Idaho's Lean Six Sigma Success

Case_17_Idaho_DEQ.pdf

Problem
In Idaho, whenever any business has the potential to emit pollutants into the air, that business is required to obtain an air pollution control permit. Permits are needed when either a new business begins operations or an existing business make changes to its facilities. As with most states, Idaho wanted to ensure that economic development was not hampered by a lengthy permitting process that would be a roadblock to acquiring new businesses or enabling expansion of existing businesses. The Department of Environmental Quality (DEQ) was also confronted with the reality that no additional funds or staff would be available in the foreseeable future to improve air quality permitting despite the fact that an increasing number of applications was expected. It was necessary, therefore, to make improvements with existing resources only. Further, improvements were sorely needed. The time required to complete the process was taking more than 300 days, and there was a substantial backlog of applications (50) awaiting approval.

Approach
To solve this problem, Idaho DEQ turned to the proven Lean Six Sigma (LSS) method for improving transactional processes and decided to conduct a Kaizen event. (A Kaizen is an intense, multi-day event where employees are pulled from their regular jobs to analyze and improve a complex process. The event normally takes from three to five full work days and is much more effective than the conventional part-time team approach to solving a problem that generally spreads the work over three to six months.  (1) Kaizen is a Japanese word that means “continuing improvement involving everyone.”)

For the air quality permitting process, Idaho DEQ decided on a five-day event. Thirteen people representing all of the areas involved in the permitting process were involved. As they mapped the process as it then existed, they were amazed at its complexity. They all became aware of the challenges each area encountered, and they also learned how their individual actions in the process impacted others and contributed to the length of the process. The Kaizen participants identified multiple approval or sign-off steps, rework loops, document and information handoffs from one functional area to another, numerous decision points and the delays that each one of these activities caused.

The participants then discovered that a large number of the rework loops were caused by incomplete or inaccurate applications at the start of the process. This was identified as the “root cause” that was driving the complexity of the process and its long length. In order to fix this problem, Idaho DEQ put in place a toll-free hot line that applicants could call for help. The department also arranged pre-meetings with applicants, posted better information on its website and revised the permit application to make it less confusing.

Results 
From these simple changes, incredible results followed. The root cause of the permitting problem—inaccurate initial applications—was all but eliminated. The application error rate dropped from more than 90% to less than 10%. The number of steps in the process was reduced from a staggering 221 to only 55 (a 75% decrease). The number of approval signatures required was reduced from four or five to only one. The backlog was reduced by 84% to only eight. Most importantly, the time to process applications and issue permits was reduced to less than 50 days; representing at least an 83% reduction.

Non-quantifiable results included an empowered workforce that had much greater awareness of everyone else’s contributions to the process. Prior to the Kaizen, most employees simply worked within their own departments and had little knowledge, or concern, about other employees.  After the event, working relationships improved to the point where the DEQ administrator stated, “My clerical now get along with my managers and vice versa; I never thought I would see the day.” (2)

1. The Lean Six Sigma Pocket Tool Book, M.L. George, Sr., D. Rowlands, M. Price, J. Maxey, The Mc-Graw-Hill Companies, 2005
2.  Case Study: Using Lean Six Sigma to Improve Air Quality Permitting Process, Guidon Performance Solutions, LLC, 2009