Department of Government Efficiency, Tim C. Wood has to go!

One of the biggest newsworthy items in the news cycle this past week has been the focus on the newly elected administration standing up a new department of efficiency that will be tasked with the project of optimizing US Government organizations and their processes, not a small undertaking by any measure.

As a Leans Six Sigma Black I consult with organizations to help them identify where their work and processes are inefficient and wasteful and help them develop solutions to eliminate the waste while improving efficiency and the ability of the organization to streamline the flow of value to customers and in the case of the government, stakeholders or constituent’s.

In my work with clients in many different vertical markets, I’ve found, in any organization, whether private or public, there are always areas where resources are not being used as efficiently as possible. This is almost a given, as I will schedule a discovery session with them, to learn about their work only to uncover tasks that becomes a red flag for me when I hear from them “This is the way we have always done it”. In most cases these processes have years and years of inefficiencies. These inefficiencies are commonly referred to as "waste," a term popularized by lean manufacturing principles and more recently outlined with the Scaled Agile methodology. One of the most important voices in this field is Tim C. Wood, a concept that outlines eight critical areas of waste that any organization should focus on eliminating to optimize their operations.

In this article, I’ll explore these eight areas of lean waste and how they can be applied to the newly formed Department of Government Efficiency (DGE). Rather than cutting essential services or programs that improve citizens' lives, the DGE’s mission should be to root out waste—non-value-adding activities—and make the government work smarter, not harder.

The Eight Areas of Lean Waste

Tim C. Wood refers to the eight areas of waste that can be found in any system, whether in the private or public sector and the C is "go see it". These areas are typically abbreviated using the acronym TIMWOOD:

1. T - Transportation: Unnecessary movement of materials, people, or information.
2. I - Inventory: Holding more materials or resources than necessary, leading to increased storage costs and potential waste.
3. M - Motion: Unnecessary movement of people, often resulting in wasted time and effort.
4. W - Waiting: Delays or idle time in processes, such as waiting for approvals, information, or resources.
5. O - Overproduction: Creating more than is needed, leading to inefficiencies and excess waste.
6. O - Overprocessing: Doing more work or adding more features than are necessary, often resulting in wasted resources.
7. D - Defects: Errors or mistakes that require rework, leading to wasted time and effort.

When applying lean principles to government processes, the Department of Government Efficiency should focus on eliminating waste in these areas, ensuring that taxpayer dollars are being used as efficiently as possible while maintaining or improving the quality of public services.

Where Should the Department of Government Efficiency Focus Its Efforts?

1. Automating Manual Government Processes (Reducing Motion, Waiting, Overprocessing)

Many government agencies still rely heavily on manual processes—paper forms, approvals that require physical signatures, and repetitive data entry—which result in significant waste in terms of time and effort. Employees spend hours on administrative tasks that could be automated, creating bottlenecks and delays in the overall system.

By introducing automation, the DGE can reduce the waste associated with motion (staff moving between departments or offices), waiting (for approvals or signatures), and overprocessing (extra steps that don't add value). Automated workflows, digital signatures, RPA (robotic process automation) and AI-powered tools for data processing can free up time for government employees to focus on tasks that require human judgment, rather than repetitive or menial work.

For example, automating the application review process for social services like unemployment benefits or food assistance could reduce wait times and prevent backlogs, which often frustrate citizens.

2. Removing Fraud in Social Security and Medicare (Reducing Defects, Overproduction)

Fraud in programs like Social Security and Medicare is a significant source of waste. Improper claims, misreporting, and identity theft lead to billions of dollars lost annually. While fraud detection systems exist, the DGE should focus on improving these systems to make them more robust and accurate.

The two types of waste most relevant here are defects (fraudulent claims) and overproduction (paying out more benefits than are deserved). The DGE can invest in more sophisticated data analytics and AI models to spot anomalies and identify fraudulent claims more quickly and effectively. By ensuring that only valid claims are processed, the government can eliminate wasteful spending while maintaining the integrity of vital programs.

Additionally, improving the verification process for Medicare providers and beneficiaries could help prevent fraudulent billing and reduce unnecessary payments for services never rendered.

3. Defense Spending (Eliminating Overproduction, Overprocessing, and Defects)

The U.S. defense budget is one of the largest in the world, and while national security is essential, there is significant waste in how funds are allocated. Much of this waste stems from overproduction (acquiring more military equipment than is needed), overprocessing (excessive layers of bureaucracy in procurement), and defects (cost overruns and inefficiencies in project execution).

For example, outdated procurement processes often lead to the purchase of weapons systems that end up being overbuilt or underutilized. The DGE could focus on streamlining procurement procedures, ensuring that resources are allocated to projects that align with actual defense needs and removing any unnecessary steps that add cost without adding value.

A lean approach to defense spending doesn’t mean reducing the quality or quantity of military readiness; it’s about ensuring that the right amount of resources is allocated to the right projects—without wasteful spending on items that are redundant or unnecessary.

4. Improving Service Delivery to Citizens (Transportation, Inventory, Waiting)

Government services that require physical visits—such as obtaining permits, licenses, or passport processing—often involve inefficiencies like long lines (waiting), the unnecessary transportation of documents between departments (transportation), and an overabundance of physical forms or paper records (inventory).

The DGE should focus on digitizing services and expanding online access to essential government functions. For example, rather than requiring individuals to visit an office in person to update their information, the government could set up secure portals for people to make changes online. This reduces unnecessary transportation and waiting, as well as decreases the amount of inventory (physical forms and files) that must be managed and stored.

5. Cutting Bureaucratic Red Tape (Overprocessing, Waiting, Defects)

One of the primary sources of inefficiency in government operations is excessive red tape. Overcomplicated processes, layers of approvals, and convoluted regulations often slow down or prevent the delivery of critical services to the public. This results in overprocessing (excessive steps or documentation), waiting (delays due to approvals or paperwork), and defects (mistakes due to complexity or misunderstandings).

The DGE should work on simplifying and streamlining these processes—reducing the steps needed to accomplish any given task while ensuring that the necessary checks and balances are still in place. This might mean eliminating outdated or redundant regulations, merging overlapping agencies, or standardizing processes to remove inefficiencies.

6. Reducing Waste in Government Contracts (Defects, Overprocessing, Overproduction)

Government contracts, particularly in sectors like construction, IT, and defense, often suffer from defects (cost overruns, incomplete projects), overproduction (contracts that deliver more than is necessary), and overprocessing (excessive documentation, audits, and compliance checks). The DGE should look for ways to make contracting more transparent and more focused on delivering what is truly needed, rather than inflated projects that cost taxpayers more than expected.

7. Preventing Waste in Public Health and Safety Programs (Inventory, Waiting, Overproduction)

Public health programs, including vaccination campaigns and emergency response services, can also be prone to waste in the form of inventory (excess stock or supplies), waiting (delays in service delivery), and overproduction (providing more services or supplies than are necessary at a given time). Improving logistics and supply chain management in public health, as well as utilizing data to predict when and where resources will be needed, could help eliminate this waste.

Conclusion: Lean is About Value, Not Cutting Programs

It is important to emphasize that Lean is not about eliminating valuable programs or cutting essential services. The goal is not to reduce the scope of government services but to eliminate wasteful processes that do not add value. Lean is about maximizing efficiency—ensuring that taxpayer dollars are used wisely while maintaining or even improving the quality of services. By automating repetitive tasks, rooting out fraud, and simplifying complex systems, the Department of Government Efficiency can help government programs continue to add value while becoming more cost-effective and responsive.

As the government moves forward, the DOGE has a unique opportunity to leverage Lean practices to create a more efficient, transparent, and accountable government. By focusing on these eight areas of waste, they can ensure that American tax dollars are spent where they matter most—on services that improve the lives of citizens, rather than on inefficiency or outdated processes.