Intro To CPI 8 Hours

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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.

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Intro To CPI 8 Hours

  1. 1. Presented by: Intro to Continuous Process Improvement, Systems Thinking A Practical Approach Bill Howlett
  2. 2. Introductions • Name • Department • Responsibilities • Expectations for this class
  3. 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. 4 Introduction to Continuous Process Improvement (CPI) DEFINE MEASURE ANALYZEIMPROVE CONTROL
  5. 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. 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. 7. 1. Bread Prep 2. PB Spread 3. Jelly Spread 4. Assembly 5. Slicin g 6. Packaging 7. ShippingResupply
  8. 8. 8
  9. 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. 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. 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. 12. •Take your stations •One walkthrough the process •Fifteen Minutes for Baseline Measure
  13. 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. 14. 1. Bread Prep 2. PB Spread 3. Jelly Spread 4. Assembly 5. Slicin g 6. Packaging 7. ShippingResupply
  15. 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. 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. 17 Business Issues/Problems 20% People 80% Process Related Rummler & Brache's (1995)
  18. 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. 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. 20 A Successful Project = Expectations Met
  21. 21. 21 Why? What? How? Processes Projects Strategic Planning Pyramid
  22. 22. 22 Agenda DEFINE MEASURE ANALYZEIMPROVE CONTROL
  23. 23. 23 Analytical and Systems Thinking
  24. 24. 24 Chaos and Complexity
  25. 25. 25
  26. 26. 26 Elegant Simplicity
  27. 27. 27 ‘Big’ View
  28. 28. 28 ‘Complete’ View
  29. 29. 29 City of Henderson Systems Thinking Model STRATEGIC/SYSTEMS THINKING “From Complexity to Simplicity”
  30. 30. 30 COH Systems Thinking Template
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  33. 33. 33
  34. 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. 35
  36. 36. 36
  37. 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
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  41. 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. 42
  43. 43. 43 Success Measures
  44. 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. 45 Performance Factors/Triple Constraint • Quality/scope • Time • Cost
  46. 46. 46 Prioritize Performance Factors Good CheapFast
  47. 47. 47 Tradeoffs Quality/ Scope CostTime
  48. 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. 49 Key-Stakeholder Interview Tool
  50. 50. 50 • Identify: •Key Stakeholders •Stakeholders • Conduct the Interview
  51. 51. 51 • Identify: •Key Stakeholders •Stakeholders • Conduct the Interview
  52. 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. 53 Strengths Weaknesses Opportunities Threats
  54. 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. 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. 56 Managing Risks and Potential Opportunities: The Project Planning Tool
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  60. 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. 61 Plan Map: Major/Minor Pieces, Owner
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  64. 64. 64
  65. 65. 65 Did you identify a process improvement? DEFINE MEASURE ANALYZEIMPROVE CONTROL
  66. 66. • DEFINE: Problem. • MEASURE: Performance. • ANALYZE: Data. • IMPROVE: Performance. • CONTROL: Sustain Results. American Society for Quality DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC
  67. 67. 67 DMAIC Funnel DEFINE MEASURE ANALYZE IMPROVE CONTROL
  68. 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. 69 Plan Map: Major/Minor Pieces
  70. 70. 70 Project Plan
  71. 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. 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. 73 Project Plan – MS Project
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  75. 75. DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC
  76. 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. 77 Project Initiation/ Charter Tool Front
  78. 78. 78 Project Initiation/ Charter Tool Rear
  79. 79. 79 Activity: Draft Project Initiation/Charter
  80. 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. 81. Define • Draft a high level map of the current state process 81 DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC
  82. 82. 82 Process Mapping: Flowchart Example Process Mapping: Swim Lane Example
  83. 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. 84 • Brainstorm and map the existing process using sticky notes
  85. 85. 85 • Brainstorm and map the existing process using sticky notes
  86. 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. 87. Voice of Customer • Customer Satisfaction Surveys • Customer Interviews • # of Complaints • # of Returns DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC •Identify critical quality customer requirements
  88. 88. Voice of Customer Trends • Flat square packaging unappealing • Bottom sandwiches squished • Don’t like diagonal slices • ……….. DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC
  89. 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. 90. •Evaluate the existing measurement system •Develop a measurement system if you don’t already have on DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC
  91. 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. 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. 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. 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. 95 Process Mapping: Future State in Depth 95 START END
  96. 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. 97. DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC •Develop/document potential solutions Problem Potential Solution
  98. 98. DEFINE MEASURE ANALYZE IMPROVE CONTROL DMAIC Problem Potential Solution
  99. 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. 100. •Take your stations •One walkthrough the process (Test) •Adjust, if necessary
  101. 101. DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC •Implement solutions •Confirm attainment of first project goals
  102. 102. •Fifteen Minutes for Comparison Measure •Compare to Baseline
  103. 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. 104. 104104 START DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC •Document the new, improved procedure •Map the Ideal Process state
  105. 105. 105105 START DEFINE MEASURE ANALYZEIMPROVE CONTROL DMAIC •Communicate procedures
  106. 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. 107 Communication - Meetings • Resource Input/ Buy In • Project Status • Issues • etc…
  108. 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. 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. 110 Meeting Planner Tool (Front) • Resource Input/ Buy In • Project Status • Issues • etc…
  111. 111. 111 Meet Planner Tool (Back)
  112. 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. 113 Celebrate – Review Lessons Learned
  114. 114. 114 Project/ DMAIC Evaluation Tool
  115. 115. 115 Project/ DMAIC Evaluation Tool
  116. 116. 116 Influencing
  117. 117. 117 26
  118. 118. 118 To Review DEFINE MEASURE ANALYZEIMPROVE CONTROL
  119. 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. 120. DEFINE MEASURE ANALYZEIMPROVE CONTROL 120
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