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Processes and Performance
 

Processes and Performance

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  • Welcome to PlusForge Learning Media
  • At PlusForge Learning Media we
  • Look around you right now. Consider the objects in the room where you are. How did they arrive there? Who made them, and how was it done?Unless you produced them yourself nearly all of them passed through a number of different steps to get to you, and were handled by several different organisations. In a similar way the services that you enjoy, such as your bank account, or servicing for your motor vehicle are the result of a chain of different activities before they get to you.
  • All goods and services pass through some kind of process in order to get to you. By a process, we mean the complete chain of events that takes place when manufacturing any product or providing any service to a customer. Processes are part of a wider operation. An operation contains one or more processes that go towards meeting the needs of an end user – perhaps a customer, a patient, or somebody else that will gain a benefit from the end product.Whether you manufacture products, care for patients, or provide services to customers, you’ll know that efficient processes are fundamental to the profitability of your business.
  • This short training pack is about processes and operations. If you manage any kind of operation, you’ll sooner or later need to make it run faster, produce more, produce better, cost less, stop less, or waste less. So improving your process is a fundamental skill for the operations manager to have.But to improve it you have to see it, right? Do you have a really good, in depth knowledge of how your processes work? Do you know what they are? Who they serve? What happens before and after the product leaves your process? You don’t? You have come to the right place!
  • This presentation is all about processes. We aim to develop your understanding of what processes are, how to recognise and describe them, as well as your ability to compare the performance of one with another.A good understanding of how to relate simple concepts to everyday processes will allow you to see what happens in them, and that’s the first step in understanding lean.
  • A process always involves some starting materials, information, or other resources, and then some means of transforming them (which in some way adds value to them), to provide a product or service for an end user’s benefit. The things that go into a process at the beginning are termed Input Resources, and theproduct made or service performed are termed Outputs from the process. Feedback informationis used to control the operation by adjusting the quality and quantity of input resources, and this information is used to regulate the steps within the process to achieve desired outputs.
  • Some input resources are consumed in the process of creating goods or services, and others play a part in the creation process but are not used up. So, input resources can be either Transformed Resources or Transforming Resources.All processes will be made up of a combination of transforming and transformed resources. They act together to create an output product or service.
  • Here are some other examples of types of transformations that occur in common processes.Often materials, information and customers – are transformed by the same organisation. A motor vehicle service shop deal with the physical vehicle, vehicle service information and the comfort of customers all at the same time.
  • So, the main outputs from a process of course are the products and services that the owner of the process had intended should result from it.Processes are important, since nearly everything that you use every day has come from a set of input resources via a transformation process.
  • The main output from a process is often easy to determine. For example, the principal outputs of a dentist's surgery are patients with healthy teeth.Many transformation processes produce both goods and services. For example, a motor vehicle dealership provides a service in terms of helping you select, finance and care for a new motor vehicle, but is also the end of a very long process that manufactured and distributed the motor vehicle itself.
  • There will usually be one primary transformation process of your operation. In an ice cream factory, the primary operation is the production and distribution of ice cream products. What passes through your process, “things” or people? Many processes deal with both. External processes have external customers, but some processes can serve “internal” customers from within the organisation. Support processes enable the primary processes to function but are not in themselves part of the chain of events involved in the primary processes. An example of a support process would be the ice cream company’s finance or quality control department”.
  • It is useful to consider some other aspects that define what an operation really is. Of course they can differ in all sorts of ways but here are some of the most important differences.All these features of an operations are important because they define the nature of the processes within it. If we are going to improve a process we need to know a lot about it so we can understand how it functions currently.
  • An Input – Process - Output (IPO) diagram is a high level “snapshot” view of what a process looks like. It can be the first step in understanding how your own process works. It is a great place to start to get a quick view of the process you want to work on. Such diagrams are also used to agree the boundaries of a process that is to be improved before a project begins, or to explain a complicated process in a simple way.
  • Draw an “Input – Process – Output” diagram for an operation that you are familiar with.You can see the steps of the process outlines on the screen. Begin with the outputs from the process, both intended and unintended.Then identify some overall process steps, perhaps no more than ten.Working backwards through the sheet, identify and list the inputs to the process.
  • Your diagram should look something like this real example for an ice cream manufacturing process. If you have a diagram like the one here you have already completed one of the learning objectives of this section, and you can begin to use this method to map your processes right away.We will move on to a more powerful way to map processes later in the unit.
  • So a simple IPO diagram is good for quick “sketch maps” of processes, but to really capture all the right information, including the suppliers and customers of a process, we can use the SIPOC diagram.Here is an overview of when to use the process and what you will need.
  • The SIPOC tool is a useful first step for a process improvement project.Here are the steps that we recommend you to follow:
  • Gather all of your supplies and make sure you have ample wall space for the team to work. If you are doing this exercise alone, you can use download the worksheet from the link at the top of this page. But we’ll go ahead and assume you are doing this with a team of people…..
  • Review the SIPOC framework you have drawn on the whiteboard, worksheet, or flipchart.Test the team’s understanding of their own process, and encourage them to discuss and agree the final decisions.
  • Now complete the SIPOC chart with the group.
  • Complete the “Inputs” side of the SIPOC diagram:List the inputs into each step of the process, and the requirements of each input (in your view – the person doing the work).Review each step of the process to determine what is necessary to complete each one. Inputs can include materials, people, machines, systems, information, or anything else that is necessary for the process to run.
  • Now it is time to check your completed work.Review the completed SIPOC diagram and ask the group to check their work. Make sure you have captured an accurate record of the process, and resolved any areas of uncertainty.Verify all key components are completed/addressed.
  • Here is another attempt at a SIPOC diagram for an ice cream process. You can see the appropriate elements of the process, all laid out on one sheet.
  • Now lets look at the performance of an operation. Before we go any further, look at these three different types of operation. If you were a customer of the motor vehicle manufacturer, the hospital department or the parcel courier organisation what would be your expectations of performance?What do these operations have in common in terms of our expectations of performance?.Is it really possible to use the same measures of performance when they are all so different?
  • You can see here how each of the generic objectives has been made more specific to a particular operation, in this case a hospital outpatient’s department. You will see that the key thing about operations objectives is that they begin with a focus on the customer.All of the specific objectives here are things that the customer might find important.
  • How you set your objectives in the five areas will depend on the overall aims and strategy of the business.Your overall strategy as a business should influence the operations objectives of the business. Check that you have objectives in the five areas, and make your objectives specific to the operation.

Processes and Performance Processes and Performance Presentation Transcript

  • Processes and Performance Winning at lean using process understanding
  • PlusForge Learning Media WWW.PLUSFORGE.COM
  • People like you use PlusForge Learning Media……. “I want to know about modern process improvement techniques but without the jargon.” “I need to get more efficiency from my manufacturing processes.” “I want cost effective training delivered where and when I need it” “My team has so little time to take off-site training courses.”
  • What is a Process? Click to edit Master title styleLook around you right now. Consider the objects in the room whereyou are. How did they arrive there? What was involved in producing the items around you? Who made them? What about the services that you use every day? What is involved in getting the end product of that service to you?
  • Many things around you involve processes and operations Click to edit Master title style PROCESS The complete chain of events that takes place when manufacturing any product or providing any service to a customer. OPERATION One or more processes that go towards meeting the needs of an end user.
  • Know your process Click to edit Master title styleHow do you run a process that meetsthe exacting needs of the customer,yet costs less, runs fasterwith less waste and all at thesame time? How well do you know what actually happens in your processes? Or are you trying to improve a process that you don’t fully understand?
  • Learning ObjectivesUnderstanding your process is the first step in improving it, and that’s afundamental skill you should have.By the end of this presentation you should be able to: Relate the terms process, input resources, outputs and operations to different manufacturing and services organisations. Use a framework for depicting and analysing processes called the “Transformation Model”. Use a tool called a S-I-P-O-C diagram to quickly capture the essential features of a process. Determine the performance of a process using a tool called the performance diagraph. . ...so let’s begin on your journey to your lean operation!
  • Transformation Processes Click to edit Master title styleAny process takes input resources and transforms them into products orservices that somebody needs by a sequence of process steps. The processto “add value” to the input resources we call a transformation process. Adds VALUE to INPUT RESOURCES to create OUTPUT INPUT PRODUCTS RESOURCES OUTPUT AND PRODUCTS SERVICES AND SERVICES By looking at the quality of the resulting product or service we can modify the quality, quantity and source of the input resources. We call this information flow feedback.
  • Processes can be found everywhere Click to edit Master title styleAll operations, if you look hard enough, contain a transformation process. INPUT PROCESS OUTPUT An ice cream INGREDIENTS and MABUFACTURE manufacturing process ICE CREAM PRODUCTS PROCESS takes ingredients and FACILITIES facilities and produces finished ice cream products. SHOP DISPLAY AND A shop selling the CUSTOMERS WITH SALES PROCESS WITHOUT ICE CUSTOMERS ICE CREAM same ice cream also CREAM has a process with inputs and outputs.
  • Types of Input Resources Click to edit Master title styleThe three main types of input resources that may be transformed in aprocess are: o Materials that become transformed into finished goods or used in providing services. o Information that is used, passed on, or turned into information products (like television programmes, or this e-Learning unit). o Human – the people who are involved in or pass through a process in some way expecting to receive a benefit from it. Human Material Data PROCESS OUTPUT Feedback
  • Types of Input Resources Click to edit Master title styleIn some processes there may be other inputs that may not be quite soobvious. The Human electricity Energy required to Material Human power the Material freezers. Data Data PROCESS OUTPUT Energy Energy Know-How Facility Knowledge Know-How of the Ice Know How Facility cream Feedback recipes. The factory By understanding what the inputs to a Physical buildings and equipment used process are we know some of the things we Facilities to make the ice need to change to make the process cream. cheaper, faster, or more efficient.
  • Transformed and Transforming Resources Click to edit Master title styleIt is useful to be able to distinguish between two main types of inputresources. Transformed resources Transforming resources Those that undergo some type Those that are used to of change in the operation to perform the change process produce the goods or services. on the transformed resources. Machinery Factory PROCESS PROCESS Raw Materials Operators Customers Service Patients Workers Information Energy FacilitiesAt any time a process will have transformed resources which are workedon by transforming resources.
  • The Process of Transformation Click to edit Master title style The inputs to a process will always be acted on by a number of process steps. We use the term transformation to describe this. The process of transformation simply means that the transformed input resources have undergone some type of change. INPUT PROCESS OUTPUT Feedback All manufacturing processes involve changing the form of something (materials or components) into something useful to the customer.
  • Types of Transformation Process Click to edit Master title styleHere are some examples of different types of transformation: Type Transformation Process Form A manufacturing process transforming materials into finished goods. Ownership An estate agent office transferring ownership of a house from one person to another. Location A shipping office moving a shipment from one location to another. Storage A library taking in returned books and keeping them up to date until they are re-loaned. Purpose A recycling centre transforming waste products into raw materials that can be reused. Physiology A hospital outpatients department treating sick patients. Psychology A natural therapy practice transforming stressed patients into relaxed ones.
  • Outputs from a process Click to edit Master title styleThe main outputs from a process are the products or services that wereintended. These can be physical goods, documents, knowledge, a personshealth status, or even an altered state of mind!! An item of new clothing A food item A jet engine INPUT PROCESS OUTPUT A legal contract A tap dancing diploma! A healthier pet! A good time at the Feedback cinema!In fact pretty much everything is the output of some type of process.We challenge you to think of anything, yes anything! that is not the endresult of some input resources and a transformation process.
  • Outputs from a Process Click to edit Master title style Patient’s with unhealthy teeth are transformed into patients with Motor car servicing process healthy teeth. transforms poorly performing motor cars into well performing motor cars. Some processes have one primary process output, whereas others may have more than one output. Some outputs are tangible, while others are less so.
  • Secondary Outputs Click to edit Master title style Processes sometimes produce outputs that were not the ones desired by the customer. It is important to recognise these. By-Products Outputs that result from the process that are often PROCESS OUTPUTS useful for purposes other INPUTS than the intended one. Feedback Waste products Waste products and by-products often occupy a lot Outputs that result from of the operations managers time. Either in trying to the process that are less desirable than the minimise them or find other uses for them. intended ones.
  • How Operations Differ Click to edit Master title style It is useful to know the ways in which operations differ from one another. What passes through your process, “things” or There will usually be one primary people? Many processes transformation process of your deal with both. Even operation. In an ice cream factory, Primary though ice cream the primary operation is the Processes manufacturer’s make and production and distribution of ice distribute ice cream cream products. products, they would also have customers to provide a direct service to if they also sold product at their own retail outlets Internal or Service or TYPES External OF PROCESS Production Tasks Tasks External processes haveexternal customers, but someprocesses can serve “internal” Support Support processes enable the primary customers from within the Processes processes to function but are not in organisation. themselves part of the chain of events involved in the primary processes. An An example of an internal example of a support process would be process would be the steps the ice cream company’s finance or involved in hiring new staff. quality control department”.
  • How Operations Differ Click to edit Master title styleImproving a process first means understanding it fully.... Scale of Operations. Motor manufacturers such as Ford or Toyota have complex operations with many plants. Bristol Motor Company in the UK produce custom made motor vehicles to individual order from a single factory. Number of different Airline operator EasyJet, in the United services/products Kingdom, specialise in standardised low cost air produced. travel without the extras. British Airways have a range of different services for Standard, First and Business Class Customers. Where the customer Hewlett Packard build a limited number of is involved in the models of computers to specific market needs. process. Dell allow the customer to make design decisions by creating any specification using a wide range of standard components. And how it differs from other processes.....
  • Micro and Macro Processes Click to edit Master title style The overall transformation process can be described as a macro process within the macro operation, and the more detailed transformations within this macro operation are micro processes MACRO PROCESS ICE CREAM PROCESS Micro Processes INPUTS BLEND CONDITION FREEZING FILL/FORM OUTPUTS RAW PACKING & MATERIALS FREEZE Micro Processes CONDITIONING Many processes when viewed at high STEP ONE STEP TWO STEP THREE level are made up of other smaller processes. We need to understand where to draw the boundaries of the processes we need to improve.
  • Primary and Support Processes Click to edit Master title style Processes that work on the transformed resources that eventually get to the customer are called primary processes. The sequence of events involved in mixing ingredients, and forming and freezing them in an ice cream factory is an example of a primary process. PRIMARY PROCESSES OPERATIONAL OPERATIONAL OPERATIONAL INPUT RESOURCES OUTPUTS PROCESS PROCESS PROCESS FINANCE SUPPORT PROCESS ENGINEERING SUPPORT PROCESS HUMAN RESOURCES SUPPORT PROCESS SECONDARY PROCESSES This understanding allows us to focus on the right part of the operation, and in turn improves the process that contribute best to the business operation.
  • The Simple Input – Process – Output Diagram Click to edit Master title styleA useful tool to learn is the Input – Process - Output (IPO) diagram - ahigh level “snapshot” view of what a process looks like. All of the outputThe diagram simply lists all products or services areof the transformed and listed on the right handtransforming input side.resources on one side of thechart Then the process steps are listed or drawn in the middle. .
  • Try an I-P-O Diagram Yourself Click to edit Master title styleYou can make your own template like the one here. Alternativelydownload a template from www.plusforge.com. The main outputs of 1 an operation are Classify the Input Resources. easier to determine. 4 Which ones are transforming resources, and which ones are transformed? List the Input Draw or list the high level 3 Resources. 2 steps in the process in the middle section.
  • Completed I-P–O Chart Click to edit Master title styleHow did you get on? How does your diagram compare to the one shown here?
  • Suppliers and Customers Click to edit Master title styleSometimes we need to look beyond the boundary of our own business orenvironment and consider the inputs that come from outside. We shouldalso consider our customers. How do they experience the end results ofthe process? OPERATIONS ENVIRONMENT CUSTOMERS SUPPLIERS OUTPUTS PROCESS INPUTS Most inputs to a process Some outputs from the process originate from external will go to internal customerssuppliers beyond the operation. and some may go to external ones.
  • The SIPOC Diagram Click to edit Master title styleWe can extend the IPO process to become a SIPOC diagram. So for eachinput we list its origins, and for each output its customer. Suppliers Inputs Process Outputs Customer •The suppliers •The inputs are •The process is •The outputs are •The customers are the the information the steps or the products or are the individuals, or materials tasks that services that individuals, depa departments, or provided by the transform the result from the rtments, or organisations suppliers. inputs into process, and the organisations that provide the outputs: the important that receive the materials, •Inputs are final products or requirements outputs, the information, or transformed, services. that the products or other consumed, or customers need. services, genera transformed otherwise used ted by the resources that by the process. process. are worked on in the process. The end result of a process may be a customer within or outside the organisation, and as we have seen is likely to be part of a wider process.
  • Process Feedback Click to edit Master title styleJust like before, feedback information is used to control the process, byadjusting the timing, quantity, quality or cost of input resources andregulating the processes that are used to achieve desired outputs. OPERATIONS ENVIRONMENT CUSTOMERS SUPPLIERS OUTPUTS PROCESS INPUTS Feedback to the Feedback from Suppliers from the Customers to the Operation Operation
  • The SIPOC Diagram Click to edit Master title styleSo a SIPOC diagram captures the internal and external inputs to aprocess, as well as the process steps. Here are the steps involved increating one...... Inputs Customers What is it used for? Process Outputs o Quickly and easily capture the current or "as is" state of Inputs the processes in question. o Allows the team to review all the processes in a way that they can easily see what is currently understood or unknown in a process. Customers o Define the boundaries of a process before beginning a process mapping exercise. Suppliers Outputs Process What you will need o A white board, wall paper, or clear undisturbed wall space. o Sticky Notes in various shapes. o Coloured pens or markers.
  • SIPOC Diagram - Steps in the Process Click to edit Master title style Prepare for the exercise by briefing those involved and by 1 explaining the SIPOC process to the group members. Agree the scope and limitations of the study, 2 especially the starting and ending events for the process. Begin by drawing in the process steps at 3 high level, using 10 to 20 steps of your process. Discuss the output requirements of 4 the process and determine who your customers are. Add these to the chart. Brainstorm the inputs to each step of 5 the process. Add the suppliers for each of the inputs.
  • SIPOC Diagram – Step 1 Click to edit Master title style Gather all of your supplies and make sure you have ample wall space 1 for the team to work. o Hang your paper on the wall and write the words "Suppliers", "Inputs", "Process", "Outputs", and "Customers" along the top of the paper, leaving room below for plenty of notes. o Give each team member a stack of sticky notes and some magic markers. o Provide participants a brief overview of the SIPOC process, purpose, and templates. Do this even with a knowledgeable group to bring all members in the group to the same level.Your chart should look like the one below……. Next step……………
  • SIPOC Diagram – Step 2 Click to edit Master title style Review the SIPOC framework you have drawn on the whiteboard, 2 worksheet, or flipchart. o Add the name of the process, and the name of the “owner” of the process. o Determine the scope of the process you are studying. Agree the process start trigger, process step, or event. o The process will also end somewhere. Agree the process end trigger, process step or event. o Agree and list separately any known process assumptions or constraints. Next step……………
  • SIPOC Diagram – Step 3 Now complete the SIPOC chart with the group. 3 o Resist the urge to start on the left of your chart with your suppliers. o Instead, start with the process first. Use post-it notes to create a high-level list of steps, sticking to no more than 5-10 steps. o List the outputs of each step of the process. List all of the key requirements of each output from the customer’s view. Outputs of the process dont just include the product or service you are delivering, and not all are desirable. They can include paperwork, approvals, scrap, and just about anything else you can think of that results from your process. o Now add the names of the customers (if there are more than one). Do they have the same requirements? Think about where each output goes and that you know who the customer is for your process. Next step……………
  • SIPOC Diagram – Step 4 Complete the “Inputs” side of the SIPOC diagram: 4 o List the inputs into each step of the process, and the requirements of each input (in your view – the person doing the work). Review each step of the process to determine what is necessary to complete each one. o Inputs can include materials, people, machines, systems, information, or anything else that is necessary for the process. o Take some extra time with the inputs and write down everything you can think of. o In this final step, list all of the suppliers who provide your inputs. These might include the company that supplies you, the team that performed previous steps, or an internal department that passes a product or customer to you. o List the suppliers on the extreme left side of the chart. Next step……………
  • SIPOC Diagram – Step 5 Click to edit Master title style Now it is time to check your completed work. 5 o Review the completed SIPOC diagram and ask the group to check their work. o Make sure you have captured an accurate record of the process, and resolved any areas of uncertainty. o Verify all key components are completed/addressed. We can see a completed chart on the next page…..
  • Ice cream factory SIPOC Diagram Click to edit Master title styleYou can see how the SIPOC diagram has been used to capture the criticalelements of the process.
  • Defining the Performance of an Operation Motor Car Manufacturer How can we define the performance of an operation? Hospital Parcel Courier Radiography Service Department
  • Five operations objectives The same five measures........ Quality How the product or service conforms to specificationsThe time between Speed Cost customer requesting the Cost of making theproduct or service product or operating and getting it the service Flexibility Dependability How quickly the product or service can How reliably the be adapted to changing product or service is needs of the customer provided. Can relate to any operation.
  • The operations Performance Diagraph We can therefore compare the performance of one operation with another. Or show the performance of one operation over a period of time. The further out the performance Quality polygon crosses each of the axes the better the performance in that objective. HIGH Speed Cost LOW The polygon shows the profile of performance for the operation on each of the five objectives. Flexibility DependabilityWe can use this information to establish some objectives for the operation inway that the people who work there can understand.
  • Making operations objectives specific to you Click to edit Master title style Generic Specific Operations Objective Objective Quality Deliver good standard of treatment. Ensure that staff are courteous and expert. Speed Minimum time between appointment and treatment. Minimum time for test results.Dependability Minimum cancellations. Appointments start on time. Flexibility Offer newest treatments. Appointments process is flexible. Copes with different levels of demand without error. Cost Cost of running hospital facilities and meeting staff costs supports other We can now make these objectives. objectives specific to our own operation.........
  • Setting operations objectives How you set your objectives in the five areas will depend on the overall aims and strategy of the business. The overall strategy of Objectives of the your business is governed Operation by how it competes with How the Business Quality Products or rival businesses. Competes in the Market Services Place o What is the firm in the Quick Delivery of business of doing? Product or Service Overall o What does the firm do better than anyone Objectives else? Dependable Product of the o What wins the order? or Service Business o What qualifies an item to be considered for Appropriate Cost purchase? o How will the firm Flexible Range of compete? Products or Services What you set for your objectives in each of the five areas will be governed in turn by your overall business strategy.
  • What we have covered in this section Click to edit Master title styleWe have covered quite a lot in this first section, in order to give you thefoundations for understanding any process…… What a Process Is. The “Transformation Model” The Input Process Output Chart The S-I-P-O-C Chart Performance Diagpraphs Operations ObjectivesHow complete is your understanding of these areas?. You might want togo back and review any areas you are not sure about.
  • If you liked this...... Click to edit Master title style Get our new e-Learning title “Lean Operations”  Understanding processes and performance.  Lean operations, value and waste.  Process mapping for lean operations.  Developing customer focus.  Implementing lean operations. Easy-to-use training for lean operations professionals. • Five modules containing expert lean advice. • Real world examples of lean operations in use. • 5 Memory jogger “mind-maps” summarise each module. • Quizzes and activities to check your understanding. • 10 practical worksheets you can use right away. Visit us at www. plusforge.com