These slides are from the Metrics-Based Process Mapping webinar delivered 09-29-2021. Companion resources: • View the recording - https://tkmg.com/webinars/metrics-based-process-mapping-3/ • Buy the book - https://tkmgacademy.com/products/metrics-based-process-mapping/ • Take the TKMG Academy course - https://tkmgacademy.com/courses/metrics-based-process-mapping/

1. Metrics-Based Process Mapping
29 September 2021
Metrics-Based
Process Mapping

2. 2
Value Stream Perspective: Macro View of Entire Work System

3. 3 3
Process Perspective: Seeing the Micro Details

4. Work: Degrees of Granularity
4
Value
Stream
Process Process Process
Step Step
Step
Macro
Perspective
• Define strategic
direction (“what”)
• Heavy leadership
involvement
• Value Stream
Mapping

5. Customer
0.0 hrs.
0.5 days
1.0 hrs.
5.0 days
3.6 hrs.
0.6 days
0.0 hrs.
1.0 days
0.2 hrs.
0.5 days
16.0 hrs. 0.0 hrs.
7.0 days
8.0 hrs. 0.0 hrs.
7.0 days
0.1 hrs.
26.0 days
0.0 hrs.
0.2 days Total LT
Total PT
ActivityR
SAP
Summary
Invoice
(Excel)
Obtain Order;
Enter Order in
Offline Order
Form
Sales
(Key at night)
LT = 4.5 hrs.
PT = 18 mins.
%C&A: 80%
1
Review &
Release
Credit Holds
Sales
LT = 4 hrs.
PT = 10 mins.
%C&A: 99%
3
Issue DO To
Transporter;
Create Pick
List
WH1
LT = 8 hrs.
PT = 1 mins.
%C&A: 95%
5
Pick
& Load
Order
Logistics
LT = 4 hrs.
PT = 15 mins.
%C&A: 95%
6
Collect
POD from
Customer
Transporter
LT = 2 days
7
Collect POD
From
Transporter
WH1
LT = 7 days
PT = 1 mins.
%C&A: 99%
8
Deliver
POD to
Accounting
Messenger
Batch = 1x/day
LT = 1 days
9
Review POD
For
Accuracy
Accounting
LT = 7 days
PT = 2 mins.
%C&A: 99%
10
Deliv er Bill;
Collect from
Customer;
Deposit
Sales
Batch = 1x
monthly
LT = 26 days
PT = 5 mins.
11
COLOR LEGEND
Logistics / W arehouse
Sales
Order Management
Production
10%
90%
Produce
Product
Plant 1
LT = 280 mins.
PT = 215 mins.
%C&A: 99%
4B
Pick
& Load
Order
WH2
LT = 40 mins.
PT = 3 mins.
%C&A: 99%
5B
40 Days Delivery to Payment Received
3.5 Days Order Receipt to Ship
MonthlySales Volume
Wk1 = 14-23%
Wk2 = 19-24%
Wk3 = 23-25%
Wk4 = 30-42%
Obtain &
Revise Sales
Forecast
Sales
LT = 0 days
PT = 270 mins.
%C&A: 99%
1B
Hold S&OP
Meeting
6-7 People
LT = 5 days
PT = 3 hrs.
%C&A: 99%
2B
Create
Production
Plan
Production
Planning
LT = 5 days
PT = 1 hrs.
%C&A: 99%
3B
Produce
Product
Plant 2
LT = 280 mins.
PT = 215 mins.
%C&A: 99%
4C
Offline
Order
Form
Enter
Payment;
Clear Billing
Accounting
LT = 2 hrs.
PT = 1 mins.
%C&A: 99%
12
Accounting
Delivery
Order
(DO)
Pick
List
Proof of
Delivery
(POD)
Transfer
Report
Prod.
Plan
Check
Stock &
Reallocate
Logistics &
Warehouse
Batch = 1x/day
LT = 4 hrs.
PT = 2 mins.
%C&A: 99%
4
Prod.
Plan
plier
Receive
Material
Store
3C
Value Stream Map

6. Work: Degrees of Granularity
6
Value
Stream
Process Process Process
Step Step
Step
Micro
Perspective
• Identify the
tactical “how”
• Heavy frontline
involvement
• Metrics-Based
Process Mapping

7. 7
Traditional Mapping Method:
Process Flow Chart
How is this process performing?
Look up Customer
in Eclipse
SALES
New
Customer?
Enter Order
SALES
Print Ship Ticket
SALES
Load Trucks
SHIPPING
Enter Customer
Information
ADMIN
Perform Credit
Check
FINANCE
Okay?
Notify Sales COD
Only; Notify Admin
to update
Customer Profile
FINANCE
Yes
No
No
Yes
Product in
Stock?
Yes
Order Material
PURCHASING
No
Receive Material
RECEIVING

8. 8
How do we know what to improve?
Traditional Swim Lane Process Maps

9. 9
What is a Metrics-Based Process Map?
1. A visual process analysis tool, which integrates:
• Functional orientation of traditional swim lane process
maps
• Key Lean time and quality metrics
2. Highlights the disconnects / wastes / delays in a
process.
• Keeps the improvement focus properly directed
3. Serves as standard work for workforce training and
process monitoring.

10. Metrics-Based Process Mapping (MBPM)

11. Complex Process with Many Concurrent Activities
(Parallel Steps)
11

12. 12
When/Why to Create MBPMs?
1. Problem solving
2. Process improvement
3. Rapid improvement events (kaizen events)
4. Role clarification
5. Designing new processes

13. 13

14. 14
Process Improvement:
Six Parts
1. Select & scope the process to be improved/designed
2. Document & analyze the current state
3. Design improved process (future state) – includes
projected metrics
4. Test the improvement; adjust as needed
5. Document the improved process
• Via standard work: work instructions and job aids
• Include performance and output standards
6. Train people on the new process
7. Monitor the process through measurement
8. Continuously improve the process

15. Step 1: Label the map
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names

16. Step 2: List functions involved in process.
Function A
Function B
Function C
Function D
Function E
Function F
Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.)
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names

17. Step
1
Step
2
Parallel Steps
(concurrent
activities)
Step 3: Document all activities
(steps) on 3 x 6” post-its;
place sequentially.

18. Step 3: Document task & function
Activity
(Verb / Noun) Function that
performs the
task

19. Step #
Step 4: Number the Activities
Note: For parallel
activities, use
alpha modifiers --
e.g. 8A, 8B, etc.

20. # Staff
(if relevant)
Barriers to Flow
(if relevant)
• Batching
• Shared
resources
• System
downtime
• Etc.
PT (Process Time)
LT (Lead Time)
% Complete &
Accurate
Step 5: Add step-specific information

21. 21
Key Lean Metrics: Time
• Process time (PT)
• 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 “touch time,” work time, cycle time
• Lead time (LT)
• The elapsed time from the time work is made available until
it’s completed and passed on to the next person or
department in the chain
• aka throughput time, turnaround time, elapsed time
• Includes Process Time

22. 22
Key Metrics:
Lead Time and Process Time
Lead Time (LT)
Work
Received
Work passed to
next process or
department
Process Time
(PT)
Lead Time – aka Elapsed Time; Throughput Time; Turnaround Time
Process Time – aka Touch Time; Work Time; Cycle Time
Work is Idle Work is Idle

23. 23
Key Lean Metrics: Quality
• %Complete and Accurate (%C&A)
• % time downstream customer can perform task without
having to rework the incoming work:
• Correct information or material that was supplied
• Add information that should have been supplied
• Clarify information that should or could have been clear
• Determined 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.
23

24. 24
Metrics Reminders
• Typically obtained via interview; questions must be high quality
• PT & LT
• You can “chunk” these metrics for a series of post-its when necessary
• When wide variation, do one of three things:
• Narrow your scope (pick a specific circumstance)
• Use the median
• Indicate the variation, but use the median for the timeline
• %C&A
• 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
24

25. 25
Dealing with High Variation Metrics
• Map the rule (80%), not the
exceptions (20%).
• For metrics with ranges, use the
median.
• Continue to add conditions to your
scope if you need to.
• To minimize “it depends” answers.
25

26. Step 6: Define the “Timeline Critical Path”
For parallel activities: Chose the longest LT unless a “dead-end” activity

27. Step 7: Create the Timeline

28. 28
Step 8 – Calculate Summary Metrics
• Timeline PT Sum
• Timeline LT Sum
• % Activity
• (PT Sum/Total LT Sum) x 100
• Rolled First Pass Yield (RFPY)
• %C&A x %C&A x %C&A…
• Include ALL post-its, not just critical path
• Labor requirements (next slide)
28

29. 29
Summary Metrics: Labor Requirements
• Total PT
• Sum of all activities, not just timeline
• Labor Requirements
29
Total PT (in hrs) X # occurrences/year
# FTEs*
Available work hrs/year/employee**
=
* FTE = Full-Time Equivalent (2 half-time employees = 1 FTE)
**Available work hrs/yr/emp = # full-time hrs – paid holidays, vacation & sick
time. Full time is typically 2,080 hrs per year.

30. Metric Current State
Projected
Future State
Projected %
Improvement
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
Metrics-Based Process Mapping
Summary Metrics

31. 31
Analyzing the Current State
• Step 9 – Identify the value-adding (VA) and necessary
non-value-adding (N) activities
• This is the first of two “bridge steps” between current
state documentation and future state design.
• Use small colored post-its labeled with “VA” or “N”.
• All unlabelled post-its represent waste.
31

32. 32
Step 9: Label the value-adding (VA) and
necessary non-value adding (N) activities
32

33. 33
Customer-Defined Value
• Value-Adding (VA) - operation or activity
• External customers value & willing to pay for
• Requirement for doing business with them.
• Non-Value-Adding (NVA) - operation or activity that
consumes time and/or resources but does not add
value to the product the customer receives.
• Necessary – support processes, regulatory
requirements, etc.
• Unnecessary – everything else - WASTE
33

34. 34
Value Adding versus Non-value Adding
Value-adding
activities
• External customers
willing to pay for, or is a
condition of doing
business.
• Typically <10% for most
processes and value
streams.
Necessary non-value-
adding activities
• Work that’s required
but not valued by the
customer.
• E.g., regulatory
requirements,
limited controls,
risk management.
Unnecessary non-value-
adding activities (waste)
• Effort that neither the
organization nor customers
require.
100%
of
time

35. Typical Current State Findings
Islands of value-adding activities
All other time is “waste.”
35
Adding Value
Rework
First Step Last Step
Future State Design: How can we progress from one
“VA” or “N” step to the next and eliminate all waste?

36. MURA
Unevenness
MURI
Overburden
MUDA
Waste
Work System Stressors

37. The Eight Wastes (Muda)
Motion Transportation Lost Creativity
Overproduction Errors
Waiting
Over-processing
Inventory

38. Step 10: Circle the data that indicates the
greatest need for improvement

39. 39
Future State Design
• Goals
• Reduce overall LT & PT
• Improve quality (increase RFPY)
• Increase % activity
• Improve LT, PT, and %C&A at individual steps
• May need to perform root cause analysis before
determining countermeasures to realize the future
state
• Mapping steps
• Clean sheet or modify current state map
• Same steps as current state
• Calculate projected metrics
39

40. Future State Design Considerations
• Eliminate steps / handoffs
• Combine steps
• Create parallel paths
• Alter task sequencing and/or
timing
• Implement pull
• Reduce / eliminate batches
• Improve quality
• Create an organized, visual
workplace
• Reduce changeover
• Eliminate motion & transportation
• Standardize work (+ error proof)
• Eliminate unnecessary approvals /
authorizations
• Stop performing non-value adding
(NVA) tasks
• Co-locate functions based on flow;
create cells (teams of cross-
functional staff)
• Balance work to meet takt time
requirements
40

41. Document Projected Future State Results
41
Metric 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 18%
Freed capacity
600 hrs =
0.3 FTEs
*Demand = 1,200 per year

42. Excel Mapping Tool: Color-Coded Summary Metrics Sheet
 The Excel mapping tool auto-calculates:
 Summary time and quality metrics for before and after maps
 Projected % improvement (color-coded for visual ease)
 Staffing requirements
 User-defined metrics

43. 43
Creating the Current State MBPM
Phase I
1. Label the map in upper right corner.
• Process name, date, facilitator and/or team members
2. List the functions involved in left column.
3. Document all activities/steps.
• Verb/noun; concise language; include function as well.
4. Number the activities.
• 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).
• Include units of measure (mins, hrs, days, etc.)
43

44. 44
Creating the Current State MBPM
Phase II
6. Define the critical path.
• Longest LT unless “dead-end” step; use colored marker
7. Create the timeline.
8. Calculate the summary metrics
• CP PT Sum, CP LT Sum, AR, RFPY, Total PT, Labor Required
9. Define the value-adding and necessary non-value-
adding activities
• Use small colored post-it labeled with “VA” and “N.”
10. Circle the step-specific metrics that indicate the
greatest opportunity for improvement.
• Use red marker.
• Longest LTs, Low %C&As, High PTs, Low step-specific ARs
44

45. 45
LinkedIn: @karenmartinopex
@tkmg-academy
Twitter: @karenmartinopex
tkmgacademy.com
tkmg.com
Includes Excel
mapping tool

46. Metrics-Based
Process Mapping
tkmgacademy.com/courses/metrics-based-process-mapping