25. Mapping 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)
26. Current State Value Stream Map
Service Delivery – Call to Cash
Source Refrigeration & HVAC, Inc.
Current State Value Stream Map
Serv ice Deliv ery
Created February 11, 2009
CONFIDENTIAL
Customer
Great
Plains
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
40%
Receive
customer call
Select &
Dispatch Tech
Call Center
Dispatcher &
Service
Manager
5 m.
120 m.
PT = 2 mins.
%C&A = 60%
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
PT = 15 mins.
%C&A = 85%
Batch: 1x/day
Billing Admin
6 days
PT = 25 mins.
%C&A = 75%
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
48
hours
10 minutes
A/P Admin
PT = 10 mins.
%C&A = 90%
Batch: 1x/day
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
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
RFPY = 1.1%
29. Future State Value Stream Map
Service Delivery – Call to Cash
Future State Value Stream Map
Source Refrigeration & HVAC, Inc.
Service Delivery
T&M Target example, refrigeration component repair, non-peak season (35 w ork orders per day)
Created February 13, 2009
CONFIDENTIAL
Create Source
preferred T & C's
Explore flat rate
pricing
Customer
%C&A = 99%
Establish
parameters for time
& parts by
service type
EDI Interf ace
Create EDI
Interface w/
Customers
Create Tech
performance
report
Create EDI
Interface w/
Verisae
Supplier
Great
Plains
No EDI
Special Order
Part
Improve Tech
Training; Create
Sub-levels
Improve Tech
Onboarding
Tech
Create Tech
Support Center
Implement
GPS
Contact Tech
Support As
Needed
Install kanban
on trucks
?
Centralize
Dispatch
10%
Assess
Problem
Dispatcher
120 mins.
PT = 7 mins.
%C&A = 85%
2 hrs.
Make Repair;
Complete call
on handheld
Tech
PT = 75 mins.
%C&A = 90%
PT = 0 mins.
`
24 hrs.
PT = 120 mins.
%C&A = 75%
2 hrs.
1.25 hrs.
Create stnd work
for invoicing
PT = 5 mins.
%C&A = 99%
1x daily
Billing Admin
Compare
invoice
register to
invoices and
mail invoices
4 hrs.
PT = 25 mins.
%C&A = 95%
24 hrs.
2 hrs.
Create
Customer Billing
Teams
Review W.O.,
payroll, AP &
invoice; post
immediately
Tech
2 hrs.
1.25 hrs.
1.25 hrs.
Create invoice
exception report
Get Part from
Truck
75 mins.
1.25 hrs.
0.117 hrs.
?
Enter data
into Verisae
and Excel
from Daily
Report
Billing Admin
Standardize
Truck Inventory
PT = 75 mins.
%C&A = 95%
Tech
75 mins.
Separate labor
& payroll
Pick up Part
at Parts Store
Tech
Tech
Create W.O.
Dispatch Tech
Excel
Spreadsheet
(Customer)
Verisae
(Customer)
Billing Admin
Receive
Cash; Post
Payment
Collections
60 days
PT = 5 mins.
%C&A = 99%
1x daily
4 hrs.
0.417 hrs.
480 hrs.
0.0833 hrs.
Lead Time = 520 hrs.
Process Time = 5.12 hrs.
Acronym Key
%C&A %Complete and Accurate
AR
Activity Ratio
FTE
Full Time Equivalent
LT
Lead Time
PT
Process Time
RFPY
Rolled First Pass Yield
Lead Time to invoice = 34.5 hrs
NOTE: Business hours
Process Time = 5.1 hrs.
Activity Ratio = 14.8%
RFPY = 45.4%
Lead time to cash = 67 days
35. Root Cause Analysis: 4 Key Tools
Cause-and-Effect Diagram
5 Why’s
People
Material / Info
Lack of experience
Budgets
Submitted Late
Forecast in other system
Manual vs. PC
System avail.
Quality issue requiring
rework
Staffing/absenteeism
Order entry error
Changing customer
requirements w/ no
adjustment to expected
delivery
Equipment failure
Tally
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No standard work
Email vs. FedEx
Check Sheets Quantify Occurrences
Material shortage
Changing schedule
Input rec’d late
No sense of import
Machine
Reason
No stnd spread sheet
Time availability
Why?
Why?
Why?
Why?
Why?
Method
No milestones
$ vs. units
Measurement
Weather delays
Dispersed sales force
Environment
37. Five Why’s Example
Problem: Report is taking too much of an employee’s time;
team questions whether the report is needed
1. Why is the error report being prepared?
My supervisor told me to.
2. Supervisor – Why are you asking for this report?
One of the standard reports to be prepared per my
predecessor – I have yet to determine its usage.
3. Predecessor – Why did you initiate this report?
Report was required in the past because personnel in
order entry were making data input errors.
4. Data entry – Why were orders being input with errors?
Orders received via fax were blurry and hard to read.
5. Data entry - Why were the fax orders hard to read?
Fax machine was old and of low quality. It was replaced
10 months ago and errors no longer are occurring.
38. Problem Analysis Tree
Problem: Documents are not being translated well and on time
In physical transit
Lost docs*
No tracking
In cyberspace
Large batches
In in-basket
Confusing
formats
In out-basket
Poor
original
Late or poorly
translated
documents
Translator doesn’t
understand original
Translation
problems**
Translator
understands
original, but still
poor translation
Faxed / poor
resolution
Random
vocabulary
Translator
skills
Selection
Lack of training
Wrong
technical
vocabulary
Training
No standard
Poor editing
Poorly
expressed
* Lost and found = 40%; lost & never found = 5%; stuck in system = 55%
** Rework on over 50% of documents
Unclear
expectations
Uneven
workload
41. Call back cause-and-effect diagram.igx
Cause and Effect Diagram – Call Backs
Method
Material
People
Tech ambition
Wrong tech sent
Bad part
Tech training
No criteria for calling for help
Wrong part
Not reaching out for help
No help available
Rushing
Substitute part
Call Backs
Inherent problem in case
Repeat failure
Machine
Poor data
Lack of defined metrics
Measurement
Unplanned conditions
Equipment variety
Environment
Circled items indicate likely highest volume root causes
52. Error Proofing Priorities
Goals:
Make it impossible to make the error.
Make it harder to make the error.
Make it obvious the error has occurred.
Make the system robust so it tolerates
the error.
52
58. Mistake Proofing
Goals:
First, avoid making errors.
Second, avoid passing errors to downstream internal
customer.
Third, avoid passing errors to external customer.
Design robust processes with:
No errors
No “impact errors” if errors occur at all
We have a tendency to be less diligent when
we know a downstream inspection will occur.
58
63. Error-Proofing
Help people do the right thing; prevent them from doing the
wrong thing (e.g. automation, physical restrictions,
warnings)
Create easy standard work tools (e.g. checklists)
Provide adequate training & retraining
Visual work instructions
See one, do one, teach one
Send work back upstream for completion and/or correction
and follow-up with add’l training
Have customer requirements discussions with upstream
suppliers
63
65. Reasons for Errors
Lack of training
Lack of standardization
Overly complicated processes
Time delays between input and output
Multi-tasking
Interruptions
Rushing
Ambiguous information
Unclear instruction
Poor handwriting
Blurry images (technology-related)
65