Limiting Regulatory Impact

Case-14-Minnesota-Pollution-Control-Agency.pdf

Minnesota Improved Performance of Pollution Control Agency

Problem
In 2003, Minnesota’s Pollution Control Agency (PCA) was experiencing an increasing number of complaints from industry, and had received an audit by the state legislature, regarding inefficiencies in its permitting processes. Due to these inefficiencies, permit backlogs were high. In order to improve this situation, the agency turned to the Lean Six Sigma (LSS) method.

Approach
The Minnesota PCA Commissioner had previously used LSS at the 3M Company with success. An agency-wide LSS process improvement initiative was started, and the University of Minnesota’s Carlson School of Management was consulted for guidance. Training of LSS Champions and project coaches was conducted at both the Green Belt and Black Belt levels. Two critically important projects were identified initially in order start the improvement process: National Pollution Discharge Elimination System (NPDES) wastewater permitting and air construction permitting. Subsequently, 19 other agency projects were started. The proven Define, Measure, Analyze, Improve, Control (DMAIC) sequence was followed for all projects. Several of the follow-on projects were completed in less time than the first two; attesting to the ability of LSS to enable employees to accomplish more work in less time.

Results
Compelling results, both quantifiable and non-quantifiable, were achieved. Before LSS, the historical baseline for NPDES permits had been only 9% issued within 180 days from receipt of application. After completing the LSS project, this was increased to 75% issued within the same number of days. Further, the NPDES reissuance backlog was reduced from nearly 50% to 8%.

For the air construction permit process, the pre-LSS historical baseline had been only 33% issued within 150 days. After LSS, this was increased to 75% within 150 days. Also, public-noticing of air construction permits was doubled from 44% within 120 days to 88%.

As a result of all projects, other non-quantified improvements were also achieved. These included:
** Greater staff “ownership” of projects and processes and increased ability to focus on mission critical work
** Improved communications both within the agency and with external stakeholders
** Integration of a continuous process improvement culture within the agency; and
** Improved relationships with the regulated community.  (1) 

(1) Working Smart for Environmental Protection: Improving State Agency Processes with Lean and Six Sigma, a publication of the U.S. Environmental Protection Agency, March 2008, pages 39 through 41