Raleigh, NC - April 17, 2008 — Today, State Auditor Leslie Merritt released a performance audit on the Department of Environment and Natural Resources’ air quality permit review process in the Division of Air Quality (DAQ). DAQ is designated by the EPA as the lead agency for enforcing federal and State laws and regulations related to air pollution.

The audit found that by implementing lean, a process improvement technique modeled after the Toyota Production System, DAQ can increase the number of air quality permit applications processed by 52%, causing applicants to receive permits approximately 40% sooner. This efficiency increase should effectively eliminate the current backlog of 229 air quality permits by 2009, as opposed to 2016 using the current process. DAQ could see an efficiency gain of $572,000, the cost of hiring seven new full-time staff.

“Implementing efficiency techniques in State government that have proven successful in the private sector is a common sense approach to help taxpayers get the biggest bang for their buck,” said State Auditor Leslie Merritt.

The Office of the State Auditor (OSA) searches for opportunities to identify cost savings and improve efficiency and effectiveness in state government. When contacted, DAQ expressed interest in improving their air quality permit application review process. OSA saw this as an opportunity to introduce lean to State government and partnered with the Industrial Extension Service (IES) at NC State University because of their experience in working with companies to identify efficiencies and cost savings. IES’ mission is to help NC businesses grow and prosper by increasing efficiency, productivity and quality.

“IES was enthusiastic to support DAQ and pleased with the potential efficiency gain identified through the use of lean tools,” said Gene Smith, NCSU lean specialist. “Taxpayers are the ultimate winners here because they will see a benefit through increased government efficiency and a cleaner environment.”