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Metrics-Based Process Mapping
The document outlines a metrics-based process mapping approach aimed at enhancing process performance through a detailed visual analysis of workflows. It covers various aspects such as defining strategic direction, documenting current processes, measuring key metrics, and identifying value-adding and non-value-adding activities. The methodology emphasizes continuous improvement and provides a framework for designing improved processes while engaging both leadership and frontline employees.
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Metrics-Based Process Mapping
- 1. Metrics-Based Process Mapping 29September 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 ofGranularity 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 daysTotal 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 ofGranularity 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: ProcessFlow 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 weknow what to improve? Traditional Swim Lane Process Maps
- 9. 9 What is aMetrics-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.
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- 11. Complex Process withMany Concurrent Activities (Parallel Steps) 11
- 12. 12 When/Why to CreateMBPMs? 1. Problem solving 2. Process improvement 3. Rapid improvement events (kaizen events) 4. Role clarification 5. Designing new processes
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- 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: Labelthe map Process Name Included/Excluded Conditions Current State MBPM Date Facilitator and/or Team Names
- 16. Step 2: Listfunctions 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: Documenttask & 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) Barriersto 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 Timeand 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 • Typicallyobtained 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 HighVariation 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: Definethe “Timeline Critical Path” For parallel activities: Chose the longest LT unless a “dead-end” activity
- 27. Step 7: Createthe 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: LaborRequirements • 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 FutureState 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 CurrentState • 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: Labelthe 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 versusNon-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 StateFindings 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?
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- 37. The Eight Wastes(Muda) Motion Transportation Lost Creativity Overproduction Errors Waiting Over-processing Inventory
- 38. Step 10: Circlethe 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 DesignConsiderations • 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 FutureState 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 CurrentState 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 CurrentState 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
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