Make sure you have metrics in place that measure value

• Support your Value Stream Analysis (VSA)events

• Provide resources----get involved in a VSA

The Value Stream is your organization at work.Make sure it produces value, not just activity

The Third Principle: Flow

What is Flow?

• The continuous, progressive adding of Value in the eyes of the Customer• Starts at receipt of customer request• Ends at delivery to customer

• Flow utilizes the fewest number of steps with no interruptions • Eliminates waste

People always working on the product and the product always being worked on.

Takt Time - The Foundation for Flow

• Takt is German for the musical concept of time, measure, rhythm• The rate at which a product or service needs to be

provided to meet customer demand

• Build your processes to produce/repair products or services at Takt Time

Takt TimeDaily available production time

Daily customer quantities required=

Typical work center flowProcess Name: Standard Work SheetModel Number:

Model Name:

Date:

From: Dept. Head SupervisorScope of Operations To:

QualityCheck

SafetyPrecaution

Standard Workin-process

#. of pieces of std.work in-process

TAKT Time

OperatorNumber

computer

Work bench(Tubes under bench)

HCT10 T-10

O

Pubs

InductedGears

WaistHYD.FLD>

STS-1 STS-2 STS-3 HCT-12

Tool Boxes 1,2,3,4Pines Bender

Door

DoorDoor

Test Fixtures

Entrance

Entrance

Hoses on wall

PRE-X

EHACBlue bomer

hosesHYHAC

IMRLupstairs

OFFICE DESK

TrainingDesk

Tube cutter

Hose fixtureHose burst Chamber Mis.Items

One man, one part, over 5 milestraveled, one shift of work

including NDI, parts were available…

The Fourth Principle: Pull

Push vs. Pull

Push systems attempt to predict demand and cover that demand with

inventory.

Pull allows us to synchronize our production to our customer demand

“Pull” systems provide the right amount at the right time; no more, no less, not early, not late

Pull System Advantages

• Increases speed to your customer

• Reduces inventories without creating parts shortages

• Decreases floor space

• New thought process: replaces “Ready or not here I come” with “OK, Now I’m ready”

The Fifth Principle: Perfection

What is Perfection ?

Perfection = ????

Can we achieve perfection?

36

TODAY’S AGENDA Lean Philosophy: What it is and what it is not! Define and describe Lean Define and describe Six Sigma How would you deploy Lean Six Sigma

Lean Six Sigma Case Study

Questions?

99% Defect-Free

Is 99% good enough?

99% would mean:• 20,000 lost articles of

mail per hour• 5,000 incorrect surgical

operations per week• No electricity for almost 7

hours each month• 200,000 wrong drug

prescriptions each year

• Unsafe drinking water for almost 15 minutes each day

• 2 short or long landing at most major airports each day

Six Sigma would mean:• 7 articles lost per hour

• 1.7 incorrect surgical operations per week

• One hour without electricity every 34 years

• 68 wrong prescriptions per year

• One unsafe minute every seven months

• One short or long landing every five years

Six Sigma vs. 99%

Six Sigma Methodology

• DMAIC

• Define the project

• Measure the current situation

• Analyze to identify causes

• Improve / optimize the process

• Control plan to maintain the gains

So What Again is Six Sigma ?

• A Performance Measurement - YES!

• A Set of Improvement Tools - YES!

• A Stretch Goal for Processes - YES!

• A Data Driven Philosophy - YES!

• A Structured Approach for Process Improvement - YES!

It’s all about “Satisfying Customer Needs Profitably”

The Six Sigma approach:

• Identify, isolate, and eliminate variation

• Effective processes that consistently deliver value

• Prevent defects…don’t just detect them.

• Proactive problem-solving instead of reactive fire-fighting

• Data driven improvement and decision making

• Competitive edge in speed, quality, and cost

What is Six Sigma?

Root Cause (5 Why’s)

Why?The Jefferson Memorial is deteriorating

Too much washing

Excess bird droppings

Lots of spiders to eat

Lots of gnats to eat

We leave the lights on all the time

Why?

Why?

Why?

Why?

Cause and Effect (Fishbone) Diagrams

Bones are major Cause categories

Machinery Manpower

Methodology Materials

Copiers break down

Process confusing

Collators error prone

Dates not coordinated

Now elaborate

Why Late Document Deliveries?

Measurement Manpower

Methodology Mother Nature (Environment)

Materials

Machinery

Why Late Document Deliveries?

A 1

A 2

A 3

A 4

A5

A 6 A 7 A8 A 9

A10

Specifications are met. The pilot landed on the runway each time.

Quality: Uniformity around a target

B 1B 3B 2B 4B 5B 6B 7B 8B 9B 10

The pilot lands closer to the center of the runway (the target value).

Quality: Uniformity around a target

The Million Dollar Question:

Would you care which pilot flies the airplane you’re on?

Why?

Right Edge of the Runway

(USL)

Left Edge of the Runway

(LSL)

Center of the Runway

(TARGET) Pilot BPilot A

B 1B 3B 2B 4B 5B 6B 7B 8B 9B 10

A1

A2

A 3

A4

A 5A6 A 7 A 8A 9 A 10

Right Edge of the Runway

(USL)

Left Edge of the Runway

(LSL)

Center of the Runway

(TARGET)Pilot A Pilot B

B 1B 3B 2B 4B 5B 6B 7B 8B 9B 10

A1

A2

A3

A4

A 5A6 A 7 A 8A 9 A 10

What if these were your choices?

The Normal Distribution

Areas under the normal distribution curve

99.73%

µ = mu = mean

2σ 2σ1σ 3σ1σ3σ µ68.26%95.46%

99.99999975%

6σ6σ

σ

σ = sigma = standard deviation(average distance from the

mean)

49

TODAY’S AGENDA Lean Philosophy: What it is and what it is not! Define and describe Lean Define and describe Six Sigma How would you deploy Lean Six Sigma

Lean Six Sigma Case Study

Questions?

Organizational Deployment Strategy

• HOW DO WE STAY THERE?

• HOW DO WE GET THERE?

• WHERE ARE WE GOING?

• WHERE ARE WE NOW?

Organizational Deployment Strategy

CURRENT STATE

IDEAL STATE

FUTURE STATE

FUTURE STATE

FUTURE STATE

FUTURE STATE

FUTURE STATE

FUTURE STATE

VISION STATEMENT

MISSION STATEMENT

GOAL-GOAL-GOAL-GOAL

OBJECTIVEOBJECTIVEOBJECTIVE

OBJECTIVE OBJECTIVEOBJECTIVE MEASURABLE

Action Plan

Action | Owner | POC | Start | End | Event

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Objectives

------------------

------------------

------------------

------------------

------------------

------------------

1

4

7

2

5

3

Metric

#

%

#

%

%

#

Value Streams

| | | | | | | | | |

| | | | | | | | | |Decision Matrix

5 / 5 3 / 3 3/ 3 1/ 1

3/12 1 / 4 5/20 3/12

Prioritized Impact

A G B C F E D

EVSA Process Steps

Pre-EVSA EVSA Post-EVSA

STRAT PLAN

VISION

MISSION

GOAL

SIPOC

KEY PROCESS

OBJECTIVES

Action Plan

Action | Owner | POC | Start | End | Event

----------------------------------------------------------------------------------------------------------------------------------------------------------------

EVSA Process Steps

Pre-EVSA EVSA Post-EVSA

Objectives

------------------

------------------

------------------

------------------

------------------

------------------

1

4

7

2

5

3

Metric

#

%

#

%

%

#

Value Streams

| | | | | | | | | |

| | | | | | | | | |Decision Matrix

5 / 5 3 / 3 3/ 3 1/ 1

3/12 1 / 4 5/20 3/12

Prioritized Impact

A G B C F E D

STRAT PLAN

VISSION

MISSION

GOAL

SIPOC

KEY PROCESS

OBJECTIVES

Action Plan

Action | Owner | POC | Start | End | Event

----------------------------------------------------------------------------------------------------------------------------------------------------------------

EVSA Process Steps

Post-EVSA

Objectives

------------------

------------------

------------------

------------------

------------------

------------------

1

4

7

2

5

3

Metric

#

%

#

%

%

#

Value Streams

| | | | | | | | | |

| | | | | | | | | |Decision Matrix

5 / 5 3 / 3 3/ 3 1/ 1

3/12 1 / 4 5/20 3/12

Prioritized Impact

A G B C F E D

EVSAPre-EVSA

STRAT PLAN

VISSION

MISSION

GOAL

SIPOC

KEY PROCESS

OBJECTIVES

55

TODAY’S AGENDA Lean Philosophy: What it is and what it is not! Define and describe Lean Define and describe Six Sigma How would you deploy Lean Six Sigma

Lean Six Sigma Case Study

Questions?

FORT WAYNE INDIANA

Initial Rollout:

• Business man Graham Richard elected Mayor in 2000

• Set up an Executive Council to serve as deployment team

• All division managers and departmental leaders attended two day LSS training

• 20 Black Belts and 40 Green Belts trained in the first three years.

FORT WAYNE INDIANA

Deployment Philosophy:

• Initial project selection was performed by the Executive Council

• Once personnel were trained project choice was often left up to department managers

• Each potential project is evaluated based on: - Its potential impact on customers and citizens- Its potential impact on internal effectiveness- Effect on citizens out weighed internal effectiveness

FORT WAYNE INDIANA

Initial Results: • Within the first three years the city completed 60

projects resulting in a savings of $3 million.

Projects Included:Fire Department Fire Code Inspection Process

resulting in 23% more inspections with the same personnel.

21% reduction in over budget transportation engineering projects. Freed up $150,000 first six months

Street repair response time decreased from an 80 hour average to 98% in work within 24 hours.

FORT WAYNE INDIANA

Lessons Learned:

• Public sector organizations had a longer learning curve during the initial training phase

• Persistence was need to overcome long-held patterns of behavior - permit approval worked with 14 different agencies

• A lot was gained from simple tools- Process maps forced personnel to see what really happens in their operations

Questions?

1

City Efforts to Continuously Improve

Process Improvement Steering CommitteeJuly 13, 2011

Blue Ribbon Committee

2

In 2007, the City Council appointed the Blue Ribbon Committee to look at City revenues and expenditures

The committee made 51 expenditure recommendations, 27 compensation recommendations, and 10 revenue recommendations. 66 of which have been reviewed and many of which are integrated into routine City operations. http://www.vbgov.com/file_source/dept/mgmtsvcs/Document/Reports%20and%20Documents/blue_ribbon_task_force_final_report.pdf

Ongoing Process Improvement Efforts

3

City Manager’s Office – Organizational Development Office Storm Water Defects Team Inter-Departmental Transfers

Departments are charged with reviewing at least one process annually for improvement (attached list from departments)

Program Evaluation

4

Management Services Currently under review: Solid Waste and Meter Reading Routes City/School Fuel Merger Special Events Inventory of Homeless Services

Previously reviewed: Consolidation of City Call Centers Neighborhood Inspection Services

Surveys

5

Management Services Biennial Citizen Satisfaction Survey – this survey is done by Continental

Research to gauge citizen satisfaction with a host of city services, taxes and safety. http://www.vbgov.com/file_source/dept/mgmtsvcs/Document/Reports%20and%20Documents/09CitizenSurveyPresentation.pdf

Human Resources Biennial Employee Survey – this survey is done by Your Market Research

to examine key factors in employee satisfaction such as leadership, recognition, and work environment. http://beachnet.vbgov.com/file_source/dept/hr/BEACHnet/Member_Communications/Documents/Member_Surveys/2010/VaBeach2010Report.pdf

Departments Survey their customers on specific issues and services

Benchmarking

6

Management Services works with regional cities and comparable communities nationwide to identify best practices in which to measure program outcomes Key measures and taxes are presented to City Council in

January each year http://www.vbgov.com/file_source/dept/mgmtsvcs/Comparative%20Indicators%20to%20Other%20Hampton%20Roads%20Cities%20Jan%202011.pdf

Results Monitoring

7

Community Indicators to monitor key indicators of community healthhttp://www.vbgov.com/vgn.aspx?vgnextoid=04376a4ee651a210VgnVCM100000190c640aRCRD&vgnextchannel=020e54cf18ad9010VgnVCM100000870b640aRCRD&vgnextfmt=default

Total Quality Management System Approach

Organizational Indicators

Linking programs to City Council’s Vision for the Future

Striving for Excellence Report www.vbgov.com/file_source/dept/citymgr/Document/10SFXReportFinal.pdf

Initiatives Underway

8

Performance Measurement Reinvigorate old system

Currently piloting a new process to focus performance measurement on expected results – Overcome data resistance and the “we have done it before” syndrome

Using elements of Balanced Scorecard to focus on customers running the “business” link to City Council Vision and to department missions

Develop a system to routinely examine key program results with senior leadership

Data management (Dashboards) ComIT is working on an open data portal on the City’s new web pages which will allow

access to raw City data, enhancing transparency Need to work on data monitoring strategies that don’t involve pulling reports Working to enhance GIS use to show data geographically

ComStat – GIS based crime monitoring system

Privatization Initiatives

9

Examining ways to restructure the City/School print shop Parts operation at the City Garage

Completed City golf courses are all privately operated Many areas of the City have private landscape maintenance Sportsplex

Technology to Improve Efficiency

10

Accella software will allow on line permits, permit tracking and payments

EMS Field Reporting allows EMS volunteers to handle patient information confidentially from the scene

CLASS software for online registrations for recreation classes Hansen software to enhance work order processing and tracking

(Parks and Recreation, Public Works, and Public Utilities) Crime Mapping application allows the Police Department to

identify potential problem areas Online Property auctions off surplus City property or lost items Mobile access to the Library Catalog Free wireless service at libraries

Partnerships

11

Leverage private dollars to expand public services Work together to offer services

Examples of Economic Development Partnerships Town Center 31st Street Tidewater Community College Expansion Operation Smile Headquarters

Examples of Operational Partnerships Citizen Advisory Council’s for Police Friends of the Libraries Aquarium Foundation Medically Friendly Hurricane Shelter with the Field House

Strategic Issue Teams

12

There are seven standing multi-departmental teams whose purpose is to focus on developing trends and strategies to address them: Safe Community Family and Youth Opportunities Economic Vitality Quality Physical Environment Quality Education and Lifelong Learning Cultural and Recreational Opportunities Quality Organization

Citizen Engagement Efforts

13

Town Hall meetings on the Budget & Budget Open House Design input meetings for roads,parks & buildings Comprehensive Plan Examples of issue specific public input: Tidewater Youth Council Historic Preservation LED Signs Mayor’s Commission on Alternative Energy Green Ribbon Committee Initiatives

Volunteers

14

Actively encourage the use of volunteers to: Promote citizens to contribute to and get involved with their

government Deliver critical government services in the most efficient

method.

In FY 2010, 18,000 volunteers contributed 1.3 million hours of service with a value of $19 million.

15

Recognition U.S. Senate Productivity Award 8th Most Efficient Local Government in the Country –

Reason Institute Wall Street recognized Virginia Beach as the best managed

City in the region with a AAA Bond Rating

Blue Ribbon Committee’s Recommendations Update

Process Improvement Steering Committee BriefingJuly 13, 2011

2

Blue Ribbon Task Force Recommendations Revised for FY 2010-11

3

CompleteOn-

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City Council Decision

EXPENDITURE SUBCOMMITEE’S RECOMMENDATIONS:

3.1 Strategic Plan

City Council involved Plan with community input X

Link all City Plans (Comprehensive Plan, Budget, CIP, etc.) to the Strategic Plan X

Objectively measure the success of programs linked to the Strategic Plan X

3.2 Cap on Spending

City Council should keep spending in line with overall economy rather than rely on an absolute spending cap X X

3.3 Revise Budget Process

Make budget process easier for City Council and Stakeholders to comprehend X

Incorporate a fixed and variable expenditure analysis of all budget line items X

Increase efforts to obtain citizen input and participation early in the budget process X

Improve efforts to educate citizens X

Direct staff to provide quarterly reports to City Council and stakeholders X

Review funding formulas annually X X

Require new ordinances to identify funding sources X

Create on-going budget commission to assist City Council X

Encourage School System to conduct similar review of their budgetary and business processes X

Institute an integrated automated system for tracking expenditures X

CompleteOn-

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City Council Decision

EXPENDITURE SUBCOMMITEE’S RECOMMENDATIONS (continued):

3.4 Business Processes, Efficiency, and Increased Labor

Adopt Lean Six Sigma approach X

Set specific benchmarks for continual increases in process efficiency and productivity gains X X

Consider consolidating cost centers X X

Increase the use of automation and technology to simplify processes and improve efficiency X

Engage public and staff to identify and resolve problems on an on-going basis X

Streamline the process for implementing new technology X

Apply a sunset clause to all programs X

Ensure that all budget policies are in writing and reviewed regularly X

Reward efficient practices and suggestions X

Encourage entrepreneurial innovation rather than traditional bureaucracy X

Create a hotline whereby the public and city employees can suggest specific ideas X

Identify and remove factors or policies that encourage counter-productive behavior X

3.5 “Green” Processes and Energy Efficiency

Conduct comprehensive energy audit of all City and School resources X

Provide rewards and incentives for staff to save energy X

Encourage staff and public to identify potential cost saving solutions X

Adopt “green roof” technology in renovations and new construction of government buildings X

Evaluate potential benefits of moving to variable–rate pricing with peak load management. This strategy would help reduce overall electricity bills. X

4

5

CompleteOn-

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City Council Decision

EXPENDITURE SUBCOMMITEE’S RECOMMENDATIONS (continued):

3.6 Economic Development

Develop an economic plan that evaluates workforce needs and business growth incentives X

Link funding of economic development to defined outcomes X

Encourage private-sector entities to invest in economic development efforts X

Encourage businesses within each region of the City to compete for City’s limited resources X

3.7 Decision-Making Processes

Proffers should identify any increased maintenance costs X X

Require that all major construction or redevelopment projects include an analysis for financial impacts on public safety and infrastructure X

Evaluate “best practices” nationally from both the public and private sectors X

3.8 Under-funded Mandates

Make a request for funding unfunded or underfunded mandates a part of the City’s legislative package each year X

3.9 Capital Expenditures

Integrate CIP projects with Schools X

Proactively plan future for capital expenditures X

Perform a cost/benefit analysis for any new program or capital expenditure in excess of $500,000 X

CompleteOn-

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City Council Decision

EXPENDITURE SUBCOMMITEE’S RECOMMENDATIONS (continued):

3.10 Miscellaneous

Freeze salary supplements for City Treasurer and Commissioner of the Revenue and evaluate combining functions under the City Finance Department X

Evaluate combining administrative functions of Fire and Emergency Medical Services X

Introduce a cost recovery program for lost or damaged equipment X

Appoint a comptroller to provide accounting review and assistance to the City Council X

3.11 Next Steps

Use consultants to obtain an independent and objective analysis of ideas presented by the Blue Ribbon Taskforce X

Consider phasing in the implementation of a Homestead Provision and identify potential savings to offset anticipated revenue shortfalls

XN/A

Develop policies to address fiscal impact of Virginia Beach’s aging population X

Identify examples of what other communities have done to improve their budget process X

Study financial impact of addressing City’s aging infrastructure X

6

7

CompleteOn-

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City Council Decision

EXPENDITURE SUBCOMMITEE’S RECOMMENDATIONS (continued):

4.2 Employee Compensation

Bring compensation plans more in line with the private sector X

Replace “best paid employees” policy with “attract and retain qualified and motivated employees” X

Limit total direct salary expenditures including merit increases X

Change policies under which employees receive merit pay (approximately 97% currently receive merit pay) X

End the current policy of providing uniform pay increases to all city employees-tie pay to performance X

Provide City Manager with flexibility to recognize and differentiate levels or employee performance X

For State positions, pass through State pay raises, but apply the City’s new performance based program to the City portion of these salaries X

Gradually shift from defined benefits to defined contribution benefits as used in the private sector X

Unfunded obligation should be disclosed as a part of the budget X

Consider capping the City’s contribution of retiree’s health insurance premiums as a an absolute dollar value in budget X

Consider Health Savings Accounts (HSAs) and Health Retirement Accounts (HRAs) as used in the private sector X

Reduce overall number of city employees (1% reduction in full-time employees would save $3 million)

X

8

CompleteOn-

going

City Council Decision

EXPENDITURE SUBCOMMITEE’S RECOMMENDATIONS (continued):

4.2 Employee Compensation (continued)

Evaluate opportunities to outsource City services X

Undertake a Commercial Activities Program or Competitive Source Program (require city services to compete with private sector companies) X

Explore recruitment of retired public employees to return on a part-time or contractual basis X

Maintain and expand the City’s current volunteer programs which actively reduce costs X

Review each position that has been vacated or is to be vacated before rehiring X

Task the City Manager with increasing staff productivity by one percent each year X

Review overtime costs and determine ways to control them X X

Evaluate the City’s current “No Layoff Policy” X

Create a process for review of disability retirements and worker’s compensation claims X

Require parties that are disabled from one type of work in the City to seek other available City jobs rather than retire X X

Reduce the number of paid holidays provided to city employees from 11.5 to 10 to match federal employees (Note: City only has 9.5 holidays currently) X

Discontinue policy of giving employees a paid day off on their birthday X

Conduct a cost/benefit analysis of combining sick and annual leave into a universal leave system X

Request that the State Legislature require the State Compensation Board to realistically adjust pay scales and benefits to match compatible salaries in the region X

Cap City salary and benefits contributions to existing State positions at their current level X

9

10

CompleteOn-

going

City Council Decision

REVENUE SUBCOMMITTEE’S RECOMMENDATIONS:

8.1 and 8.2 Homestead Provision

Regardless of the passage of the Homestead Provision City Council should consider options to lower the real estate tax rate

XN/A

Offset some real estate tax revenue loss through expenditure reductions X

Pursue General Assembly authority to have a local income or sales tax to generate revenue to partially offset the reduction X

Do not attempt the Homestead Provision without identifying a strategy to address the impacts either through expenditure reductions or offsetting revenues

XN/A

8.3 Surplus Property

Consider selling surplus property for capital investments X X

8.4 Equity Concerns

Where there are equity issues, identified by the Committee, the City Council needs to consider making those revenue adjustments X

8.5 Fees and Charges

Fees should be adjusted at least biennially for inflation to ensure cost recovery X X

8.6 Stimulate Economic Growth

Work with strategic partners X

Identify needed assets: transportation, land, and buildings X X

Use first rate advisors in analysis and negotiation of investment opportunities X

11

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Housing and Neighborhood Preservation Item Status Result/Expected Result Implementation of new software to manage the $15 million Housing Choice Voucher program

Completed in 2010

Improved financial accountability, program information, and security

Implementation of wireless field computing for 20 Code enforcement inspectors

In process/to be complete by 2012

Reduced duplication of effort by inspectors and clerical staff; ability to issue notices and obtain real-time information in the field; reduced total staff costs

Lien collection project – attempt to collect all existing code enforcement liens

Beginning in August, 2011 to be complete by June, 2012

Higher collection of debts due to city; avoid loss of revenue; will bring lien collection process to an ongoing, current process

Asset Management Program for Homeowner Loans

Complete in 2011

Provides comprehensive guide to managing and protecting over $5 million in city assets through policies, procedures and enhanced record keeping and review; will maximize city’s ability to collect on housing loans over time

Asset Management for Non-profit loans and grants

Complete in 2011

Provides enhanced tracking of over $7 million in loans to non-profits, insuring that housing created with city-provided funding continues to be used for intended purposes.

Improvements to the Housing Rehabilitation Customer Database

Programmed for FY 2011-2012

Will enhance ability to track and manage financial assistance to homeowners

Implementation of Recommendation of Report on Inspections re: Commercial/Recreational Vehicles

In effect as of July 1, 2011

Code enforcement has assumed responsibility for enforcement of the commercial and recreational vehicle code; this frees up time for Zoning inspectors to address Council use permits and other critical zoning issues; and provides more efficient use of staff time to address this important function.

Planning and Community Development DSC Process Improvement Efforts: Envista – Public Works has subscribed to a map- and web-based program designed to provide public and private organizations with a method of communicating and coordinating activities in

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the public right-of-way more efficiently and effectively. This improved communication helps to avoid damage to newly surfaced or constructed roads and identifies potential conflicting work in the public right-of-way. The DSC is providing key information (right-of-way permits and approved development plans) from its database to alert users of proposed construction. The program is also designed to identify streets that cannot be disturbed during certain times of the year or after resurfacing. In addition to identifying potentially conflicting activities, the application will show areas of construction and possible delays due to construction activities by the City, private developers, or private utilities. Public Works Specifications and Standards Revision – Public Works is revising its Specifications and Standards (S&S) to Design Standards in order to include only standards relating to public infrastructure. The DSC is working with the committee to determine which standards should stay with Public Works and what items should be housed in the DSC. Some of the items will be eventually placed in the Integrated Site Design Guide (currently under development) and others will be placed on the DSC’s new website. Integrated Site Design Guide (ISDG) – The ISDG is being developed as a part of the Green Ribbon Committee’s initiatives. It will take the place of the current Landscape Guide. The ISDG provides updates to parking lot and foundation, screening specifications and standards, and new tree planting, preservation and replacement information. Low impact development stormwater management facilities for parking lots and developments will also be included. Stormwater Defect Committee – Key members of the Departments of Public Works and Planning met for several months to determine the number and causes of stormwater pipe failures in subdivisions. Several improvements to the review and inspection processes were made. A higher level of information exchange and communication were seen as products of the Committee’s efforts. The last follow up meeting will be held in September to access the results of implementing the Committee’s recommendations. One area of concern to customers is the scheduling of videoing the stormwater pipes at the Certificate of Completion and the end of the defect period. This scheduling process is still being monitored. Accela Process Improvement for DSC Business Systems – The DSC has several separate business databases that were developed over the years to improve the administration of the development process. When new, each database served its purpose well. Unfortunately, the databases are not linked together for efficiency. Online financial transactions and plan submittal, review, and approval are not available with the current software and hardware resources. The first phase of updating and improving the business systems for development review and approval process was completed in the fall of 2010. Due to a lack of funding, the implementation phase will not occur until sometime after July 1, 2012, if funding is available.

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Communications and Information Technology (ComIT)

Background Summary: ComIT has created a strategic plan based on its vision of enabling the workforce; customer service; access anytime, anyplace; and sustainability. We will succeed by embracing our foundational principles of innovation; systems thinking; service excellence; continuous improvement; and stewardship of resources.

Improvement Efforts Improve VBgov.com – A planned early fall release of a redesigned VBgov.com to provide an improved user experience for visitors of the official city web site. Enhancement will include a more visually appealing web site that is easier to navigate and will be compatible with multiple browsers including mobile devices. Next Generation Communications – An in-progress assessment with resulting strategy development to replace legacy telecommunications systems. The goal is to improve how non-public safety users interact and perform their mission critical functions while leveraging the City’s existing enterprise network(s) to enhance functionality across multiple business lines. The system would facilitate collaborative communication, builds upon a new standard for networking, and enables multiple device types to include computers, mobile devices, radios, etc. Replacement of Incident Management Software - Planned FY12 replacement of our technology service call logging and incident management system. This project will improve reporting, tracking and customer communication for technology issues managed by the ComIT Support Center. Goals of the project are to revise the call typing/classification model, implement customer self service via a web portal, and to refine service oriented performance measurement. Improve Account Management by implementing a cross divisional account management team to manage the addition and removal of user accounts from active directory and various applications supported by ComIT. Technology Systems Disaster Recovery Planning – identify the services critical for the public’s safety and welfare and establish plans for restoring these services rapidly if disrupted in a disaster. We are currently in phase one of the project to consolidate and standardize all documentation that would be required for critical services recovery; and to store this information in an offsite location that would be available if the city’s infrastructure is affected by a disaster.

Other Planned ComIT Initiatives: • Configure and deploy enhanced desktop energy management capabilities • Establish an enterprise applications life cycle management plan • Develop mobile VBgov components • Enhance application deployment testing and quality control • Expand customer query and reporting capabilities • Revise the technology customer service model • Develop a technology product selection framework

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Police Department BlueTeam application - BlueTeam is a web enabled application designed to support field personnel by enabling use-of-force and administrative investigations to be entered and managed in the field. The application streamlines the intake and assessment of information from the field and eliminates significant redundant data entry workloads.

Animal Care and Adoption Center Sterilizations - In July 2010, the Animal Care and AdoptionCenter increased the adoption fees to accomplish sterilizing shelter animals prior to adoption. Improvement in Crime Mapping - A new mapping application in the records management system was implemented to assist the Police Department with the identification of potential problem areas in the City of Virginia Beach. The use of a map-based system also allows the Police Department to maintain up-to-date streets and geographic information files obtained from City GIS.

Wireless Access from Vehicle Computers – Funding was provided to install wireless cards in approximately 300 police vehicle laptop computers which provide officers access to the City’s network, email, criminal records management systems, and other office productivity software. Subsequently, the computer aided dispatching system was moved to the Verizon Wireless network. This has increased the speed of CAD functions beyond what was experienced. Mobile Field Reporting – The FY 12 capital improvement program includes a project to replace and/or enhance our current public safety records management systems. Included in this project is the implementation of mobile field reporting which will provide officers the ability to directly enter their own police reports into the computer system from their vehicles. This greatly enhances efficiency and provides follow-up investigators and analysts much quicker access to the reports. Data Storage of Evidentiary Files – The FY 12 capital improvement program includes a project to store and better manage digital evidentiary files, such as photographs and videos. This will provide enhanced security and more efficient access.

Property and Evidence Voucher Scanning - The Police Department maintains vouchers of all property and evidence coming into its Recently a project was completed to digitize an estimated 300,000 pages of property vouchers maintained since the 1970s. These hardcopy documents require a large amount of space for storage and require manual retrieval. These hardcopy documents will be destroyed after the quality assurance phase is completed. Online Property Auctions – the Police Department implemented online property auctions through a private vendor which has increased revenue by about 300% and reduced staff time preparing for the auctions. Cat Adoptions - Adoptable cats are showcased at several Petsmart locations to increase adoptions through the Virginia Beach Animal Care and Adoption Center.

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False Alarm Reduction Program - The implementation of a False Alarm Reduction Program has reduced the number of false alarms responded to by patrol personnel by 15.4% in 2009, another 9.0% in 2010, and another 8.6% in 2011 (through May), as well as generating revenue through alarm registrations and fees.

PhotoSafe - The Police Department re-deployed photo enforcement initiatives and began installing cameras at dangerous intersections across the city. The implementation of this program required hours of cooperative efforts of the Police Department, Traffic Engineering, Public Works, Permits and Inspections, the Department of Transportation and Redflex Traffic Systems, Inc, the camera vendor. Initial results show a positive impact on the reduction of violations. A thorough evaluation will be conducted.

Prescription Drug Turn-in - Scheduled in response to an increased concern about the improper disposal and abuse of old prescription drugs, several prescription drug turn events have taken place and have been successful. These are held in conjunction with the Drug Enforcement Administration to reduce traces of prescription drugs including antibiotics, pain medications, and estrogen in the drinking water. Crime Solvers Text a Tip - mobile phone and computer users in Virginia Beach and across Hampton Roads now have the ability to provide anonymous crime fighting tips through the power of anonymous text messaging and online Web Tips. Virginia Beach Crime Solvers and Anderson Software, the industry leader in law enforcement tip management software, have joined together to provide this service which allows citizens to send anonymous tips through a text message from a mobile phone or an online message from their computer. Crisis Intervention Team - The Virginia Beach Police Department is working collaboratively with the City of Virginia Beach Department of Human Services, the Virginia Chapter of the National Alliance for Mental Illness, the Virginia Beach Sheriff’s Office, The Virginia Beach Emergency Communications Center, and the Virginia Beach Psychiatric Center to implement and expand a Crisis Intervention Team. The Crisis Intervention Team approach improves the availability of emergency services to citizens and visitors to the city who are suffering a mental health related crisis. This is a multi agency approach designed to train police officers in de-escalating people in crisis, and then making proper referrals for mental health services or medical treatment, as a preferred alternative to arrest. Southern Virginia Internet Crimes against Children Taskforce - The Computer Crimes Unit participated in a Southern Virginia Internet Crimes against Children Taskforce (SOVA ICAC) initiative dubbed, “Operation Guardian.” During its 5-month operation, officers used computer technology and the Internet to search out, identify and investigate persons accessing and distributing child pornography over the Internet and resulted in 14 suspected child pornographers residing within the City of Virginia Beach. Police Applicant Testing - A consulting company was contracted to assist in reviewing the entry level testing process for police applicants. The firm recommended multiple options in regards to our entrance level testing. After a thorough review of these options, the City selected a new test due to the tests ability to evaluate multiple behavioral and cognitive functions that are linked to the duties of a police officer. This also resulted in the elimination of one former test.

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Neighborhood Surveys – The Police Department recently surveyed approximately 1100 residents in several neighborhoods to receive feedback on their perceptions of the police and crime. The results are being used in our planning efforts in those neighborhoods. Public Utilities CIP Evaluation – to evaluate monthly billing and the impacts on water meter reading Partnership for Safe Water Distribution Program is sponsored by AWWA to improve performance by optimizing system operations rather than relying solely on significant capital improvements. VBPU is a charter member Product Selection Committee – to review existing and potential products/services and develop recommendations which best serve the needs of the organization. Interactive Voice Response (IVR) -- an automated, interactive system to provide customers with new self-service options, including the ability to access up-to-date account information, request a payment extension, verify service connection dates and times, and obtain general information such as payment locations. Outbound Dialing (payment reminder service) - to send recorded payment reminder phone calls to delinquent customers several days prior to their scheduled date for service disconnection. The automated calling service provides customers with their past due balance and the date by which it must be paid, as well as information on how to make a payment or request a payment extension Public Utilities Online Services (web-based customer self-service application) – to provide customers access to real-time account information 24 hours a day, 7 days a week, from home or work, any day, any time. The system has also served to eliminate data entry errors associated with addresses and to reduce return mail Admin Module – an intranet-based system to streamline customer service transactions and to automate customer service processes New Meter Locking Devices -- a capability to secure/lock water meters that has nearly eliminated the expensive and time-consuming practice of pulling meters for non-payment Streamlining Processes: Dealing with checks returned for insufficient funds Processing plumbing adjustments with related payment arrangements Processing calls from delinquent customers looking to reconnect service after having made an electronic payment Libraries Voice notification of overdue notices and holds reminders This summer the Library began offering customers an additional way to receive instantaneous notifications of overdue notices and holds. For customers who do not have or use email, we can now send voice notifications to their telephone number reminding them that they have overdue library material, as well as hold pickup reminders and Library card expiration reminders. This is a much faster level of service than relying upon the US Postal Service and saves considerably on postage costs.

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Credit/Debit Payment for Library Fines and Fees Customers may now pay their fines and fees using their credit/debit cards at the library. Within the year, they will be able to do so using payment kiosks at most libraries and online from anywhere. As fewer people carry cash, this service is a great convenience to the customer and also speeds up customer transactions, keeping lines to a minimum at the public service desks. Mobile Access to the Library Catalog Using a mobile app, customers may now access the library catalog while they are on the go, providing a greatly enhanced level of customer service at almost no cost. Using RFID (Radio Frequency Identification) Tags Because the Library has put RFID tags on the book and AV collections, the public may utilize self service check-out. In the coming year, self check-in will become available at five locations, as will automated materials handling. These technological advancements speed up check-out and check-in and result in shorter lines at service counters. At the same time it frees up our reduced number of staff so that they can deal with more difficult transactions and answer reference questions. Free Wireless Service Approximately a year ago, the library introduced free wireless service at all locations based upon public demand. The public many now use their laptops and mobile devices in the library, allowing the Library to provide greater access to our desktop computers for those who cannot afford wireless devices. Quicker Access to New Books and Media Efforts are underway to streamline the staff, workflow and resources of Collection Management and Cataloging that will result in a reduction in the time needed to get newly acquired materials to library customers. Circulation Function Efficiencies Efforts are underway to streamline the pulling of reserves requests off the shelf (50,000 a month), unpacking and sorting deliveries (200 bins a day), and the shelving of returned materials (over 3 million a year), which will result in the public having faster access to materials and better utilization of staff.

Convention and Visitors Bureau CVB/Director – Process Improvement Team being established to review human resource transaction processes, primarily for leave requests, comp time usage, and recruitment/hiring, and establish SOP’s to improve efficiency and internal controls. CVB/Director – Analyzing the future needs for office and storage space, and investigating rent reduction strategies. CVB/Director – Analyzing the benefits of telecommuting for certain job categories. (82 of the top 100 companies on Forbes’ 2011 list of Best Companies to Work for allow their employees to work

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from home at least 20% of the time.) Benefits of telecommuting range from the Human Resource metrics of employee turnover, employee satisfaction, and health issues arising from the stress of commuting, and greater employability of persons with disabilities, to the more measurable operating costs of energy conservation, reduction of office space, and redundant activities. CVB/Director – Developing a CVB Succession Plan as we begin to face the approaching “baby-boomer” retirement wave, and since the government sector is projected to be affected severely. The goal of achieving greater organizational efficiency and ensuring knowledge management will be achieved by avoiding the need to reverse engineer every job impacted by retirement of key leadership positions. CVB/Director, Convention Sales, and Tourism Marketing Administrative Offices – Investigating the investment needed to transfer years of administrative and sales records to electronic format. This not only aligns with our “Green” initiatives, but also helps to achieve some of our goals for reduction of storage space. CVB Convention Sales, VBCC, and Tourism Marketing – Process Improvement Committee formed to review purchasing practices, inventory controls, and guidelines for promotional materials. The goals are to protect brand image through consistent use of CVB brand, reduce waste and shrinkage, and focus on quality and not quantity, and where large quantities are needed to ensure quantity discounts through combining unit purchases. Virginia Beach Convention Center - Began work on a Balanced Scorecard for the convention center, to identify our core business practices and identify areas for improvement. Virginia Beach Convention Center – As a result of performance and cost analysis, two key services for telecommunications and AV services have been contracted out to Smart City and The Whitlock Group, respectively. The former technical services unit was eliminated in the FY 2010-11 budget. These two contractors bring us a higher level of expertise as well as a decrease in labor/time and we get a commission from their sales. Virginia Beach Convention Center – Transition to electronic contract packages is in the works. We believe that by better packaging the legal documents along with Users Guide information, deadlines, etc. on a CD, the process for the client will be more efficient. Virginia Beach Convention Center – SharePoint site construction is underway for better internal communication of policies and processes, along with other information common to the whole organization. We’re in the process of establishing a focus group to discuss possible protocol, needs, etc. Virginia Beach Convention Center – Life Safety process writing is underway for improved management of building, assets, and guests during active events and crisis’s during those events. Employees are going through the Trained Crowd Manager training developed by the International Association of Venue Managers.

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Convention Sales and Marketing – Developing a unit handbook that will include standard operating procedures for the sales and services processes within the first 90 days of this fiscal year. Convention Sales and Marketing – Establishing a numerical sequence system for PRO Card Transaction logs and receipts that will streamline the reconciliation process and simplify audits. Convention Sales and Marketing – Creating a unit specific Purchase Order timeline and SOP to educate members of the progression cycle and minimize the need for retraction.