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Metrics-Based Process Mapping: What, When & How

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Recorded webinar: http://slidesha.re/KRisHj

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To purchase the book: http://bit.ly/MBPMbk

Metrics-Based Process Mapping (MBPM) is a powerful tactical-level tool for identifying waste in office, service, and knowledge work environments, building consensus for change, standardizing work, and quantifying improvement.

In this webinar, you'll learn how MBPMs differ from value stream maps and learn the step-by-step approach for creating current and future state maps.

You'll also be introduced to Karen Martin & Mike Osterling's new edition of Metrics-Based Process Mapping, which features an extensive Excel tool for measuring, sharing, and archiving improved processes.

Published in: Business
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Metrics-Based Process Mapping: What, When & How

  1. Metrics-Based Process Mapping: What, When & How Karen Martin Webinar November 29, 2012
  2. Materialswww.ksmartin.com/files/webinarmaterials/11‐29‐2012_slides.pdfwww.ksmartin.com/files/webinarmaterials/11‐29‐2012_handout.pdf 2
  3.  Founder: Karen Martin & Associates, LLC (1993). Consultant / Coach: Lead Lean transformations & develop people in office, service and knowledge environments. Teacher: University of California, San Diego’s Lean Enterprise program. Author: Karen Martin, Principal www.ksmartin.com
  4. The Work We Do: Degrees of GranularityMacro View (Strategic; heavy Value Value Stream Map leadership involvement) Stream Process Process ProcessMicro View Metrics-Based (Tactical; Step Step Step Process Mapheavy frontline involvement) 4
  5. Value Stream Maps Serve as Visual “Storyboards”Makes the disconnects Shows the linkageand obstacles to flow between material andvisible at a macro level information flow 5
  6. Repair & Maintenance Value Stream Map Current State Source Refrigeration & HVAC, Inc. Current State Value Stream Map Serv ice Deliv ery Created February 11, 2009 CONFIDENTIAL Customer Great Plains Verisae Excel (Customer) Spreadsheet Special Order (Customer) Part Supplier Tech Upload time Close call in Process Time Pick up Part Process A/P card Verisae Cards at Parts Store ?% Account A/P Admin Tech Manager Payroll Admin Tech (West) PT = 15 mins. PT = 75 mins. PT = 0 mins. PT = 1 mins. PT = 10 mins. %C&A = 85% 40% %C&A = 95% %C&A = 70% %C&A = 90% %C&A = 90% Batch: 1x/day Batch: 1x/day Batch: 1x/day Batch: 1x/day Review Enter Invoices Select & Assess Make Repair; Review Receive Receive Get Part from Complete Call Review Open Review & Invoices; into Verisae & Dispatch Tech Problem ?% Call to raise Service Call Cash; Post customer call Truck in GP Ticket Report Post Invoices Close in Excel; Mail the NTE Data Payment Dispatcher & Verisae (Pac) Invoices Call Center Service Tech Dispatcher Service Billing Admin Posting Admin Tech Tech Account Collections Manager Manager Billing Admin5 m. 120 m. 90 m. 75 m. 120 m. 240 m. 640 m. 6 days 240 mins. 640 m. Manager 120 m. 60 days PT = 2 mins. PT = 5 mins. PT = 90 mins. PT = 0 mins. PT = 5 mins. PT = 25 mins. PT = 3 mins. PT = 120 mins. PT = 10 mins. %C&A = 60% %C&A = 60% %C&A = 90% %C&A = 80% %C&A = 75% %C&A = 98% PT = 10 mins. PT = 4 mins. %C&A = 40% %C&A = 50% Batch: 1x/day %C&A = 85% %C&A = 95% Batch: 2x/day Batch: 3-5x per wk Batch: 1x/week0.0833 1.5 10.7 48 10.7 480 hours 2 hours hours 1.25 hours 2 hours 4 hours hours hours 4 hours hours 2 hours hours Lead Time = 572 hours 2 minutes 5 minutes 90 minutes 75 minutes 120 minutes 5 minutes 10 minutes 25 minutes 3 minutes 10 minutes 4 minutes Process Time = 349 minutes Acronym Key %C&A %Complete and Accurate Lead Time to invoice = 86.2 hrs AR Activity Ratio Process Time =5.9 hrs. FTE Full Time Equivalent NOTE: Business hours LT Lead Time Activity Ratio = 6.8% RFPY = 1.1% PT Process Time Lead time to cash = ? days RFPY Rolled First Pass Yield
  7. Current State Value Stream Map Outpatient Imaging Services Customer Demand: 15 patients per Day (Takt Time 1920 seconds) Pre-register Schedule 8 hours per day Patient Appointment Referring Hospital Physician 4 1 Lead Time = 24 days 5 3 Lead Time = 990 mins. 6 2 Lead Time = 12 mins. Cycle Time = 30 mins. Cycle Time = 11 mins. % C&A = 65 % Lead Time = 990 mins. Lead Time = 12 mins. % C&A = 100 % % C&A = 98 % CT=Cycle Time LT=Lead Time %C&A=% Complete & Accurate Symposium E Pay Excel ADS Meditech Internet Fax Order PACS Waiting Room Auto Fax 50% Solutions Management Us Mail 25% System MD Mailbox 25% Rework Loop via Fax 25% of the time Prep Complete Transmit Read/Dictate Transcribe Review Print Send Check-in Check-in Patient Exam Images Exam Report Draft/Sign Reports Reports Patient Patient (Tech) (Tech) (Tech) (Radiologist) (MDI) (Radiologist) (Imaging) (Imaging) (Admitting) (Imaging)5 mins. 5 5 5 mins. 3 6 45 mins. 2 7 30 mins. 2 8 5 mins. 2 9 248 mins. 2 10 365 mins. 6 11 960 mins. 2 12 110 mins. 2 13 120 mins. 6 14 Cycle Time = 2 mins. Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 15 mins. Cycle Time = 3 mins. Cycle Time = 15 mins. Cycle Time = 5 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins. % C&A = 90 % % C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 75 % % C&A = 95 % % C&A = 99 % % C&A = 90 %5 minutes 45 minutes 30 minutes 5 minutes 248 minutes 365 minutes 960 minutes 110 minutes 120 minutes L/T = 13464 minutes 2 minutes 11520 1 minutes 10 minutes 15 minutes 3 minutes 15 minutes 5 minutes 1 minutes 1 minutes 3 minutes VA/T = 11576 minutes minutes Rolled First Pass yield = 29%
  8. Traditional Mapping Method: Process Flow ChartHow is this process performing? 8
  9. Traditional Swim Lane Process Maps How do we know what to improve? 9
  10. Are your processes even documented? 10
  11. 2004:The Birth of Metrics‐Based Process Mapping 11
  12. Just Released! 12
  13. What is a Metrics-Based Process Map?A visual process analysis tool, which integrates:  Functional orientation of traditional swim lane process maps  Key Lean time and quality metricsHighlights the disconnects / wastes / delays in a process.  Keeps the improvement focus properly directedServes as standard work for workforce training and process monitoring. 13
  14. Metrics-Based Process Mapping (MBPM)
  15. 15
  16. Mapping Preparation Select a skilled, objective facilitator. Scope the process being mapped  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.” Select a cross-functional team of no more than 10.  Process workers (30-50% of the team)  Upstream suppliers  Downstream customers  Subject matter experts (e.g. I.T., legal, etc.)  Outside eyes Draw 6” wide swim lanes on the 36” paper.  Pre-drawn lines – template available: http://www.scribd.com/doc/114904601/Metrics-Based-Process- Mapping  Chalk line  Manually draw 16
  17. Metrics-Based Process Mapping: Four StagesDocument the current state (the P in PDSA)Analyze the current stateDesign, test, refine and implement the future stateDocument the improved processContinuously monitor and improve the process 17
  18. Creating the Current State Metrics- Based Process Map: 10 Steps1. Label the map.2. List functions.3. Document all activities/steps.4. Number the activities.5. Add step-specific metrics & other relevant info.6. Define timeline critical path.7. Create the timeline.8. Calculate summary metrics.9. Identify value-adding and necessary non-value-adding steps.10. Circle high priority improvement needs. 18
  19. Step 1: Label the map Process Name Included/Excluded Conditions Current State MBPM Date Facilitator and/or Team Names
  20. Step 2: List functions involved in process. Process NameFunction A Included/Excluded Conditions Current State MBPM DateFunction B Facilitator and/or Team NamesFunction CFunction DFunction EFunction FInclude external functions, if appropriate (e.g. customers, suppliers/contractors, etc.)
  21. Step 3: Document all activities (steps) on 3 x 6” post-its; place sequentially. Step Step Parallel Steps 1 2 (concurrent activities) Ticking clock
  22. Step 3: Document all activities/steps on 3 x 6” Post-its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 “the thing.” 22
  23. Step 3: Document task & function Activity(Verb / Noun) Function that performs the task
  24. Step 4: Number the Activities Step # Note: For parallel activities, use alpha modifiers -- e.g. 8A, 8B, etc.
  25. Step 5: Add step-specific information Barriers to Flow (if relevant) # Staff • Batching (if relevant) • Shared resources • System downtime • Etc. PT (Process Time)% Complete & Accurate LT (Lead Time)
  26. 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 26
  27. Step-Specific Lead Time vs. Process Time Lead Time Process Time Work Work passedReceived to next step LT = PT + Waiting / Delays 27
  28. Key Lean Metrics: Quality%Complete and Accurate (%C&A)  % time downstream customer can perform task without having to “CAC” 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  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. 28
  29. 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. 29
  30. Step 6: Define the “Timeline Critical Path” For parallel activities: Chose the longest LT unless a “dead-end” activity
  31. Complex Process with Many Concurrent Activities (Parallel Steps) 31
  32. Step 7: Create the Timeline
  33. Step 8 – Calculate Summary MetricsTimeline PT SumTimeline LT Sum% Activity  (PT Sum/Total LT Sum) x 100Rolled %C&A  %C&A x %C&A x %C&A…  Include ALL post-its, not just critical pathLabor requirements (next slide) 33
  34. Summary Metrics: Labor Effort Total PT  Sum of all activities, not just timeline Labor Requirements 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/employee = # full-time hrs – paid holidays, vacation & sick time.Full time is typically 2,080 hrs per year. 34
  35. Metrics-Based Process Mapping Current State Summary Metrics Projected Projected % Metric Current State Future State ImprovementTimeline PT 110 minsTimeline LT 7 days% Activity 3.3%Rolled %C&A 9.2%Total Process 170 minsTimeLabor Effort 1/7 FTEs
  36. Step 9: Label the value-adding (VA) andnecessary non-value adding (N) activities 36
  37. Customer-Defined ValueValue-Adding (VA) - any operation or activity your external customers value and are (or would be) willing to pay for.Non-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.  Necessary – support processes, regulatory requirements, etc.  Unnecessary – everything else - WASTE 37
  38. Step 10: Circle the data that indicates the greatest need for improvement
  39. Typical Current State Findings Islands of value-adding activities All other time is “waste.” ReworkFirst Step Last Step Adding Value Future State Design: How can we progress from one “VA” or “N” step to the next and eliminate all waste? 39
  40. Future State Design OptionsShorten timeline; reduce labor effort  Eliminate unnecessary steps/handoffs  Combine work; move work in parallel  Create continuous (one-piece) flow; use pull systems when needed  Level demand  Balance workImprove quality & predictability  Standardize work  Error-proof work  Make problems visual so they can be fixed immediately 40
  41. Future State Projected Summary Metrics: Labor RequirementsTotal PT  Sum of all activities, not just timelineLabor Requirements Total PT (in hrs) X # occurrences/year # FTEs = Available work hrs/year/employee Freed = Current State FTEs – Future State FTEs Capacity 41
  42. Metrics-Based Process Mapping Projected Future State Summary Metrics Projected Projected % Metric Current State Future State ImprovementCP PT 110 mins 85 mins 23%CP LT 7 days 4 days 43%Activity Ratio 3.3% 4.4% 33%Rolled %C&A 9.2% 50.4% 448%Total PT 170 mins 140 minsLabor effort* 1.7 FTEs 1.4 FTEs 18% 600 hrs =Freed capacity 0.3 FTEs*Demand = 1,200 per year 42
  43. 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 1/10/2008 Block Implementation Schedule (weeks) Date Goal / Objective Improvement Activity Type Owner # 1 2 3 4 5 6 7 8 9 10 11 12 Complete Implement standard work for referral 2 Improve quality of referral KE Sean ORyan process Reduce lead time beween schedulingand Dianne 3, 4 Cross-train and colocate work teams PROJ preregistration steps Prichard Eliminate the need for two patient check- Michael 5, 6 Collect copays in Imaging KE ins OShea Dianne 6 Eliminate bottleneck in waiting area Balance work / level demand KE Prichard Eliminate lead time associated with 9 Implement voice recognition technology PROJ Sam Parks transcription step 10 Eliminate batched reading Reduce setup required KE Sam Parks Reduce inventory costs, regulatory risk Michael 7 5S CT supplies area; implement kanban KE and storage needs OShea 12 Reduce delay in report delivery Implement additional fax ports PROJ Martha Allen Increase percentage of physicians 12 Reduce delay in report delivery receiving electronic delivery (rather than KE Martha Allen hard copy) Approvals Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator Signature: Signature: Signature: Date: Date: Date:
  44. When Should You Document Electronically?Archive the team’s workDistribute the maps to remote locationsDocument the new standard work for the process  Training/retraining staff  Monitoring process performanceCommunicate the impact of Kaizen Events and other improvement activitiesExcel product demo: www.vimeo.com/27016122  Fast forward to 8:00 to begin tool demo. 44
  45. The Improved State Becomes Standard Work0 Current State Metrics-Based Process Map PT Units Process Details Mapping Team1 Seconds Hours Process Name Order Fulfillment Diane OShea Ryan Austin0 Minutes Days Specific Conditions Domestic orders through sales force Sean Michaels Mary Townsend LT Units Occurrences per Year 37,500 Sam Parks15 Seconds Hours Hours Worked per Day 8 Sally Dampier Facilitator 6 Minutes Days Date Mapped 25-Jun-08 Michael Prichard Dave Morgan-1 Step # ► 1 2 3 4 50 Function / Department Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Fax PO to Sales1 Customer 0 0 45% Rep Review PO; clarify with Fax PO to2 Sales Rep 20 2 90% 10 4 90% customer as warehouse needed5 Finance Check inventory Warehouse / levels; notify Fax PO to Sales6 5 4 95% 5 0.33 90% Shipping Sales Rep re: Rep status Critical Path PT 0 20 10 5 5 Critical Path LT 0 2 4 4 0.33 Rolled %C&A 45% 90% 90% 95% 90% Total PT 0 20 10 5 5
  46. 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
  47. For Further Questions Karen Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com Twitter: @karenmartinopexBlog & newsletter: www.ksmartin.com/subscribe Book info: www.ksmartin.com/MBPM 47

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