LSS BB 1.13 Summary

DEFI

NELean Six Sigma

Reduction of IMCOM Europe Svc 60 Refuse Removal Costs

BB Candidate: Mr. Sean LamburProject Initiation Date: 9 Oct 07Define Tollgate Date: 30 Nov 07

1

Project CharterSvc 60. Refuse Removal

Problem: IMCOM Europe’s expenditures for Svc 60 (>$27M FY07) make it one of the 10 most expensive CLS services.

Scope: The process of refuse collection & disposal within USAG Baumholder

Goal: A reduction in costs of at least $100K

Problem/Goal Statement

Tollgate Review Schedule

Business Impact

Core Team

Financial ImpactCost of LSS Project: 20% time of BBInvestments: NoneRevenues None

Reduction in USAG Baumholder costs will make more dollars available to the Direct-Reporting Garrison Wiesbaden for distribution for renovation & maintenance

Sponsor: Mr. Holt USAG Wiesbaden DPWDD: Mr. Fred Wegley, USAG Baumholder DGCGB/BB: Mr. Sean Lambur, USAG BaumholderMBB: Mr. David Wright, IMCOM Europe MBB

Core Team Role % Contrib. Pos.Jutta Spohn DRM 10 RM SpecialistMargit Simon DRM 5 RM SpecialistHarald Weber DPW 10 Cost AnalysisRobert Martin DFMWR 5 Metal ProcessorHeinz Baumann DPW 5 Green Refuse SpecGeorg Natter DPW 5 Food Refuse SpecClemens Bambach DPW 60 Refuse Specialist

Tollgate Scheduled Revised CompleteDefine: 15 Mar 08 30 Jun 08

Measure: 15 May 08 31 Jul 08

Analyze: 15 Jun 08 29 Aug 08

Improve: 1 Oct 08 30 Sep 08

Control: FY09 31 Oct 08

Svc 60 Mgmt

(SSP A)

Food Waste

(SSP B)

Svc 60 Refuse

Removal Cost

Causes

Household Waste

(SSP C)

Regulated Waste-Other

(SSP D)

Bulk Waste

(SSP E)

Green Waste

(SSP F)

Refuse Types

25 - Other Contractual Services

23 - Rents, Communications and Utilities

Svc 60 Refuse

Removal Cost

Causes

28 - Contractual Personnel, Indirect Hire Foreign Nationals

22 - Transportation of Things

26 - Supplies and Materials

31 - Equipment

Svc 60 Object Classes – Cost Types

27 - Service Charge Functions

11 - Civilian Pay, Full time Permanent (FTP) and Military Pay

14 - Civilian Pay, Full Time Temporary (FTT)

12 - Civilian Benefits, Full time Permanent (FTP) and Military

15 - Civilian Benefits, Full Time Temporary (FTT)

43 - Interest and Dividends

21 - Travel and Transportation of

Persons

13 - Benefits for Former Personnel

Purchased Services Material Financial

Penalties

PersonnelMovement

USAG Baumholder Services FY07

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

50 53 44 32 28 47 66 42 68 40 223 29 35 38 24 78 45 37 60 62 77 46 10

Service

Obl

igat

ion

USAG BaumholderService 60 – Refuse Removal FY05-07

19th highest of 60 total services: $1,163,667


$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

50 44 11 38 28 53 42 35 47 223 12 68 29 24 60 46 37

Service

Obl

igat

ion



$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

$10,000,000

50 36 44 48 28 11 223 47 53 37 12 68 45 38 29 60 35 32 66

Service

Obl

igat

ion


BLUF: Svc 60 Refuse Removal is consistently in top 30% of Garrison service costs

USAG Baumholder FY07 Svc 60 Costs

$0

$300,000

$600,000

$900,000

60A Program

...

60B Fo

od Was

te

60C Solid

Was

te

60D Reg

ulated

...

60E Bulk

Waste

60F G

reen W

aste


$0

$300,000

$600,000

$900,000

60A Program

...

60B Fo

od Was

te

60C Solid

Was

te

60D Reg

ulated

...

60E Bulk

Waste

60F G

reen W

aste


$0$300,000$600,000$900,000

$1,200,000$1,500,000

60A Program M...

Note: In FY05 Svc 60 Costs were not appropriated by CLS Service

USAG Baumholder Svc 60 costs by CLS Service FY05-07

BLUF: Of six waste types under Svc 60, 60C - Solid Waste consistently remains the highest cost.

$1,247,172

$1,178,266

$1,163,667

USAG Baumholder Svc 60 Refuse Removal

Cost by Type FY05 – FY07

BLUF: Object Class 25 (Other Contractual Services) consistently remains the highest cost type of Svc 60

FY05

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000

22 -

Tran

spor

tatio

n 25 -

Con

tract

ual

Ser

vice

s

26 -

Sup

plie

s/M

ate

rial

28 -

Con

tract

Per

sonn

el /

Fore

ign

Nat

iona

ls

43 -

Inte

rest

and

Div

iden

ds

Object Class

Obl

igat

ion

FY06

$0$200,000$400,000$600,000$800,000

$1,000,000

22 -

Tran

spor

tatio

n

25 -

Con

tract

ual

Ser

vice

s

26 -

Sup

plie

s/M

ate

rial

27 -

Ser

vice

Cha

rge

28 -

Con

tract

Per

sonn

el /

Fore

ign

Nat

iona

ls

43 -

Inte

rest

and

Div

iden

ds

Object Class

Obl

igat

ion

FY07

$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000

22 -

Tran

spor

tatio

n

25 -

Con

tract

ual

Ser

vice

s

26 -

Sup

plie

s/M

ate

rial

27 -

Ser

vice

Cha

rge

28 -

Con

tract

Per

sonn

el /

Fore

ign

Nat

iona

ls

43 -

Inte

rest

and

Div

iden

ds

Object Class

Obl

igat

ion

$982,363

$842,226

$736,824

FOOD WASTE

GLASS WASTE

Many sources of Food Waste

Suppliers’ waster separation is critical

METAL WASTE

PAPER WASTE

Retailers account for 90% of material

Scrap metal is a revenue source

SOLID WASTE

Amounts of material are highly

dependent on Suppliers’ behavior

In other Garrisons, collection is typically a

contractor’s action

DefineDefine

v 2.01

Communication Plan

USAG Baumholder Executive Quality Council

Meeting Progress Update

Project Selection & Results

LSS Deployment Champion-Garrison Commander

Quarterly

Garrison Directors & Division Chiefs

Leading Change Session

Promote Process Management

Improve work processes

Plans, Analysis & Integration Office

Monthly

Community Customers

Print Inform of Garrison Activity

Improving Processes for Customers / Stewardship of Resources

Public Affairs Semi-Montlhy

Project Team Face-to-Face Progress Update

Project Development

BB Candidate Weekly

PAIO staff Face-to-Face Awareness & Succession Training

Project nature & Progress

BB Candidate Monthly

AudienceAudience MediaMedia PurposePurposeTopics of Topics of

Discussion/Discussion/Key MessagesKey Messages

OwnerOwner FrequencyFrequency Notes/StatusNotes/Status

DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – FOOD WASTE

Directorate of Public Works

Contractor

Contracting Office

Customer

Collects Food Waste

Resource Management

Collect Food Waste

Pay Contractor

Place Food Waste in

Collection Bin

Calculates Bill

Bills the US Army

Receives Bill & Confirms

Obligates Funds

Forwards Request for Payment to Army Contracting Office

Weighs Food Waste

Transports Food Waste

= Value added step = Non-value added step

DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – GLASS WASTE (Recycle Containers)


Contractor

Contracting Office

Customer

Collects Glass Waste

Resource Management

Collects Glass Waste

Pay Contractor

Places Glass in Recycling

Bins

Calculates Bill

Bills the US Army


Obligates Funds


Weighs Glass Waste

Transports Glass Waste


DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – Green Waste

Directorate of Public Works Buildings & Grounds Teams

Contractor

Contracting Office

DPW

Collects Green Waste

Resource Management

Create Grass Clippings & Tree

Cuttings

Pay Contractor

Transports Green Waste to DPW

Collection Point

Calculates Bill

Bills the US Army


Obligates Funds


Measures Green Waste

Volume

Transports Green Waste


DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – METAL WASTE (Recycle Bin Metal)


Contractor

Contracting Office

Customer

Collects Metal Waste

Resource Management

Collects Metal Waste

Pay Contractor

Places Metal in Recycling

Bins

Calculates Bill

Bills the US Army


Obligates Funds


Weighs Metal Waste

Transports Metal Waste


DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – METAL WASTE (Scrap Metal)

Directorate Family, Morale, Welfare & Recreation

Customer

Collects Scrap Metal/ Bulky Trash

Puts out Scrap metal in bulky trash pickup or at work area collection point

Sorts Scrap Metal/Bulky Trash Waste into

appropriate containers

Directorate of Public Works Trash Team

DFMWR Contractor Picks up sorted Metal

Transports sorted Metal

Weighs sorted Metal

Calculates US Army

earnings

Issues payment to

MWR

Receives Payment


DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – PAPER WASTE (Industrial)


Contractor

Contracting Office

AAFES & DECA Customers

Collects Paper Waste

Resource Management


Pay Contractor

Bundles / Compacts Paper Waste

Calculates Bill

Bills the US Army


Obligates Funds


Weighs Paper Waste

Transports Paper Waste


DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – PAPER WASTE (Recycle Bins)


Contractor

Contracting Office

Customer


Resource Management


Pay Contractor

Places Paperin

Recycling Bins

Calculates Bill

Bills the US Army


Obligates Funds


Weighs Paper Waste

Transports Paper Waste


DefineDefine

v 2.0

Process Map-Svc 60 Refuse Removal – SOLID WASTE (Housing Dumpsters)


Contractor

Contracting Office

Customer

Empty Dumpsters

Resource Management

Collects Solid Waste

Pay Contractor

Places Solid Waste in Housing Area

Dumpsters

Calculates Bill

Bills the US Army

Weighs types of Solid Waste Refuse

Obligates Funds


Transport to Contractor

Site

Conduct ‘Rough’sorting


Receives Billing

Confirms Billing

Transmits Billing


D04 DMAIC Gantt Chart Template VX42 D04 DMAIC Gantt Chart Template (Excel)© 2006 Vertex42 LLC v.1.2

Project Name: IMCOM Europe Region Project: Reduce Cost of Svc 60 Refuse RemovalCompany Name US Army Garrison Baumholder

Project Lead: Sean Lambur

Today's Date: 4/1/2008 (vertical red line)

Viewing Weeks: 12/31/07 - 11/24/08 0

WBS Tasks Task Lead Start End Dur

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1 DEFINE Sean 4/1/2008 1/28/08 27 100% -47 27 01.1 Complete Project Charter 4/01/08 4/21/08 21 100% 15 21 01.1a Validate Problem Statement 1/02/08 1/02/08 1 100% 1 1 01.1b Complete SIPOC 1/03/08 1/03/08 1 100%1.1c Develop VSM/Process Map (if approp) 1/04/08 1/07/08 4 100% 2 4 01.1d Analyze VOC and VOB 1/08/08 1/08/08 1 100% 1 1 01.1e Draft Goal Statement 1/09/08 1/09/08 1 100% 1 01.1f Complete Project Scope (w/MGPP) 1/10/08 1/10/08 1 100% 1 01.1g Draft Business Impact 1/11/08 1/13/08 3 100% 3 01.1h Develop Project Plan (incl Gantt) 1/14/08 1/14/08 1 100% 1 01.1i Select and Launch Team 1/15/08 1/21/08 7 100% 7 01.1j Obtain Charter Approval 1/22/08 1/22/08 1 100% 1 01.2 Conduct Stakeholder Analysis 1/23/08 1/23/08 1 100% 1 01.3 Develop Communications Plan 1/24/08 1/24/08 1 100% 1 01.4 Conduct Risk Analysis/Mitigation Plan 1/25/08 1/25/08 1 100% 1 01.5 Prepare for Tollgate Review 1/26/08 1/27/08 2 100% 2 01.6 Conduct Define Tollgate Review 1/28/08 1/28/08 1

2 MEASURE 5/1/2008 6/05/08 36 0% 26 0 362.1 Complete VSM/Process Map 5/01/08 5/02/08 2 0% 2 0 22.2 ID Key Input, Process, Output Metrics 5/03/08 5/03/08 1 0% 0 0 12.3 Develop Operational Definitions 5/04/08 5/06/08 3 0% 2 0 32.4 Develop Data Collection Plan 5/07/08 5/09/08 3 0% 3 0 32.5 Validate Measurement System 5/10/08 5/14/08 5 0% 3 0 52.6 Collect Baseline Data 5/15/08 5/21/08 7 0% 5 0 72.7 Determine Process Performance/Cap 5/22/08 5/28/08 7 0% 5 0 72.8 Recommend Quick Wins/RIEs 5/29/08 5/29/08 1 0% 1 0 12.9 Prepare for Tollgate Review 5/30/08 6/04/08 6 0% 4 0 62.10 Conduct Measure Tollgate Review 6/05/08 6/05/08 1 0% 1 0 1

3 ANALYZE 6/06/08 7/05/08 30 0% 21 0 303.1 Identify Critical X's 6/06/08 6/10/08 5 0% 3 0 53.2 Identify Root Causes Affecting Crit X's 6/11/08 6/13/08 3 0% 3 0 33.3 Reduce List of Potential Root Causes 6/14/08 6/14/08 1 0% 0 0 13.4 Conduct Root Cause Analysis 6/15/08 6/19/08 5 0% 4 0 53.5 Estimate Impact of Root Causes on Y 6/20/08 6/26/08 7 0% 5 0 73.6 Prioritize Root Causes 6/27/08 6/27/08 1 0% 1 0 13.7 Recommend Quick Wins/RIEs 6/28/08 6/28/08 1 0% 0 0 13.8 Prepare for Tollgate Review 6/29/08 7/04/08 6 0% 5 0 63.9 Conduct Analyze Tollgate Review 7/05/08 7/05/08 1 0% 0 0 1

4 IMPROVE 7/06/08 8/09/08 35 0% 25 0 354.1 Develop Potential Solutions 7/06/08 7/12/08 7 0% 5 0 74.2 Develop Evaluation Critieria 7/13/08 7/19/08 7 0% 5 0 74.3 Select Best Solutions 7/20/08 7/22/08 3 0% 2 0 34.4 Evaluate Solution for Risk 7/23/08 7/23/08 1 0% 1 0 14.5 Develop "To-Be" Process Map(s) 7/24/08 7/24/08 1 0% 1 0 14.6 Develop Pilot Plan and Pilot Solution 7/25/08 7/31/08 7 0% 5 0 74.7 Develop Implementation Plan 8/01/08 8/01/08 1 0% 1 0 14.8 Conduct Implementation Risk Analysis 8/02/08 8/02/08 1 0% 0 0 14.9 Prepare for Tollgate Review 8/03/08 8/08/08 6 0% 5 0 64.1 Conduct Improve Tollgate Review 8/09/08 8/09/08 1 0% 0 0 1

5 CONTROL 8/10/08 9/14/08 36 0% 25 0 365.1 Develop Process Control/Response Plan 8/10/08 8/12/08 3 0% 2 0 35.2 Validate Measurement System 8/13/08 8/13/08 1 0% 1 0 15.3 Develop SOPs / Training Plans 8/14/08 8/20/08 7 0% 5 0 75.4 Establish Monitoring Procedures/Tools 8/21/08 8/27/08 7 0% 5 0 75.5 Transition Project to Process Owner 8/28/08 9/03/08 7 0% 5 0 75.6 ID Project Replication Opportunities 9/04/08 9/05/08 2 0% 2 0 25.7 Calculate Actual Financial/Op Benefits 9/06/08 9/09/08 4 0% 2 0 45.8 Prepare for Tollgate Review 9/10/08 9/13/08 4 0% 3 0 45.9 Conduct Control Tollgate Review 9/14/08 9/14/08 1 0% 0 0 1

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DefineDefine

v 2.0

Consequence

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Risk Analysis and Mitigation-Svc 60 Refuse RemovalRisk points are: Large Scope (variety of processes), Process Mapping, Processes are heavily behavior-dependent, Accurate identification of current costs, Process prejudice

•Identification of current costs•Risk: Specific cost data is not readily available without special permissions to financial programs and data nomenclature is not readily understood nor consistent through time•Mitigation: Learn IMA Online financial programs and codes and correlate with IMA Online OLAP cubes•Consequence: If mitigation plan is unsuccessful, project success is highly unlikely.

• Process Prejudice• Risk: “There’s nothing to be done”

attitude • Mitigation: Show quick, small

improvements & focus on positive team members

• Consequence: May have to delay MEASURE Tollgate

•Process Mapping •Risk: Many processes to map•Mitigation Plan: Map at the macro level•Consequence: 1-2 week slide in schedule

•Large Scope•Risk: Costs of Svc 60 stem from many processes and many customers•Mitigation Plan: Scope out low-impact & low cost processes•Consequence: Project delay

• Behavior-dependent processes• Risk: Improvement to processes may heavily

depend upon changing long-learned customer behavior

• Mitigation: TBD• Consequence: Most cost-effective process

improvements may not be practical to implement

DefineDefine

Define Storyboard

1

Define

BUS CASE: Svc 60 Refuse Removal, at #1.2M in FY07, is one of USAG Baumholder’s most expensive services.

GOAL: Achieve cost savings of at least 10%

FIN IMPACT: $120,000 p.a.

Project Charter High Costs

SIPOCS

Define cost comparison between Refuse types

Fishbone Components of Refuse Removal Services

Fishbone components of Refuse Removal ActivityDefine cost comparison between Refuse activity types

Achieve savings in the two highest

cost areas: Contract Svcs & Household Trash

LSS BB 1.13 Summary

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Transcript of LSS BB 1.13 Summary