Lean methods for process improvements

While there have been numerous drivers for change over the years, public sector organisations across the UK continue to come under increasing pressure to reduce costs and drive out inefficiencies.

The need for innovative and far-reaching processes in order to deliver massive cash savings has never been greater.

A wide range of institutions - including council departments, universities, the health service and housing associations - are already turning to Lean methodologies in response to strict government efficiency targets.

So what is Lean? Lean is a method by which an organisation reviews the whole value stream from process input to output -driving out waste to ensure that every step adds value in the eye of the customer. The value of introducing it is that processes that can be delivered faster with less human input, less space and ultimately reduced costs.

With these widely publicised benefits, it’s not difficult to see why Lean has been adopted by the public sector in the search for rapid benefits. And while quick wins may be evident through the application of techniques such as value stream mapping, Lean is not a method to achieve short term financial gains, rather a customer focused way of working that must encompass every part of the organisation.

So, where do institutions start and how can meaningful and lasting change be achieved?

To start with, it’s vital to understand what the customer perceives to be of value, identify activities across the entire process and whether they add value or not then examine the flow of activities to ensure that they move towards the customer.

Finally, the process must be developed, reviewed and continuously improved to strive for perfection.

To embed Lean thinking takes time – it requires a fundamental shift in the way people work and how continuous improvement activities are practiced. Long-term commitment from employees at all levels is fundamental to the success - communicating and living the philosophy is vital.

Due to the current demand for Lean advisory services, arvato government services has recently launched AGS Consulting - a consultancy that supports the entire transformation journey with regular workshops on culture change, strategic planning, staff training and project management.

AGS Consulting helps institutions to achieve practical process improvements applying lean techniques to eliminate waste and six sigma techniques to reduce variation in process delivery. The company’s package of services supports the entire transformation journey and include workshops on culture change and strategic planning, training, ICT reviews and project management.

Knowledge transfer is an essential part of the approach, ensuring employees are left empowered to make further changes with their newly acquired knowledge and skills.

During a recent project at a council’s domiciliary care department, AGS Consulting managed a review of financial administration processes.

This evaluation – which identified savings of £400,000 - included a comprehensive analysis of the customer’s requirements, interviews with providers, process mapping and identifying hard and software that would provide enhanced visibility of service provision.

For more information on AGS Consulting, please contact Debbie Simpson on agsconsultancy@arvato.co.uk or 0782 4591222 or go to the arvato website www.arvatogov.co.uk.