MEASURE ARCHIVED 2/6/18

Lean projects are continuous improvement efforts by employees that improve customer service, eliminate waste, and reduce rework in our daily processes. These projects have a direct impact on the quality of services offered by the city and provide a cost savings that can be realized via productivity, cost avoidance, and hard savings.  Lean training is conducted quarterly, participants in the training are required to complete a project for Lean Certification. The goal is for a project to have a minimum return on investment of $3000.00  hard savings, productivity, or cost avoidance. The results of the projects are reported out at the end of the quarter / training. Some projects will continue to report savings for up to 1 year to demonstrate sustainment. The results of the projects are sum and reported quarterly.  

Cost Avoidance / Soft Savings - financial benefits which do not get reflected in the budget. (increasing transactions processed without adding head count).  

Cost (hard) savings - cost reduction or decrease of operating cost that can be reflected in the budget. The monies saved can be allocated elsewhere. Hard savings should only be reported after the actual realization has started.  

Project dollar amounts are calculated by each lean leader based estimated cost of the services related to their projects. To calculated dollar savings, a standard labor rate of $25 per hour is used. This data is maintained by the Lean Six Sigma Performance Administrator and is saved on the Z drive under Lean Six Sigma, Project Metrics, file name Project $$ 2014.xlsx.

Actual = Sum of cost savings for projects completed in the previous quarter.

HV = Annual Target evenly divided into 4 quarters

LV = Annual target - 33%, evenly divided into 4 quarters