#TRUSTEECONF2014

PM1: Charity effectiveness: lean

charities

Nigel Kippax, NCVO

Neil Fedden, Lean Expert & Trainer

#TRUSTEECONF2014

Introductions

• Nigel Kippax – Head of Consulting and Training at NCVO• Neil Fedden – Fedden USP (NCVO training partner)

#TRUSTEECONF2014

Today’s learning: Remember Pareto

are rooted in

20% of the content

80% of the benefits

#TRUSTEECONF2014

NCVO Consulting & Training

Programme Management

#TRUSTEECONF2014

Lean - Opening thoughts

• Lean is not just a toolbox for improvement, it’s a way of thinking which is relevant to all organisational levels.

• Much of the LEAN terminology has been developed in the corporate sector. We may need to develop the language to fit the voluntary sector and will certainly need to create case studies from the voluntary sector.

#TRUSTEECONF2014

It’s all about maximising the ratio

Lean - Opening thoughts

Resources

Impact

#TRUSTEECONF2014

Introduction to Lean approaches

#TRUSTEECONF2014

What is our USP?

#TRUSTEECONF2014

Challenges Facing UK Charities

• Pressure to deliver more impact with less resources.

• Need to be more innovative and responsive to the needs of beneficiaries.

• Need to introduce new service or product offerings more frequently.

• Increased competition from the corporate sector in the delivery of many service contracts.

• Others??

#TRUSTEECONF2014

Why the need to change?

Improve

Do nothing

Decline

Time

Improvement

Company X

Competitor

If you do nothing then you will fall behind your competition as they improve !!

#TRUSTEECONF2014

5 Principles of Lean

Value

Value Stream

Flow

Pull

Perfection

Process Mapping

Kanban

Kaizen

7 Wastes + 1

WorkplaceOrganisation

#TRUSTEECONF2014

Non Value AddingTransport

Inventory

Movement

Delays

Overproduction

Overprocessing

Defects

Skills & Talent

95-80%

Value Adding

5-20%

Value & Waste

#TRUSTEECONF2014

LEAN – elimination of information waste

Bottleneck Departments

Lots of signatures/validation checks

Multiple Uncontrolled documents

High levels of data

re-entry/keying

Production of reports that

nobody reads

Unofficial fast-track routes that cause

errors

Personal filing systems

Unpredictable process lead-

times

Batching of documents

#TRUSTEECONF2014

Step 1 – Current state process map

Step 2 – Identify and prioritise process waste

Step 3 – Process re-design to eliminate waste

Step 4 – Cost/benefit analysis

Step 5 – Action Plan and start implementation

#TRUSTEECONF2014

Plan

DoCheck

Act

Do:5. Understand currentpractice6. Analyse the facts7. Develop solutions8. Try out solutions

Act:10. Adopt the solution11. Review performance12. Consider further improvements

Check:9. Ensure goals are met

Plan:1. Project selection2. Explanation3. Setting goals4. Action plan

The PDCA Cycle – Plan Do Check Act

#TRUSTEECONF2014

Group Activity

• In small groups discuss the types of information waste you have within your business

#TRUSTEECONF2014

Legal Expert Before – Group Case Study

#TRUSTEECONF2014

Process Mapping - Receive Specification and Produce Legal Copy

Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage1 Delay until received spec. is picked up by Secretary 0 30 0 X2 Carry from mail area to Secretary's desk 5 1 1 X3 Wait until convienient to 'process' it 0 60 0 X4 Log receipt into Project Tracking system & create file 0 1 1 X5 Store file in Out-Tray 0 15 0 X6 Move file to Legal expert's In-Tray 5 1 1 X7 Await Legal expert's attention (busy) 0 1440 0 X8 Legal expert processes copy 0 20 1 X9 Store processed copy in Out-tray 0 2880 0 X

10 Move copy to Secretary's desk when convenient 5 1 1 X11 Delay until Secretary logs completion on Project Tracking 0 180 0 X12 Take copy file to photocopier 10 2 1 X13 Photocopy x 3 0 2 1 X14 Return with copies to desk 10 2 1 X15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X

Totals 40 4651 9.7 daysValue Add 38

Non Value Add 3170Necessary Non Value Adding 1443

#TRUSTEECONF2014

Legal Expert After – Group Case Study

#TRUSTEECONF2014

Process Mapping - Receive Specification and Produce Legal Copy

Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X2 Await Legal expert's attention (busy) 0 1440 0 X3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X5 Take copy file to photocopier 10 2 1 X6 Photocopy x 3 0 2 1 X7 Return with copies to desk 10 2 1 X8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X

Totals 35 1485 3.1 daysValue Add 38

Non Value Add 4Necessary Non Value Adding 1443 1481

Hines et al (2000) Value Stream Management

#TRUSTEECONF2014

Next steps

• The Lean Charity Tuesday 24th February1-day training at NCVO

#TRUSTEECONF2014

Thank you

Nigel Kippax

Neil Fedden

#TRUSTEECONF2014

NCVO/BWB Trustee Conference 2014