2012 presentation lean 6 sigma

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    Murray JamerSaskatoon

    LEAN SIX SIGMAPRESENTATION TO CAMA

    May 29, 2012

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    OverviewTraditional ways to balance the municipal books

    Some of our proactive toolsLean Six SigmaFrederictons Lean Journey

    Our plan:Our commitment:Councils perspectiveResults to date:Questions

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    Some of our proactive tools:BPIsIT projectsQMS (formerly ISO)

    ean x gma

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    What is Lean Six Sigma?Lean Sigma

    Improve SystemEfficiencyIm rove Flow and

    Six Sigma

    Improve ProcessEffectivenessReduce Variation

    StabilityEliminate Waste

    Method of OperationFocus on Value forCustomer

    Improve YieldProblem Solving

    MethodFocus on Quality forCustomer

    We will use combination of Lean Sigma and Six Sigma

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    LeanFocuses on maximizing the flowof value by eliminating wasteProvides tools for analyzing

    identification of wasteCenters on the separation of"value-added" from "non-value-added" work

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    How is Lean different from Six Sigma?Lean

    Waste EliminationStandard Work

    Six Sigma

    Variation ReductionsRework Elimination

    SPEED STABILITY & ACCURACY

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    Common Types of Waste in Organizations

    Over Production -Producing more than what is needed

    Waiting - DowntimeTransport - Items transferred from one location toanother

    Motion Poor LayoutExtra Processing - Rework - HandlingDefects Defective itemsExcess Inventory

    Underutilization of staff

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    Goals of Lean Sigma

    RED

    INCR

    CEEASE

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    Lean/Six Sigma is NOT:A Cost Cutting Exercise

    Job CuttingAn easy thing to do

    *

    Although positions may be eliminated throughattrition or changed.

    *

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    Lean-Sigma OverviewLean-Sigma is about creating a culture thatdemands continuous improvement and thepursuit of perfection

    Gives employees the tools to:1. Enable them to pinpoint performance gaps2. Make the necessary improvements

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    What about QMS?We still have QMS; not ISOQMS has provided:

    Structureocumen a on

    A culture of continuous improvement

    QMS is a foundation for Lean Six Sigma

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    Lean Six Sigma Organization in City(Our Improvement & Innovation Team)

    City Council

    City Administrator

    SteeringCommittee

    Finance DeptI&I Team Members

    DevelopmentServices Dept

    I&I Team Members

    Community ServicesDept

    I&I Team Members

    Engineering &Public Works Dept

    I&I Team Members

    Corporate ServicesDept

    I&I Team Members

    Police DeptI&I Team Members

    Fire DeptI&I Team Members

    Office ofContinuous

    Improvement

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    VisionWe will improve the Citys internal andexternal services by making them moreefficient and better able to withstand

    Innovation teams using Lean Six Sigmatools and other change management tools, in

    order to enhance continuous improvementwithin the framework of the City ofFrederictons overall Management System.

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    ObjectivesShort-term (1-2 years)

    1. Improvement and Innovation Teams, made up of staff from eachdepartment, will work on at least four Improvement and Innovationprojects per year, where trained team members will use newlyacquired Lean Six Sigma techniques.

    2. Ever Cit em lo ee will have been ex osed to Lean Six Si ma

    principles.3. Every department will participate in Improvement and Innovation

    projects.4. 10% of City employees will have participated on Improvement and

    Innovation projects where Lean and Six Sigma techniques are used.5. 1 City staff will have Black Belt designation in Lean Six Sigma.6. 4 City staff will have Green Belt designation in Lean Six Sigma.7. Improvement and Innovation Projects (Lean Six Sigma projects) will

    have resulted in annual savings of $500,000.

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    A Lean Six Sigma ProjectSelect a project

    Select teamDefine Phase

    easure aseAnalyze PhaseImprove Phase

    Control Phase

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    A Lean Six Sigma ProjectSimilar to BPI

    Data is importantValue Stream Mapping

    Future State

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    The 5S Process

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    What is 5SAn easy definition is:

    A place for everything and everything in its place

    s t e oun at on or ont nua mprovement anLean implementation

    One tool in Lean SigmaReduces time waste (waiting & searching)

    Reduces motion wasteIncreases operational efficienciesHelps increase value added time

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    Traffic WarehouseBefore After

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    Traffic WarehouseBefore After

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    Traffic WarehouseBefore After

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    Traffic WarehouseBefore After

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    Traffic WarehouseBefore After

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    Traffic WarehouseBefore After

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    Before After

    Property Services

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    Before After

    Property Services

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    Before After

    Property Services

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    Before After

    Property Services

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    POLICE GARAGEPOLICE GARAGE

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    POLICE GARAGEPOLICE GARAGE

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    POLICE GARAGEPOLICE GARAGE

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    Regent DepotBefore After

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    Regent DepotBefore After

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    Regent DepotBefore After

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    Regent Depot

    Before After

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    Regent Depot

    Before After

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    Fleet

    Before After

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    Fleet

    Before After

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    Water & Sewer

    Before After

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    Water & Sewer

    Before After

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    Water & Sewer

    Before After

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    Water & Sewer

    Before After

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    Water & Sewer

    Before After

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    Our plan:

    Make changes before we are asked to make

    changesInvolve our staff

    teams)

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    Our commitment:

    No layoffs as a result of a Lean Six Sigma Project

    (staff savings through attrition)We will honestly measure results and cost savings

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    Councils perspective

    Didnt like our previously proposed cuts

    Dont want higher taxesConcerned about simply deferring infrastructure

    Pleased we are trying Lean Six Sigma

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    Results to date:

    5S done in 7 workplaces

    Curbed requirement for more spaceCurbed requirement for more staffEstablished foundation for Lean Six Si ma Pro ects and

    staff reductions / other efficiencies?)

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    Summary

    Looks like this is a good methodology

    Our team in placeEmployees are motivated / engaged

    e are we un erwayHard staff reduction targets?

    Q i

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    Questions