University of Washington. Organizational Effectiveness and Lean NCCI Conference July 7-9, 2011

Transcription

1 University of Washington Organizational Effectiveness and Lean NCCI Conference July 7-9, 2011

2 About theuniversity of Washington Founded in November ,238 Students (undergraduate, graduate, professional) $1.4 billion Research Awards (largest federally funded public research institution in America) Campuses in Seattle, Tacoma and Bothell 17 major schools & colleges UW Medicine (School of Medicine, University of Washington Medical Center, Harborview Medical Center, Northwest Hospital, and UW Physicians Neighborhood Clinics) $1.8B Endowment 2

3 We Must Change: Unprecedented decline in state funding The UW has lost 30% of state funding (more reduction to come) Total per student funding has been cut to 1990 levels Tuition now surpasses state support for the first time 3

4 UW s Continuing Changes to Budget Mix 4

5 Unprecedented Impact to the UW In makingbudget decisions, UW sought to preserve educational excellence and maintain student access. We made carefulbut difficult decisions: Over 800 positions eliminated (more coming) 16% cut in administration (more coming) 12% cut in academic programs (more coming) As a result: It takes longer and costs more to graduate The need for financial aid has increased We are admitting more out of state students 5

6 We are Steadfast in Our Mission and Values We value education, guaranteeing a better future for our kids and for our state. We value discovery and innovation, finding the best ideas and timely solutions to our biggest challenges. We all value service and partnership, working together to build stronger, vibrant communitiesanda a better world. We are committed. Together, we create our shared future. We are committed. Together, we create our shared future. 6

7 UW s Future 7

8 Key Culture Facts Interim leadership in : President, Provost Very involved Faculty Senate Inclusive everyone expects a voice Special one size won t fit all Independent don t tell me what to do! Slow and hard to make decisions agreements are mostly made collaboratively, not hierarchically Sharing hard to keep things under wraps Proud UW is best, not all see the need to change Relationships are key political frame Northwest nice passive aggressive and don t like conflict 8

9 Your Institution Introduce yourself to 3 4 others nearby Do you have an effectiveness initiative underway? How is it structured? What are its goals? What is your culture like? 9

10 Our Focus and Plan What are our priorities in the coming decades? Maintain quality Two Years to Two Decades Strategic priorities for the future Stay true to our mission: A public university Learning Discovery Engagement Provide solutions to society s most pressing issues (as determined by 2d focus group results) What are our near term goals? Sustainable Academic Business Plan Align activities with our strategic priorities Create a new business plan for the UW Increase Revenues Decrease Costs Invest in People Invest in Infrastructure 2011 Priority Initiatives Organizational Effectiveness Program Evaluation 10

11 What is the Sustainable Academic Business Plan? Plan for how to emerge from the next two years better than we are now, positioned for the next twenty Become more: Nimble Collaborative Flexible Sustainable Increase revenues Decrease costs Invest in people Invest in infrastructure Engage everyone 11

12 What is the UW Organizational Effectiveness Initiative? Plan for how to improve work processes in the next two years, in order to position us for the next twenty. We want to become even better! Principles: i Rapid Transparent Data Driven Accountable Holistic Add value to the UW Achieve operational excellence Decrease costs Engage everyone 12

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14 OEI Structure/Oversight 14

15 What Are We Doing? Telling our story Focused on successes, individual engagement and stories, metrics; will becollecting UWwide process improvements andresults Building Capacity Provide tools and training for departments to learn how to do their own improvement work over time. 15

16 Strategic Planning Types of Requests to Date Dt Moving to Shared Services Facilitation UW wide Initiative Facilitation Process Mapping Process Improvement Planning/Facilitation ProjectManagement (hiring consultants) Metrics Consulting Training (targeted to a unit and for senior leadership) Spans and Layers Analysis Assessments (customer, employee, needs) Coaching 16

17 Administrative Process Improvements Survey Conducted January different groups responded 141 separate process improvement initiatives identified Five specific types of improvements were asked for: Reduced costs Increased quality Reduced waste Improved turn around time Enhanced satisfaction 77% of reported process improvements are seeing reduced costs as a result 72% of improvements with reduced costs also reported enhanced satisfaction. Respondents were able to choose multiple improvements Respondents could also add other improvements not already listed 17

18 Cross Unit Administrative Initiatives (examples) Procurement Express Establish university wide contracts resulting in lower cost and better service, leverage existing technology to improve processing efficiencies, and transaction outreach efforts, to focus on assisting units to maximize contract and administrative process efficiencies Smart Grid Demonstration project, part of a national initiative, that will create a smart microgrid for non utility owned electricity grid, to monitor energy consumption for the purpose of building smart energy management and resource allocation Direct Admissions Leverage existing program to admit incoming freshmen directly into their preferred major/school, to consider implementing university wide DIMS: Document Imaging Management System Pilot project to implement a flexible enterprise document management system that t captures and stores paper and electronic documents, performs workflow and integrates with existing and future UW enterprise systems, with the goal of providing this system campus wide GUPPEE (Government University Project Partnership for Efficiency and Effectiveness) Three year demonstration project in which UW and Washington State University are pursing a rigorous development and implementation project to improve administration and management practices to enhance the efficiency and effectiveness of university wide operations Humanities Shared Services Initiative Pilot project designed to provide centralized transactional administrative services to 13 departments within the Humanities division of the College of Arts and Sciences, to increase academic department staff time available to assist faculty and students 18

19 Lean Approach at UW UW Medical Center Harborview Medical Center Finance & Facilities Ad hoc use The following slides describe Lean in Finance & Facilities (F2) 19

20 What Is Lean? Lean is a systematic approach to identifying and eliminating waste... which includes identify current state envision future vision rapid process improvements customer involvement Lean engages staff to identify and solve problems Lean encourages leaders to trust and respect staff to do so James P. Womack and Daniel T. Jones in Lean Thinking (2003) 20

21 Why Lean? 1. Lean helps Finance & Facilities (F2) leaders and staff to become more: customer sensitive nimble efficient 2. Lean thinking and actions help us to: build a common culture those closest to the work constantly learning how to make that work better improve our management processes of observation, experimentation and speed become better problem finders and solvers develop transferable job skills 21

22 What Is Unique About Lean? Wing to wing improvements involve customers, F2 staff, process partners and suppliers Faster rate of change Customers define what s valuable Aggressive improvement goals (often 50%) In F2, continuous improvement is a way of life 22

23 How We Oversee Lean in F2 32 Active Teams Coached by FTE and volunteer facilitators (total of 1,550 F2 employees; ~370 involved in Lean so far) Program Management Theme: IRONMAN TRIATHLON Coaches work with teams through htransition from 3 day Event (the (h Swim ), to 30 day, 60 day and 90 day kaizen step backs (the Cycle ), to culture of Daily Improvements (the Run ). 23

24 Identifying The 8 Key Wastes Overproduction Excess inventory Waiting Movement Transport Complexity Processing Underutilized people 24

25 Reducing Processes To Core Value WASTED TIME AND ACTIVITY CORE PROCESS VALUE EXCESSIVE MOTION (WALKING TO NEXT TASK, ETC.) DEFECTS (IDENTIFYING, HANDLING, FIXING) O P E R A T I O N A L L E A D T I M E UNNEEDED PROCESSING TIME WAITING (OFTEN RESULT OF UNBALANCED TASKS) TRANSPORTATION Focus on eliminating the wasted time and activity. 25

26 What Is A Value Stream Map? Visual map of work flow: from beginning to end, from the customer perspective (wing to wing) produces an outcome or product (services, materials, information, etc.) A tool lto: Document the current process Point to problems Focus direction 26

27 Value Stream Map Alterations Process 27

28 Value Stream Mapping Exercise Identify the main steps you complete to get accomplish one of the processes. Place the notes in order from start to finish. List how much time is needed for each step Process Time Wait Time Touch Time Total Lead Time 28

29 Time Measures Touch Time (T/T): The actual time spent doing the work within ihi a process step Wait Time (W/T): The time between process steps Process Time (P/T): The time to complete a process step Total Lead Time (TLT): The time spent doing the entirevalue stream process, including all process times and wait times. 29

30 Value Stream Mapping Exercise Calculate total time it takes to complete the process Calculate total touch time Calculate total wait time Look at the map and identify any issues that leap out What do you see? What does the process do well? Where are the wastes? Can you identify some Lean opportunities? What Kaizens (improvement) might you work on 30

31 What Is A Visual Control? Visualrepresentation of process (in addition to the value stream map) in a highly visible location that: Makes problems visible Focuses on improving Value Added Work Flow Communicates at a glance how work should be done and whether h it is deviating i from the standard d Facilitates accountability of the team to the process Allows for frequent communication and sharing 31

32 Visual Controls 32

33 Visual Controls 33

34 Just Do It What Is Just Do It? I? Improvements that are quick to implement, that you have direct control over, the impact is clearly understood and agreed uponand it will bemeasured measured. Examples: Make revisions to one of your reports Create contract definition sheet Alterations Event Reduce Time in Meetings Strategy Management 5S within your work area 34

35 Lean: Early Kaizen Events in Grant & Contract Accounting: Budget Closings Content: 3 day event person teams, including customers; process partners. Value Vl Stream Mapping; Customer Voice; Vi Kaizen Ki formulation 1. Eliminate backlog of GCA closing budgets April Backlog of 5,478 reduced to less than Improve closingprocess and avoid future backlog Currently, 673 day average to close a research budget Improved process targets 120 day closing average 72 days average to close with pilot of Future State 35

36 CASE STUDY: Early Success Leads GCA to Initiate Org. wide Lean Rollout Case for Change : Growth in Research Volume % change 350% 300% (1990 base year) 308% increase in Direct Expenditures $ amount since % 200% 150% 255% increase in Awards $ amount since % increase in number of Budgets since % 50% 0% 20% increase in number of FTE since %

37 Budget set up: 24 hours Invoicing: by due date Reporting: by due date Closing: within 120 days of expiration Prompt response to all customer inquiries Standard approaches to all processes 37

38 Desire to create a space dedicated to accomplishing one goal. This area to have: No distractions Checklists with clear steps Accountability Immediate feedback Visual cues 38

39 Visual Cues Pending cash & journal voucher processing Problems to Resolve 39

40 Improvement approach Build on initial Lean improvements Stream all processes Provide consistent campus interface Level work Standardize di processes Eliminate waste and wait time Use visuals in all streams Develop daily goals tied to demand Track actuals and identify gaps gp on a daily basis 40

41 Visual Management in GCA 41

42 Results: Budget Closings Budgets Expired with End Date > 120 days 6000 Num mber of Budget ts Not Closed May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Backlog Closings Total Expired 42

43 Result: Total ldollar Amount in Cash hsuspense Millions $15 $14.2 $12.4 $12.6 $13.0 $10.9 $ $9.7 $9.7 $7.3 $ $6.8 $6.2 $6.2 $5 $0 2.1 $ May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 $ Check Suspense $ Wire Suspense $ OSP Suspense 43

44 What GCA is learning from Lean Productivity trending up in allstreams Backlog trending down in all streams Where we have standardized, it s having an impact Staff and leaders are engaging in the change Beginning to hear positive feedback from campus customers 44

45 What Is 5S? 5S focuses on creating an efficient workflow by reducing waste through the placement and movement of materials, information, equipment, and people. 45

46 Lean Activity : February 2010 Facilities Services 5S (Entire staff of Administration Building) Customer Impact/Benefit to Customer: Workspace Focus Facilities Services 5S projects are designed to improve customer service by identifying and eliminating wasted time and space to allow for increased accuracy and productivity. Before 5S After5S 5S Lean concept: Sort Straighten Shine Standardize Sustain 46

47 OEI Accomplishments 47

48 Service OEI Specific Accomplishments Training unit specific 6 Training OEI leadership offerings 18 Intake Meetings 60 Consulting Hours 185 Number of Hours (contact time, not design or development time) Activities Number of Products Strategy Maps 4 Process Maps 4 Retreats/Workshops 13 OEI Website 12 pages, 644 visitors, 2000 visits, 5400 pages viewed Reporting Structure Maps 9 Unit Improvements compilation 1 Cross Unit Improvements compilation 1 Presentations on OEI material 9 48

49 OEI Onward 49

50 Impact tto OEI in 2012 Reporting to VP Research, who is managing 2y2d for Provost Focused on Central Administration: particularly student services and research processes Ruth dedicated to a School s specific improvement needs for next year PEI for Administrative Areas: set of metrics will be required for next budget review Benchmark Customer survey Employee survey Cost of service Productivity 50

51 OEI Lessons Learned Communicate, communicate Use jargon (e.g. Lean) with care Be transparent as possible Get the right people engaged, supportive; build allies Make it easy (simple tools) Proactively reach out Address any criticism directly and by listening Understand that some won t participate and think they are doing it all already Be flexible! Provide Central support (free services) with talented staff Collaborate with other university staff for increased capability Creating metrics is hard and is new for many Identifying a few UW wide initiatives that we can drive would be helpful to build credibility Balance doing hard things with support 51

52 Organizational Effectiveness Initiative Contact Information Ruth Johnston, Ph.D., Special Assistant to the Provost and Associate Vice President in Finance & Facilities Laurin Gaudinier, Metrics Analyst & Reporting Specialist Kerry Kuenzi, Project Manager Sherry Steinaway, OD & Process Improvement Specialist website: edu/oei/ 52