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Table of ContentsAbout PeakWelcome Memo . 1Peak Mission, Vision, Values . 3Peak Team Bios . 5DAY 1Process Improvement Overview . 8Innovation Form Thinking . 10Performance Metrics . 12Gemba Walk. 17Process Mapping . 20The 8 Wastes – DOWNTIME . 23Value Added Analysis . 25Spaghetti Diagram. 28Fishbone Diagram . 305 Whys. 33Communication Circle . 36DAY 2System of Work and Voice of the Customer . 40DAY 3One-Piece Flow . 42Rolling First-Time Yield. 43Mistake Proofing . 45Checklists . 47Nudge Techniques - Behavioral Insights . 49Visual Management . 57Standard Work . 616-S . 63Impact Effort Matrix. 67DAY 4Takt Time and Level Loading . 70OTHER RESOURCESIgnite Presentation. 73Peak Innovation Forms . 74Peak Academy Bibliography. 85Course Agenda . End (Not numbered)Cohort Roster . End (Not numbered)
Denver Peak AcademyFinance Dept/Budget and Mgmt201 W. Colfax Ave.Denver, CO 80202www.denvergov.org/PeakAcademyDenver Peak Academy Black Belt Participant:Welcome to Denver Peak Academy! All of the ideas and tools in this book are stolen from people waysmarter than us. We went online (Google is amazing), we went to classes, we attended conferences, weread books (yes, real books!), and we shared drinks and stories. We looked for people who changed theworld and we soaked in their experiences. Then we created a program: Denver Peak Academy.At first people hated our class. It was a boring, government class. Then we learned from our mistakesand put a little more fun and heart into our work. Along the way we learned that the best ideas alwayscome from many people willing to build upon each other. And it’s better if the people you surroundyourself with are smarter than you. What follows is a collection of materials and ideas written (mostly)by people who are way smarter than us. We teach you all of this in reverence to them and with the hopethat you, too, will change the world. Even if it’s just your little corner. Because that’s all you know. Andthat’s enough.Sincerely,Melissa WileyDenver Peak Academy ManagerCity and County of Denver1
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Mission:Peak Academy trains and coaches employees at all levels to improve theway government works. Through innovation, employees do more with lessand enhance the Denver city experience.Vision:Peak – changing the way government operates to improve yourexperience.Values:Peak Academy believes In achieving measurable results through continuous improvement; In our ability to make Denver the most well-run city in the nation; In patience with people and impatience with processes; In supporting colleagues to innovate; In failure; because failure leads to breakthrough3
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Get to know the Denver Peak Academy TeamMelissa Wiley – Denver Peak Academy ManagerMelissa Wiley is the manager of Denver Peak Academy. She hasbeen with Peak since it started in 2012 and served as the leadanalyst for Denver Animal Protection and the Department of Exciseand Licenses before leading the team. Prior to joining Peak,Melissa worked for the United States Department of State and theChildren’s Hospital of Philadelphia. She started her career in publicservice as an aid to the U.S Economic Advisor to Northern Irelandduring the Peace Process. She holds a Master’s Degree in publicadministration from the University of Pennsylvania. Originally fromBoulder, Colorado, Melissa now lives suburb of Denver with herhusband, Craig, and daughter, Sydney Jo. Her mission is to infusegreater joy into every aspect of public service.Jerraud Coleman – Denver Peak Academy Deputy ManagerJerraud is a creative, positive and hardworking PerformanceImprovement Specialist for the City and County of Denver’s PeakAcademy. Alongside a great team of professionals, he facilitatesprocess improvement events, trains employees of governments,non-profits and other enterprises (nationally, abroad and at alllevels) in the principles and methods of “Lean” and other changemanagement tools like PDCA (Plan-Do-Check-Act/Adjust). Jerraudbelieves that “sharing and talking about these tools can helpenterprises identify and sustain the elimination of any waste foundwithin any process. Thus resulting in happier customers, a moreeffective and efficient process, as well as a better product orservice overall.” Jerraud holds a BFA (in Integrated Arts) from the University of Colorado, Boulder.Drew Brown – Process Improvement SpecialistDrew Brown is a Process Improvement Specialist for the City andCounty of Denver’s Peak Academy, with a background insustainability and a business degree from the University ofMinnesota - Twin Cities. He specializes in helping employees buildtrust on their teams, and facilitating departmental strategic planningand goal setting. His belief is that everyone’s voice matters and hestrives to create opportunities for individuals to express their ideasand find productive ways to implement them. In college, he was aDivision 1 athlete and received Academic and Athletic All-Americanhonors, and he competed in the 2008 Olympic Trials. He grew upin Aurora, CO and currently lives in Denver with his amazing wifeMegan and his cat and dog, Loki and Remus.5
Andy Rees – Process Improvement SpecialistAndy joined the Denver Peak Academy team as a ProcessImprovement Analyst in August 2016 after spending three yearsworking as the Marketing and Outreach Coordinator at the DenverAnimal Shelter. Andy loves to meet, train, and work with employeesacross the City to continuously make Denver a better place to work andlive. He is particularly passionate about helping employees eliminatethe things that bug them within their work processes, resulting in greaterjob satisfaction and enjoyment. When not working, Andy enjoysspending time with his wife, Erin, and his daughter, Ada.Andy grew up in SW Kansas and received his Bachelor of BusinessAdministration from Washburn University (Topeka, KS), majoring inMarketing and Management.Robert Peek – Process Improvement SpecialistRobert is a Process Improvement Specialist with Denver PeakAcademy. Before joining the team, he worked on advocacycampaigns ranging from renewable energy to human rights to localelections to water conservation. He worked in non-profitdevelopment, operations, grassroots organizing and customerservice and in all those spaces there were always processes thatneeded improving. He was so frequently responsible, at leastinformally, for helping ensure that things work better that it’s onlynatural that he find himself officially in that role here at the City andCounty of Denver. He’s excited to bring his passion for creatingchange to Denver and to help empower city employees to innovateon their work. Robert grew up in Mishawaka, IN and holds a BS inPublic and Environmental Affairs from Indiana University.Nathaniel Bradley III – Process Improvement AnalystNathaniel is a Process Improvement Analyst with Denver Peak Academy.Before joining the team full-time, he spent time interning at the City andCounty of Denver and the City of Miami. While in Denver, he assistedPeak Academy with facilitating and innovating the training curriculum.With Miami, he worked in the Strategic Planning Office assisting withprojects for the three-year strategic plan and the Miami InnovationAcademy. Through his internship experiences, Nathaniel built a stronglove for process improvement and public service.Nathaniel grew up in Aurora, CO and received his Bachelor of Arts fromthe University of Miami (Coral Gables, FL), majoring in English andminoring in Public Relations.6
Process Improvement OverviewWhat is Process Improvement?Process Improvement applies continuous improvementmethodology 1 to deliver value to the customer, on demandthrough: Implementing solutions driven by the people who dothe work (bottom up rather than top-down) Investing in employeesWaste is Disrespectful:Waste, in terms of process improvement, is anything that doesn’t add value to the customer. Wasteimpacts three main categories: Humanity: waste is disrespectful to humanity because it wastes scarce resources. Citizens: waste is disrespectful to citizens because it asks them to pay for processes with novalue. Individuals: waste is disrespectful of individuals because it asks them to do work with no value.It is up to the employee to identify waste and discover how to remove or reduce it in a way that addsvalue to the customer.The Five Principles of Innovation:The Toyota Production System, pioneered by Taichi Ono, uses five core principles that guide innovation:1. Identify the value that your customers demand.2. Map the steps required to deliver value to your customers.3. Deliver value to customers on demand (“Pull”)4. Deliver value to customers without waste (“Flow”)5. Seek perfection: standardize and solve to improve.Each of these core principles should be considered during the process of solving a problem. Most ofthese are rather self-explanatory, but what does “flow” actually mean? Flow is when work seemseffortless, almost as if you could do it in your sleep. It’s what is felt by a baseball pitcher when theythrow a perfect game or a basketball player when they make every shot. In terms of a process, it’s wheneverything happens correctly, on time, at the right place, and delivers the value the customer wants.As you may have noticed, the fifth principle says “seek perfection.” Note the word “seek”; perfection issomething that may never be achieved, but anything can be improved. That is why this is called processimprovement and not process perfection.Notes:1Developed by Toyota through their Toyota Production System7
Process Improvement OverviewPlease answer the questions below to aid in your understanding.Describe the values your customers demand from your processes.Are there ways your current processes are wasteful? Do your processes use physical/time resourcesinefficiently?Describe what you think “flow” might look like in your job or your life in general:Notes:8
Innovation Form ThinkingOverviewAn Innovation Form is a planning tool that can be helpful in planning innovations in your organization.It is a tool for implementing innovations in the City and a document we use to record savings andimpact.The Innovation Form can be used to think through any issue, problem, or opportunity and is essential inclarifying the scope of an innovation. We use it for building consensus and communicating theoutcomes or improvements that result from an innovation. You can download the Innovation Formtemplate from our website (google Denver Peak Academy and click the first link, it can be found underthe See It! Tools section) in Word format.FrontBackNotes:9
Innovation Form ThinkingHow to use it:Why Change is Needed:Start with the first box: Why is change needed? Think about a statement that will resonate with the“emotional” side of the people involved. What is the impact on the customer? What is happening in thecurrent state that is unacceptable to the end user? Use this section to tell a story about the issue.Practice with an issue you’re having in the box below.Current State: Moving on to the second area: This is where you place your M.E.A.T. This box caters tothe “Spocks” of your organization. How much money does the process cost? What kinds of errorsappear in the process? How many times do you do the process? How long does the process take?Practice with your M.E.A.T in the box below.Future State:Next to your current state metrics, set a realistic goal for change in each section of your M.E.A.T. Howmuch would you like to reduce cost? 50%? 75% How many errors do you think it’s reasonable to have?How much time should it take in the future? This is all about goal setting. Set the target and think ofinnovations that will help you get there. Practice with your future state in the box below.Notes:10
Performance MetricsWhat is a Performance Metric?A performance metric measures an organization's behavior, activities andprogress towards its stated goals. It should support a range of stakeholderneeds from customers, shareholders and employees and can help to gaugethe effectiveness of a program’s strategies to achieve an agency’s goals.There is no one perfect set of performance metrics—the “right” metricswill depend on the project’s WIG (Wildly Important Goal) and may requiremultiple iterations to discover more about the process/system in question.Below, in your opinion, what are “performance metrics”?Performance metrics areExamplesRelated to the program or process’ WIGsand purposeReliable measurements of outputs andoutcomes like # of steps and weight inpounds and kilogramsJust goalsMeasures of success in relationship to aprocess, system, program, customer, etc.It is helpful to focus on a mix of metrics that measure different aspects of the service being provided—for example, use one metric that is meaningful to the customer and another that will resonate withleaders and the organization’s strategic goals.List some of your organization’s “WIGs”:WIGs of the organizationExamplesDecrease the time it takes to identify andhire the best talent in Denver by roughly 45%Notes:11
Performance MetricsMEATY?Performance metrics can be difficult to grasp, especially when approaching them in the middle of awhirlwind. Try focusing on these five basic metric categories to help you establish a MEATY currentstate and future state case:MONEYERRORSAMOUNTSTIMEYearly Costs*What is the cost ofyour process?*How much rework*Hard dollars: costfor physicalmaterials*Number of defectsper transaction*Supply: How manywidgets do youmake/process*The lenghth oftime it takes tomake your widgetper week*The length of timeit takes to makeyour widget peryear*The lenghth oftime per transactionyour customerswaits for yourwidgets to bedelivered*The lenghth oftime per year yourcustomers wait foryour widgets to bedelivered*Cost of materials*Soft dollars: cost oflabor time*Cost of AVG FTEper hour*AVG CustomerSalary per hour*Quality measures*Negative ratingsand scores*Defect rate*Demand: Howmany clients do youserve*The number ofcalls you log*The number ofcases you defend*The number ofmeals you make*The lenghth oftime per week oneactively works oncreating anddelivering yourwidget*The lenghth oftime per year oneactively works oncreating anddelivering yourwidget to itscustomerLike Peter Drucker said, “what’s measured, improves.” Once you determine the appropriate metrics toreach your WIGs, list your MEATY metrics in the Current State - CS (box 2), Future State - FS (box 3),and Results (box 8) section of the A3 template. Rally around your performance metrics regularly tosustain improvements and continuously improve your system at every level.Q: How can you use the “MEATY” to continuously improve your process?Notes:12
Performance MetricsAn example: Agency #C is trying to improve their work order process. They know how many work ordersare requested through their system, how long (AVG) it takes to process a work order, and how many aresuccessfully processed correctly the first time. Using this information, they can calculate how muchmoney it costs their agency to complete this process. Additionally, this agency will know what the YearlySavings will be. They will know whether their idea is worth pursuing, how close they are to reaching it. In order to calculate the Yearly Savings; subtract the Future State (FS) Costs from theCurrent State (CS) Costs: 25 soft dollar (CS Costs) - 20 soft dollars (FS Costs) 5 softdollars/year (Yearly Savings)With the metrics listed below in box 8 (Results), fill in the missing “MEATY” metrics to identify the“Yearly Savings”:8. Results – Agency #CMetricMoneyCS 25/hour per FTE1 FTE per transaction1 ream (500 sheets) of papercost 50FS 25/hour per FTE1 FTE per transactionErrors5% of transactions completedincorrectly2.5% of transactionscompletedincorrectlyAmounts100 transactions/month100 sheets of paper/month100transactions/monthw/10 sheets ofpaper/monthTime10 minutes of touchtime/transaction8 minutes of touchtime/transactionYearlyCosts .41/min per FTE *1FTE/transaction * 10minutes/transaction * 100transactions/month * 12months/year 4,920 soft cost 100 sheets of paper/month *12 months/year 1200/sheets/year/500sheets/ream of paper 2.4ream/year * 50/rem 120/year in hard costs 5,040 soft dollars(costs)/year 3,948 soft dollars(costs)/yearNotes:1330 Days 25/hour per FTE1 FTE pertransaction90 Days 25/hour per FTE1 FTE pertransactionYearly Savings3% of transactionscompletedincorrectly9 minutes of touchtime/transaction2 minutes oftouchtime/transaction 20% decrease intime 1,092 softdollars (savings) 21% Savings inhard and softdollars
Performance MetricsTypes of Process MetricsQuality MetricsTime & WorkloadMetricsThe following metrics are typically used for measuring performance in process and continuousimprovement strategies:MISCMetricDefinitionLead TimeProcessing/TouchTimeResponse Time% On-Time DeliveryBacklogWait TimeTotal time to create a service/product and get it to the customer, incl. waiting timeDefect RatePercent of services/products that are “defective”Rework Steps /TimePercent Complete& AccurateRolling First-TimeYieldROIAmount of time spent on process steps, not including waiting timeAmount of time to respond to a customer request for a service or productPercent of time the product/service is delivered on timeNumber of products or services waiting to start the processAmount of time a customer is waiting for a widget/downtimeAmount of a process spent correcting mistakes or getting missing informationPercent of occurrences where a process step is completed without needing corrections orrequesting missing informationPercent of occurrences where the entire process is completed without rework; this is theproduct of the Percent Complete and Accurate for each process step, expressed as a %Return on InvestmentNote: not all of these metrics may be appropriate, applicable, or useful for your situation.Using the previous example, fill out the table below with metrics from one of your A3s/Innovations:8. Results – Agency #CMetricCSFS30 DaysMoneyErrorsAmountsTimeYearlyCostsNotes:1490 DaysYearly Savings
Performance MetricsTypes of Savings15
Gemba WalkOverviewGemba is a Japanese word meaning “the real place.” The idea of a Gemba Walk is simple: if you want toknow how a process really works, go to where the work is done and watch it in person to gain a deeperunderstanding of the process. A Gemba Walk helps gain insight to be able to effectively map a processand identify waste within the process. It’s important to clearly scope the process & customers of theprocess prior to completing a Gemba Walk.As you complete a Gemba Walk, take notes & answer these questionsQuestions to ask the host(s) ofthe Gemba WalkWhat is the name of theprocess you are going to“walk”?AnswersWhere does the process start(first step of the process)?Is this start-point obvious tothe customer of the process?When does the process end(last step of the process)?Is this end-point obvious to thecustomer of the process?Are front-line employees‘empowered’ in this area todeliver value to theircustomers?Can they make decisions andimplement change?16
Gemba WalkWhat are the steps and timesin the process?Process StepsEx: ASA Prints CitationTime Per StepEx: 60 secAre there any steps that do notobviously add value to thecustomer of the process?Can any non-value added stepspossibly be removed from yourviewpoint as an outsiderNOTE – You may not understand why some steps exist, but IDsteps you think are not adding value to the customer.17
Gemba Walkwatching the process? Whatsteps in particular?Where can the team thatperforms the process create orenhance PULL (delivering valueon demand)?Where can the team thatperforms the process create orenhance FLOW (deliveringvalue without waste)?What issues are present duringthis process? What are theroot causes of these issues?Who are the customers of theprocess & what do they valuein this process?Primary Customer:Secondary Customer:Tertiary Customer:Gemba Walk ParticipantsParticipant NameRolePhone #18
Process MappingWhat is Process Mapping?Process mapping is a workflow diagram that can bring forth aclearer understanding of a process or series of parallelprocesses.What is a Process Map?A Process Map is a diagram that visually displays a series ofevents or steps that occur within a given process. There areseveral types of process maps, and at Peak Academy, webelieve there is no wrong way to do a map. Maps are greatvisual aids that enable members of a team to understand andachieve standard work and continuous improvement. You willwant to create a current state map first and use the 8 Wastes(DOWNTIME) to help with the future state.Include the following in every type of Process Map you create: Put the title of the process, current or future state, andthe date at the top of the process map Define the start and end points Identify who the customer of the process is Use square sticky-notes for steps & rotate them 45 degrees into diamonds for decision points Label the time it takes for each step as well as for the process as a whole Identify value added, non-value added, and business necessary non-value added stepsIn the box below, list the benefits of using a “Process Map” and “Process Mapping”:Notes:19
Process MappingEasy “How to” Using Sticky Notes:Create a map by using post-it notes on a large rollof paper. Use different color post-it notes foraction steps vs. decisions. Use a post-it note as asquare for action steps and a diamond fordecisions points. Each post-it note shouldrepresent a different step in the process. Noteexample: Verb Noun Time Opens andreviews Customer’sRequest 5 min DoescustomerYES Processes andresponds to The Customer’sRequest 5 min NO Sends Request backto customer 5 min Process Trigger:the very first stepof the process inProcess End:the very laststep of theprocess inquestionUsing the example above, “map out a process” (at a high-level: 5-7 steps) that you control or work on:Notes:20
Process MappingGeneral rules of thumb Map from left to rightMark milestones and/or time to deliver value to your customerDocument volumes of “widgets” that go through the processBoxes Steps in a process (label “who” and use verbs)Diamonds Decision points in the process (Yes/No, If/Then )Use pink ‘stickies’ to represent waste/issuesAn assortment of colors can be used for different work groups or individuals in the processProcesses can occur at the same time, with one process shown above or below the other(known as ‘swim lanes’)RememberYou’re not going to break anything! Strive to ensure the process map is accurate and reflects thework that’s actually done!Q: How many touch points/action steps are there in your process?Notes:21
The 8 Wastes - DOWNTIMEWhat is DOWNTIME?DOWNTIME is a tool to identify the 8 typesof waste that can exist in a process.Different approaches to Lean may include 7,8, or 9 types of waste, but no matter howyou break things down, the overall goal is toensure we are observing a process,identifying waste, and identifying how toeliminate the waste.Remember that in Lean, we want toeliminate waste because it is disrespectfulto: HUMANITY - because itwastes scarce resources. CITIZENS - because it asks them to endure and pay for processes with no value. INDIVIDUALS - because it asks them to do work with no value.The 8 Wastes1.Defects2.Overproduction Related Examples & QuestionsIs there re-work because of errors, poor quality control, orlack of standards?Pushing work downstream before the next person is readyProducing reports no one needsEntering repetitive information3.Waiting Waiting for info , resources, or approvalsDependency on others to complete tasksSystem response or down time4.Non-utilized/underutilized human talent & ve Processing Underuse of people’s talents or skillsPrinters, computers, & scanners not being used Email distribution lists not up-to-dateUnorganized work spaceMultiple handoffsExtra office supplies or other inventory than is neededFiles awaiting task completionFilled in-boxes (paper and electronic) Unnecessary data entry or motion between areasSearching for work documents or other suppliesHand carrying paperwork to other departmentsCan some tasks be combined or eliminated?Is too much time spent on unnecessary tasks?Notes:22
The 8 Wastes - DOWNTIMEDOWNTIME WorksheetUse the table below to “ID waste in your current process” and make notes about how to eliminate it:Types of WasteDefectsSomething that causes rework,like an unintended over issuanceWaste Identified in Your ProcessOverproductionMany extra copies ofapplications that have nowbecome obsoleteWaiting timeWaiting for clients to submitverificationsNon-Utilized Human TalentWorkers walking clients to childsupport enforcement – 40 hourswere spent and 33 miles werewalked/monthTransportationNeedlessly going to anotherlocation for a meeting that couldhappen over the phoneInventoryVolume of applications toprocessMotionUnnecessary human movementExcessive ProcessingExtra steps in a process simplybecause we have always done itthat wayNotes:23
Value Added AnalysisValue Added (VA)?Value in terms of a process is anything that thecustomer is willing to pay for.In Peak terms, we call this Value-Added (VA). Forexample, when you eat a meal at a restaurant it’sthe meal and the service you’re paying for and notthe waiting in-between. When you go to the DMVto get a new drivers’ license, all you want it toreceive the license. Would you pay for the waitingin-between?By identifying which steps do or do not add valueto a given product or service, you’re able to assesswhether a step should be kept or reduced.Business Necessary – Opportunity to Innovate (BN/OTI):Steps or actions that must be completed forlegal or regulatory requirements areconsidered to be Business Necessary Opportunity to Innovate (BN/OTI).Ask the question, “would I get in trouble withthe law if I didn’t do this step?”. If the answeris yes, it’s BN/OTI. This can sometimes b
Nathaniel is a Process Improvement Analyst with Denver Peak Academy. Before joining the team full-time, he spent time interning at the City and County of Denver and the City of Miami. While in Denver, he assisted Peak Academy with facilitating and
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