1 Step 2: Explore Continuous Improvement Simple steps toward better business Understand approach Start Up Develop Scope / Profile Form Team Manage Effort Assess Value from the Customer s Perspective Map Process (Current State) Go see the work to deeply understand Identify Problems and Root Causes Identify Improvements Prioritize Design Future State Create Action Plan Plan, Do, Check, Adjust (PDCA) Manage Change Document Achievements Recognize Accomplishments Publicize Outcomes Continuously Improve Revised May 2017
2 Step 2: Explore Assess value from customer s perspective Map Process (Current State) Go see the work to deeply understand Revised May 2017
3 The Explore step This step is about understanding and documenting the current state Consider the customer s point of view and what constitutes value Understand what actually happens ( WAH ) Create a map of the process that accurately reflects how work gets done Include measures of how long steps in the process take and who does what
4 ASSESS VALUE FROM CUSTOMER'S PERSPECTIVE
5 Assess value from the customer s perspective Why is this important? The customer is why you exist If it does not provide value to the customer, it is waste Confirms what is working and what is not Helps focus on those problems that are of value to the customer current and future Provides quantitative data for measuring improvement Value is what customers want, when they want it, where they want it, in the amount they want to help meet needs at a minimum total cost (including price, time, hassles, stress, etc.)
6 Collecting data about customer needs Value is determined, in part, by customer expectations and perceptions Multiple methods exist to gather both qualitative and quantitative data: Interviews Focus groups Surveys Existing systems When collecting data: Create questions that are specific and easy to collect and record Compile results so that management can take action based on the results
7 Collecting data about customer needs, continued What keeps us from asking the customer questions? Old paradigms - They are a captive audience Fear of discovering what the customer really feels Fear that the customer does not understand the constraints under which we work Fear that we will act defensively Fear that we must incorporate all suggestions
8 MAP PROCESS (CURRENT STATE)
9 What is a process? A process describes a sequence of events required to get results It is a collection of activities that takes one or more inputs and creates an output that is of value to the customer It is often not confined to one organizational unit
10 What is process mapping? A visual representation of a process that shows tasks in sequence and that makes work visible A mechanism to clarify roles and responsibilities What activities are completed by whom and how (system, email, phone, etc.) Crosses organizational silos A way to uncover waste, excessive controls, handoffs, defects, and delays A tool to focus on tasks not people, steps not opinions
11 Why process mapping? Helps orient people by creating a common understanding Creates a baseline from which to discuss potential improvements to the process, e.g. Identify areas for improvement Simplify activities Eliminate waste Automate processes Align metrics to improve (time, resource allocation, cost) Helps a team take action to make things better
12 Why do process issues exist? Process was not designed well initially Needs of customer changed but process did not Technology changed but process did not Processes and policies change over time Added or removed steps, approvals, checks Process is dependent on a few individuals and is not documented Process owners rarely have the time to review Those working on a process do not have a mechanism to fix the process Culture does not make it easy to question the status quo Yesterday s solutions are today s problems
13 Typical steps for process mapping 1. Identify start and stop points (scope of the process) 2. Identify suppliers, inputs, outputs, and customers 3. Map the major process steps in sequence 4. Capture: Information flow and technology used in each step Who does the step Time each step takes Tips: Most processes have exceptions; map what happens 80% of the time Simply document the current process, do not try to fix it Do take note of problems, frustrations, hassles, areas of concern, and good ideas as you go and apply them at the appropriate time Use Post-it notes (easy to move, change, use color codes)
There are several ways to gather input to develop the process map Observe the process as it is happening Assemble people who work with the process to create the map One person knowledgeable of the process independently creates the map, then presents it to others familiar with the process, gets input, and revises as necessary Interview process participants 14
15 Example 1: Swim lane map Shows relationships and handoffs between functions Clarifies roles in relation to the flow of events Particularly helpful for: Seeing duplicate work across functional roles Identifying sources of delays Understanding cross-departmental issues
16 Example of a swim lane process map Name of Project Title of Process Date Input / Start Unit A Task Task Task Task No Unit B Task Yes/No Question Yes Task Task Unit C No Yes/No Question Yes Task Co Output / End
17 Some standard process map symbols Process activity step Name of activity, task, or operation Direction of flow Direction and order of activities System Database or system/application Delay/queue Process waits with no action taking place Decision point Process branching due to results of a decision
18 Example 2: Value stream map Typically aligns the process steps in a single row Note: this example includes several additional elements, in particular obstacles and waste are noted on pink stickies
Steps to Creating a Value Stream Map (VSM) Process Data Waste Data Data Ideas
How we use stickies 1. Only one step, problem, observation, or idea per sticky 2. Print neatly in black sharpie EXAMPLE
21 Many processes cross unit boundaries Evaluate processes from an organization-wide perspective Move from a unit/silo perspective to a process-oriented viewpoint UNIT VIEW (Silo) F A S E V C P S C H O O L PROCESS VIEW (Whole system) HIRE EMPLOYEES ACQUIRE GOODS MANAGE FINANCES
Common pitfalls of process mapping 22 Too detailed Not detailed enough Focuses on technology rather than process Used as a tool for problem solving rather than problem discovery Focuses on single tasks not overall process
GO SEE THE WORK 23
The purpose of going to see the work Called Gemba in Lean terminology, it is a critically important way to develop a deeper and shared understanding of the work, including: How it works and what is aggravating or frustrating How operators know if things are on track, ahead, or behind, relative to targets and customer needs How operators see abnormalities How people experience and respond to problems (such as overburden, delays, and large fluctuations in workload) How work is managed to match demand We go to Gemba to understand WAH (What Actually Happens)
Gemba the place where work is done Go see, ask why, show respect Fujio Cho (former Toyota Chairman)
Things to look for / what to see: Is the process consistent? What sort of variation is there? Is standardized work understood, posted, and practiced? Does the operator understand what needs to be done & why? Have employees found workarounds to make the work easier? What forms of waste are visible?
27 MEASURE PROCESS ACTIVITIES
28 Measure process activities Measure n. A standard: a basis for comparison; a reference point against which other things can be evaluated. v. To bring into comparison against a standard. Measures drive improvement. Teams who review their performance measures are able to make adjustments, share successes, and probe for causes when progress comes up short Also called metrics
29 The best measures are Easily accessible There is an identified responsible entity and a process to maintain and update the measure The measure is tested for reliability and validity Considerations when selecting a measure: Importance Scientific acceptability Feasibility Usability Related and competing measures Regularly updated (e.g. weekly)
30 Types of measures Time Metrics Cycle Time (CT): how long it takes to complete a specific task from start to finish Wait Time (WT): time an item is not touched or is delayed Lead Time (LT): Start time to finish time of the overall process (LT = CT + WT) Other Metrics Volume of throughput; number of transactions per period (year, week, day, etc.) Number of errors Customer assessment of value (e.g. performance)
31 Types of measurements Type Outcome measures Process measures Balancing/ Structure measures Business measures Voice of the customer Voice of the system Looking at a system from various directions /dimensions Voice of the business Questions How is the system performing? What is the result? Are the parts of the system performing as planned? Are changes designed to improve one part of the system causing new problems in other parts of the system? Are there regulatory requirements? Are there financial / business accounting requirements?
32 Project measures - sample Metric Current State Future State Lead Time 19 days Percent Correct 37% Cycle Time for Step 2 44 minutes
33 Measuring the process Interview people who do the process For a set time, track exact time it takes to complete specific steps Add time for all steps and sum Example: making toast Step Select bread and put in toaster 1 Toast 2 Delay: make coffee 5 Spread butter and cut 1 Total lead time 9 Track mistakes Items sent back, corrections Error interactions with system (exception report) Get stats on the number of transactions Time (minutes)
34 Types of Data Collection Type Description Example Sampling Check Sheets Focus Group Time Series Select representative portion of larger population for analysis Worksheet formatted for ease of tabulation Small representative group to provide feedback Record how much time is taken in any step Staff attitudes using 85% classified employees and 15% management Staff mark on sheet every time file is not where it should be. Group session with structured interview by leader A document is stamped when received and the time is recorded when the next step is made