Recorded webinar: http://slidesha.re/LRBvC4
Subscribe: http://www.ksmartin.com/subscribe
To purchase the book: http://bit.ly/MBPMbk
Metrics-Based Process Mapping is a highly effective tool for improving office, service, and knowledge work processes.
2. Welcome!
īļTo new friends and old across the U.S.
(28 states)
īļTo our global friends in:
ī
ī
ī
ī
ī
ī
ī
Australia
Brazil
Canada
Hong Kong
Romania
The Netherlands
Uruguay
Š 2011 Karen Martin & Associates, LLC
2
4. Announcements
īļ Final webinars of 2011
ī
ī
A3 Problem-Solving â Tuesday, Dec 6 (Part 1 of 2)
A3 Problem-Solving â Wednesday, Dec 7 (Part 2 of 2)
īļ Learning needs for Jan-Mar 2012? Email: ksm@ksmartin.com
īļ Resources & tips
ī
ī
Newsletter â www.ksmartin.com/subscribe
Social Media
ī§
ī§
ī§
ī§
ī§
www.facebook.com/karenmartinassoc
www.twitter.com/karenmartinopex
www.linkedin.com/in/karenmartinassoc
www.slideshare.net/karenmartin2
www.vimeo.com/karenmartinassoc - Recorded webinars & 3-part MBPM series
īļ When you leave the webinar, please click âFile â Exitâ vs. exiting
your browser.
Š 2011 Karen Martin & Associates, LLC
4
5. Two Ways to Listen
Computer speakers
Telephone
OR
If the control panel
indicates that youâre in
âlisten onlyâ mode, you
havenât entered your
audio pin.
Š 2011 Karen Martin & Associates, LLC
5
6. Two Ways to Ask Questions
1. Raise your hand â you
will be un-muted and
can ask verbally.
2. Type your question
into the question log.
Š 2011 Karen Martin & Associates, LLC
6
7. Learning Objectives
īļParticipants will learn:
ī
ī
ī
Key time and quality metrics for effective improvement
in office, service, and knowledge work settings.
Step-by-step process for creating current and future
state maps.
How to use MBPM to document the new standard work
and monitor process performance.
Š 2011 Karen Martin & Associates, LLC
7
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
8
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%
2Â hours
75Â minutes
Dispatcher
Tech
120 m.
1.25Â hours
90Â minutes
Make Repair;
Call to raise
the NTE
Get Part from
Truck
75 m.
1.5
 hours
5Â minutes
?%
Tech
90 m.
2Â hours
2Â minutes
Assess
Problem
PT = 75 mins.
%C&A = 95%
5Â 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
10Â minutes
Posting Admin
240 mins.
PT = 3 mins.
%C&A = 98%
Batch: 1x/day
640 m.
Account
Manager
3Â 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
4Â hours
25Â 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
4Â hours
120Â minutes
Service
Manager
Process A/P
Receive
Cash; Post
Payment
Collections
60 days
PT = 4 mins.
%C&A = 95%
Batch: 1x/week
480
 hours
2Â hours
10Â minutes
4Â minutes
Lead Time = 572 hours
Process Time = 349 minutes
Acronym Key
%C&A %Complete and Accurate
AR
1 â Information Flow
2 â Material Flow (physical or electronic)
3 â 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?
10
12. What is a Metrics-Based
Process Map?
īļA visual process analysis tool, which integrates:
ī
ī
Functional orientation of traditional swim lane
process maps
Key Lean time and quality metrics
īļHighlights the disconnects / wastes / delays in a
process.
ī
Keeps the improvement focus properly directed
īļServes as standard work for workforce training
and process monitoring.
Š 2011 Karen Martin & Associates, LLC
12
14. When is the MBPM Used?
īļFor current state analysis and future state
design during an office/service-based
Kaizen Event.
ī
For complex processes, it consumes 1-2 days
īļAs a standalone improvement tool.
Š 2011 Karen Martin & Associates, LLC
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15. Mapping Preparation
(if not part of a Kaizen Event)
īļ Select a skilled, objective facilitator.
īļ Scope the process being mapped
ī
ī
Opt for narrow current state focus so you can explore deeply and minimize
variation.
No decision trees in MBPM (interferes w/ timeline); loopbacks are linearized.
īļ Select a cross-functional team of no more than 10.
ī
ī
ī
ī
ī
Process workers (30-50% of the team)
Upstream suppliers
Downstream customers
Subject matter experts (e.g. I.T., legal, etc.)
Outside eyes
īļ Draw 6â wide swim lanes on the 36â paper.
ī
ī
ī
Pre-drawn lines â template available:
www.ksmartin.com/files/tools/MBPM_swimlanes.pdf
Chalk line
Manually draw
Š 2011 Karen Martin & Associates, LLC
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16. Supplies Needed
īļ36â wide white paper
īļScissors & masking tape
īļ3 x 6â post-its (multiple colors)
īļ2 x 2â post-its (green and yellow)
īļSharpie markers
īļA red or other brightly colored marker
īļCalculators
Š 2011 Karen Martin & Associates, LLC
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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 6â post-its; place sequentially.
Step Step
1
2
Ticking clock
Parallel Steps
(concurrent
activities)
20. Document the Current State
īļStep 3 â Document all activities/steps
on 3 x 6â post-its.
ī
ī
ī
ī
ī
Use verb/noun format; clear and concise.
Include function.
Separate tasks that have different quality
outputs or timeframes; combine tasks
otherwise.
Place post-its in appropriate swim lane,
sequentially (according to the ticking clock).
Be âthe thing.â
Š 2011 Karen Martin & Associates, LLC
20
21. Step 3: Document task & function
Activity
(Verb / Noun)
Function that
performs the
task
22. Step 4: Number the Activities
Step #
Note: For parallel
activities, use
alpha modifiers -e.g. 8A, 8B, etc.
23. Step 5: Add step-specific information
Barriers to Flow
(if relevant)
# Staff
(if relevant)
âĸ Batching
âĸ Shared
resources
âĸ System
downtime
âĸ Etc.
% Complete &
Accurate
PT (Process Time)
LT (Lead Time)
24. Key Lean Metrics: Time
īļProcess time (PT)
ī
ī
ī
The time it takes to actually perform the work, if one is
able to work on it uninterrupted
Includes task-specific doing, talking, and thinking
aka âtouch time,â work time, cycle time
īļLead time (LT)
ī
ī
ī
The elapsed time from the time work is made available
until itâs completed and passed on to the next person or
department in the chain
aka throughput time, turnaround time, elapsed time
Includes Process Time
Š 2011 Karen Martin & Associates, LLC
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25. Step-Specific Lead Time vs.
Process Time
Lead Time
Process Time
Work passed
to next step
Work
Received
LT = PT + Waiting / Delays
Š 2011 Karen Martin & Associates, LLC
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26. Key Lean Metrics: Quality
īļ%Complete and Accurate (%C&A)
ī
% time downstream customer can perform task without
having to âCACâ the incoming work:
ī§ Correct information or material that was supplied
ī§ Add information that should have been supplied
ī§ Clarify information that should or could have been clear
ī
ī
This output metric is measured by the immediate
downstream customer and all subsequent downstream
customers.
If workers further downstream deem the output from a
particular step to be less than 100%, multiply their
assessment of quality with the previous assessments.
Š 2011 Karen Martin & Associates, LLC
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27. Metrics Reminders
īļTypically obtained via interview; questions must
be high quality
īļPT & LT
ī
ī
You can âchunkâ these metrics for a series of post-its
when necessary
When wide variation, do one of three things:
ī§ Narrow your scope (pick a specific circumstance)
ī§ Use the median
ī§ Indicate the variation, but use the median for the timeline
īļ%C&A
ī
ī
ī
Determined by immediate downstream customer and
all subsequent downstream customers
Response is placed on the post-it for the output step
0% at a particular step is not rare
Š 2011 Karen Martin & Associates, LLC
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28. Dealing with high variation
metrics
īļMap the rule (80%), not the exceptions
(20%).
ī
For metrics with ranges, use the median.
īļContinue to add conditions to your
scope if you need to.
ī
To minimize âit dependsâ answers.
Š 2011 Karen Martin & Associates, LLC
28
29. Metrics-Based Process Mapping:
Three-Part Series
īļPart 1: Document the current state
īļPart 2: Analyze the current state; design
and implement the future state
īļPart 3: Document the improved process
Š 2011 Karen Martin & Associates, LLC
29
30. Step 6: Define the âTimeline Critical Pathâ
For parallel activities: Chose the longest LT unless a
âdead-endâ activity
33. Timeline for Concurrent Work /
Parallel Flows
Close file
PT = 5 min
LT = 8 hrs
Sign P.O.
Sign
Contract
Email packet
to Supplier
PT = 1 min
LT = 4 hrs
PT
1 min
LT
4 hrs
Bring longest lead time (and its associated PT)
to the timeline, unless itâs a âdead end step.â
Š 2011 Karen Martin & Associates, LLC
33
34. Step 8 â Calculate Summary
Metrics
īļTimeline PT Sum
īļTimeline LT Sum
īļ% Activity
ī
(PT Sum/Total LT Sum) x 100
īļRolled First Pass Yield (RFPY)
ī
ī
%C&A x %C&A x %C&AâĻ
Include ALL post-its, not just critical path
īļLabor requirements (next slide)
Š 2011 Karen Martin & Associates, LLC
34
35. Summary Metrics: Labor
Requirements
īļTotal PT
ī
Sum of all activities, not just timeline
īļLabor Requirements
# FTEs*
=
Total PT (in hrs) X # occurrences/year
Available work hrs/year/employee**
* FTE = Full-Time Equivalent (2 half-time employees = 1 FTE)
**Available work hrs/yr/emp = # full-time hrs â paid holidays, vacation & sick time.
Full time is typically 2,080 hrs per year.
Š 2011 Karen Martin & Associates, LLC
35
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
37. Analyzing the Current State
īļStep 9 â Identify the value-adding (VA)
and necessary non-value-adding (N)
activities
ī
ī
ī
This is the first of two âbridge stepsâ between
current state documentation and future state
design.
Use small colored post-its labeled with âVAâ or
âNâ.
All unlabelled post-its represent waste.
Š 2011 Karen Martin & Associates, LLC
37
38. Customer-Defined Value
īļValue-Adding (VA) - any operation or activity
your external customers value and are (or
would be) willing to pay for.
īļNon-Value-Adding (NVA) - any operation or
activity that consumes time and/or resources but
does not add value to the product (good or
service) the customer receives.
ī
ī
Necessary â support processes, regulatory
requirements, etc.
Unnecessary â everything else - WASTE
Š 2011 Karen Martin & Associates, LLC
38
40. Step 9: Label the value-adding (VA) and
necessary non-value adding (N) activities
Š 2011 Karen Martin & Associates, LLC
40
41. Document the Current State
īļStep 10 â Circle (with a red marker) the
step-specific metrics that indicate the
greatest opportunity for improvement.
ī
ī
Low step-specific %activity, low %C&A, etc.
This is the second âbridge stepâ between
current state documentation and future state
design
Š 2011 Karen Martin & Associates, LLC
41
42. Step 10: Circle the data that indicates
the greatest need for improvement
43. Typical Current State Findings
Islands of value-adding activities
All other time is âwaste.â
Rework
First Step
Adding Value
Last Step
Future State Design: How can we progress from one
âVAâ or âNâ step to the next and eliminate all waste?
Š 2011 Karen Martin & Associates, LLC
43
44. Future State Design
īļGoals
ī
ī
ī
ī
Reduce overall LT & PT
Improve quality (increase RFPY)
Increase % activity
Improve LT, PT, and %C&A at individual steps
īļMay need to perform root cause analysis before
determining countermeasures to realize the
future state
īļMapping steps
ī
ī
ī
Clean sheet or modify current state map
Same steps as current state
Calculate projected metrics
Š 2011 Karen Martin & Associates, LLC
44
45. The Right Process
īļStandardize work
īļMistake proof work
īļMake problems visual
īļFix problems immediately
īļCreate continuous flow
īļLevel demand
īļBalance work
īļCreate pull systems
Š 2011 Karen Martin & Associates, LLC
45
46. Future State Design Considerations
īļ Eliminate steps / handoffs
īļ Combine steps
īļ Create parallel paths
īļ Alter task sequencing
and/or timing
īļ Implement pull
īļ Reduce / eliminate batches
īļ Improve quality
īļ Create an organized, visual
workplace
īļ Reduce changeover
īļ Eliminate motion &
transportation
īļ Standardize work
īļ Eliminate unnecessary
approvals /
authorizations
īļ Stop performing nonvalue adding (NVA)
tasks
īļ Co-locate functions
based on flow; create
cells (teams of crossfunctional staff)
īļ Balance work to meet
takt time requirements
46
47. Future State Projected Summary Metrics:
Labor Requirements
īļTotal PT
ī
Sum of all activities, not just timeline
īļLabor Requirements
# FTEs
=
Total PT (in hrs) X # occurrences/year
Available work hrs/year/employee
Freed
= Current State FTEs â Future State FTEs
Capacity
Š 2011 Karen Martin & Associates, LLC
47
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
48
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
51. Electronic Documentation?
īļArchive the teamâs work
īļDistribute the maps to remote locations
īļDocument the new standard work for the process
ī
ī
Training/retraining staff
Monitoring process performance
īļCommunicate the impact of Kaizen Events and
other improvement activities
īļExcel product demo: www.vimeo.com/27016122
ī
Fast forward to 8:00 to begin tool demo.
Š 2011 Karen Martin & Associates, LLC
51
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 # âē
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
īŽ
The Excel mapping tool auto-calculates:
ī¨
ī¨
ī¨
ī¨
Summary time and quality metrics for before and after maps
Projected % improvement (color-coded for visual ease)
Staffing requirements
User-defined metrics
54. Creating the Current State MBPM
Phase I
1. Label the map in upper right corner.
īļ Process name, date, facilitator and/or team members
2. List the functions involved in left column.
3. Document all activities/steps.
īļ Verb/noun; concise language; include function as well.
4. Number the activities.
īļ One number per column; concurrent activities are
labeled A, B, C, etc.
5. Add activity-specific metrics (PT, LT, %C&A),
barriers to flow, and number of staff involved
(if relevant).
īļ Include units of measure (mins, hrs, days, etc.)
Š 2011 Karen Martin & Associates, LLC
54
55. Creating the Current State MBPM
Phase II
6. Define the critical path.
īļ Longest LT unless âdead-endâ step; use colored marker
7. Create the timeline.
8. Calculate the summary metrics
īļ CP PT Sum, CP LT Sum, AR, RFPY, Total PT, Labor
Required
9. Define the value-adding and necessary nonvalue-adding activities
īļ Use small colored post-it labeled with âVAâ and âN.â
10. Circle the step-specific metrics that indicate the
greatest opportunity for improvement.
īļ Use red marker.
īļ Longest LTs, Low %C&As, High PTs, Low step-specific ARs
Š 2011 Karen Martin & Associates, LLC
55
56. For Further Learning
Excel tool for
electronically archiving
Chapter 12 â Manual method
www.vimeo.com/karenmartinassoc
3-part MBPM series (including
Excel tool demo)
Onsite workshops (8-24 participants) & facilitated mapping sessions
Public workshops:
Portland, Oregon â February 22, 2012 (ASQ)
Winnipeg, Manitoba, Canada â June 4, 2012 (CME)
Chicago, Illinois â October 15, 2012 (AME)
57. Learning Objectives
īļParticipants will learn:
ī
ī
ī
Key time and quality metrics for effective improvement
in office, service, and knowledge work settings.
Step-by-step process for creating current and future
state maps.
How to use MBPM to document the new standard work
and monitor process performance.
Š 2011 Karen Martin & Associates, LLC
57
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
58