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Article 12. Which Approach to use in State Government “Cost and Schedule” or “Work Improvement Teams“?

If you have been following my articles you will discover that I have advocated two very different approaches. Now I want to explain the “where“, “when” and “why“. Most of my articles have been on the “what” and “how“.

Work Improvement Teams (WITs) can be applied in almost all situations but are especially useful in organizations, which serve the Public such as child welfare. These organizations may already have Teams that get together to solve problems it is short step to having them also determine the best and most cost effective method for doing a task. The process involves finding the best way to get the most value from each dollar spent by using Flow Process charts to chart the functions processes. WITs are also useful particularly where work processes can be improved which is just about everywhere. Employees see WITs as a positive improvement to their jobs because they have more input to solving their work problems even if the results of their recommendations lead to staff reductions.

This is a low-tech method involving facilitators trained in group dynamics. Each facilitator can meet with at least ten WITs each week and more depending on the distances to be traveled. The process requires the commitment of the entire organization to continuous improvement. For more information see Article 11. “Adaptation of Manufacturing Quality Improvement Techniques to Achieve Efficient Government“.

The Cost and Schedule approach is best used where there is a sequence of activities requiring tight scheduling control in order to minimize lost time. It is especially useful where schedule slippage results in significant costs. For example the State Highway department is highly dependent on schedules that impact its large budget.

This approach is easiest to install when there is an increasing budget and an expected increase in employee numbers. The approach is particularly useful in increasing efficiency and stabilizing the work force. Employees are not threatened with layoffs and the implementation can be positive for all involved. WITs may also be installed but it is usually best to wait until the Cost and schedule implementation has been completed to avoid sending mixed signals to employees. This implementation may require outside consulting advice and a significant number of trained time-study analysts but the reduction in staff requirements can be significant.

A second more cost effective approach is to use a method I call Enhanced Auditing that is expanding the State Auditing function to include time-study personnel. The traditional function of the Auditing Department is to audit suspected miss-use of public funds and property. The enhancement would be in the area of miss-use of labor hours.

Implementation of the cost and schedule approach is also recommended in organizations that use little or no cost controls and are facing budget cuts. These organizations are usually highly bureaucratically structured and consistently resist change. The implementation is expected to be hostile. Senior management of the organization must be persuaded to support the implementation. Outside consulting advice may be required with time-study analysts. This is not an easy implementation but once done it changes the organization from one which only emphasizes getting the work done to a cost and schedule organization. Staff reductions in this type of organization are expected to be significant.

Another approach to this type of organization which I think in many cases
is less invasive is to replace the top management with those who will support WITs and go ahead with the WIT implementation. I have found that those employees in the WITs will generally support the implementation knowing they have top management support.

For more information see Article 7. “Organizational Reporting and Budget Control Systems”.

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