Process Excellance

1. Process Excellence Framework
Module
1

2. CORE MODULE :
 OBJECTIVE
 OVERVIEW OF PROCESS EXCELLENCE
 SIPOC
 PROCESS MAPPING
 FMEA
 METRICS/CTQ IDENTIFICATION
 CONTROL CERTIFICATION
SUPPLEMENTARY MODULE
 CAUSE & EFFECT DIAGRAM
 CONTROL IMPACT MATIX
 METRICS/CTQ IDENTIFICATION
 VALUE STREAM MAPPING
Table of Contents
2

3. Core Module
3

4. Overview of Process Excellence
Framework
The roadmap!!!
4

5. • Objective
– The objective of the PE module is to acquaint the candidate with the importance of process controls,
the means and ways to achieve controls in a process using standard quality tools & techniques.
– The module is divided into core & supplementary sections:
– The core section focuses on equipping the candidate with the knowledge and understanding of
tools used to identify and create control certification for a given process.
– By the end of the core module, the candidate is expected to learn the following :
– Create SIPOC
– Create detailed Process Map
– Lead FMEA session & create process FMEA
– Create Control Certification
– The supplementary section focuses on explaining selected quality tools and their applications.
– By the end of the supplementary module, the candidate is expected to have an understating of the following:
– Cause & Effect Diagram
– Control Impact Matrix
– Metrics/CTQ identification
– Value Stream Mapping
5

6. •Detailed mapping of the
processes and bucketing
in following categories:
 Data capture
 Data manipulation
 Reporting
•Separately capturing the
time and effort spent on
the processes
•Identify the failure modes
and controls at each
process step
• Rank the key process
failures based on their
severity, occurrence and
the ability to detect the
errors
•These process failures
feed into the overall
controls that the team off-
shore will certify
External use
Internal use
Input:
• Timeliness
• Accuracy
Process:
• Timeliness
• Accuracy
• Quality
Output:
• Timeliness
• Accuracy
• Quality
Metrics Dashboard
Changes / addition to
existing processes
Issue Log
MI- Process Excellence Framework
The basic form of PE Framework represents the road map of control certification
6

7. SIPOC
High level walkthrough of the process!!!
7

8.  SIPOC – The Flow
 SIPOC
– SIPOC as a tool displays a cross-functional set of activities in a single and simple diagram which:
 Helps us identify process inputs (Xs) and outputs (Ys)
 Helps us identify process owner, customers & suppliers
 Helps us identify & establish boundaries for the process
– A SIPOC is a high level overview of the process.
Thinking
Acts as triggers for continuous improvement
Input Output
Requirements and Feedback Requirements and Feedback
Continuous Information Flow Continuous Information Flow
SIPOC
8

9.  SIPOC – The Method
– Define the process boundaries by agreeing on start and stop points
– Identify the key inputs required for successful process execution
– Identify the key suppliers who are responsible for providing inputs
– Identify the process steps (process-map) using process mapping tools by brainstorming
– Arrange the steps in time-sequence
– Validate the process map by a walk-through of the actual process and by having other process experts review it for consistency
– Establish the customer outputs expected from the process delivery
– Identify the customers expected to use the process output
SIPOC
9

10.  SIPOC Example (Simple Transaction Processing)
Makes us to see the process as our customer sees it!!!
SIPOC
10

11. Process Mapping
Documenting Each Individual Element Of
The Flow Of A Process!!!
11

12.  Process Maps – Types of Process Maps
- There are 4 major types of process maps, they are Block Diagrams, Top Down Charts, Flowchart, Deployment Charts.
- The review explains in detail the flowchart method of process mapping.
Process Mapping
12

13.  Process Mapping – The Method
– Determine the scope:
 How complex and detailed a map does the exercise demand?
– Determine the steps in the process:
 Don’t worry about order
 Don’t worry about priorities
 Just list them!
– Document the process map:
 Are all the process steps identified correctly?
 Are the steps arranged in current/logical order?
 Is a logical symbol assigned to each step?
 Is every feedback loop being closed?
 Does every arrow have a beginning and ending point?
 Have all the steps been covered?
Process Mapping Needs People Who Are Involved In, And Are Knowledgeable Of The Process; Who Want To See It Improved; And, Have
The Authority To Make Changes!!!
Process Mapping
13

14.  Process Mapping – The Method
– Walk the process again to validate contents and while validating ask the following questions:
 What happens if…?
 What could go wrong…?
 Who…?
 How…?
 When…?
– Update the process map accordingly and check if controls and measurement criteria are in place
 Process Mapping – Key Benefits
– Provides structure for thinking through a complex process
– Provides fact-oriented focus rather than personality focus
– Creates a means for communicating knowledge across business
– Provides a tool for understanding communication disconnects
– Helps to clarify process reality from perceived or documented plan
– Helps reveal unnecessary, complex, and redundant steps in a process. This makes it possible to simplify and troubleshoot
– Helps compare actual processes against the ideal
– Magnifies “insignificant” or “overlooked” areas
Process Mapping
14

15.  Process Flowchart
– A graphical method illustrating the details of a process using the flowcharting technique and should include:
 Different levels (i.e., sub-processes)
 Volumes and rates of transactions
 New cycle times for critical steps
 Critical control points… who’s responsible
 Hand-offs: which steps are still prone to defects
 Steps that require manual intervention… triggers
 Constraints and critical paths… throughput
 Data sources… input/output
 Reporting output and decision points
Dial Number Ring Say “Hello” Have ConversationAnswer?
Hang Up Hang Up
Yes
No
Process Mapping
15

16.  Process Map – Flowcharting Symbols
Symbol Name Explanation
Elongated Circle
Show starting and end points of a process
Flowchart
Box
Indicates process task and each box
contains a short description of the
process
Diamond
Decision making point and contains
questions that can be answered “yes” or
“no”
Connector
This connects one task of a flow chart
with another
Document
A transfer or output of a hard copy
document
Inspection/Measurement
Read papers for information, or check
quality of goods
Straight Arrow
Shows direction of the process flow
Data
Indicates Input/Output data
Process Mapping
16

17. Failure Mode Effect Analysis
Assess the risk in a process, plan to mitigate it!!!
18

18.  Failure Modes & Effects Analysis
– An FMEA is a structured analysis tool for identifying ways and methods in which a product or processes can fail. It attempts to plan an action
to prevent those failures
 Failure Mode – It is a manner in which a part or a process can fail to meet customer specifications. It is usually associated with
defects or non-conformities
 Cause – It is the source of variation which is associated with key process inputs. Cause can be best defined as a deficiency which
results in a failure mode
 Effect – It is the impact on the customer (both internal & external) if the failure mode is not prevented or corrected
A proactive tool for reducing non-conformities and process defects!!!
FMEA
19

19.  Failure Modes & Effects Analysis – The Objective
– The main benefits and purposes of FMEA are:
 To identify potential failure modes and rate the severity of their effects
 To identify critical characteristics and significant characteristics
 To rank order potential design and process deficiencies
 To help improvement champions focus on eliminating product and process concerns and help prevent problems from occurring
 Improves the quality, reliability, and safety of services
 Reduces service or product development timing and cost
 Documents and tracks actions taken to reduce risk
 Failure Modes & Effects Analysis – The Need
– The FMEA is initiated when:
 When new applications or processes are being designed
 When existing applications, designs, or processes are being changed
 When existing designs or processes will be used in new applications, or in new work environments
 After completing a problem solving study to prevent recurrence of problem
FMEA
20

20.  Failure Modes & Effects Analysis – The Approach
– Have a cross-section present, i.e. functional and technical
 Cut some attendees free after brainstorming modes, e.g. don’t need functional folks for detailed technical discussions.
– Have a person enter discussion output into the spreadsheet format for documenting FMEA during meeting
– The leader must evoke input from all members. Most valuable comments come from those who think they have little to offer
 Display examples (process maps, series of web pages, etc.) to stimulate discussion
– Coupling other tools with the FMEA can provide added value
 For example, using a Fishbone to explore failure causes, or a scorecard to track failures in a current process for inclusion in an FMEA
 Failure Modes & Effects Analysis – The Method
– Select the process FMEA team and invite them for a brainstorming
– Refer to the process map and list down all the process steps
– List all the value-added process requirements that the process adds (including internal and external customer requirements)
– For each process step, list process inputs (process characteristics) and rank the inputs according to importance (C&E Matrix)
– Start the process FMEA; Ask how each process step can fail (i.e. the potential failure mode)
– For each process input, list ways that it can vary (causes) and identify associated failure modes and effects
– List all other causes (sources of variability) and associated failure modes and effects
FMEA
21

21.  Failure Modes & Effects Analysis – The Method Contd…
– Assign severity, occurrence and detection rating to each cause
 Rate each of the consequences of the failure mode with a severity rating (on a scale of 1-10, 1 being the lowest severity to 10 being
the highest severity)
 Rate each of the occurrences of the failure mode with a occurrence rating (on a scale of 1-10, 1 being the lowest occurrence to 10
being the highest occurrence)
 Rate each of the controls of the failure mode with a detectability rating (on a scale of 1 being the highest detection to 10 being the
lowest detection)
– Calculate the Risk Priority Number for each potential failure mode and determine recommended actions to reduce all RPNs
– Take appropriate actions and re-calculate all RPNs
FMEA
22

22.  Understanding the components of the FMEA sheet
WHEN
Item/ Process Step
WHAT
Potential Failure Mode Potential Effect(s) of Failure
Severity
WHY
Potential Cause(s) of Failure
Occurrence
Current Controls
Detection
RPN
Launch CGRS & check data loaded
from CODA
Data not interfaced
Reporting TAT affected
System not available Reporting TAT affected
Retrieve Exception Report Report not retrieved
Inaccurate customer group
reporting
Report could not be retrieved due to system outage Reporting TAT affected
Wrong report retrieved
Inaccurate customer group
reporting
Map exceptions giving allocation
rules
Exceptions not mapped
Inaccurate customer group
reporting
Exceptions mapped incorrectly
Inaccurate customer group
reporting
Allocation rules request not sent
Inaccurate customer group
reporting
Allocation rules not received
Inaccurate customer group
reporting
Process Step –
linked to the
detailed
process maps
Failure mode –
what can go
wrong in the
process
What is the
impact of the
failure on the
process
Why do the
errors
breakdowns in
the process
occur
What are the
current
controls in the
process – this
is extended
further to
include the
revised
controls
required in the
process
How often is the
occurrence of the error /
process breakdown –
ranked from 1-10 with 10
being most frequent
How serious is the
impact of the error /
process breakdown –
ranked from 1-10 with 10
being most serious
How easily
can the
occurrence of
the error /
process
breakdown
be detected
– ranked
from 1-10 with
1 being most
easily
detected
Risk Priority number – product
of the severity, occurrence and
detection – the highest RPN
number process steps are most
critical
FMEA
23

23.  FMEA – Ratings Guide
FMEA
24

24.  Failure Modes & Effects Analysis – Next Steps
– Having documented the FMEA and establishing RPN scores, we are required to initiate action to mitigate risk for the
high RPN steps in the process:
 For high RPN on account of failure, occurrence or severity we need to look at changing the current process.
 For high RPN on account of detection we need to look at changing the current process controls.
Common scales need to be followed to maintain the objectivity while
working on new RPN’s post mitigating risks!!!
 Failure Modes & Effects Analysis – Key Considerations
– Seek answers for the following before initiating risk analysis:
 Who needs to assess risks for the process?
 What needs to be “risk assessed” in the process?
 How often should the risk be assessed?
FMEA is a living document and should be continually updated as changes
occur!!!
FMEA as an activity is to be always done at task level!!!
FMEA
25

25. Metric Identification
Voice to Metrics!!!
26

26. Needs are stated while requirements are defined!!!
 Customer Needs and Requirements
– Need is a desire or an expectation of a customer from a given product or service; Customers have
many stated needs which are often vague and generally are the “wants” from a product or service
– Requirement is an attribute of the product or service which fulfils the needs of a customer;
Customer defines these requirements and are the “musts” of a product or service
 Understanding Key Customer Needs
– In order to understand key customer requirements it is important to obtain information on varied
customer needs from customer voices
– There are various ways of customer research to obtain information on customer needs:
 Interviews
 Customer Observation
 Be A Customer
 Customer Complaints
 Focus Groups
 Market Research
 Surveys
Metric Identification
27

27.  Voices-Needs-Requirements – Pizza Example
Metric Identification
28

28.  Metric Drilldown Tree
– Metric drill down tree is used to identify metrics as per the VoC. The approach is to follow the
Need – Drivers – Metrics approach in drilling down to the specific metrics.
Metric Identification
29

29. Output, process and input measurements can be potential project Ys!!!
 Customer to Project Metrics – Pizza Example
Metric Identification
30

30.  CTQ/Metric Specifications
– CTQ/Metric specifications are the tolerance limits set by the customer. These are always driven by the
customer and are called specification limits.
Metric Identification
31

31. The Control Certification
An assurance of Quality!!!
32

32. PE framework Output– Monthly Overall Certification by Process Owner
Additions / Changes in the existing processes
Overall Control Certification
Control Certification
33

33. End of Core Module.
34

34. Supplementary Module
35

35. Cause & Effect Diagram &
Matrix
Identification & Prioritization of Root Causes!!!
36

36.  Cause & Effect Diagram
– It is a technique used to identify the root causes of a particular problem, by structured brainstorming of failure
opportunities under 6 categories namely Machine, Method, Measurement, Material, Mother Nature & People (also
called 5Ms & 1 P)
– The method uses a unique diagram to represent these probable causes that lead to the ultimate problem, this
shape resembles the shape of a fish bone, and hence the cause & effect diagram is also called as fish-bone. It was
invented by Prof. Ishikawa and is also referred to as the Ishikawa diagram.
– At the mouth of the diagram, the problem is mentioned, along each node representing the 5Ms & 1 P, the root
causes are listed.
– The objective of the brainstorming is to simply list the root causes without regard for the relevance or impact of
each root cause. Remember the C&E diagram only focuses on identifying the root causes, not prioritizing them.
Cause & Effect Diagram
37

37. Control Impact Matrix
Prioritization of identified Root Causes!!!
38

38. Medium ImpactHigh Impact Low Impact
Outof
Control
In
Control
Possible “X” Impact
Possible“X”
Control
 Control Impact Matrix
– The control impact matrix is a prioritization matrix used for segregating the available
ideas/solutions/options/risks/root causes as per their impact and the control the user can exercise over them.
– The available options are entered into the matrix provided below to provide a view of high impact & low impact
categories to channelize efforts.
Control Impact Matrix
39

39. Value Stream Mapping
Reduce non-value added steps, make the process LEAN!!!
40

40.  Value Stream Mapping (VSM)
 Value stream mapping is a quality technique used to analyze and design the flow of materials and information
required to bring a product or service to a consumer
 It is a sophisticated flow charting method that uses symbols, metrics, and arrows to help visualize processes and
track performance. This method helps determine which steps add value and which do not.
 Activity Types
– VSM evaluates each and every step in the process map in terms of it being a:
 Valued-added – Steps that are considered essential to produce and deliver the product or service to meet the
customer's needs and requirements. Customer is willing to pay for step and it physically changes the
product/process
 Non-value-added – Steps that are considered non-essential to produce and deliver the product or service to meet the
customer’s needs and requirements. Customer is not willing to pay for step
 Value-enabling – Steps that are not essential, but that allow the value-adding tasks to be done better/faster
A step cannot be value-adding if it is correcting an upstream defect!!!
Steps done right the first time add value to customer!!!
Value Stream Mapping
41

41.  Value Stream Mapping (VSM)
– Value added steps are considered essential by the customer and are characterized by the following attributes:
 They physically change the product or service
 Customer is willing to pay for the step
 It is done right the first time
– Non-value added steps are considered absolutely non-essential by the customer and are characterized by the
following attributes:
 They do not physically change the product or service
 The customer is not willing to pay for the step
– Value enabling steps are considered as non-essential by the customer but are still required for efficient delivery of VA
steps
 Value Stream Mapping (VSM)
– The main focus in nature of work analysis is on non-value-added work and one must be on the watch-out for all kinds
of process steps beginning with the prefix “RE”
Value Stream Mapping
42

42. • Defects – incomplete or incorrect information
• Overproduction – releasing work before next process can work on
them, unbalanced work loads
• Waiting – unbalanced work loads, slow system response, incomplete
information, approvals
• Not Utilizing Employees – old guard thinking, politics, high turnover,
low investment in training
• Transportation – poor layout, poor flow
• Inventory – large batches, complexity to complete task
• Motion – poor organization, no standard work
• Excess Processing – excess communication, lack of communication,
unnecessary approvals, customer requirements are not clearly
understood
Value Stream Mapping
43

43.  The Flow Of Work
– The flow of work helps us understand and identify what in our process is causing a
service delay that results in a customer wait
– Flow of work evaluates the cycle time of the process under two broad categories:
 Process Time
 Delay Time
Value Stream Mapping
44

44.  Value Stream Mapping Steps
– Select product / service family
– Draw Current State map. Understanding how the process currently operates.
– Identify opportunities for elimination of waste and areas of improvement to meet customer’s needs.
– Draw the Future State map. Design a lean flow using VSM techniques.
– Develop action plan and implement it.
Attention : An illustration of lean application is provided in the slides to
follow!!!
 Future State Questions
– What does the customer really need?
– How often will we check our performance to customer needs?
– Which steps create value and which are waste?
– How can we flow work, with fewer interruptions?
– How do we control work between interruptions? How will work be prioritized?
– Is there an opportunity to balance the work load and/or different activities?
– What process improvements will be necessary?
Value Stream Mapping
45

45. Incoming
Orders
Receive Order
Fax
Check Credit
FIN
Review &
Enter Order
Ops
Reconcile Order
Ops
Confirm Order
Ops
Finalize Order
Ops
.5 days .5 days .2 days .2 days .25 days 1 day
½ min 1 min 10 min 1 min 7 min 5 min
Total Lead Time = 2.65 days
Total Processing Time= 24.5 min
PT= ½ min
IN
PT = 1 min
IN
PT = 10 min
IN
PT = 1 min
IN
PT = 7 min
IN
PT = 5 min
IN
Weekly Fax
Non Value Add Time
As – Is Process MapAs – Is Process Map
Value Stream Mapping : An Illustration
Value Stream Mapping
Delay/Hold Time
PT = Process Time46

46. Incoming
Orders
Receive Order
Fax
Check Credit
FIN
Review &
Enter Order
Ops
Reconcile Order
Ops
Confirm Order
Ops
Finalize Order
Ops
.5 days .5 days .2 days .2 days .25 days 1 day
½ min 1 min 10 min 1 min 7 min 5 min
Total Lead Time = 2.65 days
Total Processing Time= 24.5 min
PT= ½ min
IN
PT = 1 min
IN
PT = 10 min
IN
PT = 1 min
IN
PT = 7 min
IN
PT = 5 min
IN
Weekly Fax
Non Value Add Time
What does the customer really need?
How often will we check our performance to customer needs?
All orders will be processed within one hour of receipt (6 orders processed each hour).
Each hour.
Value Stream Mapping : An Illustration Value Stream Mapping
Delay/Hold Time
PT = Process Time
47

47. Incoming
Orders
Receive Order
Fax
Check Credit
FIN
Review &
Enter Order
Ops
Reconcile Order
Ops
Confirm Order
Ops
Finalize Order
Ops
.5 days .5 days .2 days .2 days .25 days 1 day
½ min 1 min 10 min 1 min 7 min 5 min
Total Lead Time = 2.65 days
Total Processing Time= 24.5 min
PT= ½ min
IN
PT = 1 min
IN
PT = 10 min
IN
PT = 1 min
IN
PT = 7 min
IN
PT = 5 min
IN
Weekly Fax
Non Value Add Time
Waste
Rework
Waste
Over Processing
Phone
Or WEB
Stop walking to the
FAX that’s waste!!!
Which steps create value?
Which are waste?
Value Stream Mapping : An Illustration
Value Stream Mapping
Delay/Hold Time
PT = Process Time48

48. Incoming
Orders
Receive Order
Fax
Check Credit
FIN
Review &
Enter Order
Ops
Reconcile Order
Ops
Confirm Order
Ops
Finalize Order
Ops
.5 days .5 days .2 days .2 days .25 days 1 day
½ min 1 min 10 min 1 min 7 min 5 min
PT= ½ min
IN
PT = 1 min
IN
PT = 10 min
IN
PT = 1 min
IN
PT = 7 min
IN
PT = 5 min
IN
Weekly Fax
Non Value Add Time
Finance
Cross Train
On-Line
Order Entry
How can we flow work with fewer interruptions?
NEW METRICS!
Auto
Confirm
Total Lead Time = 1.25 days
Total Processing Time= 11.5 min
Value Stream Mapping : An Illustration
Value Stream Mapping
Delay/Hold Time
PT = Process Time49

49. Receive / Credit
Check / Reconcile
Confirm
MRP/FI
N
PT < 10 min
Phone / Web
Incoming
Orders
Shipping
Training
Direct
Schedule
Shipping
I.T. Link to
Order Entry
SHIPPIN
G
Future Process MapFuture Process Map
Value Stream Mapping : An Illustration
Value Stream Mapping
Delay/Hold Time
PT = Process Time50

50. End of Supplementary
Module.
51

51. 52