Metrics-Based Process Mapping

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  • 1. Lean Webinar Series Metrics-Based Process Mapping November 5, 2009 Company LOGO
  • 2. Learning Objectives Participants will learn:     Key differences between a value stream and metricsbased process maps. Key time and quality metrics for effective improvement in office and service settings. Step-by-step approach for creating current and future state maps. How to use the MBPM as a standard work and process monitoring tool. © 2009 Karen Martin & Associates 2
  • 3. Macro vs. Micro - Review Value Stream Mapping (yesterday’s webinar)    Macro view – Rooftop perspective, 30,000 ft view Future state designed by leadership Strategic – “What are we going to do?” Metrics-Based Process Mapping    Micro view – “In the weeds” Future state designed by frontline workers Tactical – “How are we going to do it?” © 2009 Karen Martin & Associates 3
  • 4. The Work We Do: Degrees of Granularity 30,000 ft View (Strategic) Value Stream Process Step In the Weeds (Tactical) © 2009 Karen Martin & Associates Process Step Value Stream Map Process Step Metrics-Based Process Map 4
  • 5. Traditional Mapping Method: Process Flow Chart Look up Customer in Eclipse SALES New Customer? Yes Enter Order SALES Product in Stock? Yes Print Ship Ticket SALES Load Trucks SHIPPING No No Enter Customer Information ADMIN Yes Perform Credit Check FINANCE Okay? Notify Sales COD Only; Notify Admin No to update Customer Profile FINANCE Order Material PURCHASING Receive Material RECEIVING Where’s the quality? Where’s the time? © 2009 Karen Martin & Associates 5
  • 6. What is a Metrics-Based Process Map? A visual process analysis tool, which integrates:   Functional orientation of traditional swim lane process maps Key Lean time and quality metrics Tool which highlights the disconnects / wastes / delays in a process  Keeps the improvement focus properly directed Serves as standard work for workforce training and process monitoring © 2009 Karen Martin & Associates 6
  • 7. Metrics-Based Process Mapping (MBPM)
  • 8. When is the MBPM Used? For current state analysis and future state design during an office/service-based Kaizen Event. As a stand alone improvement tool. © 2009 Karen Martin & Associates 8
  • 9. Mapping Prep If Not Part of a Kaizen Event Select a skilled, objective facilitator. Create a mapping charter – who, what, where, when & why.  Define the scope.  Select the “fence posts” (first and last steps).  Select a specific situation or set of conditions.  Select the team.  No more than 10.  Include representatives from all functions within the fence posts, including customers and suppliers.  Include people who currently do the work.  If too many people involved, narrow your scope.  If possible, include objective “outside eyes.” © 2009 Karen Martin & Associates 9
  • 10. Document the Current State Step 1 – Label the map in the upper right hand corner.  Include process name, conditions mapped, date, and facilitator name and/or team members. © 2009 Karen Martin & Associates 10
  • 11. Step 1: Label the map Process Name Included/Excluded Conditions Current State MBPM Date Facilitator and/or Team Names Use 36” wide white paper with 6” swim lanes (hand drawn, chalk lines, or pre-printed). Email me if you want a preprinted version you can print on a plotter printer.
  • 12. Document the Current State Step 2 – Label the swim lanes with the functions involved.  Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.) © 2009 Karen Martin & Associates 12
  • 13. Step 2: List functions Function A Function B Function C Function D Function E Function F Process Name Included/Excluded Conditions Current State MBPM Date Facilitator and/or Team Names
  • 14. Document the Current State Step 3 – Document all activities/steps on 3 x 6” post-its.     Use verb/noun format; clear and concise. Include function. Separate tasks that have different quality outputs or timeframes; combine tasks otherwise. Place post-its in appropriate swim lane, sequentially. © 2009 Karen Martin & Associates 14
  • 15. Step Step 1 2 Ticking clock Parallel Steps (concurrent activities)
  • 16. MBPM Post-it Conventions Activity (Verb / Noun) Function that performs the task
  • 17. Document the Current State Map the rule (80%), not the exceptions (20%).  For metrics with ranges, use the median. Continue to add conditions to your scope if you need to.  To minimize “it depends” answers. © 2009 Karen Martin & Associates 17
  • 18. Document the Current State Step 4 – Number the activities.   Number the activities sequentially from left to right. For parallel activities, add “A,” “B,” etc.  Example: Step 8A, Step 8B, etc.  Don’t number the post-its until the map is “final.” © 2009 Karen Martin & Associates 18
  • 19. MBPM Post-it Conventions Step # Activity (Verb / Noun) Function that performs the task
  • 20. Step Step 1 2 Parallel Steps: 8A & 8B
  • 21. Document the Current State Step 5 – Add activity-specific information:   Number of staff involved (if relevant) Barriers to flow  Batches  Shared resources  Equipment downtime  Etc.  Key metrics (include units of measure)  Process Time (PT)  Lead Time (LT)  Percent Complete & Accurate (%C&A) © 2009 Karen Martin & Associates 21
  • 22. MBPM Post-it Conventions Step # Activity (Verb / Noun) Function that performs the task # Staff (if relevant) Barriers to flow (if relevant) PT (process time) % Complete & Accurate LT (Lead time)
  • 23. MBPM Post-it Conventions Step # Activity (Verb / Noun) Function that performs the task # Staff (if relevant) Barriers to flow (if relevant) PT (process time) % Complete & Accurate LT (Lead time)
  • 24. Task-Level Metrics: Time Process time (PT)    The time it takes to actually perform the work, if one is able to work on it uninterrupted Includes task-specific doing, talking, and thinking aka “touch time,” work time, cycle time Lead time (LT)   The elapsed time from the time work is made available until it’s completed and passed on to the next person or department in the chain aka throughput time, turnaround time, elapsed time © 2009 Karen Martin & Associates 24
  • 25. Lead Time vs. Process Time Scenario 1 Lead Time Process Time Work Received Work passed to next step LT = PT + Waiting / Delays © 2009 Karen Martin & Associates 25
  • 26. Lead Time vs. Process Time Scenario 2 Lead Time Process Time Work passed to next step Work Received LT = PT + Waiting / Delays © 2009 Karen Martin & Associates 26
  • 27. MBPM Post-it Conventions Step # Activity (Verb / Noun) Function that performs the task # Staff (if relevant) Barriers to flow (if relevant) PT (process time) % Complete & Accurate LT (Lead time)
  • 28. Key Lean Metric: Quality %Complete and Accurate (%C&A)  % time downstream customer can perform task without having to “CAC” the incoming work:  Correct information or material that was supplied  Add information that should have been supplied  Clarify information that should or could have been clear   This output metric is measured by the immediate downstream customer and all subsequent downstream customers. If workers further downstream deem the output from a particular step to be less than 100%, multiply their assessment of quality with the previous assessments. © 2009 Karen Martin & Associates 28
  • 29. Metrics Reminders Typically obtained via interview; questions must be high quality PT & LT   You can “chunk” these metrics for a series of post-its when necessary When wide variation, do one of three things:  Narrow your scope (pick a specific circumstance)  Use the median  Indicate the variation, but use the median for the timeline %C&A    Determined by immediate downstream customer and all subsequent downstream customers Response is placed on the post-it for the output step 0% at a particular step is not rare © 2009 Karen Martin & Associates 29
  • 30. Documenting the Current State Step 6 – Define the “Timeline Critical Path”  Longest LT unless “dead-end” step  If longest LT is a dead end step, then bring the next longest LT to the timeline  Use colored marker © 2009 Karen Martin & Associates 30
  • 31. Step 6: Define the “Timeline Critical Path” For parallel activities: Chose the longest LT unless a “dead-end” activity
  • 32. Documenting the Current State Step 7 – Create the timeline  Bring down the PT & LT from the timeline critical path steps. © 2009 Karen Martin & Associates 32
  • 33. Step 7: Create the Timeline
  • 34. Document the Current State Step 8 – Calculate the summary metrics    Timeline PT Sum Timeline LT Sum % Activity  (PT Sum/Total LT Sum) x 100  Rolled First Pass Yield (RFPY)  %C&A x %C&A x %C&A…  Include ALL post-its, not just critical path © 2009 Karen Martin & Associates 34
  • 35. Summary Metrics: Labor Requirements Total PT  Sum of all activities, not just timeline Labor Requirements # FTEs = Total PT (in hrs) X # occurrences/year Available work hrs/year/employee Freed = CS FTEs - FS FTEs Capacity * FTE = Full-time Equivalent (2 half time employees = 1 FTE) © 2009 Karen Martin & Associates 35
  • 36. Metrics-Based Process Mapping Summary Metrics Metric Timeline PT Timeline LT % Activity Rolled First Pass Yield Total Process Time Labor requirements Freed capacity Current State Projected Future State Projected % Improvement
  • 37. Document the Current State Step 9 – Identify the value-adding (VA) and necessary non-value-adding (N) activities    Use small colored post-its labeled with “VA” or “N”. All unlabelled post-its represent waste. NOTE – this is the first of two “bridge steps” between current state documentation and future state design. © 2009 Karen Martin & Associates 37
  • 38. Step 9: Label the value-adding (VA) and necessary non-value adding (N) activities © 2009 Karen Martin & Associates 38
  • 39. Document the Current State Step 10 – Circle (with a red marker) the step-specific metrics that indicate the greatest opportunity for improvement.   Low step-specific %activity, low %C&A, etc. This is the second of the two steps that provide the bridge between current state documentation and future state design © 2009 Karen Martin & Associates 39
  • 40. Step 10: Circle the data that indicates the greatest need for improvement
  • 41. Current State Facilitator Tips  Keep the team focused on current state.  Quickly flip chart future state ideas to capture them, then return to current state.  If the LT is 8 hrs for a block, it doesn’t matter if the PT is 5 or 8 mins.  Limit debates over things that don’t matter.  If three people perform the work three different ways, select one way for the current state map.  Create a safe environment for “telling the truth.”   “It is what is it. No blame. No worries.” “People aren’t the problem. The process is the problem.”  Help “digest” how “bad” the process is.  “It’ll be easy to be a rock star!” © 2009 Karen Martin & Associates 41
  • 42. Typical Current State Findings Islands of value-adding activities All other time is “waste.” Rework First Step Adding Value Last Step Future State Design: How can we progress from one “VA” or “N” step to the next and eliminate all waste? © 2009 Karen Martin & Associates 42
  • 43. Future State Design Goals     Reduce overall LT & PT Improve quality (increase RFPY) Increase % activity Improve LT, PT, and %C&A at individual steps May need to perform root cause analysis before determining countermeasures to realize the future state Mapping steps    Clean sheet or modify current state map Same steps as current state Calculate projected metrics © 2009 Karen Martin & Associates 43
  • 44. Future State Design Considerations  Eliminate steps / handoffs  Combine steps  Create parallel paths  Alter task sequencing and/or timing  Implement pull  Reduce / eliminate batches  Improve quality  Create an organized, visual workplace  Reduce changeover  Eliminate motion & transportation  Standardize work  Eliminate unnecessary approvals / authorizations  Stop performing nonvalue adding (NVA) tasks  Co-locate functions based on flow; create cells (teams of crossfunctional staff)  Balance work to meet takt time requirements 44
  • 45. The Right Process Standardize work Mistake proof work Make problems visual Fix problems immediately Create continuous flow Level demand Balance work Create pull systems © 2009 Karen Martin & Associates 45
  • 46. Future State Facilitator Tips  Reduce resistance by pointing out how “boring” waste is and how energizing it is to provide customer value.  Spark innovation by using examples outside your own company / industry.  Guarantee the team that they will not lose a paycheck and that they’ll be properly trained for any new role they take on.  Guarantee the team that if the process is more difficult (after a learning curve), you’ll revisit the improvement.  Guarantee the team that you’ll only make a process change if it’s indeed an improvement. © 2009 Karen Martin & Associates 46
  • 47. Document Projected Future State Results Metric Current State Projected Future State Projected % Improvement CP PT CP LT AR RFPY Total PT Labor requirements Freed capacity © 2009 Karen Martin & Associates 47
  • 48. PACE Prioritization Matrix Easy 4 5 23 13 22 8 17 3 10 21 1 16 15 20 19 14 6 7 11 2 18 12 Difficult Ease of Implementation 9 High Anticipated Benefit Low
  • 49. Create an Action Plan: Who, What, When, Where, and How? Future State Implementation Plan Value Stream Outpatient Imaging Implementation Plan Review Dates Executive Sponsor Allen Ward 11/1/2007 Value Stream Champion Sally McKinsey 11/21/2007 Value Stream Mapping Facilitator Dave Parks 12/13/2007 Date Created 10/18/2007 Block # 2 Goal / Objective Improve quality of referral Improvement Activity Type KE Implement standard work for referral process Owner Sean O'Ryan PROJ 1/10/2008 Implementation Schedule (weeks) 2 3 4 5 6 7 8 9 10 11 12 Dianne Prichard 3, 4 Reduce lead time beween schedulingand Cross-train and colocate work teams preregistration steps 5, 6 Eliminate the need for two patient checkins Collect copays in Imaging KE Michael O'Shea 6 Eliminate bottleneck in waiting area Balance work / level demand KE Dianne Prichard 9 Eliminate lead time associated with transcription step Implement voice recognition technology PROJ Sam Parks 10 Eliminate batched reading Reduce setup required KE Sam Parks 7 Reduce inventory costs, regulatory risk and storage needs 5S CT supplies area; implement kanban KE Michael O'Shea 12 Reduce delay in report delivery Implement additional fax ports PROJ Martha Allen 12 Reduce delay in report delivery Increase percentage of physicians receiving electronic delivery (rather than hard copy) KE 1 Martha Allen Approvals Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator Signature: Signature: Signature: Date: Date: Date: Date Complete
  • 50. The Improved State Becomes Standard Work Current State Metrics-Based Process Map 0 PT Units 1 0 Seconds Hours Minutes Days LT Units 15 6 -1 0 Seconds Hours Minutes Days Process Details Specific Conditions Domestic orders through sales force Occurrences per Year 37,500 Hours Worked per Day 8 Date Mapped 25-Jun-08 Step # ► Function / Department 1 Customer Mapping Team Diane O'Shea Sean Michaels Sam Parks Sally Dampier Michael Prichard Process Name Order Fulfillment 1 2 Activity PT LT %C&A Fax PO to Sales Rep 0 0 Ryan Austin Mary Townsend Facilitator Dave Morgan 3 4 45% PT LT %C&A Activity PT LT %C&A Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 Activity PT LT %C&A Activity PT LT %C&A Check inventory levels; notify Sales Rep re: status 2 Sales Rep Activity 5 90% 5 4 95% Fax PO to Sales Rep 5 0.33 90% 5 Finance 6 Warehouse / Shipping Critical Path PT Critical Path LT Rolled %C&A Total PT 0 20 0 0 10 2 45% 20 5 4 90% 10 5 4 90% 0.33 95% 5 90% 5
  • 51. Electronic Documentation? Archive the team’s work Distribute the maps to remote locations Document the new standard work for the process   Training/retraining staff Monitoring process performance Communicate the impact of Kaizen Events and other improvement activities © 2009 Karen Martin & Associates 51
  • 52. Recommended Resources Chapter 12 – Manual method
  • 53. Learning Objectives Participants will learn:     Key differences between a value stream and metricsbased process maps. Key time and quality metrics for effective improvement in office and service settings. Step-by-step approach for creating current and future state maps. How to use the MBPM as a standard work and process monitoring tool. © 2009 Karen Martin & Associates 53
  • 54. Thank You! Link to today’s slides (pdf format)   http://www.ksmartin.com/files/01ag89/mbpmj9eU Y43.pdf www.ksmartin.com/files/mbpm_webinar.pdf Next webinar – Kaizen Events – tell a friend!    Part I – December 4 – Planning Part II – December 5 – Executing & Follow-up Register for monthly newsletter and webinar announcements – tell a friend!   www.ksmartin.com/subscribe © 2009 Karen Martin & Associates 54
  • 55. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com © 2009 Karen Martin & Associates 55
  • 56. Using the Excel-Based Tool © 2008 Karen Martin & Mike Osterling 56
  • 57. Why Capture the MBPM Electronically? Archive the team’s work  Distribute the maps to remote locations  Document the new standard work for the process   Training/retraining staff  Monitoring process performance  Communicate the impact of Kaizen Events and other improvement activities © 2008 Karen Martin & Mike Osterling 57
  • 58. Product Information  The CD contains three files: Essentials.pdf – describes the step-by-step approach for creating MBPMs manually, using paper and post-its  User’s Guide.pdf – describes the tool’s functionality and the steps to creating electronic versions of the MBPMs  MBPM.xlt – the Excel-based tool  Mapping  Including a Quick Start Guide for mature Excel users and those who already know how to create MBPMs © 2008 Karen Martin & Mike Osterling 58
  • 59. The Excel-Based Tool: Easy to Use Intuitive design  Custom tool bar and pull-down menus  Color-coded cells  Automated metrics calculations  Mistake-proofing audit feature  Easily distribute electronic “read only” versions of the process flow to nonlicensed users  © 2008 Karen Martin & Mike Osterling 59
  • 60. Tool Layout Seven sheets • Current State • Future State • Summary Metrics • Audit Findings • Metrics Descriptions • Sample MBPM • Quick Start Guide Custom toolbar with easy to use pull-down menus
  • 61. Custom Toolbar Features Insert Remove Move Map Management
  • 62. Map Structure Process Steps Functions Current State Metrics-Based Process Map 0 PT Units 1 0 Seconds Hours Minutes Days LT Units 15 6 -1 0 Seconds Hours Minutes Days Process Details Specific Conditions Domestic orders through sales force Occurrences per Year 37,500 Hours Worked per Day 8 Date Mapped 25-Jun-08 Step # ► Function / Department 1 Customer Mapping Team Diane O'Shea Sean Michaels Sam Parks Sally Dampier Michael Prichard Process Name Order Fulfillment 1 2 Activity PT LT %C&A Fax PO to Sales Rep 0 0 Ryan Austin Mary Townsend Facilitator Dave Morgan 3 4 45% PT LT %C&A Activity PT LT %C&A Review PO; clarify with customer as needed 20 2 90% Fax PO to warehouse 10 4 Activity PT LT %C&A Activity PT LT %C&A Check inventory levels; notify Sales Rep re: status 2 Sales Rep Activity 5 90% 5 4 95% Fax PO to Sales Rep 5 0.33 90% 5 Finance 6 Warehouse / Shipping Critical Path PT Critical Path LT Rolled %C&A Total PT 0 20 0 45% 0 10 2 90% 20 5 4 5 4 90% 10 0.33 95% 5 90% 5 Key Metrics & Timeline Blue color-coded cells indicate the critical path
  • 63. Color-Coded Summary Metrics Sheet  Auto-Calculates:     Summary time and quality metrics for before and after maps Projected % improvement (color-coded for visual ease) Staffing requirements User-defined metrics
  • 64. Archiving your MPBM: 5 Easy Steps 1. 2. 3. Enter header information Insert functions and steps Create the current state map    4. Enter activities & key metrics Define the critical path Audit the map Create the future state map  Enter activities & key metrics  Define the critical path  Audit the map 5. View the Summary Metrics Sheet © 2008 Karen Martin & Mike Osterling 64