Presented at NCVO's Trustee Conference on Monday 11 November 2014. The presentation was by Neil Fedden, Specialist Lean trainer and consultant. These slides highlight the importance of viewing our organisations as our customers/beneficiaries see us. Introducing an approach to understanding and improving core & support processes including the use of 'lean' tools, and we explore how these tools can best be applied within the voluntary sector To learn more about governance: http://www.ncvo.org.uk/practical-support/governance To find out about NCVO's Trustee Conference: http://www.ncvo.org.uk/training-and-events/trustee-conference

1. PM1: Charity effectiveness:
lean charities
Nigel Kippax, NCVO
Neil Fedden, Lean Expert & Trainer
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2. #TRUSTEECONF2014
Introductions
• Nigel Kippax – Head of Consulting and Training at NCVO
• Neil Fedden – Fedden USP (NCVO training partner)

3. Today’s learning: Remember Pareto
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are rooted in
20%
of the content
80% of the
benefits

4. #TRUSTEECONF2014
NCVO Consulting & Training
Programme Management

5. #TRUSTEECONF2014
Lean - Opening thoughts
• Lean is not just a toolbox for improvement, it’s a way
of thinking which is relevant to all organisational
levels.
• Much of the LEAN terminology has been developed
in the corporate sector. We may need to develop the
language to fit the voluntary sector and will certainly
need to create case studies from the voluntary
sector.

6. #TRUSTEECONF2014
Lean - Opening thoughts
It’s all about maximising the ratio
Resources
Impact

7. Introduction to Lean approaches
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8. #TRUSTEECONF2014
What is our USP?

9. Challenges Facing UK Charities
• Pressure to deliver more impact with less
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resources.
• Need to be more innovative and responsive to
the needs of beneficiaries.
• Need to introduce new service or product
offerings more frequently.
• Increased competition from the corporate sector
in the delivery of many service contracts.
• Others??

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Why the need to change?
Improve
Do nothing
Decline
Time
Improvement
Company X
Competitor
If you do nothing then you will fall behind your competition as
they improve !!

11. 5 Principles of Lean
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Value
Value Stream
Flow
Pull
Perfection
Process
Mapping
Kanban
Kaizen
7 Wastes + 1
Workplace
Organisation

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Non Value Adding
Transport
Inventory
Movement
Delays
Overproduction
Overprocessing
Defects
Skills & Talent
95-80%
Value Adding
5-20%
Value & Waste

13. LEAN – elimination of information waste
Bottleneck
Departments
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Lots of
signatures/vali
dation checks
Multiple
Uncontrolled
documents
Production of
reports that
nobody reads
High levels of
data re-entry/
keying
Unofficial fast-track
routes
that cause
errors
Personal filing
systems
Unpredictable
process lead-times
Batching of
documents

14. Step 1 – Current state process map
Step 2 – Identify and prioritise
process waste
Step 3 – Process re-design to
eliminate waste
Step 4 – Cost/benefit analysis
Step 5 – Action Plan and start
implementation
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15. The PDCA Cycle – Plan Do Check Act
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Plan
Act
Check Do
Do:
5. Understand current
practice
6. Analyse the facts
7. Develop solutions
8. Try out solutions
Act:
10. Adopt the solution
11. Review performance
12. Consider further
improvements
Check:
9. Ensure goals are met
Plan:
1. Project selection
2. Explanation
3. Setting goals
4. Action plan

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Group Activity
• In small groups discuss the types of
information waste you have within your
business

17. Legal Expert Before – Group Case Study
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18. #TRUSTEECONF2014
Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins) Staff Operation Transport Inspection Storage
1 Delay until received spec. is picked up by Secretary 0 30 0 X
2 Carry from mail area to Secretary's desk 5 1 1 X
3 Wait until convienient to 'process' it 0 60 0 X
4 Log receipt into Project Tracking system & create file 0 1 1 X
5 Store file in Out-Tray 0 15 0 X
6 Move file to Legal expert's In-Tray 5 1 1 X
7 Await Legal expert's attention (busy) 0 1440 0 X
8 Legal expert processes copy 0 20 1 X
9 Store processed copy in Out-tray 0 2880 0 X
10 Move copy to Secretary's desk when convenient 5 1 1 X
11 Delay until Secretary logs completion on Project Tracking 0 180 0 X
12 Take copy file to photocopier 10 2 1 X
13 Photocopy x 3 0 2 1 X
14 Return with copies to desk 10 2 1 X
15 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X
16 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 40 4651 9.7 days
Value Add 38
Non Value Add 3170
Necessary Non Value Adding 1443

19. Legal Expert After – Group Case Study
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20. #TRUSTEECONF2014
Process Mapping - Receive Specification and Produce Legal Copy
Description Dist. (m) Time (mins)Staff OperationTransport Inspection Storage
1 Red Envelope' delivered straight to legal experts desk by mail room 5 1 1 X
2 Await Legal expert's attention (busy) 0 1440 0 X
3 Legal expert processes copy and logs onto Project Tracking 0 21 1 X
4 Move copy to Secretary's desk as soon as document is processed 5 1 1 X
5 Take copy file to photocopier 10 2 1 X
6 Photocopy x 3 0 2 1 X
7 Return with copies to desk 10 2 1 X
8 Collate, staple and 'stuff' internal mail envelopes 0 15 1 X
9 Take 3 x envelopes to departmental Out-Tray 5 1 1 X
Totals 35 1485 3.1 days
Value Add 38
Non Value Add 4
Necessary Non Value Adding 1443 1481
Hines et al (2000) Value Stream Management

21. #TRUSTEECONF2014
Next steps
• The Lean Charity Tuesday 24th February
1-day training at NCVO

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Thank you
Nigel Kippax
Neil Fedden

23. NCVO/BWB Trustee
Conference 2014
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