How to Conduct a Rapid Process Improvement Project
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1 How to Conduct a Rapid Process Improvement Project Statewide Workforce Solutions Conference December 2017 Alfredo Mycue, Director of Business Transformation alfredo.mycue@twc.state.tx.us
2 The RPI Method Charter Vision it Map it Gap it Build it Launch it Track it
3 CHARTER IT Problem Statement (EX) Core Design Elements of Projects Design Project Charter Authorization Scope Time People 3
4 Key Elements of Charter It Phase Write a problem statement Gather facts and analyze Confirm or deny benefit potential Display data visually Garner support for the RPI project Find a champion Find a sponsor Enlist process owners 4
5 Key Elements of Charter It Phase Write a charter Improvement statement Scope and objective Describe WGLL (What good looks like) Anticipated deliverables Time / Milestones Team members 5
6 Hold a Kick-off Meeting Gain organization s focus and attention Hold a Kick-off Meeting Layout purpose THE WHY Visual data Describe WGLL Deliverables Milestones 6
7 VISION IT SIPOC 5 Focusing Steps Concept Throughput Operating Strategy WGLL Goal Flow ID Constraints/Control Point Measure Levers 7
8 SIPOC Analysis Suppliers: DOL as funding agency Inputs: Rules, regulations, guidance Process: Award, contract, disburse, monitor Outputs: Training, program contracts, child care Customers: Taxpayer, subrecipients, legislature
9 SIPOC Suppliers Inputs Process Outputs Customers
10 What road do I take? Well where are you going? I don t know. Then it doesn t matter. If you don't know where you are going, any road will get you there.
11 Hiring Process TOS March 27, 2014 Goal of Enterprise Hiring Process: Hire the best people in the least amount of time. Feeding Control Point: HR/Hiring Process team provides applications two days after closing to the Hiring Manager (HM) that meet his/her expectations (on the initial HM checklist). For example not too many and/or meeting basic screening criteria (eg. 5 out of 5 on the survey). Levers: Hiring Process Enterprise Measures: - Hiring Manager survey of quality of their applicant pool with a 0-5 survey (5=best w/ 5 or more fully qualified applicants plus attributes, 0=no fully qualified applicants). - Time from vacancy to posting. - Time from posting to hire. - Combined time (vacancy to hire). Hiring Process Enterprise Necessary Conditions: open communication channels within TWC. Start of Process: Vacancy Determine disposition; analysis element, what are we going to do about it? facilitate HM/HR action search; paperwork, posting or P-30. cull interview and select validate and hire TWC employee. Control Point (WGLL): The Hiring Manager (HM) has pools of candidates that get better and better. The pools have rich and adequate number of candidates to evaluate. The HM already knows what skills and attributes are required to perform the job duties of the positions. The HM and HR lead share an idea of a perfect candidate. The Hiring Manager has full kit to screen, evaluate, and rank the candidates.
12 TOS Development Goal Control point (what good looks like) Measurements/ Metrics Necessary Conditions Input Process box Constraint Decision Point Process Box Output (throughput) Feeding the control point After the control point System levers
13 Theory of Constraints Identify the Bottleneck Inputs A (20 units per hour) B (16 units per hour) C (10 units per hour) D (14 units per hour) E (18 units per unit) System throughput NOTE: A Throughput Operating Strategy is based on Theory of Constraints Five Focusing Steps outline in The Goal, by Eli Goldratt.
14 MAP IT Value Stream Map (VSM) Theory Tools See It Practice It VSM Analysis Action Item Register Intro to Tools Evaporating Cloud Interference Chart CRT/FRT 14
15 Value-Stream Mapping: The Constructive Gordian Knot- Cutting Tool Example: Financial Process Flow
16 30,000 Foot VSM
17 Sub-process that needed to be mapped
18 What is needed to produce a VSM? Not much. White board or large paper. Vision, PowerPoint, or Google flow-chart docs. Training on the process flow symbols (good tutorials are on the web). Training on the art of pulling a value stream. Commitment to include the approved result in your SOP or guidelines.
19 Pull a SIPOC. What are the basic steps Decide your capture media. Determine who participates Set (typical) ground rules to produce a VSM? Allocate time (recommend 2 hours) Facilitator should prepare Use the Socratic method. Ask why several times. Challenge assumptions. Capture dissenting opinions. Capture ideas as they come up but try NOT to explore them. Depict the flow chart as people discuss the process. Go!
20 Value Analysis Categorize each process step as: Value-Added Will customer pay for it Changes the item Done right the first time Essential to process, but not directly producing service of goods Non Value-Added (Pure Waste) 20
21 Value Analysis: Determine Non-Value Added Activities and reduce or eliminate. The end goal is to reduce process waste: Minimize the non-value added processes Minimize the essential processes (not directly producing) Streamline the customer value-added processes Eliminate all waste. The Foundation of Value Stream Mapping Process Lead-time (cycle-time) Customer Value Added: (Primary, 1st Order, directly produces goods or service) Essential to process, but not directly producing service of goods: (May be a critical task for the organization, but is not directly involved in production of goods or service [2nd or 3rd order value] accts payable, management, HR, QA/AC) Non-Value Added
22 Rules for determining (or restricting) what can be labeled green: 1. Directly adds value to the service or product. 2. Changes the thing in some way 3. The step does it right the first time How is this distinguished from yellow and red?
23 Current Ideal Future States Current Future Before Before 15 Green 11 Yellow 18 Red Total: 44 After 16 Green 2 Yellow 0 Red 18 Steps After 15 Green 16 Green 11 Yellow 2 Yellow 18 Red 0 Red Total: Steps
24 GAP IT External Analysis Feds Media Legislature Internal Assessment of Fact & Phenomena Internal Audit ED Sr Management Customers Stakeholders Introspective Team Process Owners 24
25 Perform Gap Analysis Audits Internal reviews Executive concern / focus Team member suggestions External reviews Metrics to improve Lines of operations Red, yellow & green zone analysis Gap analysis involves collecting ALL relevant information on the process or organization: analysis, critiques, performance data, performance assessments Self-assessments, team-member surveys, management or team traffic light analysis Any and all feedback from funding sources or the media Info as old as 10 years often still retains usable information or perspectives
26 With documents in hand Assign home work Read and make sense of the gap information documents Look for trends or patterns Gap analysis Due Diligence Develop a summary to present to the project team Guiding mantra: A functional future state system must have... or be able to... In other words: What would good look like if the future state successfully addressed this specific gap? In the RPI Project meeting: Go box by box on the TOS Discuss the gap documents Use traffic light analysis Run Action Item Register Ideas for solutions are captured but are not yet developed OK, so let s discuss and evaluate the eligibility matching process.
27 Action Item Registers and Idea Logs are Key! Charter It Vision It Map It Gap It Build It Launch It Track It
28 Data to collect Metrics Timelines Deadlines Recurring calendar How management sees Management decisions Duties Responsibilities Accountability Dashboards needed Reports needed Communication requirements Checklists Action thresholds Manager flags (early indicators) Reconciliation requirements Spreadsheet needs Database design Work-flow time expectations Needed controls Division of labor/duties Level of oversight required Inspection / monitoring plan Question (asked during current state mapping or gap analysis): How do we turn buckets of accumulated needs into functional tools and techniques that actually accomplish requirements of our future state?
29 Disagreement? Got thinking tools? Interference Chart Evaporating Conflict Cloud Progressive Resolution Strategies and Tactics
30 BUILD IT Future Reality Tree (FRT) What Does Good Look Like (WGLL) Streamlined VSM (Future State) Organizational Capacity Model WIP Boards // Journey Boards Increase Confidence that Future Will Work 30
31 The Future State VSM Value stream map Reengineered process To Be Addresses action-item roster entries Incorporates viable solutions (all considered) Gathers data for dashboard Lead indicators for management (Kanbans) 31
32 What Good Looks Like Year s Goal at least 385 cases; Month s Goal=38 Cases; 9.2 per week = 9 to 10 per week Receive inquiry and intake request for information/ case staffing pursue mediation or conciliation investigate 1. reasonable cause, 2. no cause or, 3. admin closure management review. Intake 10 complaints received per week 1 per investigator. IP s prepared 10 IP s are prepared per week 1 per investigator. IP s endorsed 80/100% IP s reviewed/ endorsed per week 1 per investigator. Investigation launched 10 letters mailed/ on sites scheduled per week 1 per investigator. Desk sides held desk sides conducted (NC/ Admin Closed) 4 per investigator (total 8) or On sites held on sites conducted 4 per investigator. Closures 10 closed per week at 1 per staff 1 per investigator. Admin mailed to HUD 1 per investigator. 32
33 Another Example NOTE: A WIP board for projects moving through software development lifecycle phases in an IT organization. 33
34 WIP Board 34
35 Grant Solicitation WIP Board Boeing uses WIP boards during a daily 20min meeting
36 LAUNCH IT Roll-out Present to Sr. Management Cover deliverables & Change w/ Entire Office Rewrite SOP s Implementation and Challenges Technique of Procedure & Tricks Organizational Rhythm 36
37 Key Elements of Launch It A formal presentation with all key stakeholders Lock-in of new process in everyone s mind Commitment to gathering data for dashboard Team dedication to achieving capacity model goals Institutionalize WIP board meetings and new organizational rhythm Reissue updated SOP (w/ VSM on top) Celebrate!
38 TRACK IT Revalidate TOS Measures Develop Key Metrics Develop Dashboard 38
39 Dashboards Leading through our dashboards What to track? Malcolm Baldrige plus two? Productivity Quality Timeliness Customer Service Financial measure Growth and Development Constraint s blue light 39
40 Principles of Rapid Process Improvement (RPI) Full kit Reduce bad multitasking If you measure a process, you will improve it. Improve at weakest link the constraint.
41 Putting it all together: 4 Operational Pillars and 3 Harmonizing Engine of Government Four Operational Pillars Throughput operating strategy Capacity model Dashboards and scoring SOP s and value streams Three harmonizing engine of government Purpose accomplish mission. Focus break bottlenecks. Value more value per dollar.
42 Throughput operating strategy, Work model, Value stream map/ flowchart, Dashboard Throughput Operating Strategy Work Model Value Stream Map/Flowchart Dashboard
43 Questions, Discussion, Ideas?
44 What is your blue light?
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