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Transforming Government Track
Authors: Alan James & Steve Gehrke, Utah Correctional Industries, Greg Gardner, Utah Governor’s Office of Management and Budget (GOMB), Bahadir Inozu, Ph.D., NOVACES, LLC
This presentation will highlight results and lessons learned from Utah's SUCCESS Program led by the Governor’s Office of Management and Budget (GOMB) at Utah Correctional Industries (UCI). Reducing recidivism in the State (the relapse of criminal behavior) has been one of Utah Governor Gary Herbert’s top priorities. Studies show that about 54% of inmates return to prison within three years of release in Utah. The state’s Department of Corrections is currently implementing the Theory of Constraints as part of a system-wide effort to improve that figure by 25% before January 2017.
Since February 2014, UCI has been applying operational excellence methods to reach its goal with the following initiatives:
The results to date have been impressive.
1) Focused Value Stream Analysis with SDBR for the Furniture Shop
Business Issue: Customers’ perception was that lead times at UCI are significantly longer than those of the industry. Historically, manufacturing was not able to provide an accurate projected completion update. It takes too long for UCI to manufacture. As a result, UCI was losing opportunity to increase business. Less than optimal lead times are stifling throughput and UCI was not getting enough product out the back door. If UCI had more throughput it could have more jobs, more revenue, more inmates graduating the program, less recidivism.
Methodology Applied: Focused Value Stream Analysis followed by Simplified Drum Buffer Rope (SDBR)
Business Impact: the furniture shop more than doubled its production capacity and revenue. Perhaps even more importantly, this has translated into new job opportunities for inmates, enabling more offenders to practice job skills that translate into higher success upon their release from prison.
SUCCESS team created a stabilized flow that resulted in:
2) Capacity Management at the Print Shop with SDBR
Business issue: Based on the success of Furniture Shop success, UCI decided to grow in house capability to better meet the needs of its customers and reduce recidivism. The print shop does not have a way to schedule incoming projects. The capacity can be an issue when scheduling incoming jobs and quoting due dates. At times in-process jobs are stopped in order to start and finish incoming jobs on time. There is no solid way to prioritize and schedule incoming work, so the job that is started first may be the shortest one but not always what’s best for meeting due dates in general. UCI is also facing issues with shipping, where capacity is not enough.
Methodology Applied: SDBR
Business Impact: Implementation of High Touch Time Simplified Drum-Buffer-Rope (SDBR) enabled the print shop to track jobs in real-time, and forecast the capacity and the load. As a result, they can now accurately forecast the capacity and load. There has been a 32% increase in jobs handled, 30% increase in sales revenue, and lead times have been shortened by 12%. The staff reported that "…the method of calculating touch time, buffer penetration, and scheduling start dates accordingly is meshing really well with the numbers we calculated.” And the approach "…is working out amazing for us in determining touch times etc. for scheduling jobs.”
4) Project Portfolio Management of the Construction Program
Business Issue: UCI Construction projects are tracked and scheduled by using Excel, and there is no way to determine available capacity and to schedule jobs accordingly. UCI Construction has recently had to turn down projects due to capacity issues. 90 percent of the projects contain change orders, and 30-40% percent of the work done is due to change orders. Jobs are at times delayed due to unexpected circumstances, such as customer not getting paperwork submitted on time.
Business Impact for the Construction Program: While CCPM is still in its initial implementation stages within UCI’s construction shop, it has already shown promising results. It is showing staff how they automatically and often subconsciously add in far too much buffer to projects. CCPM teaches the group proper scheduling of their time and resources. It is already playing a crucial role as a visual tool for the staff, inmates and customers to see exactly when to start and where they should be in the process. It helps UCI construction managers more effectively work with customers and the state’s Division of Facilities and Construction Management on time frames and aligns various stakeholders in the process around a common understanding and project vision. Ultimately, it is leading UCI Construction to confidently provide accurate due dates on a still-realistic but more aggressive timeline, which will in turn free the team up to schedule more jobs without guess work. Staff and inmate workers are excited about the prospects.
ALAN JAMES began his career with the Utah Department of Corrections in 1990 working for the Division of Correctional Industries (UCI). Prior to joining correctional industries he spent ten years in private sector manufacturing management. Alan received his Bachelors Degree in Criminal Justice Administration from Columbia College. He received a Masters of Public Administration (MPA) from the University of Utah, and is a member of the Pi Alpha Alpha honor society. Alan was appointed the Deputy Director of UCI in June of 2003, and the Director of UCI in April of 2004. Current board member of the National Correctional Industries Association (NCIA).GREG GARDNER is currently serving as the Director of Operational Excellence for the State of Utah in the Governor’s Office of Management and Budget (GOMB). Governor Gary Herbert has challenged all 22 executive branch agencies to improve government operations and services by at least 25% (a combination of quality, cost and throughput) by January 2017. Greg along with Kris Cox, GOMB Executive Director, and Steve Cuthbert are responsible to help each agency implement the "SUCCESS framework” and operational excellence tools to work toward this target.
Greg has over 31 years of experience in Utah state government and previously served as Deputy Director for the Utah Department of Workforce Services (DWS). In this capacity he oversaw all of the department’s administrative functions including operational excellence, finance, administrative services, legal, internal audit, communications, workforce research and analysis, employee development, human resources, and information technology. Greg holds a BA degree in marketing and an MS degree in human resource economics, both from the University of Utah.STEVE GEHRKE began his public service with the Utah Department of Corrections in 2007 as its public information officer, or agency spokesman. He now serves as Director of Quality and Process Improvement. In this capacity, Steve links Corrections to the Governor’s Office of Management and Budget on a variety of ongoing Theory of Constraints-oriented projects. In addition to Utah Correctional Industries, the department is striving for efficiencies in its prison’s housing and safety operations, institutional treatment operations, Adult Probation & Parole supervision, and "re-entry” (transitioning offenders from incarceration to community supervision). Steve previously worked as a journalist, reporting on politics and crime for local, national and international news media outlets. Steve earned a Master’s Degree in Public Administration (MPA) from the University of Utah, where he also earned Bachelors’ Degrees in Communication and Political Science, and minored in Middle East Studies and International Studies.
BAHADIR INOZU, Ph.D. is a Co-Founder and Principal of NOVACES, LLC. He is a co-author of "Performance Improvement for Healthcare: Leading Change with Lean, Six Sigma and Constraints Management" (McGraw-Hill 2011). He is a Lean Six Sigma Master Black Belt and a Theory of Constraints Jonah. He has more than 20 years of performance-improvement experience in government and the healthcare, maritime, and maintenance, repair, and overhaul (MRO) industries. He led more than 20 major applied research projects and wrote more than 70 journal articles and conference papers. Previously, he held the positions of Professor and Chairman of the School of Naval Architecture and Marine Engineering of the School of Naval Architecture and Marine Engineering, and Professor in the Engineering Management Department at the University of New Orleans. He was also the Director of the Reliability, Operations, and Maintenance Division of Gulf Coast Region Maritime Technology Center for more than 10 years.
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