One day overview of Continuous Process Improvement that combines Franklin Covey Project Management, our Systems Thinking Model and the DMAIC Model. The participants apply the learnings to improve the process in a PB&J Sandwich factory.

1. Presented by:
Intro to Continuous Process
Improvement, Systems Thinking
A Practical Approach
Bill Howlett

2. Introductions
• Name
• Department
• Responsibilities
• Expectations for this class

3. 3
Continuous Process
Improvement Curriculum (CPI)
• Facilitation Skills and CPI Tools – 4 hrs
• Introduction to CPI/Systems Thinking/ Project
Management – 4 hrs
• Continuous Process Improvement – Five 4 hr
sessions.

4. 4
Introduction to Continuous Process
Improvement (CPI)
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL

5. Introduction to Continuous Process Improvement
• Describe the DMAIC model.
• Describe the differences
between the phases of the
DMAIC model.
• Identify typical tools/outputs
of each phase of the DMAIC
model.
• Conduct a future
Environmental Scan and
apply the results to an
appropriate issue/problem
statement.
• Apply the DMAIC model to an
in class exercise.
• Develop a Project Charter.
• Use the 5 Whys to identify
cause and effect.
• Map the ‘as-is’ state of the
exercise.
• Develop a project plan.
• Map the ‘to-be’ state of the
exercise.
• Measure improvements.

6. Welcome to:
• 100 year-old Peanut Butter and Jelly Company
• Family owned
• Demographic: Primarily Pre-School/Elementary School
Aged Children.
• Famous for hand made crustless peanut butter & jelly
sandwiches
• Attempting to respond to a steady loss of sales due to
the inability to meet increasing demand.
• You are new employees

7. 1. Bread Prep 2. PB
Spread
3. Jelly Spread 4. Assembly
5.
Slicin
g
6. Packaging
7. ShippingResupply

8. 8

9. 1. Bread Prep
Bread Preparer(2):
• Remove bread from wrapper
• Place two slices, bottom to
bottom, on plate
• Pass plate on
2. PB
Spread
PB Spreader(2):
• Apply medium layer of
peanut butter to one slice
• Pass plate on
3. Jelly
Spread
Jelly Spreader(1):
• Apply medium layer of jelly to
other slice
• Pass plate on
4.
Assembler(1):
• Evenly, place jelly side slice
on top of peanut butter
slice
5.
Slicin
g
Slicer(1):
• Diagonally slice sandwich
• Pass plate on
6. Packaging
Packaging(1):
• Insert entire sandwich into baggi
• Sandwich must be flat
• Pass plate on
7. Shipping
Shipper(1):
• Place 10 sandwiches on a
platter
• Move platter to loading dock
Resupply
Resupply Clerk(1):
• Recycle plates
• Resupply stations as necessary
Shift Supervisor
Shift Supervisor(1):
• Maintain Safety/Quality Stds
• Track Production Rates

10. Step Points # Spoilage
(Points X Number X -1)
Produced
(Completed X 7)
1. Bread Prep 1
2. PB Spread 2
3. Jelly Spread 3
4. Assembly 4
5. Slicing 5
6. Packaging 6
7. Shipping 7
Sub Totals
Production Rate (Produced – Spoilage X 4 =
Hourly Rate)

11. Step Points #
Spoilage
(Points X Number)
Produced
(Completed X 7)
1. Bread Prep 1 4 -4
2. PB Spread 2 3 -6
3. Jelly Spread 3 2 -6
4. Assembly 4 3 -12
5. Slicing 5 4 -20
6. Packaging 6 8 -48
7. Shipping 7 30 210
Sub Totals -96 210
Production Rate (Produced – Spoilage X 4 =
Hourly Rate)
456

12. •Take your stations
•One walkthrough the process
•Fifteen Minutes for Baseline
Measure

13. Step Points # Spoilage
(Points X NumberX-1)
Produced
(#Palleted X Points)
1. Bread Prep 1
2. PB Spread 2
3. Jelly Spread 3
4. Assembly 4
5. Slicing 5
6. Packaging 6
7. Shipping 7
Sub Totals
Production Rate (Produced – Spoilage X 4 =
Hourly Rate)

14. 1. Bread
Prep
2. PB
Spread
3. Jelly
Spread
4. Assembly
5.
Slicin
g
6. Packaging
7. ShippingResupply

15. 15
Continuous Process Improvement
• Continuous Process Improvement (CPI) is a never
ending effort to discover and eliminate the main
causes of problems.
• It accomplishes this by using small-steps
improvements, rather than implementing one huge
improvement.
• It is consistently evaluating and refining
organizational practices to sustain a culture of
excellence and growth.
The Japanese have a term for this called "kaizen"
which involves everyone, from the hourly
workers to top-management.

16. 16
Continuous Process Improvement
• CPI means making things better.
• It is NOT fighting fires – Problem Solving.
• Its goal is NOT to blame people for problems or failures.
• It is simply a way of looking at how we can do our work
better.
• We seek to learn what causes things to happen and then
use this knowledge to:
√ Reduce variation.
√ Remove activities that have no value to the organization.
√ Improve customer satisfaction.

17. 17
Business Issues/Problems
20% People
80% Process Related
Rummler & Brache's (1995)

18. 18
A complex series of nonroutine
tasks directed to a specific goal.
A set of tasks repeated many
times over.
PROCESS:
PROJECT:
Process Versus Project

19. 19
Reasons for Failure
• Conflicting priorities
• Lack of vision
• Poor communication
• Not enough time
• Not enough resources
• No buy-in
• Changing priorities
• Lack of Planning

20. 20
A Successful Project =
Expectations Met

21. 21
Why?
What?
How?
Processes
Projects
Strategic Planning Pyramid

22. 22
Agenda
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL

23. 23
Analytical and Systems Thinking

24. 24
Chaos and Complexity

25. 25

26. 26
Elegant Simplicity

27. 27
‘Big’ View

28. 28
‘Complete’ View

29. 29
City of Henderson Systems Thinking Model
STRATEGIC/SYSTEMS THINKING
“From Complexity to Simplicity”

30. 30
COH Systems Thinking Template

31. 31

32. 32

33. 33

34. 34
The City of Henderson’s manual, paper-based performance management
program is neither linked to employee development nor performance. The
process is inconsistently administered resulting in late or missing
evaluations, a lack of ongoing feedback, and inflated scoring.
As the City will continue to maintain low employee to citizen ratios, a lack of a
flexible performance management system that is both development and
performance focused and supported by ongoing review and feedback will result in:
•Lower overall employee performance leading to a decrease in customer
satisfaction, inefficient and inconsistent processes
•Increased employee dissatisfaction resulting in increased HR Employee
Relations complaints and issues
•Increased employee turnover which results in increased recruiting costs

35. 35

36. 36

37. 37
• Performance Appraisal Process: Flow Down
goals, success factor and values based
performance review process implemented.
• Performance reviews that address employee
performance and development supported by
documented ongoing review and feedback,
submitted on time.
• An electronic performance appraisal system

38. 38

39. 39

40. 40

41. 41
Stakeholders
Stakeholders Key Stakeholders
are those who have
a stake in the
outcome of your
project.
are those who
determine if the
project is
successful.
"Projects which have executive management support and user involvement - our
two top criteria for IT project success - have a 50% greater chance of success"
Karen Boucher, vice-president of Standish Group
Standish have conducted annual surveys of IT project failures since 1994
(Shillingford J (1998) "USA discovers key to successful projects", Computer
Weekly, 25 June 1998)

42. 42

43. 43
Success Measures

44. 44
Success Measures – OD Example
• Increased internal customer satisfaction ratings
• Increased citizen survey ratings
• Increased % of goals met/accomplished
• Decreased employee relations issues
• Decrease in performance related turnover
• Decrease in recruiting costs
• ____% increase in the number of performance
appraisals completed on time with appropriately
documented review and feedback.
• 100% increase of on time performance appraisals for
use by Talent Management process for identified high
potential pool members.

45. 45
Performance Factors/Triple Constraint
• Quality/scope
• Time
• Cost

46. 46
Prioritize Performance Factors
Good
CheapFast

47. 47
Tradeoffs
Quality/
Scope
CostTime

48. 48
Key Stakeholder Interview Questions
• Verify Issues/Impacts, Goals, Stakeholders.
• As you think about success on this project, tell
me, what kinds of things are important to you?
(Measures)
• Anything else?
• What is your priority for these things?
• What are the Performance Factors tradeoffs
(Quality/Scope, Time, Cost)?

49. 49
Key-Stakeholder Interview Tool

50. 50
• Identify:
•Key Stakeholders
•Stakeholders
• Conduct the Interview

51. 51
• Identify:
•Key Stakeholders
•Stakeholders
• Conduct the Interview

52. 52
Recap :
• Determined what the future looks like
• Developed your problems(s) and their impact statements
• Identified goals
• Identified who determines success
– Identified key stakeholders
– Identified stakeholders
• Had key stakeholder(s) identify success measure(s)

53. 53
Strengths
Weaknesses
Opportunities
Threats

54. 54
Total Risk Level – Weaknesses and Threats
•How can we avoid?
•If we can’t, what is the contingency plan to manage the
risk?
•Who’s responsible for managing this risk?

55. 55
Potential Opportunity Level –
Strengths and Opportunities
•Can we leverage potential opportunity?
•If we can, how do include it in the plan?
•Who’s responsible for managing this potential opportunity?

56. 56
Managing Risks and Potential Opportunities:
The Project Planning Tool

57. 57

58. 58

59. 59

60. © 2004 FranklinCovey.
6
Brainstorming Guidelines
• Write quickly without stopping.
• Record everything that comes to mind.
• Don’t judge your ideas.
• Don’t worry about grammar, punctuation, or
speling
• Don’t organize your ideas.
• Don’t write in complete sentences.
Plan Your Document
PG: Page 22
spelling.

61. 61
Plan Map: Major/Minor Pieces,
Owner

62. 62

63. 63

64. 64

65. 65
Did you identify a process improvement?
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL

66. • DEFINE: Problem.
• MEASURE: Performance.
• ANALYZE: Data.
• IMPROVE: Performance.
• CONTROL: Sustain Results.
American Society for Quality
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC

67. 67
DMAIC Funnel
DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL

68. 68
Seven Steps of Project Planning
STEP 1
Brainstorm and explore current Strengths, Weaknesses, Opportunities, and Threats
STEP 2
Break projects down into manageable pieces.
• First: Identify major pieces.
• Second: Add minor pieces (if necessary).
• Third: Add tasks/Owners.
STEP 3
Ensure Strengths and Opportunities are leveraged, Weaknesses and Threats mitigated.
STEP 4
Enter major and minor pieces and tasks sequentially into a Project Task Map.
STEP 5
Determine task durations.
STEP 6
Clarify task dependencies.
STEP 7
Determine resources and budget.

69. 69
Plan Map: Major/Minor Pieces

70. 70
Project Plan

71. 71
• Duration (DU) -The number of work periods –
hours, days, weeks, etc. (not including holidays or
other non-working periods) required to complete an
activity or other project element. Usually expressed
as workdays or workweeks.

72. 72
• Dependency - A logical relationship between two project activities, or
between a project activity and a milestone. The four possible types of
logical relationships are:
– Finish-to-start—the "from" activity must finish before the "to" activity can start.
– Finish-to-finish—the "from" activity must finish before the "to" activity can
finish.
– Start-to-start—the "from" activity must start before the "to" activity can start.
– Start-to-finish—the "from" activity must start before the "to" activity can finish.

73. 73
Project Plan – MS Project

74. 74

75. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC

76. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Complete Systems Thinking
•Develop a project charter
•Define customer data to collect
•Review historical data (if exists)
•Draft a high level map of the current state process

77. 77
Project Initiation/
Charter Tool
Front

78. 78
Project Initiation/
Charter Tool
Rear

79. 79
Activity:
Draft Project Initiation/Charter

80. Define
• Define customer data to collect
– What kind of data?
– Where would we look?
• Review historical data (if exists)
– What kind of data?
– Where would we look?
80
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC

81. Define
• Draft a high level map of the current state process
81
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC

82. 82
Process Mapping: Flowchart Example
Process Mapping: Swim Lane Example

83. Sticky-Note Process
RULES
• Tasks
– Square ()
– Begin with ACTION verb (i.e. Make pancakes).
• Milestones / Deliverables / Decisions
– Diamond ()
– End each with PASSIVE verb and form as question (i.e. Pancakes
made?).
• Time Ordered
– Sequential tasks are horizontally aligned to one another with those on
the left occurring before those on the right.
– Simultaneous tasks are vertically parallel to one another.
• Start With “As-Is” First
– What does the process look like today?

84. 84
• Brainstorm and map the
existing process using
sticky notes

85. 85
• Brainstorm and map the
existing process using
sticky notes

86. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Identify critical quality customer requirements
•Evaluate the existing measurement system
•Develop a measurement system if you don’t already
have one
•Observe the process
•Develop data collection plans
•Collect baseline data

87. Voice of Customer
• Customer Satisfaction Surveys
• Customer Interviews
• # of Complaints
• # of Returns
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Identify critical quality customer requirements

88. Voice of Customer Trends
• Flat square packaging unappealing
• Bottom sandwiches squished
• Don’t like diagonal slices
• ………..
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC

89. Four Principal Types of
Performance Measures
FUNCTION
WORKLOAD
MEASURE
EFFICIENCY
MEASURE
EFFECTIVENESS
MEASURE
PRODUCTIVITY
MEASURE
MEASURE OUTPUT OUTPUT / INPUT OUTPUT / STANDARD
EFFECTIVENESS /
EFFICIENCY
City Clerk Number of sets of city
council meeting minutes
prepared.
Employee-hours per set of
city council minutes
prepared.
Percentage of city council
minutes approved without
amendment.
Percentage of city council
minutes prepared within
seven days of the meeting
and approved without
amendment.
Library Total circulation. Circulation per library
employee.
Circulation per capita. Ratio of circulation per
capita to library costs per
capita.
Meter Repair Number of meters repaired. Cost per meter repair. Percentage of repaired meters
still functioning properly six
months later.
Cost per properly repaired
meter (i.e. total cost of all
meter repairs divided by
number of meters needing
no further repairs within six
months).
Human
Resources
Job applications received. Cost per job application
processed; cost per
vacancy filled.
Percentage of new
hires/promotions successfully
completing probation and
performing satisfactorily six
months later.
Cost per vacancy filled
successfully (i.e. employee
performing satisfactorily six
months later).

90. •Evaluate the existing measurement system
•Develop a measurement system if you don’t already have on
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC

91. FUNCTION
WORKLOAD
MEASURE
EFFICIENCY
MEASURE
EFFECTIVENESS
MEASURE
PRODUCTIVITY
MEASURE
MEASURE OUTPUT OUTPUT / INPUT OUTPUT / STANDARD
EFFECTIVENESS /
EFFICIENCY
Bread
Preparers
PB
Spreaders
Jelly
Spreaders
Assemblers
Slicers
Packaging
Shipping
Resupply
Clerks
Shift
Supervisor
Develop a measurement system if you don’t already have one

92. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Evaluate the existing measurement system
•Develop a measurement system if you don’t already
have one
•Observe the process
•Develop data collection plans
•Collect baseline data

93. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Identify and analyze process steps that add value
•Identify potential root causes for problem areas
•Target places where there is a lot of wasted time
•Prioritize root causes
•Map the future state process in depth

94. 94
•Identify and analyze process steps that add value
•Identify potential root causes for problem areas
•Target places where there is a lot of wasted time
•Prioritize root causes

95. 95
Process Mapping: Future State in Depth
95
START END

96. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Develop potential solutions
•Review best practices to see if any can be adapted
•Develop criteria for selecting solutions
•Develop and implement solution (Test)
•Implement solutions
•Confirm attainment of first project goals

97. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Develop/document potential solutions
Problem Potential Solution

98. DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL
DMAIC
Problem Potential Solution

99. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Review best practices to see if any can be
adapted
•Develop criteria for selecting solutions
•Develop and implement solution (Test)

100. •Take your stations
•One walkthrough the process
(Test)
•Adjust, if necessary

101. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Implement solutions
•Confirm attainment of first project
goals

102. •Fifteen Minutes for Comparison Measure
•Compare to Baseline

103. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Document the new, improved procedure
•Map the Ideal Process state
•Communicate procedures
•Set up continuous procedures for tracking and
reporting key process metrics
•Identify lessons learned

104. 104104
START
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Document the new, improved procedure
•Map the Ideal Process
state

105. 105105
START
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
DMAIC
•Communicate procedures

106. 106
ARE YOU LONELY?
HATE WORKING ON YOUR OWN?
HATE MAKING DECISIONS?
HOLD A
MEETING!
YOU CAN:
See People Create Flowcharts
Impress Your Colleagues Feel Important
ALL ON COMPANY TIME!
MEETINGS -
The Practical Alternative to Work
Communicate

107. 107
Communication - Meetings
• Resource Input/ Buy In
• Project Status
• Issues
• etc…

108. 108
Meeting Agenda
Developing Status Meeting Agendas
•Status Meetings and other meetings are a core tool for
managing a project
Sample Status Meeting Agenda:
1.Progress against the Project Schedule
•Review major accomplishments for past
week
•Identify goals for next week
2.Issues/Action Items Log management
•Review current issues to update and/or close as
appropriate
•Identify and record new issues, including owner and due
date

109. 109
Managing Status Meetings
• Project status meetings allow project team members and customers to stay informed of
project performance, problems, issues and expectations. The project manager is able to
gather the information during the status meeting and communicate the information to
project stakeholders in Status Reports.
• Weekly or bi-weekly Status Meetings can be conducted in person, via conference call, or a
“net” meeting.
• Facilitation tips:
1. Adhere to the agenda
2. Begin & end the meeting on time
3. Encourage discussion, but drive for decisions and issue resolution
4. Identify issue/action item takeaways, including owner and due date
5. Hold the project team accountable for their deliverables!
6. Escalate any issue to the sponsor or key stakeholders that can’t be resolved in a
status meeting
7. Thank meeting participants for their contributions
8. As soon as the meeting is complete, publish meeting minutes and distribute along
with the updated project schedule, issues/action item matrix, and any other
documents as appropriate
• Help the project by helping those who are presenting or reporting on a deliverable. Remind them in
advance of the meeting about their responsibility, and help with logistics as appropriate

110. 110
Meeting Planner Tool (Front)
• Resource
Input/ Buy In
• Project Status
• Issues
• etc…

111. 111
Meet Planner Tool (Back)

112. 112
Delegation ARC
• Authority
– The person doing the task must have the
authority to accomplish it, especially if the task
requires additional resources, reprioritization of
time, and so on.
• Responsibility
– Both parties share responsibility for the end
result.
• Commitment
– The person who accepts the task commits to
achieving the end result in the agreed-upon time
frame.

113. 113
Celebrate – Review Lessons Learned

114. 114
Project/ DMAIC
Evaluation
Tool

115. 115
Project/ DMAIC
Evaluation
Tool

116. 116
Influencing

117. 117
26

118. 118
To Review
DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL

119. 119
DMAIC Sample Steps
Define
•Develop
problem
description
and goals in a
project
charter
•Define
customer data
to collect
•Review
historical data
(if exists)
•Draft a high
level map of
the current
state process
•Set up a team
plan and
guidelines
Measure
•Identify
critical quality
customer
requirements
•Evaluate the
existing
measurement
system
•Develop a
measurement
system if you
don’t already
have one
•Observe the
process
•Develop data
collection
plans
•Collect
baseline data
Analyze
•Identify and
analyze
process steps
that add value
•Identify
potential root
causes for
problem areas
•Target places
where there is
a lot of
wasted time
•Prioritize
root causes
•Map the
future state
process in
depth
Improve
•Develop
potential
solutions
•Review best
practices to
see if any can
be adapted
•Develop
criteria for
selecting
solutions
•Develop and
implement
solution (Test)
•Implement
solutions
•Confirm
attainment of
first project
goals
Control
•Document the
new, improved
procedure
•Map the Ideal
Process state
•Communicate
procedures
•Set up continuous
procedures for
tracking and
reporting key
process metrics
•Identify lessons
learned

120. DEFINE
MEASURE
ANALYZEIMPROVE
CONTROL
120

121. 121

122. 122