Operational Excellence: Lean
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- Gary Jessie Wilcox
- 5 years ago
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1 Operational Excellence: Better Service By Working Smarter Lean Lean is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful and thus a target for elimination Office of the General Treasurer 2 1
2 Lean in Treasury Lean means creating simple streamlined work flows that allows more focus on innovation. Adopting a Lean approach demonstrates a commitment to improving the taxpayers experience with government. Office of the General Treasurer 3 Three Steps to Lean Operational Excellence: If our work is easier to do, we can do it faster and better Customer Focus: If our work is faster and better, we can focus on our customer in a friendly, engaged way Innovation: If they are happy with us, we can spend more time thinking about the future and what else we should be working on Office of the General Treasurer 4 2
3 Lean Volunteer From Groov Pin Small manufacturing company in RI that wanted to stay in RI Needed to improve on time shipping by 50% to beat Asian imports Started Lean in 2009 Today: 3 weeks average lead time and 95% on time year to date Office of the General Treasurer 5 Lean Tools Five S s: Sort, Set in order, Shine, Standardize, and Sustain Kaizen: Two day meetings to map current state and future state Idea System: Getting everyone s ideas out and implemented Toyota Production System: Help from the masters of Lean Office of the General Treasurer 6 3
4 Treasury s Process Groov Pin factory tour to see Lean in action Two Day Kaizen to map current state and brainstorm ideas to make jobs easier Weekly meetings to implement the team s ideas and track results Office of the General Treasurer 7 Lean at Treasury Started with Unclaimed Property Moved on to Crime Victims ERSRI Plan Purchasing Death Benefits Office of the General Treasurer 8 4
5 Unclaimed Property Program Unclaimed Property The # s Receives 20,000 to 35,000 accounts totaling $18 $30 million each year Receive 15,000 to 20,000 claims per year Pay between 5,000 and 7,000 claims per year 331,000 properties available for claim, worth over $250 million Office of the General Treasurer 10 5
6 Unclaimed Property s Big Problem Incoming Claims Office of the General Treasurer 11 Which Contributed to this Average Days to Pay Claims Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Office of the General Treasurer 12 6
7 Peaks create problems Guarantees that most customers will receive bad service Staff is always behind we re always trying to clear a back log Angry customers + stressed staff = no fun Office of the General Treasurer 13 So we got rid of the peaks 5000 Claim Volume Jan Mar Apr May Jun Jul Aug Sep Oct Nov Dec Office of the General Treasurer 14 7
8 Other solutions 1. Duplicative work removed 2. Claims process brought online 3. Evidence requirements revisited 4. Improved use of anti fraud technology 5. Empowered the staff to solve their own problems Office of the General Treasurer 15 Here s What We Achieved days 2011 and 2012 Average Days to Pay Claims Axis Title days 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Office of the General Treasurer 16 8
9 Another way to look at it % Under 7 Days % Over 7 Days % 92% % 89% % 29% % 27% PS. We pay over 90% in less than 14 days now. Office of the General Treasurer 17 Millions $25.00 $20.00 Still loads of work to do $15.00 $10.00 $5.00 $ This represents the flow of holder reports. Look familiar? Office of the General Treasurer 18 9
10 Lean for us: Improve flow do what we can to eliminate surges Remove unnecessary work Use tools These things sound really simple, because they are Office of the General Treasurer 19 Why do I need to do this? Fiscal issues are going to reduce your capacity without regard to demand Successful Lean initiatives gives you capacity to still provide great service in the face of diminished resources It increases our capacity to do more good Office of the General Treasurer 20 10
11 Resources for you (don t laugh. It s a great concept primer) LeanGovernment.pdf (here s your how to) Office of the General Treasurer 21 Do you have unclaimed property? Search our list and file your claim: Office of the General Treasurer 22 11
12 Crime Victim Compensation Program Office of the General Treasurer 23 Open Payments Reduced to Zero CVCP Open Payments 2012 # Open Payments Jan 23 Feb 30 Mar 6 Apr 13 Apr 20 Apr 27 Apr 4 May 11 May18 May25 May 1 Jun 8 Jun 15 Jun 22 Jun 29 Jun # Open Payments Reduction Goal Office of the General Treasurer 24 12
13 Achievements: The Backlog We Have Eliminated Our Inherited Backlog More than 900 payments were made These payments totaled $500,000 Claims dated from Clearing the backlog took more than 7 months Office of the General Treasurer 25 Other Achievements Enhanced Claims Processing Revamped Entire Application Process Developed New Invoicing System Established New Monitoring Mechanism Established Standards for Turn Around Time Continuing Innovations Launched Strategic Planning Effort Incorporated Expanded Use of Technology Instituted Batch Payment System Office of the General Treasurer 26 13
14 And, There s More! Goal: Develop CVCP Brand strategy Developed informational brochure Re designed all in one application form Reorganized web page on General Treasurer s Website Goal: Develop a Referral System Identified key agencies Developed List of available victim services in RI Collaborate with existing victim service providers Goal: Developed and Launched Outreach Program Identified First 100 Agencies Increased Number of Applications Improved Completeness of Applications Office of the General Treasurer 27 LEAN Methodology Results Streamlined Claims Processing Enhanced Overall Staff Performance Strengthened Partnerships with Stakeholders Improved Internal & External Communication Office of the General Treasurer 28 14
15 Happy to help / Q & A Chris Feisthamel cfeisthamel@treasury.ri.gov Patrick Marr pmarr@treasury.ri.gov Melba Depeña mdepena@treasury.ri.gov Office of the General Treasurer 29 15
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