Lean and Six Sigma in Criminal Justice

© 2010 Copyright ISC Ltd.

Six Sigma and Lean: Bandwagon or benefit?

Ian J Seath

OR52 Conference, September 2010

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© 2010 Copyright ISC Ltd.

Presentation content

What are Six Sigma and Lean? Overview only, not how to implement them

How can they add value? Some practical tools

Applications in a CJ environment Examples

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Six Sigma and LeanSix Sigma “TQM on steroids” A statistically-based approach to

process improvement Requires support from “Black

Belts” for implementation Achieves improvement through

project activity, chosen by management; often based on ROI potential

An evolution from “Zero Defects” thinking of the 1990s

Aiming for fewer than 3.4 ppm defects

© 2010 Copyright ISC Ltd.3

Lean Evolved from the Toyota

Production System Focus on identifying and

delivering customer value Managing horizontal value

streams (& systems thinking) Aligning capacity to demand

and creating “flow” Engaging front-line staff in

daily improvement Using visual management to

track performance Managers “go and see”

Six Sigma and Lean Tools/TechniquesSix Sigma

SIPOC Voice of the Customer House of Quality (QFD) Process Mapping Design of Experiments Statistical Process Control Taguchi Sampling & Data Collection Statistical Analysis Failure Modes Effect Analysis DPMO/Sigma/CPK


Lean The Seven Wastes 5 S Poka Yoke Value Stream Mapping Kaizen Standardised Work Visual Management Flow: Push & Pull Just-in-time Takt time Value Add Ratio

SIX SIGMA“Making numbers work”


What is Six Sigma?


Depending on who you talk to, you’ll find a range of definitions and descriptions of the scope of 6 Sigma…

1. It’s a highly technical and statistically-based way of managing and improving processes (often used by manufacturing organisations)

2. It’s an evolution of the concept of “Zero Defects” leading to the aim of near perfection by reducing defect levels to below 3.4 parts per million opportunities (the focus is on understanding customers’ requirements, so you can define a “defect opportunity”)

3. It’s the development of a culture of sustainable and continual improvement based on: striving to understand and meet agreed customers’ requirements by driving out waste and defects through the involvement of people in improvement activities

What is Six Sigma?


6-Sigma aims to improve productivity, reduce failures, improve customer service, reduce costs and improve the bottom line, by: focussing on reducing the variation in processes and the opportunities for

failures in processes 6-Sigma emphasises the use of data and the involvement of all levels

of staff in the improvement process It also stresses the need for real, top-level management

understanding, support and involvement

6-Sigma is a comprehensive and flexible system for achieving, sustaining and maximising business success. It is uniquely driven by close understanding of customer needs, disciplined use of facts, data and statistical analysis, and diligent attention to managing, improving and reinventing business processes Pande, Neuman & Cavanagh: “The Six Sigma Way”

Evolution of Six Sigma


Statistics Holistic

1980s

2010

StatisticalMeasurement Process

Control

ProblemSolvingToolkit

PeopleSkills

ProgrammeMethodology

BlackBeltApproach

ProjectBased(DMAIC)

EncompassingExistingTechniques

SupportStructure

The Six Sigma approach


Customer

Mission Critical Projects

Improvement Methodology

Black Belts

Process Improvement

World Class Performance

A focus on what’s important to the

Pursuing the priority

Deploying a systematic, rigorous

Developing people as first-class problem solvers:

Reducing waste & variation to achieve

And, ultimately, to achieve

Six Sigma provides a common basis for comparison


Which of these processes is performing best?

Accounts receivable 35 days sales outstanding (DSO)

Call answering 10 rings on average

Customer service 89% satisfied, or very satisfied

Invoicing 99% accuracy

Checkout queue 3 minutes on average

Basic concepts


Critical to Quality: customer performance requirements of a product, or service

Any event that does not meet the specification of a CTQ

Any event that provides a chance of not meeting a CTQ

CTQ

Defect

DefectOpportunity

Defects


Typing errors in a document Excessive “on-hold” times in a call centre Late deliveries Incomplete orders System crashes Expense Form errors Incomplete files/forms/case records Staff shortages

You need to agree clear guidelines on what constitutes a defect and what constitutes an opportunity

As customer requirements change, so too will Defects and Sigma levels

A one-sigma process


1 17 33 49 65 81 97 113 129 145 161 177 193 209 225 241 257 273 289 305 321 337 353 369 385

The customer requirement lies only one standard deviationaway from the mean of the distribution

This is a picture of a normallydistributed process with a

mean value of 100

This area represents defectsor errors.

Customer requirement (max. 160)Distribution Mean

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Could be: ‘time to process an offender in custody’ ‘errors in CRB checks’ ‘cycle-time from receiving case files to delivery of service’ ‘database errors – addresses, personal details, etc.’

A two-sigma process


1 17 33 49 65 81 97 113 129 145 161 177 193 209 225 241 257 273 289 305 321 337 353 369 385

The customer requirement lies only two standard deviationsaway from the mean of the distribution

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A “Six Sigma” approach is all abouttrying to reduce the variability inprocesses such that errors and

defects are reduced.

The process has beenimproved (‘tightened’)

Fewer Defects than a “One Sigma”process.

A four-sigma process


1 17 33 49 65 81 97 113 129 145 161 177 193 209 225 241 257 273 289 305 321 337 353 369 385

The customer requirement lies four standard deviationsaway from the mean of the distribution

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Many organisations’ processesrun at a 3 sigma or 4 sigma

performance level.95%....99% levels

A six-sigma process is “world class”


1 17 33 49 65 81 97 113 129 145 161 177 193 209 225 241 257 273 289 305 321 337 353 369 385

The customer requirement lies six standard deviationsaway from the mean of the distribution

Virtually defect free.

The process distributionis very ‘tight” relative tocustomer requirements.

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Sigma and error levels


Yield (Error Rate) DPMO Sigma

30.9% (69.1%) 690,000 1

69.2% (30.8%) 308,000 2

93.3% (6.7%) 66,800 3

99.4% (0.6%) 6,210 4

99.98% (0.02%) 320 5

99.9997% (0.0003%) 3.4 6

Six Sigma implementation


Develop Business Process Model

Identify Customers and their Requirements

Measure Baseline Performance

Prioritise Improvement Projects

Implement DMAIC Improvement Projects

Extend 6-Sigma Approach

Strategic

Tactical

Possiblestart-points

Six Sigma Black Belts


Problem SolvingSkills

Process ImprovementSkills

Statistical ImprovementSkills

Someone who drives business process improvements A specialist in problem solving Has gained interpersonal, team, and statistical problem

solving skills Understands and applies the methodologies of Six Sigma Achieved Black Belt certification through demonstrating

real results Supported by trained Green and Yellow Belts

Courts example 771 Magistrates’ Court cases were analysed

388 cases “cracked” (late “guilty” plea) 141 cases were “ineffective” (trial unable to proceed

on planned date) 69% defect rate = 686,122 ppm = 1 sigma!!! Est. cost = £294k (people’s time only)


Reasons for Ineffective Trials York/Selby Magistrates Court Feb '05 to Jan '06

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5

10

15

20

25

30

N3

S1

M2 R N1

OT

HE

R1

Q1

S2

M1

W3

M3

W1

Q2

W2

W4

OT

HE

R

O1 P T

I - A I - PYO I - Y

Count of URN

New Reason

OutcomeAdult, Youth, PYO or PO

45% of “Ineffective Cases” were caused by Prosecution failures:• Witness absent (19%)• Prosecution not ready (9%)• Police witness absent (8%)• Other Prosecution reasons (9%)

45% of “Cracked Cases” could be directly impacted by the Prosecution

SPC example of Victim caseload


New CJ Act

LEAN“Improving flow and driving out waste”


Lean – a philosophy and a set of tools The Philosophy

Using process time as a competitive weapon - reducing time throughout the entire business process

Defining perfection for every process Creating continuous dissatisfaction Developing an improvement culture

The Tools To help people identify Value To map processes and the value stream To identify waste (with a new way of looking at our work) To eliminate waste To reduce non-value-added time To do all the above quickly and with the full involvement of staff


Evolution of Lean Thinking


Lean Concepts

Toyota ProductionSystem

Lean Thinking“Lean Enterprise”

Some Lean tools and techniques


ReducedBatching

5S

Standard-isedWork

Visual Control

KaizenBlitz

Supplier/Customer Relationships

Poka Yoke

Continuous Flow

Setup Reduction(SMED)

SevenWastes

Overall Equipment Effectiveness

PullSystem

Some Lean tools and techniques


ReducedBatching

5S

Standard-isedWork

Visual Control

KaizenBlitz

Supplier/Customer Relationships

Poka Yoke

Continuous Flow

Setup Reduction(SMED)

SevenWastes

Overall Equipment Effectiveness

PullSystem

WASTE


Waste Waste is anything that does not add value to

your product or service Eliminating waste gives you more resource to meet

your customer requirements Waste will always be present, so there is always

something that you can do to improve your performance

Identifying all the waste in your processes forces you to compare your operation against perfection.....…and this is not a comfortable experience!

Some examples…


The Seven Wastes


Waste Examples in Police taped interview processesPeople Waiting Waiting time while tapes are retrieved from storage so they can be

collected by an officer.

Over-production

Producing three copies of the interview tape even though defence solicitors virtually never ask for a copy.

Rework & Failures

Corrections of transcripts because the original tape was inaudible, broken, etc.

People Moving Officers travelling to the transcription team to deliver tapes (due to fear of loss) and any travel to/from tape storage.

Over-processing

Checking information for completeness when it arrives at the transcription team (it should not be delivered incomplete). Checking transcripts after they have been returned from correction (why would they be wrong a second time?).

Inventory All the storage of tapes, plus any temporary storage by officers at their desks. Also, the storage of blank tapes, required for interviewing.

Transport of materials

All transport of tapes between police stations and transcription and storage.

Waiting Waiting

People waiting Materials waiting

Examples Backlogs of offenders waiting to start a programme

UPW equipment / vans not in the right place at the right time

UPW stand downs / send homes

Backlogs of paperwork / cases waiting in an in-tray

Court processes, just one big wasteful waiting game!


Over-production


Producing more than required Producing faster/sooner than required; e.g.

Report

Report

Update

Rework and Failure

Producing and coping with failures and rework steps

Examples

All activity relating to non-attendance breach (hence the aim to increase compliance in Probation processes)

Correcting or cleaning up data in case management systems

All trials held up due to witnesses not turning up, case papers not being ready

Writing a report by hand and then getting someone else to enter exactly the same details onto a computer


People Moving

All the movement of staff that we see in a ‘busy’ office is waste

No value is added by the movement of staff; we only add value at the start or end of any movement

Examples Offenders and supervisors coming into a central UPW reporting

point, only to be sent back out again to work placement sites Any journey where no value-adding tasks are performed Photocopiers, printers centrally located that everyone has to walk

to when they want to use them People coming back to the office to enter data / information in

office-based IT systems


Over-processing

Doing steps you don’t need to do and that will add value to the customer or user

Examples Details written down repeatedly and then input into a variety of IT

systems (name and number x 20 in first 24 hours of arriving in Prison)

Writing a full Standard PSR when a Fast or Oral PSR would have been more appropriate

Putting a case though MAPPA when the level of risk and multi-agency involvement did not warrant

Getting a procurement manager to sign off every order (even when some are for 10 pens!)


Inventory Inventory is the piling-up of work between process stages If we have designed a process along Lean lines, the only

queue should occur at the start of the process Any other piles of inventory indicate a problem in the

process Examples

Piles of work waiting for someone to return from holiday Queues of offenders waiting for a Programme or Unpaid Work

session to commence PSRs waiting to be typed-up or signed Piles of PDPs or Annual Appraisals all waiting to be completed at

the same time of the year


Materials moving

The time and effort spent moving physical items around your workplace

In the Courts processes a good example is the time spent moving a prisoner around for a 5 minute hearing

In Probation it refers to the movement of offenders, movement of vans for Community Payback work, or paperwork moving backwards and forwards between people

We know that all transport/movement is impossible to eliminate but recognising it as a waste means that we should be trying constantly to reduce it


5S


What is 5S?

An easy way of achieving major change in an office environment

A structure for establishing an orderly, clean and organised working environment

A way of identifying new problems and wastes that can then be resolved by staff and managers

A way of encouraging everyone to be involved in improvement activities

A process for creating the best working environment to carry out your work and run your business


What is 5S?1) SORT:

Seiri – Eliminate unnecessary items2) SET IN ORDER:

Seiton – Order: everything in its place3) SHINE:

Seisu - Clean, check and return to original state4) STANDARDISE:

Seiketsu - Define procedures and standardise5) SUSTAIN:

Shitsuke - Respect and improve standards


Before and after 5S Sort and Set…


Visual Management


Information Centre – focus for daily team meetings

LEAN SIX SIGMA“The best of both worlds”


Improvement approach


Six Sigma: Define Measure Analyse Improve Control

Lean: Current State VSM VAR Waste/Flow Future State VSM

Applying Lean and Six Sigma Any process!

High volumes of transactions Lots of “hand-offs” and delays between steps Data-rich, information-poor

It requires: A mix of analytical and creative skills Leadership, facilitation, staff engagement Use the right Lean and/or Six Sigma tools to meet

the improvement objectives


Lean Six Sigma: the best of both worlds… Focussing on customer requirements Statistical thinking

Managing by numbers Reducing variation

Eliminating waste Driving out non-value activities Reducing cycle-times

Engaging line managers as process owners Involving front-line staff in daily improvement


A final thought…


“Thousands of police officers go through their careers without using their brains…”

“……content to react to incidents and not made to think.”

“…….someone needs to collect information and work out how to use it…the whole culture and training needs changing.”

To what extent could Lean and Six Sigma help?

Gloria Laycock, Director Evening Standard

Jill Dando Institute 25 April 2001

Ian J Seath, DirectorImprovement Skills Consulting Ltd.

www.improvement-skills.co.uk

[email protected]

M: 07850 728506


Lean and Six Sigma in Criminal Justice

Business

customer requirement

standard deviations

offenders

2010 copyright

line staff

lean tools

transcription

sigma process