The Amazing World of Process Improvement. Introduction

Transcription

1 The Amazing World of Process Improvement Introduction

2 Ice Breaker Zoomed In! Warning: Objects in the mirror are closer than they appear 1

3 Instructions There will be an image displayed on the screen that is zoomed in extremely close You will have 10 seconds to correctly identify the image. After 10 seconds, we will zoom out a little and you will have another 5 seconds to identify the image. If you correctly identify the first image, you get 1000 points! If you correctly identify it on the second image, you get 400 points! 2

4 Practice Round 3

5 Round 1 4

6 Round 2 5

7 Round 3 6

8 Round 4 7

9 Round 5 8

10 Introduction Continuous Process Improvement Training 9

11 Continuous Improvement Continuous process improvement is a method to streamline work and reduce waste. The practice was formalized by the popularity of Lean / Agile / Kaizen in manufacturing and business. It is now being used by thousands of companies all over the world. 10

12 Process Improvement Benefits Customer Satisfaction The customer s needs (internal or external) drive the focus and objective of each project. Collaboration Cross functional teams build creative solutions with a view of the end to end process. Measured Improvement Data drives decisions to ensure the key root causes are known and solved. Systemic Change Change management tools and control rigor lead to improvements that stick. 11

13 The Learning Path Define Clarify the problem the business needs to solve. Make the improvement business as usual. Control Measure Quantify the problem gather data to describe the problem. Build solutions that will address the root cause of the problem. Improve Analyze Determine what is truly causing the problem. 12

14 Key Takeaway Continuous Process Improvement Continuous process improvement is a data driven, systematic approach to improving accuracy and/or efficiency in the business processes. Using the DMAIC framework, we will learn how to understand what the problem really is and identify best practices for reducing waste and errors. 13

15 Define Continuous Process Improvement Training 14

16 The Learning Path Define Clarify the problem the business needs to solve. Make the improvement business as usual. Control Measure Quantify the problem gather data to describe the problem. Build solutions that will address the root cause of the problem. Improve Analyze Determine what is truly causing the problem. 15

17 Define Learning Objectives Voice Collection Project Charter Voice of the clients, process, employee, business. Understand who the customer is and what matters to them. How to define the problem. 16

18 Voice Collection Understanding the requirements and expectations of those that define the problem Voice of the Customer Voice of the Employee Voice of the Business Voice of the Process 17

19 Voice Collection Understanding the requirements and expectations of those that define the problem Voice of the Customer Requirements and expectations from customers External Customers - Outside of the company Internal Customers - Other employees in the company that a department provides a product or service to 18

20 Voice Collection Understanding the requirements and expectations of those that define the problem Voice of the Employee Requirements of the employees of the business Example: An HR department might look at the HR Generalist as the voice of the employee and the rest of the employee base as the customer 19

21 Voice Collection Understanding the requirements and expectations of those that define the problem Voice of the Business Requirements of the business and leadership Example: The company has identified that too much money is being spent on recruiting and wants to find a more inexpensive way to find and track applicants 20

22 Voice Collection Understanding the requirements and expectations of those that define the problem Voice of the Process What the process show us Example: 30% of the time an error is made while processing payroll that leads to an adjustment payrun. 21

23 Voice Collection How to Collect the Expectations and Needs Collect the Data Observe Look at the data to see if the process is telling anything Survey Ask! Send out surveys to understand what it working well and what is not Round Tables Talk to the people! Meet with the people that do the work to understand their perspective 22

24 Project Charter Defining the problem to address and the goal of the project Problem Statement Focus the attention of the problem solving team: What is the problem? Where does the problem occur? Who is impacted? When does the problem occur? How big is the impact if left unresolved? The HR department is experiencing increased dissatisfaction with the new employee onboarding experience. Only 55% of the new hires indicated that they were satisfied or very satisfied with their onboarding. If this problem is not address employees may be lost before they begin. 23

25 Project Charter Defining the problem to address and the goal of the project Goal Statement Corresponds to the Problem Statement and is S.M.A.R.T.: S SPECIFIC M MEASURABLE A ACHIEVABLE R RELEVANT T TIME BOUND To improve the new hire survey results from 55% satisfied to 85% by January of 2018 by improving the client onboarding experience. 24

26 Key Takeaway Define Phase Clarify why something is a problem and translate it into measurable metrics to lead to data based decisions. 25

27 Define Video 26

28 Measure Continuous Process Improvement Training 27

29 The Learning Path Define Clarify the problem the business needs to solve. Make the improvement business as usual. Control Measure Quantify the problem gather data to describe the problem. Build solutions that will address the root cause of the problem. Improve Analyze Determine what is truly causing the problem. 28

30 Measure Learning Objectives Process Mapping Metrics What is it, what the benefits are and how to do it. How to leverage the map to understand what data to collect. The benefits of collecting and interpreting data on the process. 29

31 What is a Process Map? Step by step visual representation of a process Start Stop Can be developed for any process Step 1 Step 2a Step 3 Capture actions and decision points throughout the process Step 2b 30

32 What are the benefits of a Process Map? Start Stop See the as-is process as a tangible item Step 1 Step 2a Step 3 Step 2b Removes assumptions on the work being done Helps determine what the team needs to measure 31

33 How to Create a Process Map Plan Go See! Log 32

34 How to Create a Process Map Plan Review the areas that will be observed Schedule time to focus on watching the process Reach out to appropriate co-workers to obtain permission, if needed 33

35 How to Create a Process Map Go See! Watch the process from start to finish in person Be respectful do those doing the work, even if they are doing something wrong If remote, this can still happen via video conference! 34

36 How to Create a Process Map Log As the process is being observed, write down the steps as they happen Map as-is, not what should be Always include a noun and a verb! 35

37 Process Map and Thinking Through Metrics Example of Client Conference Finding the Classroom Review the Schedule Is the classroom location known? Walk to conference room Find an open seat Sit down Get ready to learn! Ask for directions from staff 36

38 Metrics and Measurements Leverage the process map to think through what needs to be understood about the process Understanding the process is best done with data, or numbers and measures, to communicate how the process is performing and where the opportunities lie Examples of Metrics COUNT/QUALITY 4 out of 5 DISTANCE WEIGHT DURATION 12 feet 20 pounds 15 minutes 37

39 Process Map and Thinking Through Metrics Example of Client Conference Finding the Classroom How far was the classroom? How long did this take? Review the Schedule Classroom location known? Walk to conference room Find an open seat Sit down Get ready to learn! How many times didn t we know where the location was? Ask for directions from staff How long did this take? Data we want to gather to understand the process 38

40 Gathering Metrics and Measurements Metrics can be tracked Manually or Automatically Observing the Work Physically go back to the process and gather the data Process observations using a stop watch Gather defects making a tick mark when things fail Pulling Data Data exist and can be pulled from databases Pulling historic data from a system Pulling live data from a system 39

41 Baseline the Data After data has been gathered it needs to be summarized Use the data collected to add up the totals This current state data will get compared to improvement state data once a new process is in place 40

42 Baseline the Data Example of Client Conference Finding the Classroom Metric Current State Unit Asking for directions average defects 8/10 % Average distance to walk to room 465 feet Average duration to arrive at conference room 7 minutes Average duration to find open seat 2 minutes 41

43 Key Takeaway Measure Phase Establish how bad the problem is and identify key measurements that drive the target 42

44 Measure Video 43

45 Analyze Continuous Process Improvement Training 44

46 The Learning Path Define Clarify the problem the business needs to solve. Make the improvement business as usual. Control Measure Quantify the problem gather data to describe the problem. Build solutions that will address the root cause of the problem. Improve Analyze Determine what is truly causing the problem. 45

47 Analyze Learning Objectives Identifying Process Waste Identifying Root Causes How to see the the process through a different lens. The 8 Wastes that live in every process. How to use the data collected. Understand what a true root cause is. How to identify root causes leveraging the data collected and the 8 Wastes. 46

48 Start Step 1 Step 2a Step 3 Step 2b Stop Identifying Process Waste Opportunity Process Map Leverage the Process Map to walk the process and go see problems in the process These problems make the process and peoples jobs more difficult Opportunity These problems we will refer to as the 8 Wastes Waste is any disruption in a process or when value is not being added 47

49 DOWN Drive into the 8 Wastes Incorrect SSN Printing reports that won t be used Supervisor to approval time CPA filing paperwork Redoing work due to something being wrong or incorrect Producing more than needed or before the next task is ready The product / service waiting to be worked on Not fully utilizing talent to their fullest Defects Over Production Waiting Non-Utilized Personnel 48

50 Drive into the 8 Wastes TIME s going back and forth Queue of people waiting punch-in Searching a website Personal memo with each check Movement of products, materials, and/or the service A build of work that needs to be processed Movement of people More work or higher quality than what is required Transportation Inventory Motion Excess-Processing 49

51 Identifying Process Waste Next Steps Knowledge is power and now we know the 8 Wastes, aka DOWNTIME Take this new knowledge to the process and go see the work Document the waste seen This can be done right on the map itself! We ll use this information when we get to Root Causes 50

52 Using Data to Create Graphs What about the data that was collected? Use the data collected to create and build graphs and charts The data can be broken down, or peel back the onion to gather insights This gives the team clues into understanding the data itself 51

53 Now What? Waste in Process, Data Clues and Drivers Quick-Wins Some things in process can be immediately removed because the solution is obvious and their won t be negative consequences Understand the Drivers Others wastes and insights from the data are more complicated. Understand what is driving the waste until the Root Cause is discovered. 52

54 Root Cause Analysis What is Root Cause?: Root Cause is the true source or reason for why the problem is occurring The root is where the problem has originated Analyzing the problem to identify root cause : Ensures resolution to systemic and repeatable issues Helps identify actionable long term solutions Technique discussed: 5-Why s, ask Why repeatedly until reaching an actionable outcome 53

55 5 Why s Problem Step 1: Write down the problem Why? Step 2: Ask Why 5 times, writing down each Why? Why and answer to identify an actionable cause Why? Important: Why? Asking Why 5 times is a guideline but Why may need to be asked more times Why? until an actionable result is discovered. 54

56 5 Why s Problem: I am missing some money! My direct deposit did not show up in my bank account. My account was in the pre-note phase. The account was changed in Web Pay since the last payroll. I submitted a direct deposit change. I changed my bank. Why #1 Why are you missing money? Why #2 Why wasn t your direct deposit showing up in your bank? Why #3 Why was your account in pre-note phase? Why #4 Why was it changed in Web Pay since the last payroll? Why #5 Why did you submit a direct deposit change? 55

57 Key Takeaway Analyze Phase Go see the process to gather the 8 wastes and use data to determine what is truly causing the problem. 56

58 Break Continuous Process Improvement Training 57

59 Analyze Video 58

60 Improve Continuous Process Improvement Training 59

61 The Learning Path Define Clarify the problem the business needs to solve. Make the improvement business as usual. Control Measure Quantify the problem gather data to describe the problem. Build solutions that will address the root cause of the problem. Improve Analyze Determine what is truly causing the problem. 60

62 Improve Learning Objectives Generating solutions Solution rollout How to brainstorm solutions. How to prioritize solutions. How to rollout solutions prior planning for change management. 61

63 What are good solutions? Let s first discuss some basic concepts 62

64 Systems of Change Metrics Key performance indicators (KPIs) Reaction plans Management System (MS) Operating System (OS) Cultural System (CS) Processes Standard operating procedures Simple and consistent process People Skillsets and job descriptions Reward and recognition Training 63

65 Mistake Proofing To prevent mistakes from happening. Process stops and cannot proceed. 64

66 Workplace Organization Before After A place for everything and everything in it s place. It is organized and standard for quick and easy access. 65

67 Visual Controls and Displays Information is communicated using visual signals, signs, pictures or graphs instead of texts or other written instructions. 66

68 Good Solutions Important to know what makes good solutions, prior to brainstorming Ensures solutions address the problems once and for all! 67

69 Brainstorming What is it? An exercise to generate potential solutions to a root cause Solutions should FIX the root cause, not be a band aid Tips & Tricks There are no bad ideas, so be respectful and open Be creative but have a purpose Brainstorm one root cause at a time Use post it notes and easel paper 68

70 Brain writing or Silent Brainstorming 1 Silently write down solutions for 2-3 minutes 2 Pass ideas to another teammate 3 Teammate reads the idea and adds new ideas 4 Process repeats for minutes Repeat the brainwriting process for all root causes 69

71 IMPACT Prioritizing Solutions (Impact/Effort Grid) How will this impact the goal? LOW HIGH High priority solutions Quick Hit: Low Hanging Fruit LOW (<XX Days) EFFORT Caution: Timing for Implementation Stay Away! (>XX Days) HIGH How much effort (time) will this take? 70

72 Solution Rollout IMPORTANT CHECKLIST!!! Plan the work Plan the tasks and subtasks Plan the time Plan the people and resources Then, work the plan! 71

73 Solution Rollout, Continued Example Plan Root Cause Solution Owner Status Rollout Date Root Cause 1 Solution 1 Art In Progress NOV Root Cause 2 Solution 2 Chelsea Not Yet Started DEC Root Cause 3 Solution 3 Ollie Complete NOV

74 Key Takeaway Improve Phase Build solutions to address root causes of the problem. 73

75 Improve Video 74

76 Bonus Round!! (Points Doubled!!) 75

77 Control Continuous Process Improvement Training 76

78 The Learning Path Define Clarify the problem the business needs to solve. Make the improvement business as usual. Control Measure Quantify the problem gather data to describe the problem. Build solutions that will address the root cause of the problem. Improve Analyze Determine what is truly causing the problem. 77

79 Control Learning Objectives Validation Sustainment Celebration Use numbers to make sure the improvements worked. Document a standardized process. Ongoing metrics to call to action. Rewarding and recognizing the team. 78

80 Validating Solutions After the team implements the changes, the results need to be communicated via data 1 Plan Refer to the data gathered in the Measure phase and the current baseline summary 2 Collect Collect that same data for the new state 3 Compare Compare the before baseline summary and the new state summary visually using tables and graphs 79

81 Validating Solutions Example of Client Conference Finding the Classroom Metric Current State Improvements Difference Unit Asking for directions average defects % Average distance to walk to room feet Average duration to arrive at conference room minutes Average duration to find open seat minutes 80

82 Validating Solutions Example of Client Conference Finding the Classroom 50 Current State vs Future State Current State Improvements 5 0 Asking for directions average defects 2 Average distance to walk to room Average duration toaverage duration to arrive at find open seat conference room 81

83 Metrics to Call to Action 1 Review improved / new validated state data 2 Define the metrics to be continually monitored 3 Define what is an acceptable outcome for those metrics 4 Build a response when the metrics aren t acceptable 82

84 Metrics to Call to Action How this helps sustain the improvements: Provides timely process troubleshooting and repair Aids in training and audit activities It is a living document update as the process is continuously improved Empowers local control of corrective actions 83

85 Metrics to Call to Action Process Step Payroll Admins to review PPR Correct Schedules reflected in the system Overpaid Employees - defect Dismissing errors - defect How will Desired Metric data be collected? 100% compliance Random Audits 100% compliance Random Audits 0% 0% Random Audits Random Audits Methods Size Sample Freq. Owner Response 15 Month Sally 5Why's on the process 10 Month Sally 5Why's on the process 5 Month Sally 5Why's on the process 5 Month Sally 5Why's on the process 84

86 Standardize the Process Standardization Once the solutions have been validated with data its important to standardize the process with documentation so the improvements stick WHAT IT IS? Documented, current, agreed-upon process to perform the work To be update continuously as the process improves 85

87 Standardize The Process HOW TO DO IT Have the team document the process and use pictures Keep in a place that is easily accessible + BENEFITS Everyone knows their exact responsibilities Checks actual versus standard A problem solving tool to see where opportunities still lie 86

88 Standardize The Process Standard Work Examples there are many others! Standardized Work Chart 87

89 Standardize The Process Standard Work Examples there are many others! Paylocity Internal User Guide 88

90 Standardize The Process Standard Work Examples there are many others! Standard Operating Procedures 89

91 CELEBRATION!! Yay the current improvement is now done! Celebrating is an important aspect to officially closing out the improvement effort Ways to Celebrate Dinner / Lunch Gift cards Thank you notes Certificates Candy or chocolate! 90

92 Key Takeaway Control Phase Make the improvements business as usual. 91

93 Control Video 92

94 The Amazing World of Process Improvement Key Takeaways 93

95 Key Takeaways Define Clarified the problem the business needs to solve. Made the improvement business as usual. Control Measure Quantified the problem gathered data to describe the problem. Built solutions that will addressed the root cause of the problem. Improve Analyze Determined what is truly causing the problem. 94

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