Exploring the Use of Lean Thinking and Six Sigma in Public Housing Authorities

Abstract

There are more than 3,300 public housing authorities throughout the United States providing affordable housing to eligible low-income families, the elderly, and individuals with disabilities. This housing is principally provided through the administration of federally funded housing programs. The funding for these programs is inadequate to meet the growing need for affordable housing, requiring public housing authorities to find innovative ways to do more with less. A few public-sector organizations have turned to private-sector quality management practices in response to similar challenges. Lean thinking and Six Sigma are two popular quality initiatives found in the private sector. This paper explores whether lean thinking and Six Sigma can be successfully applied to public housing authorities by providing an overview of these quality practices, investigating the unique challenges that will be encountered in their implementation, examining the experience of similar organizations adopting these practices, and providing a case study that demonstrates how these principles and techniques can be applied in an affordable housing process. This paper should be valuable to policy or decision makers who may be considering the applicability of these private-sector quality management practices within public housing authorities or other similar special-purpose local governmental units.

• Lean
• Lean Six Sigma
• process improvement
• public housing authorities
• quality management
• section 8

Additional information

Notes on contributors

Sameer Kumar

Sameer Kumar is a professor of decision sciences and Qwest Chair in global communications and technology management in the Opus College of Business, University of St. Thomas. His major research interests include optimization concepts applied to design and operational management of production and service systems where issues relating to various aspects of global supply chain management, international operations, technology management, product and process innovation, and capital investment justification decisions are also considered. Kumar can be reached at [email protected].

Kenneth F. Bauer

Ken Bauer is the finance director for the Dakota County Community Development Agency located in Eagan, Minnesota, and holds professional designations as a certified public accountant (CPA) and a certified public finance officer (CPFO). He has been actively involved in the affordable housing industry for almost 18 years and has spoken on various accounting, finance, and management topics at state and regional industry conferences.