The AppCan Scandal: A Case Study

In 2019, the Canadian government invested $16 million in developing a mobile application aimed at improving public services. Unfortunately, the project failed to deliver the expected outcomes. The app was criticized for its poor functionality and lack of user adoption. This led to its abandonment, resulting in a significant financial loss.

This incident highlights the need for Lean.

Lean Principles for Procurement Improvement

Value Stream Mapping

Value Stream Mapping (VSM) helps visualize the procurement process from start to finish. By identifying each step, stakeholders can pinpoint bottlenecks and inefficiencies. For example, in the AppCan project, VSM could have highlighted delays in decision-making and approval processes, allowing for timely interventions.

Kaizen (Continuous Improvement)

Kaizen encourages continuous, incremental improvements. Teams can regularly review procurement practices and make small changes that lead to significant improvements over time. In the case of AppCan, regular reviews could have identified issues early, allowing for course correction before significant funds were spent.

Just-In-Time (JIT)

JIT aims to reduce waste by receiving goods and services only as they are needed. This can prevent overstocking and reduce storage costs. Applying JIT to government procurement can ensure that resources are allocated efficiently, avoiding unnecessary expenditures like those seen in the AppCan project.

Standardized Work

Standardizing procurement processes can reduce variability and errors. By establishing clear guidelines and procedures, the government can ensure consistency and accountability. For example, a standardized evaluation process for technology projects could have prevented the selection of an ineffective vendor for AppCan.

Root Cause Analysis

Root Cause Analysis (RCA) helps identify the underlying causes of problems. By addressing these root causes, the government can prevent recurrence. An RCA of the AppCan failure might reveal issues like inadequate project management or poor vendor selection, leading to targeted improvements.

Conclusion

The AppCan scandal underscores the need for a more efficient and transparent procurement process in the Government of Canada. By applying Lean principles such as Value Stream Mapping, Kaizen, Just-In-Time, Standardized Work, and Root Cause Analysis, the government can address these challenges and ensure better use of public funds.