Government Plan

Government System Improvement Build Process

Personnel Requirements

  • Lean Six Sigma Master Black Belt – $161,000/year – Targeted to Program Management
  • Lean Six Sigma Black Belts – $145,000/year – Targeted to Kata Continuous Improvement
  • Lean Six Sigma Black Belts – $145,000/year – Targeted to Value Stream Process Improvement and Training, Support Lean Six Sigma Tool Deployment, split Value Stream Mapping with other Black Belt
  • Lean Six Sigma Black Belts – $145,000/year – Targeted to Value Stream Mapping Oversite and Process Improvement
  • Lean Six Sigma Green Belts – $88,000/year – Targeted to Value Stream Mapping
  • Lean Six Sigma Green Belts – $88,000/year – Targeted to Value Stream Mapping
  • Total salary cost per year: $772,000/year
  • Each Black Belt averages %1,000,000 savings per year)
  • Benefit: ~ $3,400,000/year
  • Yearly ROI: ~450%

Ramp up by adding more Green Belts.

High-Level Plan

  1. Government Improvement Phase 1: Management Commitment. Benefit: Executive Buy-In and Commitment – Week 1
  2. Start an Office of Operational Excellence.
  3. Above all, Start the build of your System Guiding Principles. This includes goals, and responsibilities designed to create an agile and robust system, if not currently existing.
  4. Educate the Management Team on the System Improvement Process.
  5. Phase 2: Staffing. Benefit: Staffing Initiated, Project Selection, and Success Metric Agreement – Week 2 – 4
  6. Subsequently, start the project by bringing in 3 Black and 2 Green Belts. Start this early because this will take time and is a Critical Success Factor. Each Black Belt averages $1 million of cost savings.
  7. Start of Project Charter Build. This provides much-needed direction and project management guidance.
  8. Select Improvement projects: (Your System is comprised of Value Streams and Overhead functions). Map Value Streams on critical government systems and poor-performing systems. Lean Six Sigma Project Selection by using ROI as the method.
  9. Identify areas of Flow and Pull.
  10. Meanwhile, start the build of the Continuous Improvement Program materials with 1 Black Belt.
  11. Execute two important Lean Six Sigma tools. A “House of Quality” and a FMEA. A House of Quality aggregates information from customers, engineers, innovators, and competition to assist in product or service design. A FMEA (or Failure Modes and Effects Analysis) helps define and diminutize project risk.
  12. Phase 3: Final Pre-Work. Benefit: Stage Set, Ownership Established – Week 5
  13. Educate employees on Waste, or activities a customer would not willingly pay for. Use the Lean Six Sigma acronym DOWNTIMES. Setup an internal web page.
  14. Select Value Stream Managers. It’s important for future improvement that Value Streams have ownership. A Value Stream Manager would have additional time to perform other job functions such as managing other Value Streams or operational responsibility. Initiate Monthly Reporting.
  15. Phase 4: Initiate Improvement Effort. Benefit: Generate and Promote Measurable Benefits – Week 6 – 10
  16. Above all, Map and Improve the performance of each Value Stream (VS). VS’s, as an example, include every process between customer order and customer delivery. VS performance is important, Process performance may not be. VS move your Government system to create a focal point on Value Delivery. A VS gives the Government:
    • – Profound Knowledge of Value Stream processes,
    • – Built-in performance metrics,
    • – Value Stream velocity improvement,
    • – Decreased Value Stream cost, and
    • – Increased Value Stream output quality.
  17. Phase 5: Supply Chain. Benefit: Lower Acquisition Prices – Week 13
  18. Align your Supply Chain into 5 tiers of partners.
    1. Tier 1: Critical and Just-in-Time,
    2. Tier 2: Critical and Just-in-Time possible,
    3. Tier 3: Critical but no Just-in-Time,
    4. Tier 4: Other suppliers that deliver Just-in-Time, and
    5. Tier 5: Other non-critical suppliers.
  19. Explore enhanced relationships with Tier 1.
  20. Determine which Tier 2 Suppliers could move to Just-in-Time
  21. Document and Promote the successes of targeting Value delivered and building project inertia.
  22. Initiate an Education and Instruction Program to increase improvement velocity.
  23. Phase 6: Layer the Powerful Continuous Improvement Program. Benefit: Strive for Greatness – Week 11 – 12
  24. Estimated Progress Milestone: At the end of the first quarter you will have put in place all the parts needed to optimize the implementation of your Production System. 4 Value Streams are Mapped and Improved. The next steps accelerate your march forward.
  25. In addition Phase n: Future Steps Towards Your Production System
  26. (Optional, based on aggressiveness) Hire additional Black and Green Belts. This will ramp up the improvement effort through your company.
  27. Select additional critical Value Streams to Map, and so on throughout the whole system. Your system now has a focal point on the value it creates for customers.

Estimated Progress Milestones:

At the rate of 5 Values Streams Mapped and Improved every 4 weeks you will have:

  • First Quarter: 9 Value Streams
  • Second Quarter: 24 Value Streams
  • Third Quarter: 39 Value Streams
  • Fourth Quarter: 54 Value Streams
  • Second Year: 114 Value Streams (or more if you continue to staff up)

Benefits of your new Government System:

  • Profound Knowledge of your System
  • Operational Excellence
  • Increased Value Stream velocity
  • Decreased costs
  • Improved product/service quality
  • Continued improvement with a quest for Perfection

In Conclusion

This is a significant effort, but measurable benefits start within the second month. This effort will move your system to constantly change, create an improvement culture, and comes with Performance Metrics. Your government system is now on its way to excellence.