Transcript New York Sanitation Department Kensuke Ono Yasuyuki Kaji Agenda • The Bureau of Motor Equipment – – – – Background Performance in 1978 Discussion for improvement Action taken • Example of process.

New York Sanitation Department
Kensuke Ono
Yasuyuki Kaji
Agenda
• The Bureau of Motor Equipment
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Background
Performance in 1978
Discussion for improvement
Action taken
• Example of process improvement
– Kaizen
– Japanese postal office case
• Question
The Bureau of Motor Equipment
Background
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1,200 employees
$38 million operating budget
Maintaining department’s 5,000 vehicles
75 repair garages and one central repair facility
The Bureau of Motor Equipment
in 1978
• Employees
– Well compensated
– Job secured
– High level of benefits
• Measurement
– Work standard
– “Job Sheet” : Record the actual time to do a job
The Bureau of Motor Equipment
in 1978
• Chaotic Productivity
– Over half the vehicles are out of order
– Overtime pay for labors assigned to remaining
vehicles
– Wasted more than $16 million
• Why?
– Are employees not motivated?
– Is there a measurement problem?
The Bureau of Motor Equipment
• Need help to improve productivity!
• Need ideas from the private sector!!!
– Lincoln Electric
– Nucor
– Analogue Device
Discussion
• How can your policy/system help increase the
productivity in the public sector?
• How can your policy/system help motivate
labors in the public sector?
• Is there any challenge in adopting your system
in the public sector?
The Bureau of Motor Equipment
Action taken for improvement
• Improved labor/management relations
• Created “profit centers”
– Compared values created with outside prices
• Supplied 100% of vehicle needed
•Motivated employees
• Productivity factor became higher than 1  More
productive than private sector
Kaizen(Process Improvement)
Kaizen = Improvements (without spending much
money, involving everyone from managers to
workers, and using much common sense.)
(Developed by TOYOTA motor company)
Key aspects:
• On-going, Never-ending process
• Soft and Gradual method
Kaizen
• Japan has long been sensitive about
waste, as the land and raw materials
are scarce.
• Waste can be turned into profit if it is
eliminated and everybody is
encouraged to participate process
improvement.
Kaizen
Eliminate “Muda”-Wastes (non-value activities)
• Overproduction and inventory, items not
immediately needed
• Defective products requesting repair or scraping
• Motion; unnecessary movement and energy used
to perform tasks
• Process imposing inefficient and/or unnecessary
tasks, fail to synchronize system
Kaizen
• Idling; by excessive set-up or equipment
breakdowns
• Transport, poor timing; too frequent movement
of goods and deliveries
Muda result in direct loss of money or at least
fail to increase efficiency or productivity
Kaizen
• Turning loss into profit by muda elimination is
one of the easiest ways for a organization to
improve its operations.
• Elimination of waste, does not request many
efforts.
# small change + small improvement = kaizen
• Go to “Gemba” (real work place) first,
observe, recognize muda and take steps to
eliminate it.
Kaizen: Japanese Postal Office
• Japanese post office
- 24,752 regional post offices
- 260,779 employees
- Mail collection, delivery
- Savings and Loans
- Insurance
Deficit; Mail collection and delivery
580,000,000,000yen = $5,370,370,370
Kaizen: Japanese Postal Office
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Chose 1 middle-size post office; 700 workers
Invited 5 Kaizen specialists from Toyota
Went to Gemba, observed and videotaped
Analyzed workers’ daily activities
Found 370 muda
Communicated with every employee
Took steps to eliminate muda
(but kept quality)
Kaizen: Japanese Postal Office
• Reduced 20.1 percent of work time
(in 6 months)
• Implement Kaizen program to 1,000
other post offices this year
• Estimated cost reduction 30 to 40
billion yen = $278 to $370 million a
year
Question
• Would you like to work in the public sector?
Why or why not?
• How would you, as a manager, improve the
productivity in the public sector?