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1. HSA Conference Cardiff 2009 Rethinking for radical improvement in the delivery of housing services:
the application of lean systems thinking in the housing sector
Donna Samuel
Barry Evans
Paul Helyar
2. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 2 Who are we? Donna Samuel – Researcher in Lean Enterprise Research Centre (CARBS) currently completing her PhD
Barry Evans – Senior Research Associate in Lean Enterprise Research Centre (CARBS)
Paul Helyar – Asst Corporate Director (Maintenance), Charter Housing
3. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 3 What is Lean Systems Thinking Systems Thinking was the approach to business management and improvement espoused by W. Edwards Deming
His approach was adopted by Taichi Ohno and became the foundation for the Toyota Production System
Womack & Jones popularised the term “Lean Thinking” in their book “The Machine that changed the World” which described Toyota and other exemplars
LERC has researched the dissemination of Lean Thinking in manufacturing and service sectors over the last 15 years
John Seddon has in the same time frame shown how Systems Thinking can be successfully applied in service business in the private and public sectors
4. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 4 Seddon – characteristics of Lean Systems Thinking Review the “true purpose” of an organisation
It’s definition isn’t the regulatory targets forced upon them
It should reflect the experience of the customer that the organisation is supposed to be provisioning
Traditional organisations often focus on activities rather than purpose
Systematic analysis of demand facing the service organisation
Differentiate between value and failure demand
Reduce failure demand (which can be as high as 80%)
Redesign the system around value demand
Study the flow of work end-to-end, identify the causes of variation and where possible remove the causes in order to reduce time and improve service
Time-series analysis identifies “common cause” & “special cause”
5. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 5 Seddon – critical features of Lean Systems Thinking Customer regulation
Workers responding to customer need
Managers making it easier for workers to do their jobs
Sounds simple ……. But extraordinarily elusive !
6. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 6 Lean Systems Thinking does it work? - evidence from Housing sector Secondary evidence from work undertaken by OPDM in 2005
Follow-up to OPDM report 2005 by NHC 2006
Case studies of two Welsh Housing Associations
7. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 7 Lean Systems Thinking in the Housing Sector: the work to date 2005 – Office for Deputy Prime Minister - reported
In response to “Gershon review 2004”
Application of systems thinking in housing undertaken with guidance by Seddon and colleagues
Three pilot organisations / range of services
Reported “ the work undertaken in all three pilots demonstrates cashable and non-cashable efficiency gains and significant service improvements”
2006 – Northern Housing Consortium
Follow-up to investigate the sustainability of the approach in the three pilots
8. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 8 OPDM (2005) & NHC (2006) results - 1 THG = Tees Valley Housing Group
LSEH = Leeds South East Homes
PCC = Preston City CouncilTHG = Tees Valley Housing Group
LSEH = Leeds South East Homes
PCC = Preston City Council
9. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 9 OPDM (2005) & NHC (2006) results - 2 NHC report 2006
Systems thinking has become embedded in two of the three pilot organisations
Remission in the third pilot explained by organisational merger
Report concludes that early results have shown the potential for substantial gains
10. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 10 Case Study 1 – Coastal Housing Association, Swansea Interventions have included the following processes
Lettings
Maintenance
Transfers
Rental incomes
11. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 11 Case Study 1 – Coastal Housing Association, Swansea Findings at “check”
Demand analysis – 60% failure & 40% value (typical at “check”)
50% of people sent an appointment did not confirm – hence follow-up letters! Of those who did confirm only 75% kept the appointment
End-to-end process time enormous – median 207 days (transfers median 587 days!). Some cases took up to 750 days (2 years+)
Processes involved lots of failure demand – batching, checking, audit trails and acceptance of partial information from applicants
12. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 12 Case Study 1 – Coastal Housing Association, Swansea Improvements
Lettings process is telephone based. Applicants receive initial decision within 10 minutes.
During that call successful applicants are offered a home visit at a time to suit them
Elapsed time from application to home visit reduced FROM 47 days TO 6 days
Customer Satisfaction increased & fewer complaints
Significant savings
13. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 13 Interventions – started 2 years ago
Maintenance and repairs
Lettings
Customer Services intervention is imminent Case Study 2 – Charter Housing Association
14. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 14 Case Study 2 – Charter Housing AssociationMaintenance & Repairs Intervention
15. W
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17. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 17 Case Study 2 – Charter Housing AssociationAllocations & Lettings Intervention
18. HAS Conference Cardiff 2009 – Samuel, Evans & Helyar 18 Conclusions Growing interest in Lean Systems Thinking in the Public Sector
It has been applied successfully in Housing
Secondary evidence (OPDM etc)
Primary case study evidence (Coastal & Charter HAs)
Both case study organisations have visionary leaders and an inclination towards innovation and experimentation
Lean Systems Thinking is a practical way forward for organisations seeking improvements in effectiveness & efficiency
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