Opportunitiesfor LSSinpublicsectormunicipalities
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Opportunities
Opportunities for lean six sigma for lean six
in public sector municipalities sigma
Jeffrey Fletcher
Iowa State University, Ames, Iowa, USA
literature review on Lean Six Sigma, supported by results from interviews with public sector officials, and
includes recommendations for how public sector entities can utilize Lean Six Sigma.
Findings – Based on results from interviews with a sample of public sector officials, this study uncovered
that overall there exists a keen interest in Lean Six Sigma and how it can be applied to streamline and improve
organizational processes, produce cost-savings, improve organizational culture and improve the quality of
goods and services. This study also discovers that there are plenty of opportunities for Lean Six Sigma in the
public sector and municipalities can, in fact, incorporate its philosophy and methodology to streamline and
improve organizational processes, produce cost-savings, improve organizational culture and improve the
quality of goods and services.
Originality/value – Abundant literature exists on Lean Six Sigma and the private sector. This study
includes a review of the literature supported by interview results of public sector officials and suggests
techniques for how public sector municipalities can utilize the Lean Six Sigma methodology. In a twenty-first-
century economy, public sector officials are looking for ways to maximize their tax dollars while increasing
the quality of their goods and services; Lean Six Sigma is a framework that can make these objectives become
a reality.
Keywords Six sigma, Lean, Lean six sigma, Municipality, Public sector
Paper type Research paper
Introduction
Public sector organizations are under increasing pressures to do more with fewer taxpayer
revenues, and as the public demands more services with limited taxpayer support, no public
sector organization has the luxury of being wasteful (Snyder and Peters, 2004; Kinder, 2012;
Antony et al., 2016). Since the great recession, public sector municipalities as service
organizations have entered the age of austerity (Kinder, 2012). Improving quality has been a
core business strategy for manufacturers, distributors, transportation companies, financial
services organizations, health care providers and, now, the public sector (Montgomery and
Woodall, 2008; Antony et al., 2016). Public sector organizations deliver multiple services and
goods, which can include, fire, police, public works, parks and recreation, and more; plenty
of opportunities for Lean Six Sigma projects.
While the academic literature on continuous improvement in the public sector is
developing, it is happening at a much slower pace (Elias and Davis, 2017). Conducting
program evaluation without a methodology or systematic approach will be difficult for International Journal of Lean Six
Sigma
public sector officials attempting to balance multiple interests (George, 2010). Unintended © Emerald Publishing Limited
2040-4166
and negative consequences can occur if the goals of short-term cost reductions are DOI 10.1108/IJLSS-07-2017-0086
IJLSS ill-advised or uninformed; such circumstances lead to complicated and expensive fixes. As
will be discussed in this study, Lean Six Sigma provides a methodology for public sector
officials striving to find a balance that will not hurt the most basic functions of government
services. Increasingly, public sector officials are trying to find innovative and new ways of
carrying out their business and operations. The quest to improve performance is hardly a
new concept in the public sector (Marr and Creelman, 2010; George, 2010; Antony et al., 2016;
Antony et al., 2017; Elias and Davis, 2017). Over the preceding two decades, there have been
repeating attempts to remove waste, bureaucratic red tape and culture of “silos” among
public sector agencies. However, if using Lean Six Sigma, then there is the potential for
innovational-achievement and value-added outcomes, and it is one effective method for
consistently improving cost, speed and quality. For example, Table I illustrates the
application guidelines and theories behind Lean and Six Sigma (Nave, 2002).
In modern academia and practice, these two theories have been combined to offer a
systemic methodology with proven results (Naslund, 2008). It is also crucial to have an
organizational culture supporting the Lean Six Sigma concept and its principles. Building a
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Literature review
The development and expansion of Lean Six Sigma
Lean Six Sigma evolved from the TQM (total quality management) movement and the
teachings of “quality” thinkers like W. Edwards Deming, often called the father of TQM
(Black and Revere, 2006). As described previously, Lean Six Sigma methodology developed
after the convergence of two previous models, Lean and Six Sigma. Lean Six Sigma is the
application of lean techniques to increase speed and reduce waste and doing things right the
first time, doing things that generate value and doing it all efficiently. It is important to note
that core to both methodologies, the idea is to approach challenges with an open mind as
solutions can come from unlikely sources (Snyder and Peters, 2004; Black and Revere, 2006;
Noble, 2006; George, 2010).
Implementing and carrying out Lean Six Sigma projects and strategies has the potential
to revitalize public sector municipalities in common organizational operations. Focusing on
the citizen (i.e. customer) and consistently giving them what they want and when they want
it; creating a powerful and positive effect towards meeting resident expectations (Ruffa,
2008; Simmons and Brennan, 2017; Minelli and Ruffini, 2017). Though a continual challenge
for public sector organizations to meet and exceed all and any multitude of expectations,
eliminate waste and redundancy, and the supply chain concepts will lead to better
management of resources, staff and finances (Evans and Yen, 2005; Antony et al., 2016;
Antony et al., 2017). For example, savings by the appropriate use of technology in Lean Six
Sigma projects can amount to both employee hours and savings to citizens. Carrizales (2008)
created a basic framework with four distinct functions:
(1) e-organization – internal government efficiency and effectiveness;
(2) e-services – external efficiency and effectiveness in providing services;
(3) e-partnering – external efficiency and effectiveness in working with public and
private organizations; and
(4) e-democracy – citizen participation in government decision-making.
The impact of technology will vary from one government to another, but advances in
technology show great promise for future endeavors in public sector municipalities, especially
in combination with Lean Six Sigma projects. This synergy comes to life by eliminating
costly defects in a process or service by leveraging cloud-based programs and statistical
package tools to help eliminate waste, organize and simplify work processes; the most
common and readily applicable toolkit is the DMAIC tool (Furterer and Elshennawy, 2005).
Q5. Are you currently implementing any Lean Six Sigma principles within your
organization? If so, what does that look like?
Q6. Please share the impact you think Lean Six Sigma could have for your
organization.
Q7. To what extent has information technology (IT) had an impact on your Opportunities
organization. for lean six
Q8. How many years and what kinds of experiences do you have in public sector sigma
administration?
Moreover, 15 of the respondents indicated in their responses that they believe there are
increasing pressures to do more with less, taxpayer revenues for their government
operations. There will always be a tug-and-pull for city governments to pay and provide
these services, while also trying to balance their expenses with available tax revenues.
Circling back to the literature, this supports the evidence that one of the key challenges and
barriers for Lean Six Sigma projects are generally expensive start-up costs.
For the second interview question, eight respondents were open to the idea of testing or
trying out theories that could help them save money and resources, which shows some
hesitation or caution from public sector officials; possibly, there are underlying
organizational culture problems to address first. Feasibly, public sector officials may find it
challenging to implement significant changes and projects within their organization if
workplace culture issues exist. For Question 3, all 15 interviewees expressed that it is “very
hard” to implement significant changes in their organization, though not impossible.
However, one interviewee expressed that implementing change is “not hard at all”. A sign of
hope, this interview also said that “[. . .] with the right resources and facts supported with
data, it is easier to get other stakeholders on board for changes to processes and ways of
doing business”. What these responses show is that although implementing change in
municipalities is not impossible, it is likely not going to be an easy victory for public sector
officials. As previously discussed, organizational culture and shared vision is a catalyst for
successfully implementing Lean Six Sigma projects within identified areas of opportunity.
For Question 4, ten interviewees indicated that they were familiar with Lean Six Sigma.
An encouraging result, Lean Six Sigma has become somewhat of a name brand, and as we
know, name brands bring the recognition of reliability and quality. A remarkable discovery,
because as the responses illustrate, Lean Six Sigma is on the radar of officials within the
public sector and has been gaining attention. It is perhaps this branding, or marketing, that
can get key stakeholders on board. Investigating the consumer and psychological effects of
Lean Six Sigma marketing would make a fantastic research study.
For Question 5, “Are you currently implementing any Lean Six Sigma principles within
your organization? If so, what does that look like?” There were several comments regarding
this question:
some departments or projects may use this practice;
we are working to implement some of the Lean principles over the next six months;
IJLSS we use cross-functional teams to make things better through the use of a consistent
problem-solving model and a continuous improvement process;
we are using an internal process called “inno-vision” to involve teams of employees
to create more efficiencies within the organization;
we apply the concept but do not employ the fashion lingo; it detracts from line
employee buy-in;
our entire organization is not practiced in lean six sigma. We have not had the
resources to train individuals in Lean Six Sigma, so we work hard with the skills
and knowledge we can obtain. I am aware of concept but not aware of the tasks; and
in our building inspections division.
Ten interviewees indicated that they were not currently implementing any Lean Six Sigma
practices within their organization. However, six interviewees indicated that in the future,
are planning to do so.
For Question 6, “Please share the impact you think Lean Six Sigma could have for your
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organization”. Among the group, there were mixed feelings about how they felt Lean Six
Sigma might affect their organization. Six interviewees were overly positive and
enthusiastic about integrating Lean Six Sigma within their organizational processes. For
example, one respondent argued that:
[its] application is more widely spread than many people realize, but there has not yet been
enough documented evidence showing precisely how beneficial the use of Lean Six Sigma in
public service really is.
With additional research studies such as this one, perhaps when an accumulation of
examples and cases are combined to demonstrate evidenced improvements, a greater
perspective of how Lean Six Sigma can be incorporated across the public sector can be
achieved.
For Question 7, “To what extent has IT had an impact on your organization”, 12 public
sector officials felt that IT has had a positive impact on their organization. A positive
finding because (again) a variety of opportunities exists for Lean Six Sigma projects via IT.
Public sector municipalities that already have an IT strategy in place make lovely
candidates for Lean Six Sigma projects. Furthermore, this finding is excellent news because
many Lean Six Sigma projects can include the use of newer technologies and software
programs, and such a combination may help convince public sector officials skeptical about
the methodology and its use in governmental business processes. Four public sector officials
shared mixed feelings about IT. Their discontent came from random technology issues that
came up through the year; however, they viewed these as short-term growing pains and
believe that over the long term, were well worth the time and resources. These insights are
significant because the measured responses indicate that by including and combining IT
initiatives with Lean Six Sigma methodology, public sector officials may be more inclined to
take on projects that make a positive impact for their organization.
Question 8 asked, “How many years and what kinds of experiences do you have in public
sector administration?” Eight interviewees had more than 25 years’ of public sector
experience. One public sector official, in particular, referred to himself as a member of the
“grey hair society” and noted that many would be retiring over the next decade. This simple
comment triggers some exciting insights; for example, in light of global demographics, a
majority of public sector administrators have been working within the public sector for two
decades, or longer, are nearing retirement, do not have the energy and are likely resistant to
leveraging advanced information technologies with Lean Six Sigma methods. Lean Six Opportunities
Sigma requires a mentality and belief system that change is constant and that continuous for lean six
improvement is essential for the operational processes in public sector business.
One of the core principles of Lean Six Sigma is the openness to change and the idea that
sigma
organizations should always be open to continuous improvement in the way things are
done. Reflecting on the interview results, current and future conditions hold promise for
Lean Six Sigma cultures in the public sector; for example, the continuing evolution of IT,
millennials transitioning into public sector leadership roles and increasing appreciation and
attentiveness to citizen feedback.
Significance of responses
The interviewee results reinforce why research and practice about Lean Six Sigma in the
public sector can be an indispensable methodology and framework for continuous
improvement in the delivery of service and goods. Moreover, the responses reinforce the
importance of additional and continuing research, for example case studies, to expand the
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literature and discipline concerning this topic. For example, though there exist many
individual examples of successes, additional evidence of the successful embedding of Lean
Six Sigma across entire public sector agencies is needed. Evidenced in the interviewee
responses of this research, it would be in error to not ignore the existence of challenges and
barriers to achieving this. It is not just about the tools of Lean Six Sigma; it is also about
organizational culture and shared vision and values. On a positive note, the data from the
interviews with public sector officials paints a picture of a gradual, if not incremental,
expansion of core Lean Six Sigma elements here in the USA and, from researching the
literature, across the globe.
With taxpayer dollars on the line and open public records on the internet and social
media, the reality is public sector organizations must be concerned about the efficiency and
quality of the use of their revenues. It is encouraging that most of the interviewees have
prioritized in their agenda objectives to find solutions and methods for saving money and
resources, increasing the efficiency and effectiveness of their services and goods and, at the
same time, increase their overall citizen satisfaction (i.e. customer satisfaction). Even more
encouraging as Lean Six Sigma continues to grow across public sector organizations in the
USA, Europe and other parts of the world in the immediate future. If Lean Six Sigma
spreads throughout the globe, then the cost savings will undoubtedly reach billions in
hard savings; creating tax breaks and allow opportunities for additional value-added
projects. A significant finding, because what will determine if public sector organizations
view Lean Six Sigma as just another management fad largely depends on organizational
leadership. The responses in this survey demonstrate the fact that public sector
municipalities should use Lean Six Sigma applications throughout city operations.
Additionally, Kroll (2013, p. 272) discovered that “[. . .] in addition to routine performance
reports and non-routine internal and external feedback, there is a fourth type of information
gathering—screening documents”. In the public sector, where formalized instructions
profoundly shape behavior, studying documents and files (aside from aggregated
performance reports) is an essential means of information gathering. Problems that used to
be relatively simple are now subject to sophisticated statistical analyses growing out of
increasingly large data sets, producing alternatives validated by statistics (Nalbandian et al.,
2013).
Process waste Strategic waste, unbalanced flow waste, standardization waste, reliability waste,
checking waste and boundary waste
Information waste Translation waste, missing information waste, irrelevant information waste and
inaccurate information waste
Work waste Processing waste, motion waste and waiting waste
Table II. Human energy Lack of clear focus, ineffective structural waste, lack of ownership waste, ineffective
Types of waste and waste control of quality waste, tampering waste, inappropriate assignments waste and goal
example areas alignment waste
However, just like for any other methodology to work there is a crucial ingredient needed, Opportunities
the call and recognition for the need to change some of the organizational processes in the for lean six
public sector. For deployment of Lean Six Sigma projects to occur, there are a few things
public administration officials need to keep in mind. Successful public managers hoping to
sigma
lead change must (Denhardt et al., 2009):
assess the organization’s environments and the need for change;
plan for change both strategically and pragmatically;
build support for the change process through conversation and behavior;
implement specific changes while at the same time encourage positive attitude
toward change and innovation; and
institutionalize the changes.
Project selection
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Circling back to the interview results, eight respondents were open to the idea of testing or
trying out theories that could help them save money and resources. The following are
guidelines public sector officials can use to help with planning and trying out new theories
and projects, that is, the Lean Six Sigma methodology or its components. How does an
organization decide on which areas to focus on when deploying Lean Six Sigma projects?
Any project should represent a potential breakthrough that results in significant
improvements for a good or service. Additionally, stakeholders must decide whether to
design Lean Six Sigma projects as a public–private partnership or a public-works plan
(Jacobson and Choi, 2008). Project impact should be evaluated regarding its financial benefit
to the municipality; measured and evaluated by a finance or accounting unit. Naturally,
projects with high potential impact are most desirable. Aligning projects with the goals of
the city organization, upper management, the citizenry and other stakeholders are critical
for the best chances of success.
Another consideration when choosing projects is judging the feasibility and practicality
of specific problems. For example, Lean Six Sigma is not an effective method for
implementing known solutions, such as paving a parking lot, but instead, is better suited for
returning flawed processes to their normal state. Lean Six Sigma tends to work best with
known solution problems, where a discovered process is not operating within best practice
parameters. Examples include single-piece flow, a line of sight or eliminating non-value
adding steps in the process (Hoerl and Gardner, 2010). Lean Six Sigma projects are impactful
when solutions to specific problems are not well-known for routine city operations.
Moreover, Lean Six Sigma is a useful tool for complicated problem-by-problem cases. For
example, complaints are useful in their capacity to raise consciousness regarding service
failure and help to illustrate areas for improvement (Minelli and Ruffini, 2017). Fryer et al.
(2007) conducted a literature review of success factors in public sector organizations –
management commitment, customer management, supplier management, quality data,
measurement and reporting, team work, communication, process management, ongoing
evaluation, monitoring and assessment, training and learning, employee empowerment,
having aims and objectives that are communicated to the workforce about a corporate
quality culture, production design and organizational structure(s).
characteristic of Lean Six Sigma is the creative thinking process involved and shared
ownership and responsibility for members of staff and project team members (Wessel
and Burcher, 2004). Another significant contribution of the Lean Six Sigma philosophy
is a realization that the variation of an operation is its interrelated nature across
processes and units within the organization (Nakhai and Neves, 2009). Using Lean Six
Sigma in the workplace helps create and foster new ways of thinking for employees to
discover unknown or new solutions to problems that arise in the delivery and
production of their services. Implementing Lean Six Sigma can make a positive impact
on an organization’s operations and culture over the long term and yield significant
value and savings to customers every step of the way. Fully committing to a Lean Six
Sigma philosophy can change the way the organization thinks and acts, thereby
helping it become a much more efficient and data-driven decision-making organization
(Watson, 2008).
This study investigated the literate related to Lean Six Sigma and the public sector and
put together ways public sector municipalities can utilize this methodology and philosophy
in practice. In today’s economy, public sector officials are looking for ways to maximize the
efficiency of available tax dollar revenue while also increasing the quality of their goods and
services. Based on the themes and insights from interviews with public sector officials, this
research found that there is a demand for Lean Six Sigma in the public sector and a keen
interest in theories and methods can streamline and improve organizational processes,
produce cost-savings, improve organizational culture and improve the quality of goods and
services. This study demonstrates, in fact, that the Lean Six Sigma philosophy and
methodology is a systemic approach that public sector municipalities can embrace, and the
record of its accomplishments and successes here in the USA and internationally are
becoming increasingly prevalent.
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Corresponding author
Jeffrey Fletcher can be contacted at: jfletchr@iastate.edu
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