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The Lean Six Sigma Office Advantage Transforming School Business Office Operations

Byron Headrick

President and Co-Founder

Do you know

this guy?

How about

this guy?

RESULTS

2013 Air Guitar

World Champion

THE King of Blues

working Feverishly

to accomplish ONLY A little

Don’t waste your time playing “Air

Guitar”…

`

80% OF THE STEPS IN MOST PROCESSES ARE

UNNECESSARY

MORE THAN 60% OF THE TIME AN ACTVITY takes is

ATTRIBUTABLE to Administrative PROCESSES

We play a lot of air guitar

“I am here to talk today about what has been called the NEW

NORMAL. For the next several years, preschool, K-12, and

postsecondary educators will face the challenge of doing more

with less.” - Arne Duncan, U.S. Secretary of Education, November 17, 2010

Silver Bullets

MICRO

PE

RF

OR

MA

NC

E

?

Don’t

Exist. Of 34 assessed school districts

in Alabama and Tennessee over

the last 24 months, fewer than

10% are making full use of

software and technology

investments (e.g., NextGen,

SchoolDude, etc.).


What is

Lean Six Sigma?

… Eliminating

Waste

… A way to

drive

innovation

… Problem

Solving

… Management

System

… Team

Building

… its all about

processes

… a Spear

… a Leaf

… a Wall

… a Rope

… a Tree

… a Snake


Lean

Remove WASTE in processes

Create more value for customers with less work and less resources

Instant gain in speed in processes and cost reduction

Six Sigma

Reduce VARIATION in processes

Pursue perfection in processes

Improved quality because processes consistently deliver value


Lean Six Sigma combines

the EFFICIENCY of Lean

(Lean Tools and Principles) -

Doing Things Right

Operating at World Class Levels

with

the EFFECTIVENESS of Six Sigma

(Six Sigma Methodology) -

Doing the Right Things

Having Consistent High Impact


So What is the Lean Six Sigma Office Advantage? How does this relate to me and my job?

With the consistent practical

application of Lean Six Sigma

thinking, systems, and tools you

can:

• Improve the speed and quality of your

individual work and the work of your

department or office

• Reduce your stress and your team

members’ stress by fully engaging all

team members

• Better allocate resources to keep and

maintain satisfied internal and external

customers

The true advantage of a lean Six Sigma office

comes from building a culture where each

person in the office fully understands the value

that he or she delivers and focuses daily on

improving how that value is delivered.


Where to Start?

Five Lean Six Sigma Principles for K-12

1. Value is defined from the perspective of the customer

(i.e., students, educators, parents, community, etc.). Fully understand the value you deliver to customers and stakeholders.

Strive to increase that value and consistently deliver more value than

expected.

2. Teach ALL your employees to understand value and

then listen to their ideas for increased value. Employees often have excellent ideas for creating outstanding customer

delight.

3. Eliminate/control all aspects of the operational costs (in

time, energy, and money) that do not directly create,

increase, or deliver value. These costs are waste and prevent your ability to

meet and exceed expectations.


Five Lean Six Sigma Principles for K-12

4. Understand how value is CREATED by the organization

and how it FLOWS to your end users. Flow value through systematic, optimized processes.

5. Measure performance at all levels: strategic and

operational. Take action. Reward and recognize success. Learn from failures FAST, then try again.

Pursue perfection through both continuous incremental and radical

improvements. Think outside the average school system “box.”

The step or activity is meaningful to the

customer. The customer cares whether

we do it and how we get it done.

Parents believe it is important that resources are

expended for regular maintenance of the buses

that transport their children

The step or activity changes the product

or service.

Counselors checking high school students’

schedules for difficulty and alignment with college

requirements improves students’ likelihood of

making good grades and being prepared for

college.

Sometimes steps or activities are neither meaningful to the customer nor do they

change the end product or service; however, they are required by law or regulation.

ALA Code 16-9-4 requires Superintendent candidates to file approved certification with probate judge

and have the record submitted to the grand jury.

Non-Value Add, but Required

VALUE is determined from the perspective of the customer (i.e., students, parents, community, co-workers)

Value-Add:

Non-Value Add (Waste)

Resources are consumed by activities that do not add value to a product or service.

Parents do not want to pay more for school lunches to permit cafeteria staff to use time and labor to locate

misplaced recipes or to produce more food than is needed to properly feed students.

Communities do not want sub-par teachers due to HR department process delays in making offers to

potential teachers, which results in “top choice” teachers accepting positions with other systems.

Value is

NEVER…

• An expedited

action

• A temporary fix or

recovery action

• “Firefighting”


Operational Waste – The Root of Inefficiency

People Waste

Procedure Waste

Information Waste

Asset Waste

Occurs when resources are consumed by activities that do not add value to a product or service

“the way it is”

“it’s a personality

issue”

“that’s how we’ve always

done it”

These wastes are often hidden. However, they eat up revenue and resources. They prevent customer satisfaction (i.e., student achievement).

People Waste Loss of value caused by failing to fully capitalize on

the knowledge, skills, and abilities of all employees

and work groups

Goal Alignment: Working at cross

purposes

Assignment: Completing

unnecessary or inappropriately assigned tasks

Motion: Movement that

doesn’t add value (e.g. walking,

reaching, driving)

Over-processing: People not using

the better way (result of poor training, non-standardized procedures)

Waiting: Resources lost as

people wait for next step (info,

meeting, signature, returned phone

call, etc.)

Procedure Waste problems arising with the design and/or execution of a functional

area, department, school, and/or district’s processes

Standardization waste – arbitrary/

unpredictable processes

Variability – deviation from expected outcomes

Reliability - missed step because of the unknown

Sub-optimization - competing or duplicative processes

Procedure Waste (Continued)

Control - Supervision without sustainable results

Tampering - Arbitrary changes without full understanding

Checking - Reviewing original work because it is not trusted

Strategic Waste – Meet needs of internal members, but no value to stakeholders

Work around - Maintaining informal processes that compete with official ones

Uneven flow - Irregular demand caused by backlogs or pinch points

Scheduling – Poorly/incorrectly scheduled activities

Error - Repeated step to correct mistake or resolve a problem

Procedure Waste (Continued)


Information Waste Loss of value caused by deficiency in available

information

Missing Info

Irrelevant Info

Inaccurate Info

Hand-off

Information Translation

Asset Waste Occurs when resources (human, facilities,

materials) are not used in the most efficient

manner to add value

Overburdening: taxing people or

physical resources beyond safe limits

Fixed Asset: land, buildings, and

equipment used minimally or inefficiently

Moving/Unnecessary Transport:

greater distances or more often than

needed

Inventory/ Overproduction:

resources applied before they are required; output exceeds what is

needed

Variation – the Root Cause of Ineffectiveness When a Process Does Not Produce the Same Result Every Time

Pull Cord

Order Entree

Press Brakes

Go through Security

Deposit Check

We expect consistent outcomes with certain activities:

-10

-5

0

5

10

15

20

We become frustrated when our

expectations are not met. . . when

processes yield “hit or miss” results.


Variation Customers do not FEEL averages

Our students, parents, and co-workers expect a consistent outcome (predictable output):

• Student check in/check out

• Making changes to personal data

(students, employees)

• Hiring teachers

• Selecting bids

• Response to parents’ telephone,

web, and email queries

I can’t find his name

on the list, but we

can make an

exception this time.

Partner Parlay

Can you identify activities or

functions where operational waste

is occurring or where there is a high

level of process output variation?

What is the impact on your

staff/team mates, department,

and/or

district as a whole?

(5 Minutes)


How to

Reduce/Eliminate

Waste and Variation?


From Rules to Basic Tools

Lean - Deceptively Simple

Six Sigma - Deceptively Complex

It involves increased

attention to and greater

awareness of customer

needs, prompt problem-

solving, and regular

performance

measurement.

It’s more than just

removing waste!

It involves increased

communication at all

levels and empowering

team members to

make improvements

themselves.

It does not

always require

an expert to sort

through complex

statistics!

The 4 Lean Rules Used to Eliminate Waste Rule 1: All Activities are Clearly Specified: • Content (what the work is) • Sequence (in what order should it occur?) • Timing (about how long should it take?) • Outcome (what result is clearly expected?)

Rule 2: All Communications are Direct Direct communication between two people…(think of making a request) • Direct (no middle man in the request) • YES/NO answer (no “maybes”!)

Rule 3: All Pathways are Simple & Direct Steps in delivering the requested product or service • Simple (involving as few steps and people as necessary) • Direct

Rule 4: Always Improve • Direct response to problem • As close to the problem as possible • As an experiment • By those doing the work • Supported by a Coach Source: Spear, S. and H. K. Bowen. “Decoding the

DNA of the Toyota Production System.” Harvard

Business Review, 1999


Some Basic Waste Reduction Tools

• Standardized Work

• Visual Management/Controls

• 5S

• Continuous Flow

• Pull Systems

• Error Proofing

See Appendix for Tool Descriptions

Simple Tools Used to Collect Data, Analyze, and Address Variation

0

100

200

300

F r e

q u e n

c y

Histogram

Type of Error

Date Qty Cost Part # Cost Tax Name Other

Effect

People Materials Equipment

Environment Procedures

Cause

Cause-and-effect diagram

(Fishbone)

Fre

quen

cy

A

B

C

D

E

Type of Errors

Pareto Chart

(Attribute) Control Chart

Frequency

Description Monday Tuesday Wednesday Thursday Friday

Cust Info Not Filled In

Incorrect Part Number

Cust ID # incorrect

Wrong Address

Check Sheet

Example – Use of Basic Tools

Cause

Effect

Example – Use of Basic Tools (continued)


Partner Parlay

Which rules or tools do you think

would be most beneficial for you to

apply personally?

Which rules or tools do you think

would most benefit your

department?

(5 Minutes)


Putting This All

Together…


INNOVATING

PROBLEM

SOLVING

OR


VSM DMAIC

Two Approaches Based on Need

Value Stream Mapping (Innovating) 1. Select a business process to improve; form team.

Develop a business case statement and SMART

goals, and form a team.

2. Value Stream Map (VSM) the current state.

Select a product family, VSM current process, and

calculate metrics.

3. Analyze the current state VSM.

Review sources of waste and identify opportunities for

improvement.

4. Develop an Ideal State vision.

Ask: How could we best meet customer/organization

needs and wants if there were no resource

constraints?

5. Develop an attainable future state.

Develop a future state VSM using Lean concepts like

visual management, continuous flow, error proofing,

and standardized work.

6. Implement improvement ideas.

Develop an implementation plan and present it to

management for approval.

Control Improve Analyze Measure Define

DMAIC (Problem Solving)

• DEFINE – Define the problem from the perspective of both the

organization and the customer

• MEASURE – Gather performance data, understand the process and

relationships of inputs/outputs

• ANALYZE – Search for key factors that have the biggest impact on

performance to determine root cause

• IMPROVE – Develop an improvement solution and verify effectiveness

• CONTROL– Fully implement improvement solution, establish means to

have ongoing measurement, and document improvement through

standardized work


Pitfalls to

Avoid

Requirements for Change

Change Strategy (Vision)

Incentives Skills (Leadership)

Resources (Coalition)

Action Plan

False Starts

Strategy Incentives Skills Resources

Frustration Strategy Incentives Skills Action Plan

Anxiety Strategy Incentives Resources Action Plan

Gradual Change

Strategy Skills Resources Action Plan

Confusion Incentives Skills Resources Action Plan

Source: American Productivity and Quality Center

Employees go through the change process in

stages and through these stages as individuals.

Data Source: “Managing Transitions” by William

Bridges and Danaher Business System

Shock

Anticipation

Fear

Anger/Betrayal

Depression

Acceptance

Search for

Solutions

Develop Plans

Execute Plans

Emerge Stronger

Cycle Time

Denial

Resistance Exploration

Commitment

Guilt

Unfreeze Transition Refreeze

D

E

P

T

H

Point of

Change

Commitment to

Change 5% of people will embrace

change Early Adopters

5% will never change Stone Heads

90% will look for leadership Fence Sitters

“To change a culture, you have to

change the conversations.”

A culture change must have a clear,

simple message repeated redundantly

throughout the organization.

Focus on Early Adopters!

Stakeholder Analysis

STEPS:

1. Plot where individuals currently are with regard to desired change (= current).

2. Plot where individuals need to be (X = desired) in order to successfully accomplish desired change – identify gaps

between current and desired.

3. Indicate how individuals are linked to each other, draw lines to indicate an influence link using an arrow () to indicate

who influences whom.

4. Plan action steps for closing gaps.

Names Strongly Against

Moderately Against

Neutral Moderately Supportive

Strongly Supportive


A Few Simple Rules for Creating Change

Think Big: Understand customers. See the big issues facing your

business. Know the business strategy. Develop “systems level

thinking.”

Act Small: Focus on changing small things you see as relevant.

Generate short wins. Involvement builds commitment. Don’t let perfect

get in the way of better.

Fail Fast: Not all ideas work. Learn to make decisions to stop doing

things that don’t work. Experiment. Take risks.

Learn Quickly: Learning occurs when ideas are transferred from one

time and place to another. Focus on repeating approaches that get

results, not just on the results themselves.

Source: Hallmark

Panel Discussion Can these Tools Make a Difference in a Public School System?

Wilcox County Schools Barbara Locke, CSFO

Optimized Procurement Processes and Travel (Request/Approval)

Currently Optimizing Field Trip (Request/Accounting

Madison City Schools John Jones,

Personnel Director Optimized Hiring Process from Request through initial paycheck (Personnel & Finance)

Huntsville City Schools Jason Taylor, CSFO

Optimized Processes across multiple departments: Hiring/HR, Corrective Maintenance / Operations, Student Transfer, Child Nutrition, Department KPI

Currently Optimizing Payroll Processes, Enrollment / Registration, Cumulative Folder (creation/movement)

QUESTIONS?

Byron Headrick

[email protected]

www.theleanleap.com

Follow us on Twitter:

@ByronsLEAN


Appendix A:

Basic Lean Tools • Standardized Work

• Visual Management/Controls

• 5S

• Continuous Flow

• Pull Systems

• Error Proofing

Standardized Work Optimum combination of people, equipment, materials, and process to ensure a

task is completed the same way every time with minimum waste to consistently

and predictably meet customer requirements and expectations.

How do I make Cajun

Chicken Pasta?

How do I make

changes to

personnel forms?

HOW YOU DO IT 1. Identify the critical processes of the work

team and a timeline for documenting all

processes

2. Document each process:

a. Break the process into separate

tasks/elements

b. Capture the time of each task

c. Capture work flow (standard work

chart)

3. Train all team members on the standard

process

4. Make standard processes visible and

easily accessible to all team members

5. Develop a system for improvements and

submitting process changes


Visual Controls/Management What is it for? • Method of creating an information-rich environment by the use of visual signals, symbols, and

objects.

• It helps anybody in the workplace to know what the current status is and what to do next.

How to use it • Understand key elements of the workplace & process

• Consider methods to make standards clear and easily understood

• Use in teams to create shared understanding and build teamwork.

• Build participation through shared information

• Conveying information - Work environment, safety, operations, storage, quality,

equipment, etc.

• Visual Displays - what, where, when, who, and how

• Visual Controls – for controlling the process (e.g. action triggers)

• In any workplace where working to a standard is key.

• Use it in teams, to create shared understanding and build teamwork.

Where to use it

Workplace Organization (5S) What You Need, When You Need It, Where You Need It . . . ALWAYS

5S applies to electronic files and data as well.

Before 5S

After 5S

HOW YOU DO IT 1. Select team and select a

target area

2. Weed out unnecessary items

(SORT)

3. Label to establish locations

(STRAIGHTEN)

4. Set aside time for cleaning

(SHINE)

5. Post 5S standards for target

area –what, how, and by

whom (STANDARDIZE)

6. Create 5S training matrix and

regularly conduct 5S audits

(SUSTAIN)


During the activity, the

drive was restructured

with identified unused

folders and data

assigned to a MOVED

FILES folder.

This has been saved

onto disk and deleted off

the network drive.

Folders and data are

now quicker to access.

BEFORE AFTER

Continuous Flow Placement of people and equipment to contribute to the continuous flow of the

work

There is no point in

continuing to

produce work

upstream when those

doing the work

downstream cannot

do anything with it.

Teach people to ask for help. Address problems promptly. Don’t wait until

customers (students, parents, co-workers) are affected.

HOW YOU DO IT

1. Review current office arrangement and process

tasks to identify wastes

a. Capture time and movement associated with

steps in processes (Value Stream Mapping)

2. Brainstorm to modify or standardize processes, to

modify office arrangement if necessary

3. Set up “First In, First Out (FIFO) Lane” to manage

work flow

4. Have a system to warn the upstream process

personnel when lanes are operating at capacity (or

full)

5. Utilize visual cues to “pull” rather than “push” work

6. Have a process for assisting downstream personnel

when lanes are full – Cross training may be required


Error Proofing The use of process or design features to prevent a non-conforming service or

outputs

HOW YOU DO IT 1. Identify Opportunities for Errors (Critical

Factors)

2. Prioritize Potential Errors for Error Proofing

3. Provide Containment and Study Further

4. Identify Root Causes of the Errors

5. Develop and Evaluate Error Proofing Options

6. Select and “Design” the Error Proofing

System

7. Implement - Plan, Install, Document, Train,

Monitor

8. Periodically Assess the Performance and

Improve


Example - Fire Proofing a New Building

• Eliminate: Use Only Non-combustible Material for

Construction (Steel, Concrete, Etc.)

• Prevent: Do Not Allow Smoking, Use Proper Electrical

Systems and Components

• Detect: Install Smoke Detectors and Fire Alarms

• Loss Control: Install Sprinkler System, Fire

Extinguishers, Fire Hoses

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