Value Stream Mapping the Value Stream Mapping the Delaware Air Quality Delaware Air Quality Permitting ProcessPermitting Process

Bob ZimmermanBob ZimmermanState-EPA Symposium on Environmental Innovation State-EPA Symposium on Environmental Innovation

and Results and Results January 23-25, 2006January 23-25, 2006

Delaware Value Stream Delaware Value Stream Mapping Project PartnersMapping Project Partners

Delaware Economic Development OfficeDelaware Economic Development Office Delaware Manufacturing Extension PartnershipDelaware Manufacturing Extension Partnership DNREC Office of the SecretaryDNREC Office of the Secretary DAWM Air Quality ManagementDAWM Air Quality Management General MotorsGeneral Motors Daimler ChryslerDaimler Chrysler CIBA Specialty ChemicalsCIBA Specialty Chemicals ILC Dover, Inc.ILC Dover, Inc. PPG IndustriesPPG Industries DuPontDuPont

Value Stream Mapping Process Value Stream Mapping Process ObjectivesObjectives

Improve the permitting process without Improve the permitting process without weakening regulatory requirements.weakening regulatory requirements.

Capture the experience of those who have Capture the experience of those who have to meet the regulatory requirements.to meet the regulatory requirements.

Process redesign activity would be Process redesign activity would be transparent to the public and the regulated transparent to the public and the regulated community.community.

Value Stream Mapping ProcessValue Stream Mapping Process

Why? Why?

Listening to voice of customerListening to voice of customer DEDO report on industry clusters to Governor - DEDO report on industry clusters to Governor -

early 2005early 2005 DNREC asked to identify specific process - AQ DNREC asked to identify specific process - AQ

construction permitting selectedconstruction permitting selected Stakeholders (Public/ Industry/ DNREC)Stakeholders (Public/ Industry/ DNREC) Improve permitting processImprove permitting process Reduce processing time/effortReduce processing time/effort Create greater business certaintyCreate greater business certainty Optimize DNREC’s resources for other functionsOptimize DNREC’s resources for other functions Improve environmental qualityImprove environmental quality

Perspectives from Delaware’s Perspectives from Delaware’s Business CommunityBusiness Community Cost issues due to:Cost issues due to:

Cumbersome and slow permitting Cumbersome and slow permitting

processprocess

No allowance for “green companies” No allowance for “green companies” that are proactive and stay in that are proactive and stay in compliancecompliance

Delaware Value Stream MappingDelaware Value Stream Mapping

For public transparency we created a web For public transparency we created a web page for the DNREC/ DEDO Value Stream page for the DNREC/ DEDO Value Stream Mapping project:Mapping project:

http://www.dnrec.state.de.us/DNREC200http://www.dnrec.state.de.us/DNREC2000/VSM/Index.htm0/VSM/Index.htm

All materials are available on the web All materials are available on the web pagepage

HistoryHistory

DNREC / DEDO Value Stream Mapping ProcessDNREC / DEDO Value Stream Mapping Process

June 05: Initial Scoping MeetingJune 05: Initial Scoping Meeting

July 05: Planning SessionJuly 05: Planning Session

Aug 05: 3 Day Training / Action PlanAug 05: 3 Day Training / Action Plan

Sept 05: 30 Day – Progress/ Plan ReviewSept 05: 30 Day – Progress/ Plan Review

Oct 05: 60 Day – Progress/ Plan Review Oct 05: 60 Day – Progress/ Plan Review

Nov 05: 90 Day – Progress/ Plan Review Nov 05: 90 Day – Progress/ Plan Review

Jan ’06: 120 Day – Progress/ Plan ReviewJan ’06: 120 Day – Progress/ Plan Review

Mapping the Current StateMapping the Current State

Created the goal for the session Created the goal for the session

Defined what was in scope and out of scopeDefined what was in scope and out of scope

Mapped the current state of the Air Quality Mapped the current state of the Air Quality Construction Permitting Process.Construction Permitting Process.

Goal for VSM ProjectGoal for VSM Project

Develop and implement an air permitting Develop and implement an air permitting process that results in expeditious process that results in expeditious issuance of environmentally sound, issuance of environmentally sound, operationally flexible and achievable operationally flexible and achievable permits in a timeframe not to exceed 90 permits in a timeframe not to exceed 90 days and ensure requirements are days and ensure requirements are identified clearly prior to submittal identified clearly prior to submittal reducing re-work in the process to 50% reducing re-work in the process to 50%

In ScopeIn Scope

• • Interpretation of DNREC Rules,Interpretation of DNREC Rules,

Policies, & Guidance Policies, & Guidance

DocumentsDocuments

• • Internal Organizational Internal Organizational

StructureStructure

• • Internal Permit Process and Internal Permit Process and

Timing Timing

• • Applicant Internal Process & Applicant Internal Process &

TimingTiming

• • Electronic SubmittalsElectronic Submittals

• • Application Content and FormatApplication Content and Format

• • Permit and Technical Memo Permit and Technical Memo

FormatFormat

• • Special Condition ContentSpecial Condition Content

• • Communication Communication

(Internal/External)(Internal/External)

Out of ScopeOut of Scope

• • EPA RegulationsEPA Regulations

• • Interpretation of EPA Rules, Interpretation of EPA Rules,

Policies, and Guidance DocumentsPolicies, and Guidance Documents

• • Modifying Existing DNREC RulesModifying Existing DNREC Rules

• • Additional ResourcesAdditional Resources

• • Permit Appeal ProcessPermit Appeal Process

• • New Software/Computer New Software/Computer

SystemsSystems

• • Mandated Public ParticipationMandated Public Participation

RequirementsRequirements

• • Permits Involving EnforcementPermits Involving Enforcement

ActionAction

• • Public Hearing Process/OfficerPublic Hearing Process/Officer

Mapping the Current StateMapping the Current State

Lessons learned:Lessons learned:

Majority of process problems stem from the Majority of process problems stem from the

permit applications!permit applications!

First pass quality yield was < 1%First pass quality yield was < 1%

Assuming perfect customer input, first pass Assuming perfect customer input, first pass

quality yield was 18%quality yield was 18%

Re-work was nearly 100%!Re-work was nearly 100%!

Construction permits issued within 180 daysConstruction permits issued within 180 days

Mapping the Current StateMapping the Current State

Identified opportunities for Identified opportunities for improvement called “Kaizen improvement called “Kaizen Bursts.”Bursts.”

“ “Kaizen” are rapid improvement Kaizen” are rapid improvement processes focused on eliminating processes focused on eliminating waste, improving productivity, and waste, improving productivity, and

achieving continual improvementachieving continual improvement..

““Kaizen Bursts” were used to Kaizen Bursts” were used to help create the Future State.help create the Future State.

Creating the Future StateCreating the Future State

Defined our future state – where we wanted to be Defined our future state – where we wanted to be in one year:in one year:

Internal first pass quality yield - 80%Internal first pass quality yield - 80%

Customer information quality - 80%Customer information quality - 80%

Administrative completeness - 100%Administrative completeness - 100%

Technical completeness - 80%Technical completeness - 80%

Re-work less than 50%Re-work less than 50%

Construction permit issued within 90 daysConstruction permit issued within 90 days

Achieving Our Future StateAchieving Our Future State Identified and scheduled specific tasks to Identified and scheduled specific tasks to

accomplish. These tasks included:accomplish. These tasks included:

create visual tracking boards;create visual tracking boards;

implement a First-In-First-Out system;implement a First-In-First-Out system;

create permitting checklists;create permitting checklists;

seek applicant feedback;seek applicant feedback;

modify our applications to make them more user modify our applications to make them more user

friendly; friendly;

modify application review process; andmodify application review process; and

collecting new performance metrics.collecting new performance metrics.

Visual Tracking BoardVisual Tracking Board

Project HighlightsProject Highlights

Surveyed applicants to discuss why they Surveyed applicants to discuss why they

submitted incomplete applications and submitted incomplete applications and

learned important information.learned important information.

Reduced our permitting backlog from 199 Reduced our permitting backlog from 199

AQ construction permits on 8/24/2005 to AQ construction permits on 8/24/2005 to

48 on 1/11/2006.48 on 1/11/2006.

Implemented a First-In-First-Out system.Implemented a First-In-First-Out system.

Now issuing AQ construction permits Now issuing AQ construction permits

within 61 days of receiving a complete within 61 days of receiving a complete

applicationapplication

What We Learned from ApplicantsWhat We Learned from Applicants

Difficult to know which form to completeDifficult to know which form to complete

Difficult to know where and how to obtain Difficult to know where and how to obtain information that is requestedinformation that is requested

Difficult to know which questions to answer Difficult to know which questions to answer and which ones are not applicableand which ones are not applicable

Applicants would like help with engineering Applicants would like help with engineering calculationscalculations

Applicants would like to know why specific Applicants would like to know why specific information is requestedinformation is requested

Important Process ImprovementsImportant Process Improvements

Future State includes three important Future State includes three important changes to the permitting process:changes to the permitting process:

Pre-Submittal MeetingPre-Submittal Meeting

Administratively Complete GateAdministratively Complete Gate

Technically Complete GateTechnically Complete Gate

DNREC Value Stream Mapping DNREC Value Stream Mapping Air Permitting ProcessAir Permitting Process

FutureState

CurrentState

SEPTEMBER, OCTOBER &

NOVEMBER 05’

PLUS:

† Top Down Commitment

† Cross Functional Communications

† Employee Involvement

† First Time Quality

† Partnership Support

† Customer Focus a

nd Communications

MINUS:

Reduced Waste

in:

−Motion

−Waitin

g

−Processin

g

−Rework

−Lead tim

e

Created a permitting process that is environmentally sound, operationally flexible and achievable.

Next StepsNext Steps

We are still working on some of the We are still working on some of the action items required to implement the action items required to implement the process.process.

We are seeking volunteers (especially We are seeking volunteers (especially our permittees) to participate in the our permittees) to participate in the permit application redesign.permit application redesign.

We are reviewing/revising the metrics We are reviewing/revising the metrics for permit processing.for permit processing.

ScheduleSchedule

Feb 06 - Complete drafts of all VSM action Feb 06 - Complete drafts of all VSM action itemsitems

Mar-April 06 - Train regulated community Mar-April 06 - Train regulated community on new processes and documentationon new processes and documentation

May-June 06 – Debug new processesMay-June 06 – Debug new processes

July 06 – complete full implementation of July 06 – complete full implementation of new processesnew processes

For more information:For more information:

Robert J. ZimmermanRobert J. ZimmermanOffice of the Secretary, Director of External AffairsOffice of the Secretary, Director of External AffairsRobert.Zimmerman@state.de.us302-739-9000302-739-9000

Ali MirzakhaliliAli MirzakhaliliProgram Administrator, Air Quality ManagementProgram Administrator, Air Quality ManagementAli.Mirzakhalili@state.de.us302-739-9400302-739-9400

Amy MannAmy MannEnvironmental Engineer III, AQMEnvironmental Engineer III, AQMAmy.Mann@state.de.us302-323-4542302-323-4542

Lessons Learned by Nebraska, Lessons Learned by Nebraska, Michigan and DelawareMichigan and Delaware

Worth the effortWorth the effort Carefully select the situation or processCarefully select the situation or process There is a lot more waste than you realizeThere is a lot more waste than you realize Eliminating waste doesn’t mean eliminating Eliminating waste doesn’t mean eliminating

peoplepeople Goal-setting is criticalGoal-setting is critical Communications (before, during and after)Communications (before, during and after) Active and visible management support Active and visible management support Be prepared for resource issuesBe prepared for resource issues Follow- thru essential to keep on trackFollow- thru essential to keep on track