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Ian Seath's presentation to the OR Society's Criminal Justice Special Interest Group on Feb. 3rd 2011.
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© 2011 Copyright ISC Ltd.
Three tools to identify efficiency savings
OR Society Criminal Justice SIG
3rd February 2011
Presented by: Ian J Seath
© 2011 Copyright ISC Ltd.
Overview
This will be a participative session introducing some simple tools that organisations can use to help identify efficiency savings: We will look at: The Cost of Quality (from TQM) The Seven Wastes (from Lean) The Right Things/Wrong Things Grid
Efficiency - definitions
The state or quality of being efficient; competency in performance
Accomplishment of, or ability to accomplish, a job with a minimum expenditure of time and effort
The ratio of the work done or energy developed by a machine, engine, etc., to the energy supplied to it, usually expressed as a percentage
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COST OF QUALITY1.
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Finished files are the result of
years of scientific studies
combined with the experience of
many years
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Quality Costs
Prevention Activities which are designed to ensure work is done right
the first time (e.g. Training, Planning, Agreeing Specifications, Developing Procedures)
Appraisal Activities which are designed to see if work has been
done right the first time (e.g. Checking, Inspecting, Audit)
Failure Activities which are made necessary by failure to do work
right the first time (e.g. Reworking, Downtime, Chasing, Apologising)
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Prevention
Appraisal
Failure
Core Work(Value Add)
Costof
Quality
Improvement
Time
Re-designedProcesses
Designing inQuality
IncreasedRight FirstTime
ReducedChecking
Cost
IncreasedPrevention
ProcessImprovement
ProblemSolving
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Elements of the Cost of Quality: Examples Prevention
Defining Customer Requirements
Training Developing Standard
Operating Procedures Planning
Appraisal Proof-reading Checking each others’ work Inspections Audits
• Failure• Dealing with Customer Complaints• Repeating work• Unproductive meetings• Progress chasing for paperwork,
materials, decisions • Fire-fighting/problem-solving• Compensation claims and payments
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Determining the Cost of Quality Identify relevant elements of CoQ Determine "hard costs" from Management
Accounts Determine "soft costs" by use of time Survey/
Questionnaire Convert "soft costs" to £ Analyse into Quality Costs
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Improvement opportunities
In a Service business CoQ can typically be as much as 40% of operating costs 20% Failure 15% Appraisal 5% Prevention
In the Public Sector, Appraisal Costs are usually much higher than in the Private Sector
With effective use of problem solving and process improvement it should be possible to halve (at least) Failure Costs in 12-18 months
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THE SEVEN WASTES2.
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Evolution of Lean Thinking
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Lean Concepts
Toyota ProductionSystem
Lean Thinking“Lean Enterprise”
Waste Waste is anything that does not add value to
your product or service Eliminating waste gives you more resource to
meet your customers’ requirements Waste will always be present, so there is always
something that you can do to improve your performance
Identifying all the waste in your processes forces you to compare your operation against perfection.....…and this is not a comfortable experience!
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The Seven Wastes
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Waste ExamplesPeople Waiting Waiting for “stuff to arrive”, Waiting for people to make a decision
Over-production
Producing extra copies “just in case”; Sending two people, when one would be enough
Rework & Failures
Correcting errors in reports, databases, plans, documents , Dealing with complaints, Paying compensation claims, Operating a Helpdesk
People Moving Travelling to and from meetings, incidents, interviews
Over-processing
Doing any steps that are unnecessary; Checking the quality of somebody else’s work; Keying the same information into multiple databases; Gathering the same information from a client/victim/suspect on different Forms
Inventory Cupboards full of stationery in every office; Stores of obsolete brochures, forms, posters; Piles of files on desks (work in progress)
Transport of materials
Moving files around between locations; Moving files to and from archives
Spot the waste…
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The Seven Wastes
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Waste Examples in Police taped interview processesPeople Waiting Waiting time while tapes are retrieved from storage so they can be
collected by an officer.
Over-production
Producing three copies of the interview tape even though defence solicitors virtually never ask for a copy.
Rework & Failures
Corrections of transcripts because the original tape was inaudible, broken, etc.
People Moving Officers travelling to the transcription team to deliver tapes (due to fear of loss) and any travel to/from tape storage.
Over-processing
Checking information for completeness when it arrives at the transcription team (it should not be delivered incomplete). Checking transcripts after they have been returned from correction (why would they be wrong a second time?).
Inventory All the storage of tapes, plus any temporary storage by officers at their desks. Also, the storage of blank tapes, required for interviewing.
Transport of materials
All transport of tapes between police stations and transcription and storage.
Waiting Waiting
People waiting Materials waiting
Examples Backlogs of offenders waiting to start a programme
UPW equipment / vans not in the right place at the right time
UPW stand downs / send homes
Backlogs of paperwork / cases waiting in an in-tray
Court processes, just one big wasteful waiting game!
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Over-production
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Producing more than required Producing faster/sooner than required; e.g.
Report
Report
Update
Rework and Failure
Producing and coping with failures and rework steps
Examples
All activity relating to non-attendance breach (hence the aim to increase compliance in Probation processes)
Correcting or cleaning up data in case management systems
All trials held up due to witnesses not turning up, case papers not being ready
Writing a report by hand and then getting someone else to enter exactly the same details onto a computer
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People Moving
All the movement of staff that we see in a ‘busy’ office is waste
No value is added by the movement of staff; we only add value at the start or end of any movement
Examples Offenders and supervisors coming into a central UPW reporting
point, only to be sent back out again to work placement sites Any journey where no value-adding tasks are performed Photocopiers, printers centrally located that everyone has to walk
to when they want to use them People coming back to the office to enter data / information in
office-based IT systems
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Over-processing
Doing steps you don’t need to do and that will add value to the customer or user
Examples Details written down repeatedly and then input into a variety of IT
systems (name and number x 20 in first 24 hours of arriving in Prison)
Writing a full Standard PSR when a Fast or Oral PSR would have been more appropriate
Putting a case though MAPPA when the level of risk and multi-agency involvement did not warrant
Getting a procurement manager to sign off every order (even when some are for 10 pens!)
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Inventory Inventory is the piling-up of work between process
stages If we have designed a process along Lean lines, the only
queue should occur at the start of the process Any other piles of inventory indicate a problem in the
process Examples
Piles of work waiting for someone to return from holiday Queues of offenders waiting for a Programme or Unpaid Work
session to commence PSRs waiting to be typed-up or signed Piles of PDPs or Annual Appraisals all waiting to be completed at
the same time of the year
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Materials moving
The time and effort spent moving physical items around your workplace
In the Courts processes a good example is the time spent moving a prisoner around for a 5 minute hearing
In Probation it refers to the movement of offenders, movement of vans for Community Payback work, or paperwork moving backwards and forwards between people
We know that all transport/movement is impossible to eliminate but recognising it as a waste means that we should be trying constantly to reduce it
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Improvement opportunities Apply Lean principles to
Improve flow (increase Pull, reduce Push) Reduce cycle-time (increase Value Add Ratio)
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RIGHT THINGS – WRONG THINGS GRID
3.
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Right Things – Wrong Things Grid
Right Things, Done Badly
Right Things,
Done Well
Wrong Things, Done Badly
Wrong Things,
Done Well
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Effective
EfficientNot Efficient
Not Effective
Right Things and Wrong Things “Right Things” are the same as Core Work (customer value-add
activities), and Prevention activities from CoQ. Wrong things are most Appraisal activities and all Failure activities. This is the “Effectiveness” axis of the grid
“Done Well” means “Right First Time”. “Done Badly”, means
anything with errors. This is the “Efficiency” axis of the grid
The target is “Right Things, Done Well”. Everything else presents an opportunity to reduce waste “Right Things, Done Badly” need to be fixed (addressing root causes) “Wrong Things” need to be stopped completely, but will require a check first, to
confirm there is no customer requirement
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Ian Seath:Improvement Skills Consulting Ltd. Early career in manufacturing (R&D, Production,
Marketing, Training) 20 years consulting, specialising in
implementation of Continuous Improvement Public, private and voluntary sector clients
NOMS, Police, Home Office, MoD, BBC, Ofgem, FSA Utilities, Law, Telecoms, IT, Financial Services
We help organisations to develop
the capability to improve continuously© 2011 Copyright ISC Ltd.
© 2011 Copyright ISC Ltd.
Three tools for identifying efficiency savings
Presented by: Ian J Seath
Improvement Skills Consulting Ltd.
February 2011
M: 07850 728506
W: www.improvement-skills.co.uk