Wednesday, December 4, 2013

Article 37. Why Enterprise Lean has failed to get the Highest efficiency in Iowa and Minnesota

Both Iowa and Minnesota’s Enterprise Lean implementations have been touted as being enormously successful for years.  But when you look closer you will find that they have misapplied Toyota’s TPS (Toyota’s Production System) aka Enterprise Lean system.  The problem is that when Iowa and Minnesota adapted the Enterprise Lean system to their governments they failed to understand the differences between a Japanese manufacturing environment and an American State Government environment.  Toyota is a well managed company with less than 5% over staffing a factor not even considered in Toyota’s TPS.  But Iowa and Minnesota had an inherent 20% to 30% over staffing before the implementation of Enterprise Lean a fact misunderstood or ignored by the States' Administrative offices which manages Enterprise Lean.  Both Iowa and Minnesota have a stated policy that they do not reduce staff when lean studies clearly show a reduced staffing requirement.  If staffing is not reduced then they must find some new project for the extra staff to do to take advantage of the increased efficiency.  After a number of Lean improvements have been made and there are no other jobs to move personnel to, the entire Lean program becomes a sham and a waste of taxpayer dollars.  Yes they have improved systems such as document flows that improve customer service but they could have done this and saved taxpayer dollars.

Recommendations by Lawrence Rosier
For Iowa and Minnesota I recommend the current Lean organization be moved to a proposed State Reform Commission as an independent part of the State Auditors Office. This is necessary to prevent the state's bureaucracies from controlling the Enterprise Lean implementation and preventing the implementation of the reforms I recommend.
 
For other states wanting to adapt Enterprise Lean I recommend an indirect approach which legislatures can use to stem the growth of state government and make it efficient and effective.  My indirect approach uses the Enterprise Lean data from Lean Teams to reform the State Government.

My recommended indirect reform approach Following my General Reform Model
1. Establish a proposed Reform Commission in the state auditors office.
2. Implement Enterprise Lean throughout the State Government with Lean Teams.
3. Budget Analysts will Collect, accumulate and verify the data developed by the Lean Teams in Spreadsheets.
4. A Principal Consultant will implement Reforms by: Right-Sizing (makes sure all employees have a full time job), bottoms-up budgeting, changing the bureaucracy to Team Management and followed by other State Reform Models.  
Reference:
1. Minnesota's Enterprise Lean: http://www.lean.state.mn.us/
2. State of Iowa Office of Lean Enterprise: http://lean.iowa.gov/
3. Washington State: "Lean Transformation Report 2012 and Beyond": http://www.results.wa.gov/whatWeDo/applyLean/documents/2012LeanReport.pdf

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