Lean Six Sigma Webinar Efficient Processes For The Public Sector

Welcome to…

LEAN & SIX SIGMA:
Efficient Processes for the Public Sector

PRESENTED BY E-ZSIGMA (CANADA) INC.
CANADA’S LEADER IN LEAN, SIX SIGMA AND INNOVATIVE PRACTICES

CHALLENGES FOR CANADIAN HEALTHCARE?
Primary care reform
the way in which primary care and primary health care services
can be organized to best serve population health needs
Health human resource planning
the way in which a variety of health professions should be
deployed to provide health care services to the population
Cost and sustainability
the way in which health care services are funded and the costs for
the future
Role of the private sector
the way in which health care is delivered and funded privately
Quality of Care and Measurement
the way in which decisions about healthcare interventions are
based on evidence of effectiveness to improve quality.
Source: Canadian Policy Research Networks, January, 2004

2 Lean & Six Sigma: Efficient Processes for the Public Sector Thursday, May 13, 2010

THE DEMAND CURVE WE ARE FEELING

Source: Understanding Canada’s Health Care Costs, Health Canada, 2000


DEMAND ACCELERATORS & RESPONSES
ACCELERATORS
Emerging and New Technologies
major joint surgery, neonatal and fetal technologies, dialysis, organ transplantation, genetic testing and therapy
Increased Incidence and earlier onset of Chronic and New Diseases
heart disease, diabetes, tuberculosis, Hepatitis C, HIV, and AIDS
Increased demand from an aging population
New Pharmaceuticals
Declining Productivity Gains & Changing Expectations

RESPONSES
Improved management of health care systems and delivery
modes
Increased process and treatment efficiency and effectiveness
A public that is capable of making informed & appropriate
choices
aka “Help me to help you”, Movie: Jerry Maguire, TriStar Pictures 1996

SOME OF TODAY’S PARTICIPANTS
Financial Services Commission of Ontario
Government of Alberta
Government of Saskatchewan
Government of Yukon
House of Commons
Industry Canada
Ministry of Community and Social Services
Ministry of Community Safety and Correctional Services
Province of Manitoba
The Regional Municipality of York
Dept of Health, PEI


SO... WHAT’S KEEPING YOU UP AT NIGHT?


THE 5W2H TOOL
Ask 5W questions & 2H questions to ensure you have
covered all the key information:

1. What is the problem?
2. Why is it a problem? Highlight the “pain”
3. Where do we observe the problem? (location, products)
5W
4. Who is impacted? (customers, businesses, functions)
5. When did we first observe the problem?

1. How did we observe the problem? Symptoms
2H 2. How often do we observe the problem? How many defects do we
observe? Magnitude and trend.


EVER-INCREASING CUSTOMER FOCUS
Organizations provide goods and services for customers – they
define needs, quality and price
Customer focus drives such questions as:
Why are we in business?
Where do we need to be in the future?
What is the source of our “Competitive Advantage”?
Customers bring alignment to cross-functional organizations:
What drives purchasing behaviour?
What is a defect; what constitutes value for the customer?

8

QUANTIFYING NEEDS

I hope I don’t have
to wait too long to
see the doctor!

Quantitative: “total
minutes lapsed until
meeting the doctor”
Subjective: “Too Long”

9

MEETING TARGETS BASED ON CT’S?...
Capability to meet/exceed customer
expectation?
Reliability and stability of key
(process) inputs resulting in
predictable outcomes for
customers?
Need to “shift” the average?
Increase production rate/capacity
Reduce cycle time and cost

Need to reduce variation?
More “robust” processes
Less non-conforming results (eliminate defects)

10

TWO POWERFUL APPROACHES…
Six Sigma & Process Variation Lean & Process Efficiency
• Describe variation! • Define customer value!
• Analyze it! Y = f(x) • Identify waste!
• Reduce it! • Eliminate waste!
• Control it! • Increase flow of value!

Example
• wait times
Reduced Reduced • cost
variation average • handling
• minutes, hours,
days…

After Lean
Before Lean
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Before 6S After 6S
Predictable, Controlled, Capable Efficient, High-Value, Low Cost

Breakthrough Improvement!
11

LEAN & SIX SIGMA
LEAN
Customer/Community Focused
A Paradigm Shift in the Way Value is Defined
5 Key Principles & Eight Associated Sources of Waste
A Value-Stream Based Approach: The “Flow” of Value (velocity)
Tools & Techniques to Improve Value Creation
Turn everyone’s “waste radar” on
Reduce or Eliminate the Inhibitors to Value Creation
Extremely Participative Problem-Solving , Event Driven, & Culturally Transforming

SIX SIGMA
Focus on process “problems”: Errors, Quality, Robust Process Design
Key to Success: Focus on Understanding Process Variation
Emphasis on data and analysis: Profound Knowledge!
Project-Centric: Well Defined Goals & Measurable Results
Rich & Diverse “Tool Box” for Analysis and Problem-Solving

“At e-Zsigma, we teach people to do Six Sigma and we CHANGE people to do Lean”

LEAN 101: FIVE PRINCIPLES OF LEAN


LEAN 101: DEFINING VALUE
Lean Thinking: Any process step, activity or task that transforms the deliverables of a
process such that the customer is aware of it AND is willing to pay for it is considered
value added. Value is always stated in the eyes of the customer.
© 1996 “Lean Thinking”, Womack & Jones
Healthcare? Any activity or task that moves the patient through the diagnosis,
treatment and prevention process, is performed correctly the first time, and the
customer and/or community is willing to pay/fund for that activity or task since it does
create value.
Public Service? Any process step, activity or task that transforms the deliverables of a
process such that the customer and the community is aware of it and is willing to fund
and/or pay for it is considered value added.
How do you or your organization define value? Because… If it is not value-added, then it
is waste (aka “Muda”)


NON-VALUE ADDED: WASTE
Waste is defined as anything that does not add value
for the customer.

“Lean Thinking” requires an organizational
culture that is intolerant of all forms of
waste.

The goal of Lean is to banish waste.

15

LEAN 101: THE EIGHT SOURCES OF WASTE
Inventory & Storage: Brochures/booklets printed, stored and perhaps becoming obsolete
(scrapped)
Waiting or Delays: Delay in getting security clearance for a new hire
Over-producing:
Transportation: The movement of people, equipment, materials etc between building, cities,
regions, provinces, etc
Motion: Poor office layout (departments) resulting in people having to move around to get their
regular work done
Errors/Mistakes: Missing or incorrect information on a form or application resulting in rework
and delays or even lost opportunity
Over-processing: Producing reports in advance of when the information is needed, or
information that may not be needed at all
Underutilized human capability: People working on non-value added (see above) and not
leveraging their talent and capability


LEAN 101: MAKING WASTE MORE VISIBLE

Process Flow Maps
Spaghetti Diagrams
Value Stream Maps
Cause and Effect Diagrams
Five “Whys?”
Pareto Charts
Workplace Organization
5S (Sort, Set, Shine, Standardize, Sustain)
Visual Workplace
Process Reports, Audits and Assessments


LEAN 101: PROCESS MAPS


LEAN 101: SPAGHETTI DIAGRAMS


LEAN 101: VALUE STREAM MAPPING

• Current state?
• Future State?

Observing the process, Capturing data & Looking for waste….


LEAN 101: CAUSE & EFFECT


LEAN 101: FIVE WHY’S
A simple, investigative line of questioning to begin understand
any problem.
Start with an effective problem statement (current situation)
Start asking the questions… the “Five Whys”… (doesn’t have to be five
questions – could be more)
Usually done in a team problem-solving environment consisting of
subject-matter experts
Keep asking exploratory questions until you
arrive at the ROOT CAUSE
“Test” the answers by asking such questions
as, “If that didn’t happen, would the problem
go away?”


LEAN 101: PARETO CHARTS


LEAN 101: THE 5S EVENT
1. Sort: Separate what is needed in the work area from what is not. Then…
get rid of what isn’t needed!
2. Set in order: Organize what remains – in the order that it is required for
the process or task
3. Shine: Clean and inspect the work area/workplace
4. Standardize: Standardize the cleaning, inspection,
and safety practices – make it part of the job
5. Sustain: Establish an environment, including audits and visual cues, that
ensure the culture of 5S “sticks”
Note: Lean organizations have a standard that any “tool” must be able to be found within X
seconds (example: 60 seconds). A tool can be a piece of equipment, a document, a file, etc.
necessary for the work to proceed and value to be created.


LEAN 101: VISUAL WORKPLACE
The Challenge: People not having access to the knowledge they need to do
their jobs effectively and efficiently. What tasks? What priority? What
target? The “correct” way? Which tools and where can I find them?
Waste: Searching, asking, waiting, retrieving, reworking!
Visual workplace: Providing vital information when and where it is needed.
Easily understood & unambiguous work instructions on what to do,
when, and how.
Tools and methods to easily and reliably identify process errors ad
omissions as quickly as possible - at the source.
Real-time performance feedback so employees know where they stand in
terms of meeting goals or targets.
Encourage alignment of activities across and up and down the
organization so that they congruent with strategic goals and objectives.
Promote and communicate cultural change in the organization,
specifically the lean evolution.


EXAMPLE: VISUAL WORKPLACE

“Access to information and tools to do the job”

LEAN 101: ASSESSMENTS & AUDITS
Creates accountability & encourages shared commitment for
performance
Tracking trends and (lean) improvement activities
“We measure our performance”: a part of our culture
“You can’t manage what you don’t measure”
Measures help control the processes
Metrics aligned to corporate goals and strategy
Ex. Customer survey data
Using & reporting the “wrong” metric can be more damaging
than having no metric at all!


LEAN 101: ELIMINATE WASTE BY…

• Reduction/elimination of batches • Five S – Visual Workplace
• Single piece flow • Quick Changeover
• Continuous flow • Standardized Work
• Improved process control • Andon System, Pitch
• Reduced process variation • Materials replenishment
• Faster reaction to problems • Kanban, FIFO
• Shorter lead times • Supermarket Pull System
• Reduced forecasts • Total Productive Maintenance
• Takt time and demand leveling • Cellular Design/Layout
• Just in Time • Work cells
• Touch once principle • Error Proofing
• “Pull” systems design • Kaizen improvement events


BUT… LEAN REQUIRES CULTURAL
TRANSFORMATION!

Lean strategies
fails as a result of
not recognizing this
key element for
success.


SIX SIGMA 101: “Y IS A FUNCTION OF X”

The heart of “Six Sigma” thinking
The phrase “Y is a function of X" means that the value of Y (process
outcome) depends upon the value of x (process inputs), so Y can be
written in terms of X.
This philosophy has evolved into a robust, powerful problem-solving and
process improvement methodology used by hundreds of thousands of
organizations world-wide
Automotive, aerospace and manufacturing
Banking, insurance and financial services
Hospitality and service industries
Healthcare
Government and public sector

SIX SIGMA 101: THE IMPORTANT QUESTIONS
1. Do I fully understand the customer requirements? 1
(Target and Tolerance)
2. How much variation is in the process I use to meet 2
my customer’s needs?
3. How well does my process meet my customer’s
needs? How often? What is the impact on Cycle 3
time? Safety? Customer Satisfaction?

4. What are the root cause(s) of the process variation? 4 Y = F(X1..Xi)

5. Can I reduce variation within the process to reduce
5
the defects? (If not, get a new process.)

6. Can I center the current process on target? 6


SIX SIGMA 101: DMAIC APPROACH
Define… process improvement goals that are consistent with customer
demands and the enterprise strategy.
Measure… key aspects of the current process and collect relevant data.
Analyze… the data to verify cause-and-effect relationships. Determine
what the relationships are, and attempt to ensure that all factors have
been considered.
Improve… or optimize the process based upon data analysis using
techniques like Design of Experiments.
Control… to ensure that any deviations from target are corrected before
they result in defects. Set up pilot runs to establish process capability,
move on to production, set up control mechanisms and continuously
monitor the process.
Source: www.isixsigma.com


SIX SIGMA 101: THE HIDDEN FACTORY

No matter how hard we try we
Just can’t seem to catch all the
Service
Step 1 Good? Step 2 Good? Mistakes and errors. Ooops!
There goes another one. Let’s Delivered
Try harder. Let’s double inspect.

Correct Analyze Correct Analyze

The “Hidden Factory”

Extra cost? Delays? Customer Satisfaction? Frustrated Personnel? Risk?...


LEAN SIX SIGMA 101: ROBUST “TOOL BOX”
Define Phase – Key Tools
•VOC (Voice Of the Customer) •Cost of poor quality •“Critical To” Tree (CT Tree)
Define •Project scoping and problem statement •Change management •High level process map
•Team identification •Project contract
Measure Phase – Key Tools
•Process Mapping (including SIPOC) •Control Charts Basics •Binomial Distribution Statistics
•Rolled Throughput Yield (RTY) •Measurement System Analysis •Graphical Analysis and Techniques
•Basic Statistics (MSA) •Data Collection Plan
Measure •Central Limit Theorem (CLT) •Process Capability •Failure Mode & Effects Analysis (FMEA)
•Cause and Effect (C&E) Matrix •Cause and Effect (C&E) Diagram

Analyze Phase - Key Tools
•Advanced Graphical Analysis •Statistical Analysis •Confidence Intervals
oMulti-Vari Studies oHypothesis Testing •Power and Sample Size
oMain Effects Plots Means
Analyze oInteraction Plots Variation
Chi Square
Non-normal data
oCorrelation Proportion Analysis of Variance
oRegression Counts Analysis of Means
Improve Phase - Key Tools
•Modeling Designs of Experiments •Robust Design of Experiments •Screening Design of Experiments
Improve •Response Surface Design of •Survey Design of Experiments •Multiple Regression
Experiments

Control Phase – Key Tools
• Process Control Plans • Mistake Proofing • Statistical Process Control
Control • Gage Control Plans • 5S • Business Case Simulation Exercise
• Preventative Maintenance Control Plans • Standard Operating Procedure


YOUR EXPECTATIONS FOR LEAN SIX SIGMA
Improved customer experience and satisfaction
Faster response to client needs
Increased job satisfaction & reduced stress for staff
Improved, standardized & repeatable processes that are more predictable
Between 20% and 60% reduction in Process Cycle Time
Ability to focus resources on more value-added activities
Greater than 50% Improvement in resource utilization
Improved asset utilization: people, equipment & technology
Reduced unit costs through increased capability
Improved flow through elimination of bottlenecks (delays) and constraints (limiters)
Greater than 30% gain in process capability
Dramatic improvement in scheduling predictability – better process management
Participative problem-solving
Engaging the people who know and do the work… the team
Recognition of the “human” side of lean and the need to manage change


E-ZSIGMA (CANADA) INC.
Canada’s leader in Lean, Six Sigma & Innovation strategy,
consulting and training
Canada’s only Certificate in Lean Six Sigma for Public Service
Schulich School of Business Lean Six Sigma Centre of
Excellence
Some of our Public Service clients;
Government of New Brunswick • Lean Six Sigma Strategic Deployment
Government of Alberta • On-site Lean Six Sigma Training
Government of Saskatchewan • Lean Six Sigma Project Management
Health Canada • Open Enrollment (Public) Training
• Process Design, Modeling & Simulation
Ministry of Transportation • Master Black Belt Project Coaching
Service Canada & Mentoring
Office of the Auditor General • Lean Six Sigma Certification
WSIB • Comprehensive e-Learning Program


RAPID START: GREEN BELT FOR PUBLIC SERVICE
The Lean Six Sigma Green Belt for Public Service Certificate will
enable you and your team to leverage the power of proven
problem-solving, process improvement and management tools
and methodologies to rapidly and effectively achieve your
organizational goals, and ultimately achieve the bar of
excellence envisioned for all 10 criteria identified in the
Management Accountability Framework (MAF).

Lean Six Sigma Green Belt for Public Service is a blended learning
program that incorporates five days of high impact classroom
sessions led by Canada’s foremost trainers in Lean Six Sigma
for Public Service Excellence, blended with an additional
twelve hours of on-line, independent study

COURSE OVERVIEW
The Five Key Principles of Lean Data Collection and Sampling techniques
Value-Added Assessment Graphical Tools for Process Analysis
8 Sources of Waste & Tools to Identify Assessing Process Capability
Waste
Process Analysis and basic statistical tools
Introduction to Six Sigma
DPMO and Process Variability Risk Analysis (FMEA & FTA)
DMAIC Problem-Solving Methodology Rapid Process Changeover
Basic Quality & Process Management Work leveling, cellular layout, flow & Kanban
Tools Visual Workplace and Standardized Work
How to Successfully Lead a DMAIC Facilitating Kaizen events
Project
Workplace organization (5S)
Critical Quality and SIPOC analysis
Value Stream & Process Mapping Error-Proofing Techniques
Cause & Effect and Root Cause Establishing and maintaining process
Analysis management controls
Pareto Analysis


COURSE OVERVIEW


E-ZSIGMA SERVICES
PUBLIC SECTOR SPECIFIC TRAINING PROGRAMS
E-Zsigma has designed an 5-day Blended Lean Six Sigma for Public
Sector program tailored specifically for the Canadian Public Service
industry. This program is the first of its kind in Canada.
CUSTOMIZED SOLUTIONS
Our training programs can be customized to suit your needs and be
delivered at your location.
PROJECT MANAGEMENT & LEADERSHIP
Allowing our senior Master Black Belts to help you lead rapid and
highly successful lean six sigma improvement projects
E-LEARNING SOLUTIONS
We understand the hectic schedule of the healthcare professional.
Therefore we offer a comprehensive eLearning program designed to
meet your needs on your schedule.


CONTACT INFORMATION

E-Zsigma (Canada) Inc.
One Dundas St W, suite 2500
Toronto, ON
www.e-zsigma.com
O: 416.593.8026
F: 416.204.1939

Thank you for joining us today!


Lean Six Sigma Webinar Efficient Processes For The Public Sector

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Lean Six Sigma Webinar Efficient Processes For The Public Sector