Improving Processes While Improving the Environment

In 2003, Iowa wanted to improve any regulatory processes that could act as barriers to a business’s ability to develop and/or grow within the state. Various permitting procedures administered by the state’s Department of Natural Resources (DNR) were identified for improvement to include: air quality, water quality, construction, land fill, confined animal feeding operations and others. Iowa DNR used multiple Lean Six Sigma techniques to substantially improve all of these permitting processes. By doing so, Iowa DNR learned that improving service to its customers and improving economic competitiveness could both be achieved without sacrificing the environment.

Problem

In 2003, Iowa’s Coalition for Innovation and Growth was working to improve state processes considered to be barriers to a business’s ability to develop and/or grow in Iowa. Several processes identified were related to issuing various environmental-related permits by the Iowa Department of Natural Resources (DNR).  These included:

• Air Quality New Source Construction Permits
• Construction Permits funded by the Clean Water State Revolving Fund
• Landfill Permits
• Sovereign Land Permits
• Complex Air Construction Permits
• Confined Animal Feeding Operation Permits (1)

Approach

Using Lean Six Sigma (LSS) methods such as value stream mapping, kaizen events, statistical analysis, extensive data collection and voice-of-the-customer collection, the Iowa DNR worked to eliminate waste and shorten each of these permitting processes.

Results

Prior to applying LSS methods, the Iowa DNR was issuing about 2,000 Air Quality New Source Construction Permits annually and taking 62 days, on average, to do so. In 2003, 62 days was one of the fastest permit times in the country. After applying LSS, this time was reduced to just 12 days. The number of steps in the permitting process was reduced by 70%. The number of handoffs (permit moving from person to person) was cut from 18 to four and a 600-permit application backlog was eliminated in six months. The entire process became more customer friendly and an 800 number was installed to handle questions. (2)

For the Construction Permits funded by the Clean Water State Revolving Fund, the number of process steps was reduced by 52%.

For Landfill Permits, the permitting time was reduced by 83% from 187 days to just 30 days.

For Sovereign Land Permits, the number of process steps was reduced by 60%.

For Complex Air Construction Permits, permitting time was reduced by 16% (214 days to 180).

Finally, for Confined Animal Feeding Operation Permits, delays were reduced by 92% and permitting time reduced by 45%.

From all of these improvements, Iowa DNR learned that it could improve customer service without sacrificing the environment and that removing waste from operations allowed employees to focus on mission critical activities. The DNR also learned that the improvements could be sustained and that the Department could continue to improve. The ultimate goal of improving Iowa’s economic competitiveness by improving its regulatory climate was achieved. (3)

1. Wayne Gieselman, Iowa DNR, presentation at Annual Meeting of the Environmental Council of the States, 27 August 2006
2. Teresa Hay McMahon, Iowa Department of Management, presentation to National Center for Environmental Innovation, 29 April 2008
3. W. Gieselman, 27 Aug 06