Improving Service; Changing Culture:
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1 Improving Service; Changing Culture: Lean in Facilities at UW LuAnn Stokke, Director of Operational Excellence, UW F2
2 Today s Headlines Lean Participation: 68% of ~1,400 employees Customer Involvement: 130 on Finance & Facilities teams; 16 external teams Teams Launched (3-day events): 110 since Jan Teams in Pipeline (Jan.-June): 19 new teams 26 embedded Lean coaches Employee Engagement: over 17,000 ideas so, how did we get here?
3 What is Lean?
4 What is Lean? James P. Womack and Daniel T. Jones (2003), coined the term in Lean Thinking about the Toyota Production System. They noticed 5 Principles at work: 1. Customer defines value How do you understand what your customer wants and then build that into what you produce? 2. Organize work to deliver value How can you align your organization so that all that s needed for a product or service is organized together? This contrasts with a stove-piped, traditional structure of Finance, HR, etc. 3. Focus on the flow of work How smooth is the flow? How short is the flow? How flexible is the system to adapt when a problem occurs? 4. Produce at rate of customer demand Set the pace for your activities to match your customer s demand. 5. Pursue perfection Toyota instilled a relentless desire in everyone to continually improve
5 One of the largest administrative units on Campus: nearly 1,400 employees; 6 major units Diversity a key strength accountants, landscapers, electricians, architects, investment advisors, truck drivers, graphic artists, project managers, tax experts, investigators, custodians, analysts One mission aligns and guides priorities focused on helping people who change the world, reflecting UW s preeminence as a research powerhouse and Global Challenge university. UW s Finance & Facilities Profile
6 Our Lean Journey Begins in 2008 Budget reductions of 34% (net) Layoffs of permanent positions; loss of all vacancies Business impacts to self-sustaining units Shrinking capital-project budgets Increasing workload in many areas (more students; more research dollars) Heightened customer expectations We chose Lean to build morale while discovering efficiencies to deliberately engage the remaining employees in improving their own work
7 It all starts with getting the mess on the wall Chartered cross-functional teams, including customers and process partners, participate in a 3-day launch. They learn to value-stream map, identify pain points and issues, see waste, own their reality, and envision a future state. More important than learning Lean tools, they as a team embrace the opportunity to devise improvements to their work, as a unit. The team commits to the goals, develops the options and carries the implementation plan.
8 Building Envelope Team Campus Bollard Team Slip/Trip/Fall (Grounds) Team
9 followed by a 90-day improvement cycle: a learning lab to practice Lean focused on discrete objectives Teams learn and carry out visual management weekly rhythm; improvement cadence Goal alignment: clarifying what it means to win Gap-identification; escalation protocols problem-solving through generating ideas Along the way, we ve discovered untapped talents, creativity, and immense positive energy among our employees.
10 During the 90 days, teams are supported by coaches, sponsors and external expertise Lean Coaches: 27 with Lean-team experience of their own to share Full-time employees building capacity in their own units to peer-coach Trained by consultant Using standard tools Lean Sponsors: Attend 30/60/90-day step-backs Go to gemba (work-site) Lean Expert (external): Visits teams at 60-day mark; shares insights with team leader, coach, and sponsor/sr. leader
11 Corrective Maintenance Team (the launch) Today s SW Maintenance Zone Idea Board
12 After 90 days, teams leverage learning and success with one process to move entire units to daily improvement This mature team, or model area engages all streams (work-cells) in daily huddles, tracking a variety of operational metrics to manage UW s $1.5B in research budgets. UW s Facilities Maintenance & Construction will use SAFETY as the leverage point for maturing their staff in 4 Key Systems : Goals, Visual Management, Daily Kaizen and Leader Standard Work
13 Lessons We ve Learned So Far: Lean Begins with a Gap: Not understanding the problem IS the problem Our early projects were scoped too small they didn t discover and learn Our project-management comfort zone limited learning; the team members didn t take responsibility Customers play a critical role on the team by acting as customer voice and 360 ing the process map Speed-scoping helped us streamline launching we intuitively know what our problems are Front-line staff are key team members Solutions are discovered as the team learns together; not resourced at the launch
14 So Where Have we Used Lean in Facilities? 32 Launched Teams-- Bldg. Services: custodial closets, carpet cleaning, weekend cleaning crew, key accountability, recycling, special events cleaning. Maintenance: small alterations projects and communication, corrective maintenance, building-based maintenance, work-order estimating, key-cutting, CMMS reporting, grounds major-equipment prioritization, recharged maintenance, building signage, tool accountability, key accountability, building-envelope project prioritization. Plant and Systems: Capital project document (dwg) intake, firealarm testing, campus design guide updating, campus map maintenance, bollard management, slip/trip/fall hazards, turnover of care, custody and control (new construction)
15 So Where Have we Used Lean in Facilities? (cont.) 32 Launched Teams Facilities Process Partners: Materials management (shops and stores), surplus processing, capital project contracting and close-out, fleet accident management, Workers Comp return-to-work, Purchasing workflow, parking enforcement/operations Operations: business continuity planning, emergency management situational awareness, work-order billing, facilities payroll ~15 Supporting Process Teams Environmental Health & Safety, State Procurement (DES), Records Management
16 Lean Results
17 A New Finance & Facilities Strategy (2012):
18 How Will We Achieve our Strategy via Lean? By adopting Lean far beyond the tools and systems level We want to build a principle-centered organization We want to develop an engaged workforce that wants to improve We are learning to implement a close-looped model where: we deploy strategy at all levels (clarifying what it means to win every day) we rely on visual management we practice daily kaizen and incremental improvement with ideas we manage and lead using standardized methods to follow up, and coach, teach and train
19 Our Goals Must Be Aligned Cascading and aligning goals at all levels: Reduce administrative process time by 50% Incubate 25,000 ideas Meet/exceed customer service standard 85% of the time Improve asset performance Double the number of students employed in F2 Develop a learning and research testbed in F2 for students and faculty Develop financial forecasting models Meet goals of Climate Action Plan (carbon neutrality by 2050)
20 Campus Alterations (Facilities) TEAM PROBLEM GOAL RESULTS customers dissatisfied with 50% less process time for communication and projects cost effectiveness Workers' Compensation-- Return-to-Work process Payments for time loss to UW Reduce time loss days and injured workers claims have dollars paid by 10%. increased by 58% since 2005 ($1.4M to $2.3M); L&I insurance premium has increased by 21%. 27% improvement in meeting deadlines; 1.75 FTE/week saved UW's L&I experience factor down from 1.01 to.92. Time-loss days from 19,264 in 2007 to 4,334 in 2011, and cost, from $1.629M in 2007 to $392.5K in Materials Management Suboptimal materials (Facilities Shops and Stores) management processes Reduce the number of steps In shops where system is implemented, by 50% and otherwise on-time delivery improved from 46% to simplify process to 90%; reduced procurement surcharge to order & procure materials customer for recharge work by 4%. and supplies. Capital Project Document (Drawing) Intake Many UW building and facility Reduce space and drawings are produced on expensive production/maintenance Mylar film, taking up valuable space costs by 50% and maintenance costs. Mylar drawings have been eliminated, at a savings of $100,000 per year, and a processing time reduction from 4 hrs each to.5 hr. Corrective Maintenance Work Orders Carpet Cleaning The current documented work order responses for Urgent are 55%, High 70% and routine are at 72% compared to the BSC target of 85%. Current scheduling process is laborand time-intensive; customer complaints about lengthy and unpredictable cleaning cycle. Some failures to bill for services performed. Improve the documented work order response times (priority High, Urgent, Routine) to 90% Reduce time to research and plan work; Reduce time spent / # of rooms inspected by supervisors by 50%; Increase the frequency of deep cleaning by 50%; Reduce Complaints by 100%; Recover 100% of charges Response times are now: Urgent-74%, High-89%, and Routine-87% (up from 56, 66 and 72). Deadlines met are now: Urgent- 85%, High- 92%, and Routine- 96% (up from 44, 65 and 83). New schedule affords 80% increase in walk-throughs provided, significantly reducing customer complaints; reconfigured truck, saving 1 hour of non-value-added time per shift; card access to buildings saves time on key retrieval.
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