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Metrics-Based Process Mapping is a highly effective tool for improving office, service, and knowledge work processes.
8. The Work We Do:
Degrees of Granularity
Macro
View
(Strategic;
heavy
leadership
involvement)
Value
Stream
Process
Micro
View
(Tactical;
heavy
frontline
involvement)
Step
Step
Value Stream
Map
Process
Process
Step
Metrics-Based
Process Map
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9. Service Value Stream
Current State
Dispatch
Source Refrigeration & HVAC, Inc.
Current State Value Stream Map
Serv ice Deliv ery
Created February 11, 2009
CONFIDENTIAL
Repair
Billing
Customer
Great
Plains
1
Verisae
(Customer)
Special Order
Part
Excel
Spreadsheet
(Customer)
Supplier
Tech
Upload time
card
Close call in
Verisae
Process Time
Cards
Tech
Account
Manager
(West)
Payroll Admin
PT = 0 mins.
%C&A = 70%
Batch: 1x/day
PT = 1 mins.
%C&A = 90%
Batch: 1x/day
Complete Call
in GP
Pick up Part
at Parts Store
Review
Service Call
Data
?%
Tech
2
40%
Receive
customer call
Select &
Dispatch Tech
Call Center
Dispatcher &
Service
Manager
5 m.
120 m.
PT = 2 mins.
%C&A = 60%
3
0.0833
hours
PT = 5 mins.
%C&A = 60%
Tech
PT = 90 mins.
%C&A = 90%
PT = 0 mins.
640 m.
240 m.
PT = 5 mins.
%C&A = 80%
PT = 120 mins.
%C&A = 40%
2 hours
75 minutes
Dispatcher
Tech
120 m.
1.25 hours
90 minutes
Make Repair;
Call to raise
the NTE
Get Part from
Truck
75 m.
1.5
hours
5 minutes
?%
Tech
90 m.
2 hours
2 minutes
Assess
Problem
PT = 75 mins.
%C&A = 95%
5 minutes
A/P Admin
PT = 15 mins.
%C&A = 85%
Batch: 1x/day
PT = 10 mins.
%C&A = 90%
Batch: 1x/day
Billing Admin
6 days
PT = 25 mins.
%C&A = 75%
48
hours
10 minutes
Posting Admin
240 mins.
PT = 3 mins.
%C&A = 98%
Batch: 1x/day
640 m.
Account
Manager
3 minutes
Enter Invoices
into Verisae &
Excel; Mail
Invoices
Billing Admin
120 m.
PT = 10 mins.
%C&A = 85%
Batch: 3-5x per wk
10.7
hours
4 hours
25 minutes
Review
Invoices;
Close in
Verisae (Pac)
Review &
Post Invoices
Review Open
Ticket Report
PT = 10 mins.
%C&A = 50%
Batch: 2x/day
10.7
hours
4 hours
120 minutes
Service
Manager
Process A/P
Receive
Cash; Post
Payment
Collections
60 days
PT = 4 mins.
%C&A = 95%
Batch: 1x/week
480
hours
2 hours
10 minutes
4 minutes
Lead Time = 572 hours
Process Time = 349 minutes
Acronym Key
%C&A %Complete and Accurate
AR
1 – Information Flow
2 – Material Flow (physical or electronic)
3 – Timeline
Activity Ratio
FTE
Full Time Equivalent
LT
Lead Time
PT
Process Time
RFPY Rolled First Pass Yield
Lead Time to invoice = 86.2 hrs
Process Time =5.9 hrs.
NOTE: Business hours
Activity Ratio = 6.8%
RFPY = 1.1%
Lead time to cash = ? days
10. 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
How is this process performing?
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17. Step 1: Label the map
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names
18. Step 2: List functions involved in process.
Function A
Function B
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names
Function C
Function D
Function E
Function F
Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.)
19. Step 3: Document all activities (steps) on
3 x 6” post-its; place sequentially.
Step Step
1
2
Ticking clock
Parallel Steps
(concurrent
activities)
36. Metrics-Based Process Mapping
Summary Metrics
Metric
Current State
Timeline PT
110 mins
Timeline LT
7 days
% Activity
3.3%
Rolled First
Pass Yield
9.2%
Total Process
Time
170 mins
Labor
requirements
106 FTEs
Freed capacity
Projected
Future State
Projected %
Improvement
48. Document Projected
Future State Results
Current State
Projected
Future State
Projected %
Improvement
CP PT
110 mins
85 mins
23%
CP LT
7 days
4 days
43%
Activity Ratio
3.3%
4.4%
33%
RFPY
9.2%
50.4%
448%
Total PT
170 mins
140 mins
Labor
requirements*
1.7 FTEs
1.4 FTEs
Metric
Freed capacity
18%
600 hrs =
0.3 FTEs
*Demand = 1,200 per year
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50. 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
52. 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
53. Color-Coded Summary Metrics Sheet
The Excel mapping tool auto-calculates:
Summary time and quality metrics for before and after maps
Projected % improvement (color-coded for visual ease)
Staffing requirements
User-defined metrics
58. For Further Questions
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Connect & learn
Monthly newsletter: www.ksmartin.com/subscribe
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