Presentation on theme: "Presented to Presented by Delta LTMS Regulatory Technical Work Group Dr. Joshua Burnam and Mr. Steve Cappellino Value Stream Analysis: Ideas and Options."— Presentation transcript:
Presented to Presented by Delta LTMS Regulatory Technical Work Group Dr. Joshua Burnam and Mr. Steve Cappellino Value Stream Analysis: Ideas and Options 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 Suppliers: Permit Applicants Applicant Agents Interested Members of the Public Resource Agencies HQACE Local Gov’t. InputsOutputs Trigger: J.D. Request or Application Received Customer: Permit Applicants Major Elements of the Regulatory Process: 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 What: Application Project Information Opinions Private Design Applicability of Rqmts What: Permit Decision Done: Permit Decision Issued Process
3. Value Statement… Total Value Stream Examined in This VSA 1. Business Case…Why are We Here?? How will this Benefit us?? 2. Key Requirements (Musts)… Requirements That Can’t Be Changed 4. Key Measurements…2 to 3 Metrics which we will measure future success by Existing Statutory and Regulatory Requirements Define the Outcome 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. 1.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. 2.First Pass Yield of Applicant Submittals – Percent complete and accurate the first time. Goal is to increase FPY to <90% Efficiency must be increased to maintain the quality of permit decisions and improve public perception.
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
“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
Current State Map Total Flow Time = 152 - 383 days Total Touch Time = 105 - 132 hours
Future State Map 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
Regulatory Lean Process Metrics *Projected Regulatory Metric
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