Reduce Waste, Increase Morale

Case-12-Michigan-Improved-Air-Permitting.pdf

Problem
In early 2004, the Michigan Department of Environmental Quality (DEQ) was experiencing pressure from its regulated community, citizens and state government to have its Air Permit to Install (Air PTI) application review process completed in less than six months. Industry within the state considered Michigan’s air permitting program to be cumbersome, slow and unresponsive to its needs. General Motors (GM), supported by other members of the regulated community, met with Michigan DEQ to discuss options for improvement and recommended a Value Stream Mapping (VSM) Workshop be held. (1)

Approach 
A Value Stream Map is a type of process flow chart that identifies all the steps (both value-adding and non-value adding) from beginning to end, that are needed to complete a particular product or service.  It is created by the individuals who are actually involved in the process. By creating a visual representation of the process, waste and problem areas are identified. Subsequently, the VSM establishes a common understanding as to the tasks that need to be completed in order to improve the process. In essence, the VSM serves as a blueprint for implementing all improvement activities.
Prior to conducting the VSM workshop, a pre-scoping exercise was conducted to identify customer needs. Participants in this exercise, in addition to Michigan DEQ and GM, included representatives from: Daimler Chrysler, Ford, the Michigan Manufacturer’s Association and Michigan’s Department of Labor and Economic Growth.
The actual VSM workshop was conducted in April 2004. Participants came from several of the same organizations as had participated in the pre-scoping exercise. As anticipated, multiple waste areas were identified. (2)

Results 
By September 2004, results of the workshop were fully implemented and included the following changes to the Air PTI application review process:
** Standardized application information requirements were developed
** Permit scoping meetings were initiated
** “Just in Time” fast track permitting was created
** Discussions to ensure clear communication between Michigan DEQ and the applicant were started
** Interim deadlines throughout the process for both Michigan DEQ and the applicant were established
** A permit tracking system database was installed
As a result of these changes, the six-month (180 day) goal for completing the application review process was substantially exceeded.  For major permits, the time was reduced from 422 days to 98 (a 77% reduction). For minor permits, the time was decreased from 143 days to 50 (65% reduction). Further, application administrative completeness rose from 82% to 95%. Michigan DEQ staff time was more effectively allocated to mission critical work and staff morale increased significantly. (3)

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, page 37
2. EPA, Mar 08, page 37
3. EPA, Mar 08, pages 37 and 38