Visualising Transformation™ by qingyunliuliu

VIEWS: 17 PAGES: 47

									  Visualising
Transformation




 Deming Forum
 12th May 2010
   Visualising Transformation   1
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 What is Visualising Transformation?
• It is an holistic change management method
• Addressing operations & strategy
   – Based on Deming
     •   Statistical Process Control
     •   System of profound knowledge
     •   14 points of management
     •   Deming chain reaction, and….
  – Toyota Production System
  – Seddon: Check, Plan, Do +
  – Checkland, Ackoff, Buzan
  – Embracing IT where-ever suitable

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Development history
                           •       This shows
                                  – Statistical approaches at
                                    the top
                                      • Shewhart, Deming
                                      • Ohno, Womack, Seddon
                                  – Soft systems and
                                    computing designs
                                      • Stafford Beer, Jenkins,
                                        Checkland, Ackoff
                                  – Management theory
                                      • Ford, Taylor, Bono,
                                        Senge, Maslow, Drucker,
                                        Keynes…
                                  – Inspiration / genius
                                      • Einstein, Da Vinci, Dali,
                                        Newton, Brunel, Darwin
                                        and Nightingale.
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            It is designed to:
• Address the issues of the service sectors by:
  – Enabling a desire to add value
  – Creating information from data
  – Reducing failure demand to create capacity
  – Investing capacity into adding value
  – Developing genuine holistic win-win working
  – Enable natural partnership working
  – Addressing IT and business opportunities
  – Saving money, by improving services +
  – Without reducing jobs

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It addresses wide issues
                                    • VT addresses these
                                      – Mass production
                                           • Minimise variation
                                           • SPC and 14 points
                                      – Reduce fear of crime
                                           • Affinity diagrams
                                           • Social engineering
                                           • Boundary conditions
                                      – Operational improve
                                           • Efficient, Effective
                                      – Strategic development
                                           • Embrace variety
                                      –   Local Area Agreements
                                      –   Partnerships
                                      –   Business Management
                                      –   Future proofing

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It is extremely visual!
                             • Most organisations are:
                                   – Data rich
                                   – Information poor
                                   – Confused
                                      • They have „information‟
                             • They make decisions
                                      • Things go wrong…

                             • In the public sector
                                   – Accounts are a mix of:
                                      • Fact: costs incurred
                                      • Belief: activities happened
                                      • Estimations: we believe…
                                   – Guesswork is never
                                     mentioned!


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So what‟s different?
                    • Appraise
                         – Is the process of adding
                           even more value to:
                                  • consider the business
                                  • deal with future demand
                                  • delight customers!
                         – It is about reinvesting
                           capacity created to:
                                  •   add further value
                                  •   improve the environment
                                  •   do even more change
                                  •   not simply cutting costs.

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How is Transformation achieved?




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Evolution is expected!




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Prince 2 version
         Starting from Check
• Check is basically the joining of Study/ Act
• It is used to find out:
  – What the host needs and wants
  – How the host is performing
  – What opportunities there are
  – What the customers want and need
  – What will be wanted in the future
  – What the capacity is for improvement
  – To draw the boundaries for the E2E project
  – Initially: to define what success may look like!
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            Check will include:
• Establishing the boundaries
    – The who, what, why, where, when (how)
• Setting up a Transformation Team
    – External, internal, sponsor
•   Setting up training, facilities, awareness
•   Forming the Intervention Team
•   Starting data gathering and cleansing
•   Training team members
•   Workshops to understand „As Is‟
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Boundaries and teams
     Building on where the host is
•   Understand the current paradigm
•   Build on their ways of working
•   Develop charts, graphs, visual aids
•   Celebrate the good stuff
•   Improve data, clean it, combine it, map it
•   Show duplications and cul-de-sacs
•   Seek early „Quick-wins‟
•   Be ready for training and the first workshop
•   Check for (transferable) skills in other areas

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Not simply cloning good ideas!




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           Principles of design
• Design against value demand
• Customer defines quality
• Only do the value work
• Minimise number of handoffs
• Put information in the hands of front line staff
• Decisions about the work should be made by
  people who do the work
• Do the work perfectly (leave it clean)
• Challenge “dirt” and “failure demand”
• Pull ICT to further improve flow only once the work
  is clean
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    Training and first workshop
• All the Intervention Team will attend 4 day
  training courses (Some may assist the trainer)
• Courses will include local data
• Practicable example of CPAD included
• Workshops uses PowerPoint approach to:
  – Reinforce training discoveries
  – Work on issues in smaller groups
  – Reflect on data found so far
  – Determine current ways of working, issues,
    performances, opportunities, barriers.
  – Flow-chart core work, understand variation!
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       Host tools and practices
• From fact finding and workshops develop:
  – Risk register, for the intervention and work
  – Project plan, including critical issues
  – PiD?… hopefully high level, to wean off
  – Benefits Analysis, update constantly
  – Issues log, recorded at every session
• Effectively … anything that the host finds
  comforting to begin with, but:
  – Make them aware of value losses, the cost of
    governance and lost opportunities*
  – *The more restrictions and control, the less will be achieved.
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                        Plan
• Starts with a workshop
  – Blue sky thinking
  – Unrestrained core designs
  – Building on analysis of previous findings
  – Understanding core and secondary designs
  – Pareto, C&E, GIS, spaghetti, mind-maps, run-
    charts, control charts, affinity diagrams….
  – Core flow chart + major secondary works
  – Consider constraints, must do items.
  – Evaluate value, value adding & non-value
  – Report to board, coloured flow, and pie chart.
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                         Appraise
• Is carried out at the end of Plan
  – Plan creates capacity for primary / secondary areas
  – Increases in capacity come from:
     •   Creating less errors, high quality services are cheaper
     •   Having less duplication or redundant work
     •   Having better information enabling immediate work
     •   Having less hand-offs and no work queues.
  – This is re-invested to:
     • Introduce additional services
     • Add value to existing services or materials
     • Enable greater outputs or improved partnering

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Visually stimulating




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Discussions with Board
                • Why so much non-value?
                      – Constraints:
                           • Call Centre
                           • Current IT system
                           • Legislation
                • Could we save 20% costs?
                      – Not due to activity reduction,
                        but perhaps more is possible
                • How soon could this start?
                      – Some things have started
                      – After communication
                • What more could be done?
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                                  Voice of
                                    the
                                 Customer

    Voice of                • Defined by the customer
      the                   • Find ways to understand                Voice of
    Process                  & delight customers                   the People
                            • Design systems & processes
                             against purpose & demand


• Learn to manage the                                      • Common understanding
 organisation as a system
                                   Quality
                                                           • Cooperation not competition
• Understand variation                                     • Experiment and learn
• Decisions based on data                                  •Visibility of the whole
• Measure what matters                                     •Appreciation of impact
 to customers                                              •Belief in people; treat with
• Model for improvement                                    dignity, trust & respect
•Design the business                                       •Reinvest in the future
properly
                                    Joiner
                                                           •Use initial capacity to add
                                   Triangle
           CPAD                                            value


       Scientific           Visualising Transformation        All One Team                 23
       Approach              Support Services Direct
                                Do
• Is very easy to carry out:
  – The Check, Plan Appraise processes addressed:
     •   Core and secondary designs
     •   Training, communications, inter-dependencies
     •   Roles and responsibilities, interim needs
     •   Testing, probing and improving
     •   Creating temporary resources during transition
     •   Union, HR, IT, Finance, Management approvals
• So you have an eager workforce, hungry to
  start their new ways of working.
  – Starting is easier than waiting!
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              Practicable example
• Many examples:                   • Waste & Recycling
•   Car park management                  – Task:
•   Highways maintenance                      • Improve operations
                                              • Halt increases in costs
•   Insurance claims
                                              • 20% more recycling for
•   ASB                                         £300,000 a year more.
•   Housing maintenance                  – Background:
•   School transport x 2                      •   Conservative council
•   Integrated street-scene                   •   Entirely DSO provided
                                              •   Reasonable performances
                                              •   New call centre (bees knees)
                                              •   Town Hall/ depot friction
                                              •   Questionable VfM
                                              •   Getting worse?
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                         (Pre) Check
•   Fragmented management                  •   Impossible failure demands
•   Moderate customer care                 •   Information ferretable
•   Call c. / back off. / ops splits       •   IT development difficult!
•   Unusable computer system               •   IT system, new! Incomplete
•   Fair amount of data                    •   No IT affinity in depot
•   Virtually no information               •   Loads of unconnected IT
•   Development lost in process            •   IT opportunities unrealised
•   Pressures to change                    •   Integrating data = info?
•   Costs escalating                       •   Graphs amassed on walls
•   Accounts very wrong                    •   C&E seen in info
•   Controls not working                   •   Hope from quick wins
•   Masses of fire-fighting                •   Improve and reduce
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Information: failure demand




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Information: recycling diversion




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                      Information: Learning
Recycling - Missed                        R34THU      21/06/2007   33 Tilers Close
Refuse - Missed Bin                       W34THU      21/06/2007   33 Tilers Close
Refuse - Missed Bin                       W34THU      03/08/2007   33 Tilers Close
Recycling - Missed                        R34THU      07/08/2007   33 Tilers Close
Recycling - Missed                        R34THU      09/08/2007   33 Tilers Close
Refuse - Missed Bin                       W34THU      12/10/2007   33 Tilers Close
Green - Missed Bag                                    18/01/2008   33 Tilers Close

Side Waste Missed Collection              W12TUE      30/10/2007   33 Tilers Way



Recycling - Missed                        R52TUE      10/01/2007   34 St Leonards Road
Green - Missed Bag                        G12TUE      12/01/2007   34 St Leonards Road
Recycling - Missed                        R21MON      12/12/2006   35 Harrison Close

Refuse - Missed Bin                       W21MON      12/12/2006   35 Harrison Close
Refuse - Missed Bin                       W21MON      14/12/2006   35 Harrison Close
Recycling - Missed             Assisted   R65FRI      20/10/2006   36 Manor Way

Recycling - Missed             Assisted   R65FRI      20/10/2006   36 Manor Way

Green - Missed Bag                        G15FRI      13/04/2007   36 Manor Way
Refuse - Missed Bin                       W65FRI      29/10/2007   36 Manor Way
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Evolving ideas via A3




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Evolving strategy




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A3 Planning




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A3 workplans




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              Intervention start
• End to end waste collection (for the
  customer and for the business)
• The intervention started in November
  –   Transformation team started
  –   It was due to start with „Christmas blip‟
  –   Followed by start Check (data gather and improve)
  –   Then training and form „Intervention Team‟
• However….
  – The new Garden waste service was in melt-down
  – It was dragging all capacity into fire-fighting
  – Something had to be done!
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Garden waste problem




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                       Quick win one
• New Garden Waste service • Designed new day sheets
   – Prince 2 led project     • Altered database
   – Finance and IT dominated
                              • Worked with operations:
   – 8 people a day failure demand
                                             –   Back office
   – Melt-down getting worse
                                             –   Supervision & management
• First day of intervention                  –   Operatives
   – Three people used:                      –   Gave them info „they‟ needed
   – SPC, C&E, Pareto, mapping
                                       •   Issues halved again in a week
     issues by round, week ++
   – Found one round, one week         •   Size of service doubled 5 months
   – Initial database set up flawed    •   Amount of issues halved
   – Hand corrected day sheets         •   All learned that THIS works
   – Showed where to correct           •   Created capacity + support
   – Issues halved in two days         •   Enabled pull for demand
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Garden waste outcomes




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                 Quick win two
• Christmas blip
  – This was the planned starting point
     • Christmas was a special cause
     • 600 defects every Christmas (> 4 times normal)
     • Used all SPC tools and dealt with
        –   Advertising and communications
        –   Work schedules and resources
        –   Timings of collections
        –   Secondary training and process reinforcement
     • Outcomes
        – Less than 250 defects
        – Prime cause, free paper distributor, dumping papers!
        – Future plans established to further improve
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Overall system performance




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            Check Plan Appraise Do
•   Strategy and Operations E2E •         Broad no loss of jobs
•   Call centre to be retained    •       Evolution of benefits
•   Good lead director & sponsor •        Growing awareness of IT issues
•   Great lead member             •       Early wins, then far more wins
•   Very open waste board         •       Services improved, costs reduced
•   Supportive VfM board          •       All outcomes improving
•   Project „red tape ridiculous‟ •       Meeting customer needs & wants
•   Gross misconduct analogy •            Reduced issues enabled:
•   Lack of empowerment                     –   More capacity
•   Latter pressures to save £s             –   Improving IT
•   Leader support:                         –   Improving information
    – “I don‟t how you are managing         –   More income
      this, but we want more of it!”        –   Less stress and conflict
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Activity based savings
                                               Benefits evolution
Details of incremental savings showing what can be saved in terms of people and resources as per a traditional project with suggested operational
areas to focus on utilising that time. This does not include none growth items shown as 'Value Added'.

                                                                                                                                 Traditional                                Third year
                                                                                                                                               Value added
Description                               Current resources                Costs     Proposed resources               Cost        Saving £                                   Saving £

Trace / Agresso link                      Elaine D 1 hour per day          £5,747    None                             £2805        £2,942      Grow commercial waste        -£200,000

Reduced volume of refuse errors           BSO's 36 hours a week           £27,744    BSO's 18 hours a week           £13,872      £13,872      Grow commercial waste

Reduced volume of refuse errors           Rec. Mgt. 25 hours / wk         £44,886    Rec. Mgt. 10 hours / wk         £17,954      £26,932      Increase recyclates value     -£15,155
                                                                                                                                               Helps enable round less
Reduced volume of refuse errors           Ref. Mgt. 18 hours / wk         £32,318    Ref. Mgt. 10 hours / wk         £17,954      £14,363

Reduced volume of refuse errors           10% of Cust Serv.               £35,000    5% of Cust. Serv.               £17,500      £17,500      Capacity to expand            -£17,500

Domestic Refuse rounds                    8 rounds, Dr. + 2              £1,169,422 7 rounds, Dr. + 2               £1,023,245   £146,178      7 rounds, Dr. + 2            -£137,000

Collect recyclates from flats             7 rounds, Dr. + 2                          7 rounds, Dr. + 2                               £0        Sell recyclates               -£28,291

Stop over-servicing refuse                Collecting wrong side waste                Increase rec / less wst.                                  Sell recyclates               -£33,802

Reduce double handling comm wst           7 people involved                          3 people involved                                         Comm waste system             -£9,908
                                                                                     50% more data, less
Align all weighbridge data                From 7 people                              people                                                    Back Office system            -£16,362

Use vehicle tracking to reduce vehicles   Parts of many                              Better use, reduces OH's                                  Vehicle tracking              -£92,378

Increase Garden Waste services                                                       Diversify and grow services                                 More work same resources   -£109,155

Improved information / dashboard          Nearly all NS officers          £46,899    BSO's , then by design          £15,633      £31,266        Not 6 people on same job


                                                                                                                                                                                   -
                                                                                          Total Savings            Traditional £253,053               Value added           £659,551
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                                      Benefit Details
                                                    Original 'Budget plan'
                Budget Flow                       2008/09     2009 / 10  2010 / 11        2011 / 12     2012 / 13 2013 / 14
Base Budget         Expenditure                 £3,339,200   £3,449,330 £3,535,563       £3,623,952    £3,714,551 £3,807,415
                       Income                   -1,626,500   -1,667,163 -1,708,842       -1,751,563    -1,795,352 -1,840,235
                        Original Net Budget     £1,712,700   £1,782,168 £1,826,722       £1,872,390    £1,919,199 £1,967,179

Changes from base budget:
            Removal of growth refuse round       -£135,000    -£135,000   -£272,000       -£272,000    -£272,000    -£272,000
         Removal of growth recycling round                     -£52,000    -£52,000        -£52,000     -£52,000     -£52,000
       Increase in commercial waste surplus       -£75,000    -£118,689   -£187,133       -£275,000    -£275,000    -£275,000
               Increase in recyclates income     -£372,781    -£465,778   -£465,778       -£465,778    -£465,778    -£465,778
     Improvement in garden waste position        -£149,945    -£230,000   -£287,000       -£317,500    -£331,000    -£349,000
                 Improved vehicle utilisation                   -£7,667    -£16,100        -£23,000     -£23,000     -£23,000
                 Increase plastics and values                   -£8,851    -£17,702        -£46,502     -£46,502     -£46,502
                Improve values of recyclates                   -£15,686    -£31,529        -£47,058     -£47,058     -£47,058
  Increases in recycling to flats + marketing                  -£10,104    -£28,291        -£40,416     -£40,416     -£40,416
      Tracking, back office and comm waste
                                       system                                £160,000     -£201,972    -£201,972    -£201,972
   Recycling Blueprint via phasing (3 a high)                                             -£229,526    -£459,052    -£459,052
 Systems Thinking intervention and training      £150,000
    Increase in haulage and collection costs      £72,000      £73,436        £77,842        £82,512     £87,463     £92,711
            Unknown and contingency costs         £75,726      £55,000        £56,375        £57,784     £59,229     £60,710
                             Additional costs                 £153,832                      £100,000    £100,000
                                                                              Revised Forecasts
                        Forecast net budget     £1,277,700   £1,020,661      £763,406       £141,934     -£47,886   -£111,178
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                       Financial benefits
                                    Net waste budget proposal

$1,800,000




$1,400,000




$1,000,000




 $600,000




 $200,000




             2008/09    2009 / 10               2010 / 11              2011 / 12   2012 / 13   2013 / 14
 -$200,000
                                     Original Net Budget    Forecast net budget
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                   14 Points applied
•   Constancy of purpose            To involve all parties to improve
•   Adopt the new philosophy        Not improve and cut jobs. Add value
•   Cease need to inspect           Start to trust front line staff
•   Form partnerships               Long term relationships started
•   Improve constantly              Phased improvement by design
•   Institute training on the job   Systems Thinking / upgrades
•   Institute leadership            Better use existing, not blame
•   Drive out fear                  No job cuts as a result of changes
•   Integrate departments           All working together 1st time!
•   Eliminate slogans               Pushed back on arbitrary, used capacity
•   Eliminate arbitrary targets     Demonstrated benefits 1 by 1
•   Enable pride in work            Understanding created belief
•   Education & self improvement    Internal train, promote, develop
•   Everyone work to transform      Whole teams involved & spreading

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               Achievements to date
•   Missed collections from 115 per 100,000 properties to 17 (test)
•   Reduced recycling and residual waste rounds by one each
•   Reduced cultural barriers between services
•   Reduced non-value work in back office
•   Improved service designs for Bank Holidays
•   Improved weights spreadsheet
•   Improved management information and use of
•   Improved „assisted lists and round sheets‟
•   Introduced commercial recycling
•   Reduced recycling and residual rounds by a crew each
•   Introduced specific designs for flats
•   Saved £1m in years one and two
•   Highest levels of recycling ever +++
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  Questions?




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