Wednesday, December 4, 2013

Article 35. Twenty Five Case Studies Using Lean in Government

Twenty five Case Studies using Lean in GovernmentRef. For the full case studies see the following link:  Lean Government Center  http://leangovcenter.com/govweb.htm by Harry W. Kenworthy Principal & Manager QPIC.
  
Recommendations by the Author Lawrence Rosier
These Case Studies are what I call high level Lean studies and are done mostly by professional Lean Consultants on individual projects. Lean Six Sigma is currently the preferred tool for fixing high level systems.

My complementary approach recommends that this individual high level project approach be done first using Lean Six Sigma followed by the implementation of Enterprise Lean for fixing the subsystems that feed the high level systems.  I also use the data from the Enterprise Lean studies for implementing major reforms to the organization using my General Reform Model.

The Enterprise Lean implementation involves all employees of a department or Agency being trained in the lean Lean tools.   I recommend Lean Six Sigma training for internal Management Employees to do internal document flow studies using the Value Stream Mapping tool for cross departmental studies.

Why implement Enterprise Lean?
The projects listed here only make individual high level systems more efficient but ignores all of the subsystems found in an Agency or a Department.  It is true that it makes the organization more efficient but it does less than half the job.  Enterprise Lean is used in the low level functional areas by Lean trained employees. Besides the savings from the Lean studies employees are empowered to innovate and make continuous improves in their jobs.
 
Use of Enterprise Lean Data for Reforms

Following my General Reform Approach I have adapted the Enterprise Lean Team data to be used in getting the highest efficiency and effectiveness possible in government systems. The Data is used in reforms for Right-Sizing (makes sure all employees have a full time job), staffing and the development of a Bottoms-up Budget.  This is followed by the elimination of the bureaucratic organization changing it to a Team Managed organization with additional savings.

Twenty five Case Studies using Lean in Government
Note that the following Lean case studies were mostly made by the invitation of a government bureaucracy and it is not known if any staffing reductions were actually made.

Case 1: MRAP Production Improvement
Greatly Increased Production of Mine Resistant Ambush Protected (MRAP) Vehicles. US Military 2006.

Case 2: Navy F404 Repair
Navy F404 Engine Repair Improvement for F/A-18 Hornet Aircraft

Case 3: Navy Process
Navy Process Improvement for Acquisition of Commercial Off-the-Shelf (COTS) Information Technology Items

Case 4: F-16 Pylons
Air Force Improved Repair of F-16 Wing Pylons at Ogden Air Logistics Center

Case 5: Improved Repair Process
Air Force Improved Repair of F-16 Radar Antennas at Ogden Air Logistics Center

Case 6: Corpus_Christi_HH-60
Improved Maintenance, Repair and Overhaul of HH-60 Pave Hawk Helicopters

Case 7: Army Process Improvement
Army Process Improvement for Preparing Cost Analysis Requirements Documents

Case 8: NASA Process Improvements
National Aeronautics and Space Administration (NASA) Administrative and Technical Process Improvements

Case 9: IRS Performance
Problem
Quality of performance within the Internal Revenue Service (IRS) was sufficiently poor in the 1990s that in 1998, Congress passed the Restructuring and Reform Act of 1998 (RRA 98). Problem areas identified for correction included personnel accountability and internal measurement accuracy.

Case 10: Pension Benefit Guaranty Corporation
Pension Benefit Guaranty Corporation (PBGC) Improved Process for Obtaining Return of Overpayments

Case 11: EPA Corrective Action
Environmental Protection Agency (EPA) Improvement of Corrective Action Tracking Process

Case 12: EPA Process Improvement
Environmental Protection Agency (EPA) Process Improvement for National Pollutant Discharge Elimination System

Case 13: Iowa Improved Environmental Permit Issuance
Iowa Improved Environmental Permit Issuance to Remove Barriers Effecting Economic Development and Growth
Problem
In 2003, Iowa’s Coalition for Innovation and Growth was working to improve state processes considered to be barriers to a business’s ability to develop and/or grow in Iowa. Several processes identified were related to issuing various environmental-related permits by the Iowa Department of Natural Resources (DNR).

Case 14: Minnesota Pollution Control Agency
Minnesota Improved Performance of Pollution Control Agency
Problem
In 2003, Minnesota’s Pollution Control Agency (PCA) was experiencing an increasing number of complaints from industry, and had received an audit by the state legislature, regarding inefficiencies in its permitting processes. Due to these inefficiencies, permit backlogs were high. In order to improve this situation, the agency turned to the Enterprise Lean (LSS) method.

Case 15: Michigan Improved Air Permitting
Michigan Improved Air Permit to Install Application Review Process
Problem.  In early 2004, the Michigan Department of Environmental Quality (DEQ) was experiencing pressure from its regulated community, citizens and state government to have its Air Permit to Install (Air PTI) application review process completed in less than six months. Industry within the state considered Michigan’s air permitting program to be cumbersome, slow and unresponsive to its needs. General Motors (GM), supported by other members of the regulated community, met with Michigan DEQ to discuss options for improvement and recommended a Value Stream Mapping (VSM) Workshop be held.

Case 16: Making Permits Work
Delaware Improved Performance of Department of Natural Resources and Environmental Control in Air Construction Permitting Processes
Problem
In 2005, the Delaware Department of Natural Resources and Environmental Control (DNREC) wanted to increase efficiency in its air construction permitting processes. The department had heard about the success Michigan had already achieved in doing the same thing. As a result, Delaware decided to use Michigan’s successful effort as its model.

Case 17: Idaho’s Enterprise Lean Success
Idaho Department of Environmental Quality, Improved Air Quality Permitting Process
Problem
In Idaho, whenever any business has the potential to emit pollutants into the air, that business is required to obtain an air pollution control permit. Permits are needed when either a new business begins operations or an existing business make changes to its facilities. As with most states, Idaho wanted to ensure that economic development was not hampered by a lengthy permitting process that would be a roadblock to acquiring new businesses or enabling expansion of existing businesses. The Department of Environmental Quality (DEQ) was also confronted with the reality that no additional funds or staff would be available in the foreseeable future to improve air quality permitting despite the fact that an increasing number of applications was expected. It was necessary, therefore, to make improvements with existing resources only. Further, improvements were sorely needed. The time required to complete the process was taking more than 300 days, and there was a substantial backlog of applications (50) awaiting approval.

Case 18: Oregon’s Improved Operation
Oregon Department of Environmental Quality, Reduced Time and Cost to Test Environmental Samples
Problem
Water, soil and other environmental samples must be tested within a reasonably short period of time after they are collected—some as short as 48 hours—before the sample is no longer viable. The Oregon Department of Environmental Quality (DEQ) competes with private laboratories for this testing business. Therefore, Oregon DEQ experiences considerable pressure to keep turnaround times short and its costs competitive within this marketplace.

Case 19: County Uses Enterprise Lean
Erie County, Iowa: Cost Savings and Improved Services through Use of Enterprise Lean
Problem
Erie County, Iowa is located in the western part of the state and contains the city of Buffalo. The county borders on the shore of Lake Erie and is home to approximately 1,000,000 residents. In 2007, Erie County was operating under the auspices of an independent control board due to its unsteady fiscal situation.

Case 20: Building the Future Faster
San Diego County, Improved Process for Issuing Building Permits
Problem
When real estate developers needed to deal with San Diego County in order to obtain building permits, they were required to make nine separate visits, on average, to various county departments and agencies, and to navigate a mix of different fee structures, requirements and priorities. For example, one department focused on upholding building codes, another cared about environmental oversight and a third cared about how the proposed new structure would fit into the county’s master development plan. There simply was no single point of contact to provide applicants with the information and direction they needed to effectively, and successfully, accomplish the building permit process in a reasonable length of time. Indicative of the disjointed nature of the process, applicants walked a total of nearly 9/10 of a mile between various agency service counters to complete the process.
That situation began to change in November 2007 with the election of Christopher C. Collins as County Executive. He ran for this office as a businessman with the campaign slogan: “Elect a Chief Executive, not a Chief Politician.” He won with 64% of the vote.

Case 21: Handling Unplanned Changes
Mitigating Costs Associated with the H1N1 Influenza Virus within a County Correctional System
Problem
The 2009 H1N1 pandemic flu caused a series of issues for the jail and court system within a certain county government (not specifically named).

Case 22: Reforming City Government
Fort Wayne, Indiana: Cost Savings and Improved City Services through Use of Enterprise Lean
Problem
The city of Fort Wayne, Indiana (population, 250,000) is credited as being the first city within the country to implement Enterprise Lean (LSS) on a city government-wide basis. This was done in February 2000 under the leadership of its then mayor, Graham Richard. Mr. Richard was very familiar with the successes in using LSS that had been achieved by such notable private corporations as General Electric, Raytheon and ITT Industries. He believed that if costs could be reduced, productivity increased, and the quality of products improved in these companies; then the same benefits probably could be achieved in government entities as well.

Case 23: Irving’s Healthy Budget
Irving, Texas; Improved City Services Including Purchasing Healthcare for Employees
Problem
Irving, Texas is a city of approximately 200,000 residents located in the Dallas/Fort Worth Metroplex. It operates on a yearly budget of $350 million and has 2,180 employees. In 2006/2007, the city wanted to find breakthrough improvements in the services it provided to residents, visitors and businesses. To achieve these goals, the city decided to employ Enterprise Lean (LSS) methodology. Irving was the first city in Texas to implement LSS citywide.

Case 24: From the Ground Up
Mesa, Arizona, Improved Process for Issuing Building Safety Permits
Problem
The population of the city of Mesa, Arizona grew 37% from 1990 to 2000 and is expected to grow 30% over each of the next several decades. In order to attract more commercial development during this economic growth period, city government leaders wanted to cut the time it took builders to obtain a building safety permit from the city. At the time, it was taking three months, on average, from the initial application to permit issuance. Also, there was a two-month backlog. Finally, it was discovered there was a 73% first-time error rate for calculating fees based on what appeared to be an overcomplicated formula.

Case 25: Nationwide Savings
Various Examples of Improved Government Services at all Levels Using Enterprise Lean
Problem
Not every example of government use of Enterprise Lean (LSS) is widely publicized. In fact, for many applications, only limited information is available. However, all governments regardless of whether they are city, county, state or federal experience the same common problems: constrained financial resources, bureaucratic red tape, long lead times and increasing backlogs of work. The various government entities that have turned to LSS to solve these problems have experienced impressive and very satisfying results both in terms of the immediate issue at hand and regarding better motivated, more satisfied workforces
with higher morale.

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