Transcript Value Stream Analysis: Ideas and Options

Value Stream Analysis: Ideas and
Options
Presented to
Delta LTMS Regulatory
Technical Work Group
Presented by
Dr. Joshua Burnam and Mr.
Steve Cappellino
April 24, 2007
Overview of Presentation
•
•
•
•
•
What VSA is and is not
How we prepare for it
Logistics
What it looks like – options
Cost
What VSA is By-the-Book…
• Lean Six Sigma is a statistical concept that measures
a process in terms of defects, with the goal of
reducing variability, decreasing defects and
increasing efficiency using rigorous quantitative
methods.
• Value Stream Mapping and Analysis (VSA) is one
application of the Lean method designed to reduce
waste and inefficiency for both the process owner
and customer by “mapping” a process flow and
looking for areas that can be improved.
Specific Goals of our VSA
•
VSA in our potential application would be applied to the agency “web” for project
approvals, and would look for ways to unify/improve the application process;
reduce inefficiencies such as feedback loops and do-overs; and improve public
perception.
–
We would essentially walk the “web” as an applicant.
•
The unified process map would be a starting point for an ad-hoc, or formal,
DMMO; a consolidated permit application; or other process improvements for
agencies.
•
It will help applicants know what the order of operations is; what the information
they need is the first time through; what works and what does not.
•
Initial success would be defined by:
–
–
–
A process map
Agency recognition of their role in the larger web
Applicant recognition of their role in the process
Key Tenets of VSA
• Reduce/eliminate time, waste,
inefficiency
• Include both “owners” and “customers”
• Twelve total steps between defining the
boundaries and assumptions; the
current state; and the idealized future
state.
Define the VSA Boundaries
Process
Inputs
Major Elements of the
Regulatory Process:
Suppliers:
Permit Applicants
Applicant Agents
Interested Members of the
Public
Resource Agencies
HQACE
Local Gov’t.
What:
Application
Project Information
Opinions
Private Design
Applicability of Rqmts
Outputs
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Public Notice
Endangered Species
Review of Completeness
Section 106
Jurisdictional determination
Scope of Analysis
Alternatives Analysis
404(b)(1) Guidelines
NEPA Analysis
Public Interest Determination
Develop the Package
401 Certification
CZMA
Consultation with Indian Tribes
Public Hearings
Trigger:
J.D. Request or Application
Received
Customer:
Permit Applicants
What:
Permit Decision
Done:
Permit Decision Issued
Define the Outcome
1. Business Case…Why are We Here?? How will this Benefit us??
Efficiency must be increased to maintain the quality of permit decisions and improve
public perception.
2. Key Requirements (Musts)…Requirements That Can’t Be Changed
Existing Statutory and Regulatory Requirements
3. Value Statement…Total Value Stream Examined in This VSA
Efficient entry into the process by applicants, and timely permit decisions that comply
with State and Federal laws and regulations and, if a permit is issued, enables the
applicant to proceed with a practicable project.
4. Key Measurements…2 to 3 Metrics which we will measure future success by
1.
2.
Turn-a-round Time – i.e. elapsed time from date a complete application is received
by all agencies to issuance of final permits. Goal is 120 days.
First Pass Yield of Applicant Submittals – Percent complete and accurate the first
time. Goal is to increase FPY to <90%
What are our Main Issues?
• Examples:
–
–
–
–
–
–
Flat budgets
Increasing workload
Increased mandates
Perception/reputation of Agencies
Applicant knowledge/savvy
Confusing application order-of-operations
What VSA is not…
• Cheap (depending on what we pick)
• Easy (it is time consuming and has
“homework”)
• A silver bullet – it will give us maps of
where are and where we can get, but
we must then implement the process
improvements
Who Should Attend / Participate
• Not a delegated activity
• Minimum requirement is “value stream” Leadership Team
–
–
–
–
–
–
–
KEY LEADERS
PM, PROCESS OWNER(s)
MANAGERS/SUPERVISORS of the PROCESS
SME’s
KEY STAKEHOLDERS
CUSTOMERS of the VALUE STREAM
SUPPLIERS to the VAULE STREAM
• Limit attendance to no more than 20 people
• Schedules are cleared for full-time participation (3.5 days)
• Hang time - not an 8 to 5 activity - plan on long days
Data Collection
• In our case – a Case Study
• Performance metrics
– CURRENT YEAR-TO-DATE
– PREVIOUS FISCAL YEAR
• Demand (historical and projected)
– BY END-ITEM DELIVERABLE
– $’s AND #’s
• Voice of the customer
– Key issues
– Key Opportunities
• Current organization chart
• Facility block layout
Logistics
•
•
•
•
•
•
•
•
•
•
•
•
centrally located team room with lot’s of wall space
LDC projector
DVD player and TV
2 paper flip charts on sturdy stands
colored markers (both wide tip and fine point)
roll of butcher paper
roll of masking tape
roll of scotch tape
post-it notes (various sizes and colors)
sticky dots (“nickel sized” red and green in color)
name tags (sticky paper-type are fine)
drinks and snacks
Value Stream Analysis – 4 Day
Professional Facilitation
1: DEFINE THE B OUNDA RIES
2: DEFINE THE VA LUE.
3: SET UP THE M A P .
prepare
4: OB SERVE A ND GA THER DA TA
5: M A P THE FLOW OF ITEM S
6: M A P THE FLOW OF INFORM A TION
7: A DD DA TA B OXES A ND HIGHLIGHTS
8: GO B A CK TO THE GA RA GE
current
co nditio ns
breakthro ughs
9: CHOOSE NA TURA L GROUP S
10: DEVELOP IDEA L STA TE M A P
visio n
plans
11: DEVELOP FUTURE STA TE (6-12 M O. M A P )
12: DEVELOP A CTION P LA NS A ND TRA CKING
“Beginning your Lean Transformation”
• Define (2-3) measures you want to impact by
10-50% in the next 12 months through the
application of VSA
– WHAT? HOW MUCH? BY WHEN?
– GO NOWHERE, START NOTHING UNTIL
EXPECTATIONS ARE CLEARLY DEFINED
– MAKE SURE YOU AGREE WHAT YOU WANT FROM
LEAN AND HOW TO MEASURE IT
Step 1: Define “what” you want from Lean
TYPICAL 4 DAY AGENDA
Value Stream Analysis
Day One
08:00 – 08:30
08:30 – 11:00
11:00 – 12:00
12:00 – 13:00
13:00 – 15:00
15:00 – 1700
Day Two
08:00 – 08:30
08:30 – 10:00
10:00 – 12:00
13:00 – 14:00
14:00 – 15:00
15:00 – 1700
Process Owner Kick-off & Introductions
Value Stream Analysis Briefing
Define the Boundaries Step 1
Lunch
Set Up the Map - Steps 2-3
Walk the Process - Observe and Gather Data Step 4
Review Day 1 and Plan for Day 2
Continue to Observe and Gather Data - Step 4
Build the Current State Map – Steps 5-7
Go Back to the Garage – Step 8
Choose Natural Groups – Step 9
Develop Ideal State Map – Step 10
TYPICAL 4 DAY AGENDA
Value Stream Analysis
Day Three
08:00 - 08:30
08:30 - 12:00
12:00 - 13:00
13:00 - 17:00
Review Day 2 and Plan for Day 3
Develop Future State Map – Step 11
Lunch
Develop Action Plan and Tracking - Step 12
Day Four
08:00 - 10:30
10:30 - 11:30
11:30 - 12:30
12:30 - 15:30
Prepare Outbrief
Outbrief
Lunch
Prep for First Rapid Improvement Event
Value Stream Analysis Charter
Value Stream Output and Description:
(What is the value provided to the customers of this Value stream?
Provide a comprehensive list of deliverables)
Preliminary Objectives:
(What are the key objectives for improving the Quality,
Delivery/Responsiveness, Cost/Productivity of the value stream.
Objectives should be SMART = specific, measurable, achievable, realistic,
tangible)
Event Dates:
Team Leader:
Co-Leader:
Team Members:
Process Owner:
Customer Requirements (TAKT Time):
(Demand on this value stream, i.e., the number of items requested by the
customer.)
Sensei:
Current Situation and Issues:
Current State Process Information:
(General description of the how the process current performs – metrics
are valuable so include where possible)
Why are you conducting this VSA event?
What is your “burning platform”)
Date:
Prepared By:
Event
Name:
Value Stream Mapping (VSA)
Event Checklist
Value Stream
3rd Week Before Event:
1: Select area and topic. (Complete VSA Charter Form)
2: Meet with Process leaders(PL) or /Functional Leaders(FL) to:
- Prioritize Value Streams within Area
- Secure Full Time Participation of Team Members
- Obtain PL/FL Commitment to Event Follow-up
3. Prioritize Value Streams within Area
4: Define team leader, co-leader and the team members.
5: Would like site leadership and key site personnel involved
- Team size of 15 - 20 are recommended per Value stream
6. Identify Event Facilitator(s)/Consultant(s)
- Obtain External Consultant Seport As Req'd
2nd Week Before Event:
1: Review "3 weeks before" list, resolve open items
2: Gather data/identify sources on current state
- Identify sources of data on current process (Financial Reports,
Flow Charts, Command Media etc)
3: Determine current customer steady state demand
4: Determine actual output (if not available use most current
predicted or budgeted figures)
5: Determine top 5-10 categories of problems noted from the
information collected (eg. Shortages,schedule misses...).
6: Review actual customer issues, audit results, etc.
List top 5 issues.
7: Determine key individuals needed to support on ad hoc basis:
- Secure ad hoc support based on proposed event schedule
8: Secure Conference Room(s) For Event
- Ideally room should be located near work area
- Room must be available for entire duration of event
9: Obtain all necessary supplies for event
- Post it Notes, small square multi color 2 /78x2-7/8 and 3-7/8 5 7/8
- Flip Charts , Markers, tape , scissors
- LCD PROJECTOR
- Will this team improve your Process/Functional performance?
- Butcher Paper (rolls)
- Are you focusing your scarce resources on the right priorities?
- Access to laptop to document event
- what is the business case for analyzing this Value Stream?
1: Review "3 weeks before" and "2 weeks before"
checklists. Resolve open items.
2: Revisit Items 8 & 9 from 3 weeks before has anything
changed?
- Run reports on actuals etc.
- Brief on upcoming VSM Event (non team members that may get involved)
7: Define the deliverables expected from the
Event team (eg. Quality Improvement, Reduced
Flow Time, Reduced Cost etc.)
8: Select 2 -3 measurements and targets for the team
that will help define success for the team.
9: Review deliverables, measurements and targets with
the external or internal consultant. Revise if needed.
10: Ask a few hard questions (then revisit 1, 2 and 3):
1st Week Before Event:
- Etc.
10: Issue written invitiation to team members. Include
event particulars, time expectations and deliverables.
11: Review and confirm Event team leader, co-leader
and members.
- Make sure team members are committed for the whole event!!!
12: Brief team co-leaders and members: Event schedule,
measurements, targets and deliverables.
13: Review packages from any previous events in this area.
Pay special attention to time observations, layouts
(spaghetti diagrams), accomplishments lists, lessons learned.
14: Brief facilitator/consultant on event
- Review checklist status
- For external consultants review program, key events and individuals
- Provide read ahead material to external consultants on business
& program
3: Define clearly the boundaries of the Event:
- who are the customers?
- what are the outputs?
- what triggers the area to do something for a customer?
- who are the suppliers? what are the inputs?
4: Hold final prep meeting with Team lead & co-leaders,
resolve any open issues or concerns
5: Arrange for working lunches for team
6: Review event status with facilitator/consultant.
Business Case
Value Statement
In light of increasing
workload and complexity
associated with the
regulatory program,
efficiency must be
increased to maintain the
quality of permit decisions
Key
Requirements
Timely issuance of a
permit decision that
comply with Federal laws
and regulations and, if a
permit is issued, enables
the applicant to proceed
with a practicable project
Measurements
·
Domestic Statutory and
Regulatory Requirements
·
Total Application Backlog - i.e. number of applications in process
and/or waiting to be processed at any given time. Goal is to reduce
by 50%
·
Current State Map
Ideal State
·
·
·
·
Turn-a-round Time – i.e. elapsed time from date application is
received to permit issued Goal is 100% within 120 days
On-Demand
Defect Free
1-By-1
Lowest Cost
First Pass Yield of Applicant Submittals – Percent Complete and
accurate the first time. Goal is to increase FPY to <90%
Jurisdictional Determination
Court and/or
Appeal
I
I
Division
Process
Correct
I
Division
Review
Appeal
Mtg.
I
I
Y
Send Additional
Info to District
Manual
Field Visit
I
Sec Chief
assigns to PM
Complete
?
PM Review for
completeness
Yes
I
I
I
Verify
Delineatio
n
Office Visit
Site Visit
I
1%
PM
Signs
Letter
Letter
Developed
Verify
Y
on
Informati
JDs
I
N
Set up Field
Visit
Field Visit
I
2nd
Applicant
Appeal
Applicant
Appeals
I
More Info.
I
Applicant
Admin
Records Prep
I
I
Letter
Developed
PM Issues
Letter
I
No
30%
Csll/Email
Applicant
for more info.
Develop
Disclaimer Letter
25%
I
Receive
Additional
Applicant Info
I
75%
Sec Chief
Review
I
Office of Council
Review
I
No permit or
Jurisdiction
Required
Review
Application
A
Indvidual Permit Process
Indvidual Permit Process
A
Public Notice
Drafted
Application
Complete
I
Letter or Phone
Call to Applicant
I
Recv. Add.
Info
Public Notice
Issued
Water
Quality Certif
Endangered
Species
Essential
Fish Habitat
Coastal Zone
Mgt.
I
Decision
Document
I
B
B
I
Draft
Decision
Doc and
Permit Ltr.
Sec Chief
Review
I
Branch Chief/
Distr Eng.
Review
Put in
Final Form
I
Permit
Decision
Issued
Applicant
Sign
Corps
Sign
I
80%
Assess
ESA info.
I
Effect?
Services
Review
Y
I
I
Complete
?
Appl and Corp
Review draft
BO
Y Consultation
and Draft BD
I
I
No/Maybe
I
Service
Completes BO
I
N
Contact
Applicant
I
External
Organization
Review
Response
I
I
Cultural/Tribal
Ledgend
Ltr to Appl.
Corp Review
Comment Ltr
I
I
Applicants
Incomplete
I
Coord w/
Arch/Corps,
Cultural
Resources
Complete
?
I
Y
Sec 106
Determ
Generate
Ltrs
Effect?
SHPO Rev
Sec 106
Complete
?
Maybe
N
N
MOA
Complete
SHPO
signs MOA
I
N
I
Corps
Corps
SHPO Drafts
forwards
forwards
MOA
MOA to SHPO MOA to Tribes
Total Flow Time = 152 - 383 days
Total Touch Time = 105 - 132 hours
Future State Map
Value Stream Map
Business Case
Value Statement
In light of increasing workload and
complexity associated with the regulatory
program, efficiency must be increased to
maintain the quality of permit decisions
and improve public perception of the
regulatory program
Timely issuance of a permit
decision that comply with
Federal laws and regulations
and, if a permit is issued,
enables the applicant to proceed
with a practicable project.
Key Requirements
Domestic Statutory and
Regulatory Requirements
Measurements
Ideal State
1. Turn-a-round Time – i.e. elapsed time from date application is
received to permit issued Goal is 100% within 120 days
2. Total Application Backlog - i.e. number of applications in process
and/or waiting to be processed at any given time. Goal is to reduce
by 50%
3. First Pass Yield of Applicant Submittals – Percent Complete and
accurate the first time. Goal is to increase FPY to <90%
·
·
·
·
On-Demand
Defect Free
1-By-1
Lowest Cost
Applicants
Ele
c
tro
n
ic I
nfo
Supermarket
rm
ati
on
PM reviews
and approves
for site visit
Applicant Request
FIFO
Key Changes to Create Future State
- Requirement on applicant is significantly greater
- Applicant is to provide all required info up front
- Application is “complete” after application info is verified by PM
- Measure of throughput /turn-around time will include time from
application received
- Created one piece flow (uninterrupted concentration on task)
- Reduced the amount of wait time
- Placed permit decision and signature authority on PM
- Included 15 day public notice versus 30 day standard
- Reduced rework by improving the application submittal process
- Corporate policy and regulation need to be re-visited
- Process quality must be addressed
- Abandon the “Current State” process
- Command must support the new process including “turned back”
applications (request for additional applicant info)
-Must establish (mistake proof) guidelines for application submittals
Schedule
site visit
Site Visit
I
Complete
Y
Verify
Deliniation
Public notice
issued
Issue JD
verification ltr
N
I
15 day
comment period
ESA
Required?
Y
Start ESA
Sec 7
consultation
Start
decision
document
N
Avoidance/
minimization
One level of
review for
lower grade PM’s
Write Public
Notice and
JD ltr.
90 Days
45 Days
Permit decision
issued by PM
PM finalizes
Decision Doc.
One Level of
review for
lower grade PM’s
Review draft BO
I
Comments
Received and
sent to Applicant
Applicant responds
to comments
to PM
I
30 Days
Continue
writing
Decision Doc.
Phone Applicant
for signature
Value Stream Path
Regulatory Lean Process Metrics
Metric
Regulatory
Flow Time (days)
Touch Time (hours)
# People
# Approvals
# Handoffs
Items in Inbox
% Yield of the IP Process
Current
State
152-383
105-132
32
15
30
174-686
1.47
Future
Delta
State * #
% Improvement
77-156 minus 75 - 227
49 - 59
80
minus 25-52
24 - 61
11
minus 21
66
3
minus 12
80
7
minus 23
77
10 minus 164-676
94
56.00
plus 54.53
97.4
*Projected
VSA Without Facilitator
• “VSA Lite” - 2 Day Process led by SPD Expert Dr. Aaron Allen
without consultant
• First Day:
1. Introductions (30 minutes)
2. Brief Introduction to VSA (30 Minutes)
3. Define the Boundaries (2 Hours)
4. Walk the Process and Build Current State Map (4-6 hours)
• Second Day
1. Complete Current State/Review Current State (30 minutes)
2. Develop Ideal State Map (1 hour)
3. Requirements for the Future State (1 hour)
4. Develop Future State (4 hours)
Differences from 4-Day
• “Homework” still required
• No computerized maps of the process
(just hand-drawn)
• No computerized metrics
• Less time
• Less cost
Costs
• 4-Day Facilitated VSA was $31,500 including
time and materials for the consultants
(Anteon/Simpler)
• 2-Day VSA lite may be free
• Homework:
– Prepare our case study, charter, and goals
– Get room for 2-4 days
– Deal with logistics of paying the consultant
Questions/Comments?