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Agile Lean Process Improvement
Challenging the Current Approach
All Rights Reserved Quantum Associates, Inc 2019 1
847-919-6127
info@quantumassocinc.com
quantumassocinc.com
Thought Leadership Series
Start With the Goal in Mind
• What outcomes are you trying to achieve
– Better (improve quality of the process)
– Faster ( reduce processing time)
– Cheaper (cost reduction)
• The Business Analyst’s role is to help focus the team on the right
requirements or outcomes
“Analysis of a process such as order taking, credit checking, or packing and shipping requires a detailed
walk-through of each task comprising the entire activity.”
All Rights Reserved Quantum Associates, Inc 2019 2
Why Improve a Process?
• Outdated or convoluted processes waste time and money
• A great place to start as a BA is to improve existing business processes and
develop the most cost-effective solutions
“Few experts would disagree that processes are more important than the computer systems that support them. As such,
they agree, processes should be fixed before installing any software to automate them. But once you get the processes
straightened out, new systems can push you to a new level."
All Rights Reserved Quantum Associates, Inc 2019 3
What is Agile Lean Process
Improvement?
• Improving processes using lean principles in an agile framework to
reap the benefits of eliminating waste and quickly executing the
improvements.
All Rights Reserved Quantum Associates, Inc 2019 4
The Lean Agile Synergy
Agile Methods
• Product owner
• Product backlog
• Sprint plan
• Sprint
• Daily scrum
• Scrum Master
• Sprint review
Lean Complement
• Process owner
• Prioritized list of kaizen projects
• Project action plan
• Kaizen events (1 to 4 weeks)
• 15 minutes daily huddle/Visual
• Team Coach/ Facilitator
• Kaizen post mortem meeting
All Rights Reserved Quantum Associates, Inc 2019 5
Why Combine the two Techniques?
• Process improvement
– Is adapted to the changing business needs of the organization
– Delivers more value and that value becomes more visible.
– Becomes ingrained as the way of working in the organization
• The improvement team deliver maximum value to the
stakeholders quickly
All Rights Reserved Quantum Associates, Inc 2019 6
What Are The Benefits of the
Approach?
• Improved collaboration between the process improvement team and the stakeholders.
• Agile iterations enable frequent interactions between those involved in process improvement.
• The BA’s role of collaborating with the stakeholders will reduce rework caused by errors in
requirements
• Customers of the process improvements are much more involved in the change process.
• The agile approach helps focus on execution of the process improvements.
• The improvement team gains a better understanding of the agile approach to lean process
improvement which can be used to support other process improvement teams in your
organization.
All Rights Reserved Quantum Associates, Inc 2019 7
STEP 1
Process Redesign-Creating The Product (Project) Backlog– 2 to 3 Days
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What is a Business Process?
A process is...
 A series of related activities that “flow” through an organization
 Not limited to a single function or department
 Something that can be viewed from end to end
Input Output
Process
Policy development
Assessment
Customer Service
Order Fulfilment
Application Procedure
Trigger Value-Added
Customer
All Rights Reserved Quantum Associates, Inc 2019 9
Functional View vs Process View
Functional orientation
Process orientation
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From Functional to Process View
Successful redesign requires a shift from function to process
Functions drive
the business
Processes are acknowledged,
but Functions dominate
Processes drive the
business
Stage 1 Stage 2 Stage 3
P
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P
a
y
m
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t
C
u
s
t
o
m
e
r
s
Requisition to Payment
Contract to Cash
Recruit to Retire
Large companies tend to be made up of several departments, each with its own systems. "Since a lot of systems have been built
based on department needs, they're not geared to a process." A process often spans several departmental units such as accounting,
sales, production, and shipping. “
11
All Rights Reserved Quantum Associates, Inc 2019
Understand the Process
• Select the Process Improvement Team (PIT)
– Process Owner- responsible for the overall performance of the process with
knowledge of the customers’ expectations of the process
– Coach/Facilitator- helps the team understand agile and lean tools/concepts and
manages outside interactions with the team.
– Self organizing PIT – 6 - 9 members responsible for identifying and deploying the
improvements consistent with the goals of the stakeholders
– Business Analyst- the interface between team and Process Owner and other
stakeholders
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Understand the Process
• Goals
– Focus on the interfaces between work groups
– Inventory inputs, outputs, suppliers, customers, and the activities of work
groups
– Understand how work activities are interconnected
– Move on to more detailed flowcharting or process mapping
13
All Rights Reserved Quantum Associates, Inc 2019
Understand the Process
• Define process boundaries and major groups
– Define the purpose
– Define the process boundaries as follows:
• The process begins with …
• The process ends with ..
– List the major groups contained within the process and draw a box with
as many columns. Label the top of the column with a group name
14
All Rights Reserved Quantum Associates, Inc 2019
Understand the Process
• Identify process outputs and customers
– List all the outputs that the process produces to the right of the process
box
– List all the customers, that is, recipients of process output to the right of
the output list
– As a check, ask:
• For each output: Are we leaving any customers out?
• For each customer: Do they receive any additional outputs from us?
15
All Rights Reserved Quantum Associates, Inc 2019
Understand the Process
• Identify process inputs and suppliers
– List all the inputs the process receives to the left of the process box
– List all the suppliers of process input to the left of the input list
– As a check, ask:
• For each input: Are we leaving any suppliers out?
• For each supplier: Do they provide us any additional inputs?
– Determine and list the input and output requirements
– Create your SIPOC chart
16
All Rights Reserved Quantum Associates, Inc 2019
Leasing Equipment SIPOC
Supplier (s) Input/Req’ts Process Output/Req’ts Customers
17
Lease Agreement
Equipment
Lessor
Credit Agency
Stanley’s Office
Products
Credit Report
Proposed Lease
Schedule
• Response
within
30 minutes
• Data current to
previous
business
day
•Report can be
reviewed in 3
minutes
• Complete list
of items on
lease
• Retail price
and
manufacturer
data
• Complete in 5
working days
•Full terms,
conditions and
payout rules
•2 pages max
(not
Including item
list)
Payment
• Correct
amount funded
within 1 day of
delivery
• Delivered via
EFT
Stanley’s Office
Products
Customer
Credit Review
Equipment
Validation
Preparation of
documents
Funding and
Filing
All Rights Reserved Quantum Associates, Inc 2019
Defining the Process
18
SIPOC-R Diagram
Supplier Input Process Output Customer Requirements
Block diagram of process
All Rights Reserved Quantum Associates, Inc 2019
Defining the Process
19
SIPOC-R Diagram For Auto Loan Disbursement Process
Consumer
Supplier
Application form,
address proof,
bank details,
Photo ID,
agreement, deal
slip, auto
insurance,
invoice, car docs.
Input Process
Auto Loan
Disbursement
Loan
amount
credited to
customer’s
account
Output
Consumer
Customer
•Turnaround time
of less than
3days
•99.99% first time
error free credit
•Less hassle for
customer
Requirements
Dealer Sales
Credit
appraisal
Field
Investigation
Risk
Assessment
Loan
Approval
Amount credited to
customer Acct
Block Diagram of Auto Loan Disbursement Process
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process- Map It
• Process mapping is a tool that is used to understand, analyze and document
processes and activities in an organization and assist in identifying
opportunities for improvement
• A process map displays the sequential steps involved in converting a specific
input into the required output
All Rights Reserved Quantum Associates, Inc 2019 20
Understanding the Process—Map It
• Typical reasons for mapping a process include:
– To improve a process, you must understand the process
– Complexity of processes and lack of understanding constrains management’s
attempts to improve processes
– Analytical skills and process mapping skills allow us to understand and communicate
processes to management, staff and users
– Identifies efficiency issues and where systems can support these
All Rights Reserved Quantum Associates, Inc 2019 21
Understanding the Process—Map It
• Increases understanding of the work process
• Provides understanding of resource allocation
• Documents training procedures
• Tracks workflow
• Increases staff awareness
Process mapping can be extremely valuable because it
can identify improvements in a number of aspects in the
work place, including:
All Rights Reserved Quantum Associates, Inc 2019 22
• When evaluating a process, you should ask the following questions
– What is the purpose of this step? Does it add value or not? Do I eliminate, optimize or
automate it?
– Does each step in the process have a clear and logical input and output?
– Are there alternatives for accomplishing each step?
– How are exceptions handled?
– Consider parallel processing – this is one of the fundamental and most
straightforward methods of process improvement. Identify where two or more
related processes can run simultaneously, with the same starting and end points to
improve efficiency.
All Rights Reserved Quantum Associates, Inc 2019 23
Understanding the Process—Map It
• Begin by drawing the process as it exists today at the most global organization level
• The macro block diagram forces us to identify the boundaries of the process as
well as its inputs and outputs
24
Report Writing
Process
Input:
Request
for written
Report
Output:
Written
report
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—Map It
• Draw the next level of detail- two options
– Macro Map – a broad overview of the process-the “30,000 foot
view”
– Relationship (cross-functional) Map- Shows the steps in the
process as well as who performs them
25
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—Map It
• Report Writing Process
26
Site
Visit
First
Draft
Team
Edit
Second
Draft
Graphics Mail
Inputs:
Interview
notes,
observations,
research,
record
template
Output:
Report including
data &
recommended
action
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—Map It
Process mapping “DOs” and “DON’Ts”
• DO map the process as it actually
happens
• DO think about the process across the
entire organization
• DO talk to the other people who are
involved in the process
• DO define the beginning and end of
the process before you start
• DO the process map at a high level
• DO ask questions
• DON’T map the process as you think it
happens or as you think it ought to
happen
• DON’T restrict your process map to
the activities in your own department
• DON’T work in a vacuum
• DON’T attempt to process map before
you identify a beginning and an end
• DON’T get bogged down with too
much detail
• DON’T struggle on your own
All Rights Reserved Quantum Associates, Inc 2019 27
Process Redesign
• Once a map is created, a team can study the current state.
• To redesign the process some of the questions you may ask are:
– Does the team structure support the operation of the process?
– Do we have accidental bureaucracy?
– Does every step add value?
– Are we duplicating our work?
– Can we simplify?
– Can we save time?
– Can we standardize workflow?
– Can we better utilize tools and equipment?
28
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—VA/NVA
Analysis
• Value-added activity
– Any activity that changes size, shape, form, fit or function of material or information to meet customer
demand and requirements
– Any service the customer is willing to pay for
• Non-value-added activity
– Any activity that consumes time or resources and that your process does not require
– Any activity that does not satisfy customer demands or requirements
– Any activity that a customer is not willing to pay for because it does not add value
• Essential non-value-added activity
– Customer is not willing to pay for it, but is required to meet third party expectations or requirements
or is essential to running the business
All Rights Reserved Quantum Associates, Inc 2019 29
• Purpose—Identify the waste, rework, and delay that can be eliminated from the process
• Over time processes become cumbersome, inefficient and ineffective. This complexity consumes more
time and accomplishes less.
• Each activity, decision and arrow on the process map represents time and effort. From the customer’s
point of view little of this time and effort adds value, most of it is non-value added.
• From the customer’s point of view, delay, rework, transporting do not add value. Analyzing the process for
non-value-added activities can help simplify and streamline the overall process.
30
Each task gets graded on whether it represents value-added or non-value-added activity. "What you find,
typically, is that 65% to 70% of the tasks are “non-value added."
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—VA/NVA
Analysis
• On a process map, most of the non-value-added time will be found in one
of four places
– The arrows (time required for processing steps)
– Delays (delays between processing steps/tasks)
– Rework loops (fixing errors that should have been prevented)
– Scrap processes (discarding or recycling defects)
31
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—VA/NVA
Analysis
32
Widget Works Quoting Process
All Rights Reserved Quantum Associates, Inc 2019
Widget Works Quoting Process (VA/NVA)
All Rights Reserved Quantum Associates, Inc 2019
33
Red = Non-value-added step
Green = Value-added step
Blue = Business non-value-added step
• Value-Add Analysis
– Step One
• For each activity (rectangle, diamond, delay, handoff, arrow) list its function and
the time spent (in minutes, hours, days) on the checklist.
– Step Two
• Walk in the customer’s shoes. As the customer, ask the following questions:
– Is the order or output idle or delayed?
– Is this inspection, checking, testing, review necessary?
– Does it change the output in a valuable way, or is this just “fix it” error correction work or
waste?
34
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—VA/NVA
Analysis
Sample Value-Add Checklist
All Rights Reserved Quantum Associates, Inc 2019 35
Time
Spent
(hours, days,
weeks, months)
IDLE TIME
WAIT TIME
OR DELAY
INSPECT?
DETECT?
TEST?
REWORK?
WASTE?
SCRAP?
NON-VALUE ADDED? (Y/N)
ACTIVITY, DECISION, OR ARROW
• Value-Add Analysis
– Step Three
• If the answer to any of these questions is “yes”, then the step may be non-value-
added. If so, can we remove it from the process? Much of the “idle” non-value-
added time in a process lies in the arrows: Orders or outputs sit in boxes or
computers waiting to be processed, Calls wait in queue for a representative to
answer. How can we eliminate delay?
36
© Quantum Associates, Inc, 2004
All Rights Reserved Quantum Associates, Inc 2019
Understanding the Process—VA/NVA
Analysis
Understand the Process
• Step Four
– How can activities and delay be eliminated, simplified, combined or
reorganized to provide a faster, higher quality flow through the process?
– Investigate hand-off points: how can you eliminate delays and prevent
lost, changed or misinterpreted information or work products at these
points?
– If there are simple, creative or obvious ways to improve the process now,
refine the map to reflect those changes.
37
All Rights Reserved Quantum Associates, Inc 2019
STEP 2:
Redesign the Process – Kaizen Events (Sprints)
All Rights Reserved Quantum Associates, Inc 2019 38
Kaizen Event Process
1. Set the Scene
1. Set the Scene
2. Understand
Current Process
2. Understand
Current Process
3. Develop
Future State
Design
3. Develop
Future State
Design
4. Implement
Solutions
4. Implement
Solutions
5. Report &
Celebrate
5. Report &
Celebrate
All Rights Reserved Quantum Associates, Inc 2019
39
Understand The Process – Future State
• Review “As Is” map
• Confirm VA/NVA steps
• Check for additional issues
• Brainstorm for possible solutions
– Issues/problems
– How we do it today
– Possible solutions
– Generate some ideas for improvement
– Look for paradigm shifts
– Choose those that might have a major impact on the critical organizational issue
All Rights Reserved Quantum Associates, Inc 2019 40
– Creating the Future State Map
• Review the start point, end point, the process to be mapped and the functions. Should any be changed?
• Put in the first step
• Develop the total process by removing all the non-value-added steps leaving only the value-added and
sustainable non-value-added steps
– Why do the step?
– What value to the customer does the step add?
– Could it be done better?
– Address issues that were identified during As Is mapping
– What should happen next?
– Why?
• Estimate cycle time for each step of the Future State Map
41
All Rights Reserved Quantum Associates, Inc 2019
Understand The Process – Future State
• Future State
– Analyzing the Future State Map
• Develop Action plan to reduce or eliminate all the NVA steps
– What needs to be done?
– Who will do it?
– By when?
• Complete the Future State Map
• Review the Issues making sure all have been addressed
• Prioritize the Action Items
42
All Rights Reserved Quantum Associates, Inc 2019
Understand The Process – Future State
Widget Works Quoting Process Current State
All Rights Reserved Quantum Associates, Inc 2019
43
Red = Non-value-added step
Green = Value-added step
Blue = Business non-value-added step
Widget Works Quoting Process Redesign
All Rights Reserved Quantum Associates, Inc 2019 44
Process Redesign
• From the future state action plan chunk the improvements into Kaizen
events to get started on how to achieve the future state
• The kaizen events can be separated into “just do its”, short-term (1-2
weeks) and long term (3-4 weeks)
• Conduct daily accountability meetings (15-minute standup meetings)
– Develop and use visual controls (activity boards, daily planning sheets, etc)
All Rights Reserved Quantum Associates, Inc 2019 45
Example of Agile Lean Projects
All Rights Reserved Quantum Associates, Inc 2019
46
Customer
C/T Sec
30
L/T hr
1
% Defects 30%
Sort
B
B
S
S
Sort mail
same day
Just
Do It!
C/T Min
4
L/T Min
4
Data Entry
C/T 0
L/T 0
Validate
Reassign
work on high
demand days
Collect
data on
errors
95% Reduce
Errors
Kaizen
C/T Sec
30
L/T 0
% Reliability 95%
Print
Electronic subroutine
run during the night
Collect data
on printer
downtime
C/T Sec
15
L/T hr
1
Sort
Actives
C/T Sec
60
L/T min
30
Deliver
Daily
FedEx
Requests
Mail Requests
Faxed Requests
Requests processed
within 2 days
Average 61 requests/day
480 Min/day Avail. Work Time
6.25 Min Cycle Time
10.57 hrs. Total Lead Time
7.9 Minutes Takt Time
95% First Pass Yield
9.86% Value Added %
Buffer & Safety for high demand days (Monday & Friday)
- Work Overtime
- Inter-departmental Borrowing
Standardized
work for Data
Entry
Buffer/safety at
sort requests
Process request at a
pitch of 2 hours = 16
requests/2 hours
Create Kanban
folders of 16
requests
In process
supermarket at
printer station
Improve
reliability
to 95%
Alarm security and
signaling group
Goal: Shift the mean
time from 5 days per
request to 2 days per
request
Final results: Mean
request processing time
went from 5 days to 1.5
days in 60 days, a 70%
improvement.
Example of an Agile Lean Projects
All Rights Reserved Quantum Associates, Inc 2019
47
Send Job to RTC
for "Custom er
M aster" update
CT Min
120
LT Min
28800
%
Value
Enroll Customer in
CSD (Certificate
Service Database)
CT Min
15
LT Min
960
%
Value
Prepare & Sendout
Quote
CT Min
30
LT Min
120
%
Value
Create an Order
CT Min
25
LT Min
960
%
Value
Post Project to
ePro
CT Min
25
LT Min
240
%
Value
Review for
technical R2G and
assign
CT Min
60
LT Min
960
%
Value
Conduct IR.
Contact Custom er
& Schedule
CT Min
180
LT Min
2400
%
Value
I
Conduct
Investigation
CT Min
720
LT Min
4800
%
Value
Generate Report
Package
CT Min
240
LT Min
4800
%
Value
Technical Review
by "L3"
CT Min
120
LT Min
2400
%
Value
Customer
Oracle& ePro
System
2 Days
Yield Value
0.5 Days
Yield Value
2 Days
Yield Value
10 Days
Yield Value
10 Days
Yield Value
5 Days
Yield Value
60 Days
Yield Value
2 Days
Yield Value
2 Days
Yield Value
5 Days
Yield Value
CT Min
1535
LT Min
49680
Value Add %
3.1
New Customer Listing:
Current State
3017MNBK, 3017CMEL, 3013MSCL
Example of Agile Lean Projects
All Rights Reserved Quantum Associates, Inc 2019
48
Prepare & Sendout
Quote
CT Min
30
LT Min
120
%
Value
Create an Order
CT Min
25
LT Min
960
%
Value
Post Project to
ePro
CT Min
25
LT Min
240
%
Value
Review for
technical R2G and
assign
CT Min
60
LT Min
960
%
Value
Conduct IR.
Contact Customer
& Schedule
CT Min
180
LT Min
2400
%
Value
I
Conduct
Investigation
CT Min
720
LT Min
4800
%
Value
Generate Report
Package
CT Min
240
LT Min
4800
%
Value
Technical Review
by "L3"
CT Min
120
LT Min
2400
%
Value
Send Job to RTC
for "Customer
Master" update
CT Min
120
LT Min
28800
%
Value
Enroll Customer in
CSD (Certificate
Service Database)
CT Min
15
LT Min
960
%
Value
Customer
Oracle& ePro
System
2 Days
Yield Value
0.5 Days
Yield Value
2 Days
Yield Value
7 Days
Yield Value
4.5 Days
Yield Value
0.5 Days
Yield Value
0 Days
Yield Value
2 Days
Yield Value
2 Days
Yield Value
5 Days
Yield Value
CT Min
1415
LT Min
12240
Value Add %
11.5
New Customer
Listing:Future State
3017MNBK, 3017CMEL, 3013MSCL
CSD Admin.
update "Customer
Master" instead of
RTC. (Time
Saving-58 Days)
Simplify Report-
Streamline
development of
report [Save
120min]
Make
appointment
with reviewer to
reduce. [Save 4
Days in Que]
Kaizen Just Do It
Collect data on
all cycle times
and available
time
Have customer
send data sheets
and perferred
audit date
directly to CAS
[Save 5Days]
Simplify the audit
evaluation or
investigation [0.5
Day]
Reduce TAT on new customer
listings from 103 days to 25
days.
Current State Future State
Example of a Project Activity Board
Weekly Metrics
Process Costs
Revenue
Late Delivery
High Level
Project List
Detail
Project Plans
All Rights Reserved Quantum Associates, Inc 2019
49
Example of a Project Activity Board
All Rights Reserved Quantum Associates, Inc 2019
50
Example of Team Activity Board
All Rights Reserved Quantum Associates, Inc 2019
51
Examples of Activity Boards
A4 boards
A4s are documents that can assist with problem
resolution. They document the root cause
analysis and outline the countermeasures that
were put in place to correct the problem. It can
be very beneficial to display this type of
information to promote visibility and input from a
larger group.
Kaizen idea boards
A kaizen idea board keeps employee
suggestions and follow-up actions visible to both
managers and employees. In this example,
kaizen ideas are written on Post-It notes, placed
in the large box on the left, and reviewed by
managers at a regular time interval (i.e. every
day, every week). They are prioritized using the
4-box block, and up to 3 ideas are acted upon at
a time. Source: Brady 50 Lean Visuals Pocketbook
All Rights Reserved Quantum Associates, Inc 2019
52
Activity Board & Daily Standup
Accountability) Meetings
Agenda
• Plan completed yesterday
• Today’s target and actions
• Barriers to plan
• Update from BA
• Lean/Kaizen activities
Key TPM Tools
All Rights Reserved Quantum Associates, Inc 2019 53
Activity Board and Daily Standup Meeting
All Rights Reserved Quantum Associates, Inc 2019 54
Fire Department Daily Huddle
STEP 3:
Review and Report Out – ½ to 1 Day
All Rights Reserved Quantum Associates, Inc 2019 55
Report Outs
• Conduct review meetings after completing a kaizen event
conducting a post mortem of the event (lessons learned, what
worked, etc.)
• Report out to Process Owner/Stakeholders and Business Analyst
on executed improvements
All Rights Reserved Quantum Associates, Inc 2019 56
Summary
• Roles and Responsibilities
– Business Analyst
• Increase team’s efficiency
• Clarify scope and advocate for process stakeholders
• Help manage improvements backlog and clarify requirements
– Team Lead
• Provides direction
• Conducts and manage meetings
• Encourages participation
• Suggests assignments
– Team Member
• Support team’s objectives
• Willing to spend time on team’s activities
• Deliver on their promises
• Support other team members
All Rights Reserved Quantum Associates, Inc 2019 57
Summary
Agile Methods
• Product owner
• Product backlog
• Sprint plan
• Sprint
• Daily scrum
• Scrum Master
• Sprint review
Lean Complement
• Process owner
• Prioritized list of kaizen projects
• Project action plan
• Kaizen events (1 to 4 weeks)
• 15 minutes daily huddle/Visual
• Team Coach/ Facilitator
• Kaizen post mortem meeting
All Rights Reserved Quantum Associates, Inc 2019 58
Copyrights of all the pictures used in this presentation are held by their respective owners.
All Rights Reserved Quantum Associates, Inc 2019 59
DO NOT BE
AFRAID, MY
FRIEND
All Rights Reserved Quantum Associates, Inc 2019
60

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Agile Lean Process Improvement

  • 1. Agile Lean Process Improvement Challenging the Current Approach All Rights Reserved Quantum Associates, Inc 2019 1 847-919-6127 info@quantumassocinc.com quantumassocinc.com Thought Leadership Series
  • 2. Start With the Goal in Mind • What outcomes are you trying to achieve – Better (improve quality of the process) – Faster ( reduce processing time) – Cheaper (cost reduction) • The Business Analyst’s role is to help focus the team on the right requirements or outcomes “Analysis of a process such as order taking, credit checking, or packing and shipping requires a detailed walk-through of each task comprising the entire activity.” All Rights Reserved Quantum Associates, Inc 2019 2
  • 3. Why Improve a Process? • Outdated or convoluted processes waste time and money • A great place to start as a BA is to improve existing business processes and develop the most cost-effective solutions “Few experts would disagree that processes are more important than the computer systems that support them. As such, they agree, processes should be fixed before installing any software to automate them. But once you get the processes straightened out, new systems can push you to a new level." All Rights Reserved Quantum Associates, Inc 2019 3
  • 4. What is Agile Lean Process Improvement? • Improving processes using lean principles in an agile framework to reap the benefits of eliminating waste and quickly executing the improvements. All Rights Reserved Quantum Associates, Inc 2019 4
  • 5. The Lean Agile Synergy Agile Methods • Product owner • Product backlog • Sprint plan • Sprint • Daily scrum • Scrum Master • Sprint review Lean Complement • Process owner • Prioritized list of kaizen projects • Project action plan • Kaizen events (1 to 4 weeks) • 15 minutes daily huddle/Visual • Team Coach/ Facilitator • Kaizen post mortem meeting All Rights Reserved Quantum Associates, Inc 2019 5
  • 6. Why Combine the two Techniques? • Process improvement – Is adapted to the changing business needs of the organization – Delivers more value and that value becomes more visible. – Becomes ingrained as the way of working in the organization • The improvement team deliver maximum value to the stakeholders quickly All Rights Reserved Quantum Associates, Inc 2019 6
  • 7. What Are The Benefits of the Approach? • Improved collaboration between the process improvement team and the stakeholders. • Agile iterations enable frequent interactions between those involved in process improvement. • The BA’s role of collaborating with the stakeholders will reduce rework caused by errors in requirements • Customers of the process improvements are much more involved in the change process. • The agile approach helps focus on execution of the process improvements. • The improvement team gains a better understanding of the agile approach to lean process improvement which can be used to support other process improvement teams in your organization. All Rights Reserved Quantum Associates, Inc 2019 7
  • 8. STEP 1 Process Redesign-Creating The Product (Project) Backlog– 2 to 3 Days All Rights Reserved Quantum Associates, Inc 2019 8
  • 9. What is a Business Process? A process is...  A series of related activities that “flow” through an organization  Not limited to a single function or department  Something that can be viewed from end to end Input Output Process Policy development Assessment Customer Service Order Fulfilment Application Procedure Trigger Value-Added Customer All Rights Reserved Quantum Associates, Inc 2019 9
  • 10. Functional View vs Process View Functional orientation Process orientation All Rights Reserved Quantum Associates, Inc 2019 10
  • 11. From Functional to Process View Successful redesign requires a shift from function to process Functions drive the business Processes are acknowledged, but Functions dominate Processes drive the business Stage 1 Stage 2 Stage 3 P u r c h a s i n g R e c e i v i n g P a y m e n t P u r c h a s i n g R e c e i v i n g P a y m e n t C u s t o m e r s Requisition to Payment Contract to Cash Recruit to Retire Large companies tend to be made up of several departments, each with its own systems. "Since a lot of systems have been built based on department needs, they're not geared to a process." A process often spans several departmental units such as accounting, sales, production, and shipping. “ 11 All Rights Reserved Quantum Associates, Inc 2019
  • 12. Understand the Process • Select the Process Improvement Team (PIT) – Process Owner- responsible for the overall performance of the process with knowledge of the customers’ expectations of the process – Coach/Facilitator- helps the team understand agile and lean tools/concepts and manages outside interactions with the team. – Self organizing PIT – 6 - 9 members responsible for identifying and deploying the improvements consistent with the goals of the stakeholders – Business Analyst- the interface between team and Process Owner and other stakeholders All Rights Reserved Quantum Associates, Inc 2019 12
  • 13. Understand the Process • Goals – Focus on the interfaces between work groups – Inventory inputs, outputs, suppliers, customers, and the activities of work groups – Understand how work activities are interconnected – Move on to more detailed flowcharting or process mapping 13 All Rights Reserved Quantum Associates, Inc 2019
  • 14. Understand the Process • Define process boundaries and major groups – Define the purpose – Define the process boundaries as follows: • The process begins with … • The process ends with .. – List the major groups contained within the process and draw a box with as many columns. Label the top of the column with a group name 14 All Rights Reserved Quantum Associates, Inc 2019
  • 15. Understand the Process • Identify process outputs and customers – List all the outputs that the process produces to the right of the process box – List all the customers, that is, recipients of process output to the right of the output list – As a check, ask: • For each output: Are we leaving any customers out? • For each customer: Do they receive any additional outputs from us? 15 All Rights Reserved Quantum Associates, Inc 2019
  • 16. Understand the Process • Identify process inputs and suppliers – List all the inputs the process receives to the left of the process box – List all the suppliers of process input to the left of the input list – As a check, ask: • For each input: Are we leaving any suppliers out? • For each supplier: Do they provide us any additional inputs? – Determine and list the input and output requirements – Create your SIPOC chart 16 All Rights Reserved Quantum Associates, Inc 2019
  • 17. Leasing Equipment SIPOC Supplier (s) Input/Req’ts Process Output/Req’ts Customers 17 Lease Agreement Equipment Lessor Credit Agency Stanley’s Office Products Credit Report Proposed Lease Schedule • Response within 30 minutes • Data current to previous business day •Report can be reviewed in 3 minutes • Complete list of items on lease • Retail price and manufacturer data • Complete in 5 working days •Full terms, conditions and payout rules •2 pages max (not Including item list) Payment • Correct amount funded within 1 day of delivery • Delivered via EFT Stanley’s Office Products Customer Credit Review Equipment Validation Preparation of documents Funding and Filing All Rights Reserved Quantum Associates, Inc 2019
  • 18. Defining the Process 18 SIPOC-R Diagram Supplier Input Process Output Customer Requirements Block diagram of process All Rights Reserved Quantum Associates, Inc 2019
  • 19. Defining the Process 19 SIPOC-R Diagram For Auto Loan Disbursement Process Consumer Supplier Application form, address proof, bank details, Photo ID, agreement, deal slip, auto insurance, invoice, car docs. Input Process Auto Loan Disbursement Loan amount credited to customer’s account Output Consumer Customer •Turnaround time of less than 3days •99.99% first time error free credit •Less hassle for customer Requirements Dealer Sales Credit appraisal Field Investigation Risk Assessment Loan Approval Amount credited to customer Acct Block Diagram of Auto Loan Disbursement Process All Rights Reserved Quantum Associates, Inc 2019
  • 20. Understanding the Process- Map It • Process mapping is a tool that is used to understand, analyze and document processes and activities in an organization and assist in identifying opportunities for improvement • A process map displays the sequential steps involved in converting a specific input into the required output All Rights Reserved Quantum Associates, Inc 2019 20
  • 21. Understanding the Process—Map It • Typical reasons for mapping a process include: – To improve a process, you must understand the process – Complexity of processes and lack of understanding constrains management’s attempts to improve processes – Analytical skills and process mapping skills allow us to understand and communicate processes to management, staff and users – Identifies efficiency issues and where systems can support these All Rights Reserved Quantum Associates, Inc 2019 21
  • 22. Understanding the Process—Map It • Increases understanding of the work process • Provides understanding of resource allocation • Documents training procedures • Tracks workflow • Increases staff awareness Process mapping can be extremely valuable because it can identify improvements in a number of aspects in the work place, including: All Rights Reserved Quantum Associates, Inc 2019 22
  • 23. • When evaluating a process, you should ask the following questions – What is the purpose of this step? Does it add value or not? Do I eliminate, optimize or automate it? – Does each step in the process have a clear and logical input and output? – Are there alternatives for accomplishing each step? – How are exceptions handled? – Consider parallel processing – this is one of the fundamental and most straightforward methods of process improvement. Identify where two or more related processes can run simultaneously, with the same starting and end points to improve efficiency. All Rights Reserved Quantum Associates, Inc 2019 23 Understanding the Process—Map It
  • 24. • Begin by drawing the process as it exists today at the most global organization level • The macro block diagram forces us to identify the boundaries of the process as well as its inputs and outputs 24 Report Writing Process Input: Request for written Report Output: Written report All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—Map It
  • 25. • Draw the next level of detail- two options – Macro Map – a broad overview of the process-the “30,000 foot view” – Relationship (cross-functional) Map- Shows the steps in the process as well as who performs them 25 All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—Map It
  • 26. • Report Writing Process 26 Site Visit First Draft Team Edit Second Draft Graphics Mail Inputs: Interview notes, observations, research, record template Output: Report including data & recommended action All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—Map It
  • 27. Process mapping “DOs” and “DON’Ts” • DO map the process as it actually happens • DO think about the process across the entire organization • DO talk to the other people who are involved in the process • DO define the beginning and end of the process before you start • DO the process map at a high level • DO ask questions • DON’T map the process as you think it happens or as you think it ought to happen • DON’T restrict your process map to the activities in your own department • DON’T work in a vacuum • DON’T attempt to process map before you identify a beginning and an end • DON’T get bogged down with too much detail • DON’T struggle on your own All Rights Reserved Quantum Associates, Inc 2019 27
  • 28. Process Redesign • Once a map is created, a team can study the current state. • To redesign the process some of the questions you may ask are: – Does the team structure support the operation of the process? – Do we have accidental bureaucracy? – Does every step add value? – Are we duplicating our work? – Can we simplify? – Can we save time? – Can we standardize workflow? – Can we better utilize tools and equipment? 28 All Rights Reserved Quantum Associates, Inc 2019
  • 29. Understanding the Process—VA/NVA Analysis • Value-added activity – Any activity that changes size, shape, form, fit or function of material or information to meet customer demand and requirements – Any service the customer is willing to pay for • Non-value-added activity – Any activity that consumes time or resources and that your process does not require – Any activity that does not satisfy customer demands or requirements – Any activity that a customer is not willing to pay for because it does not add value • Essential non-value-added activity – Customer is not willing to pay for it, but is required to meet third party expectations or requirements or is essential to running the business All Rights Reserved Quantum Associates, Inc 2019 29
  • 30. • Purpose—Identify the waste, rework, and delay that can be eliminated from the process • Over time processes become cumbersome, inefficient and ineffective. This complexity consumes more time and accomplishes less. • Each activity, decision and arrow on the process map represents time and effort. From the customer’s point of view little of this time and effort adds value, most of it is non-value added. • From the customer’s point of view, delay, rework, transporting do not add value. Analyzing the process for non-value-added activities can help simplify and streamline the overall process. 30 Each task gets graded on whether it represents value-added or non-value-added activity. "What you find, typically, is that 65% to 70% of the tasks are “non-value added." All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—VA/NVA Analysis
  • 31. • On a process map, most of the non-value-added time will be found in one of four places – The arrows (time required for processing steps) – Delays (delays between processing steps/tasks) – Rework loops (fixing errors that should have been prevented) – Scrap processes (discarding or recycling defects) 31 All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—VA/NVA Analysis
  • 32. 32 Widget Works Quoting Process All Rights Reserved Quantum Associates, Inc 2019
  • 33. Widget Works Quoting Process (VA/NVA) All Rights Reserved Quantum Associates, Inc 2019 33 Red = Non-value-added step Green = Value-added step Blue = Business non-value-added step
  • 34. • Value-Add Analysis – Step One • For each activity (rectangle, diamond, delay, handoff, arrow) list its function and the time spent (in minutes, hours, days) on the checklist. – Step Two • Walk in the customer’s shoes. As the customer, ask the following questions: – Is the order or output idle or delayed? – Is this inspection, checking, testing, review necessary? – Does it change the output in a valuable way, or is this just “fix it” error correction work or waste? 34 All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—VA/NVA Analysis
  • 35. Sample Value-Add Checklist All Rights Reserved Quantum Associates, Inc 2019 35 Time Spent (hours, days, weeks, months) IDLE TIME WAIT TIME OR DELAY INSPECT? DETECT? TEST? REWORK? WASTE? SCRAP? NON-VALUE ADDED? (Y/N) ACTIVITY, DECISION, OR ARROW
  • 36. • Value-Add Analysis – Step Three • If the answer to any of these questions is “yes”, then the step may be non-value- added. If so, can we remove it from the process? Much of the “idle” non-value- added time in a process lies in the arrows: Orders or outputs sit in boxes or computers waiting to be processed, Calls wait in queue for a representative to answer. How can we eliminate delay? 36 © Quantum Associates, Inc, 2004 All Rights Reserved Quantum Associates, Inc 2019 Understanding the Process—VA/NVA Analysis
  • 37. Understand the Process • Step Four – How can activities and delay be eliminated, simplified, combined or reorganized to provide a faster, higher quality flow through the process? – Investigate hand-off points: how can you eliminate delays and prevent lost, changed or misinterpreted information or work products at these points? – If there are simple, creative or obvious ways to improve the process now, refine the map to reflect those changes. 37 All Rights Reserved Quantum Associates, Inc 2019
  • 38. STEP 2: Redesign the Process – Kaizen Events (Sprints) All Rights Reserved Quantum Associates, Inc 2019 38
  • 39. Kaizen Event Process 1. Set the Scene 1. Set the Scene 2. Understand Current Process 2. Understand Current Process 3. Develop Future State Design 3. Develop Future State Design 4. Implement Solutions 4. Implement Solutions 5. Report & Celebrate 5. Report & Celebrate All Rights Reserved Quantum Associates, Inc 2019 39
  • 40. Understand The Process – Future State • Review “As Is” map • Confirm VA/NVA steps • Check for additional issues • Brainstorm for possible solutions – Issues/problems – How we do it today – Possible solutions – Generate some ideas for improvement – Look for paradigm shifts – Choose those that might have a major impact on the critical organizational issue All Rights Reserved Quantum Associates, Inc 2019 40
  • 41. – Creating the Future State Map • Review the start point, end point, the process to be mapped and the functions. Should any be changed? • Put in the first step • Develop the total process by removing all the non-value-added steps leaving only the value-added and sustainable non-value-added steps – Why do the step? – What value to the customer does the step add? – Could it be done better? – Address issues that were identified during As Is mapping – What should happen next? – Why? • Estimate cycle time for each step of the Future State Map 41 All Rights Reserved Quantum Associates, Inc 2019 Understand The Process – Future State
  • 42. • Future State – Analyzing the Future State Map • Develop Action plan to reduce or eliminate all the NVA steps – What needs to be done? – Who will do it? – By when? • Complete the Future State Map • Review the Issues making sure all have been addressed • Prioritize the Action Items 42 All Rights Reserved Quantum Associates, Inc 2019 Understand The Process – Future State
  • 43. Widget Works Quoting Process Current State All Rights Reserved Quantum Associates, Inc 2019 43 Red = Non-value-added step Green = Value-added step Blue = Business non-value-added step
  • 44. Widget Works Quoting Process Redesign All Rights Reserved Quantum Associates, Inc 2019 44
  • 45. Process Redesign • From the future state action plan chunk the improvements into Kaizen events to get started on how to achieve the future state • The kaizen events can be separated into “just do its”, short-term (1-2 weeks) and long term (3-4 weeks) • Conduct daily accountability meetings (15-minute standup meetings) – Develop and use visual controls (activity boards, daily planning sheets, etc) All Rights Reserved Quantum Associates, Inc 2019 45
  • 46. Example of Agile Lean Projects All Rights Reserved Quantum Associates, Inc 2019 46 Customer C/T Sec 30 L/T hr 1 % Defects 30% Sort B B S S Sort mail same day Just Do It! C/T Min 4 L/T Min 4 Data Entry C/T 0 L/T 0 Validate Reassign work on high demand days Collect data on errors 95% Reduce Errors Kaizen C/T Sec 30 L/T 0 % Reliability 95% Print Electronic subroutine run during the night Collect data on printer downtime C/T Sec 15 L/T hr 1 Sort Actives C/T Sec 60 L/T min 30 Deliver Daily FedEx Requests Mail Requests Faxed Requests Requests processed within 2 days Average 61 requests/day 480 Min/day Avail. Work Time 6.25 Min Cycle Time 10.57 hrs. Total Lead Time 7.9 Minutes Takt Time 95% First Pass Yield 9.86% Value Added % Buffer & Safety for high demand days (Monday & Friday) - Work Overtime - Inter-departmental Borrowing Standardized work for Data Entry Buffer/safety at sort requests Process request at a pitch of 2 hours = 16 requests/2 hours Create Kanban folders of 16 requests In process supermarket at printer station Improve reliability to 95% Alarm security and signaling group Goal: Shift the mean time from 5 days per request to 2 days per request Final results: Mean request processing time went from 5 days to 1.5 days in 60 days, a 70% improvement.
  • 47. Example of an Agile Lean Projects All Rights Reserved Quantum Associates, Inc 2019 47 Send Job to RTC for "Custom er M aster" update CT Min 120 LT Min 28800 % Value Enroll Customer in CSD (Certificate Service Database) CT Min 15 LT Min 960 % Value Prepare & Sendout Quote CT Min 30 LT Min 120 % Value Create an Order CT Min 25 LT Min 960 % Value Post Project to ePro CT Min 25 LT Min 240 % Value Review for technical R2G and assign CT Min 60 LT Min 960 % Value Conduct IR. Contact Custom er & Schedule CT Min 180 LT Min 2400 % Value I Conduct Investigation CT Min 720 LT Min 4800 % Value Generate Report Package CT Min 240 LT Min 4800 % Value Technical Review by "L3" CT Min 120 LT Min 2400 % Value Customer Oracle& ePro System 2 Days Yield Value 0.5 Days Yield Value 2 Days Yield Value 10 Days Yield Value 10 Days Yield Value 5 Days Yield Value 60 Days Yield Value 2 Days Yield Value 2 Days Yield Value 5 Days Yield Value CT Min 1535 LT Min 49680 Value Add % 3.1 New Customer Listing: Current State 3017MNBK, 3017CMEL, 3013MSCL
  • 48. Example of Agile Lean Projects All Rights Reserved Quantum Associates, Inc 2019 48 Prepare & Sendout Quote CT Min 30 LT Min 120 % Value Create an Order CT Min 25 LT Min 960 % Value Post Project to ePro CT Min 25 LT Min 240 % Value Review for technical R2G and assign CT Min 60 LT Min 960 % Value Conduct IR. Contact Customer & Schedule CT Min 180 LT Min 2400 % Value I Conduct Investigation CT Min 720 LT Min 4800 % Value Generate Report Package CT Min 240 LT Min 4800 % Value Technical Review by "L3" CT Min 120 LT Min 2400 % Value Send Job to RTC for "Customer Master" update CT Min 120 LT Min 28800 % Value Enroll Customer in CSD (Certificate Service Database) CT Min 15 LT Min 960 % Value Customer Oracle& ePro System 2 Days Yield Value 0.5 Days Yield Value 2 Days Yield Value 7 Days Yield Value 4.5 Days Yield Value 0.5 Days Yield Value 0 Days Yield Value 2 Days Yield Value 2 Days Yield Value 5 Days Yield Value CT Min 1415 LT Min 12240 Value Add % 11.5 New Customer Listing:Future State 3017MNBK, 3017CMEL, 3013MSCL CSD Admin. update "Customer Master" instead of RTC. (Time Saving-58 Days) Simplify Report- Streamline development of report [Save 120min] Make appointment with reviewer to reduce. [Save 4 Days in Que] Kaizen Just Do It Collect data on all cycle times and available time Have customer send data sheets and perferred audit date directly to CAS [Save 5Days] Simplify the audit evaluation or investigation [0.5 Day] Reduce TAT on new customer listings from 103 days to 25 days.
  • 49. Current State Future State Example of a Project Activity Board Weekly Metrics Process Costs Revenue Late Delivery High Level Project List Detail Project Plans All Rights Reserved Quantum Associates, Inc 2019 49
  • 50. Example of a Project Activity Board All Rights Reserved Quantum Associates, Inc 2019 50
  • 51. Example of Team Activity Board All Rights Reserved Quantum Associates, Inc 2019 51
  • 52. Examples of Activity Boards A4 boards A4s are documents that can assist with problem resolution. They document the root cause analysis and outline the countermeasures that were put in place to correct the problem. It can be very beneficial to display this type of information to promote visibility and input from a larger group. Kaizen idea boards A kaizen idea board keeps employee suggestions and follow-up actions visible to both managers and employees. In this example, kaizen ideas are written on Post-It notes, placed in the large box on the left, and reviewed by managers at a regular time interval (i.e. every day, every week). They are prioritized using the 4-box block, and up to 3 ideas are acted upon at a time. Source: Brady 50 Lean Visuals Pocketbook All Rights Reserved Quantum Associates, Inc 2019 52
  • 53. Activity Board & Daily Standup Accountability) Meetings Agenda • Plan completed yesterday • Today’s target and actions • Barriers to plan • Update from BA • Lean/Kaizen activities Key TPM Tools All Rights Reserved Quantum Associates, Inc 2019 53
  • 54. Activity Board and Daily Standup Meeting All Rights Reserved Quantum Associates, Inc 2019 54 Fire Department Daily Huddle
  • 55. STEP 3: Review and Report Out – ½ to 1 Day All Rights Reserved Quantum Associates, Inc 2019 55
  • 56. Report Outs • Conduct review meetings after completing a kaizen event conducting a post mortem of the event (lessons learned, what worked, etc.) • Report out to Process Owner/Stakeholders and Business Analyst on executed improvements All Rights Reserved Quantum Associates, Inc 2019 56
  • 57. Summary • Roles and Responsibilities – Business Analyst • Increase team’s efficiency • Clarify scope and advocate for process stakeholders • Help manage improvements backlog and clarify requirements – Team Lead • Provides direction • Conducts and manage meetings • Encourages participation • Suggests assignments – Team Member • Support team’s objectives • Willing to spend time on team’s activities • Deliver on their promises • Support other team members All Rights Reserved Quantum Associates, Inc 2019 57
  • 58. Summary Agile Methods • Product owner • Product backlog • Sprint plan • Sprint • Daily scrum • Scrum Master • Sprint review Lean Complement • Process owner • Prioritized list of kaizen projects • Project action plan • Kaizen events (1 to 4 weeks) • 15 minutes daily huddle/Visual • Team Coach/ Facilitator • Kaizen post mortem meeting All Rights Reserved Quantum Associates, Inc 2019 58
  • 59. Copyrights of all the pictures used in this presentation are held by their respective owners. All Rights Reserved Quantum Associates, Inc 2019 59
  • 60. DO NOT BE AFRAID, MY FRIEND All Rights Reserved Quantum Associates, Inc 2019 60