WICSEC Conference September 7th - September 11th, 2008 Improving Performance through Business Process Improvement Presentation to WICSEC T. Vernon Drew President Center for the Support of Families Mike Kendall Vice President, Process Engineering and Quality HMS
Key Features of a Program Improvement Effort Objective look program management, business rules, and technology Special analytic skills for business process analysis Focus to the effort Access to success and lessons learned from other jurisdictions
Program Improvement Methodology
What Is the Outcome? A Business Process Analysis: As Is To Be To Do Stakeholder Buy-in Address Real Problems Realistic Improvement Plan Clear Roadmap for Implementation
Lessons Learned Tailored from Engage for the jurisdiction and the participants Requires a champion in the State Senior consultants provide strong business process analysis with recommendations Lessons learned in other states avoid costly mistakes and maximize results Reports need to include implementation work plan and considerations
Plan for Change From the Start A Pretty Report on the Shelf A Better program Does not Make!!! Manage Staff and Management Expectations Change Requires Staff Support Process Guides and Training Focus Implementation and Support Positive Change
New Process New Procedures How Do I Guide: Policy and Procedures Bankruptcy >policy >forms >D.C. Official Code How Do I? Steps Tips & Guidelines Handle Chapter 7 bankruptcy filings Bankruptcy Court sends bankruptcy filings to OAG/CSED Staff take the following actions Search DCCSES using NCP SSN to look for active case Look at filing to determine if it is Chapter 7 or Chapter 13 bankruptcy Determine if arrears are owed to D.C. or CP Document bankruptcy filing received in DCCSES in ACCESS database If case has an order, send memo to Audit and Program Unit Request the bankruptcy code BR be entered on DCCSES Obligation Summary screen Send memos to Enforcement and Legal Units with bankruptcy filing attached. Document in memos Received bankruptcy notice NCP name and SSN Case number Bankruptcy chapter Enforcement Unit enters code on DCCSES Credit Reporting screen--filed bankruptcy If case does not have an order, send memo to Establishment Unit advising bankruptcy filed Send form FBNKN7 to Wage Withholding Unit and OAG/CSED advising them Chapter 7 bankruptcy filed Check - suspend withholding for arrears only Send the following notices Form FCLBN9 to local CP to inform her/him bankruptcy has been filed by the NCP If Interstate case, send notice to Initiating Jurisdiction informing them bankruptcy has been filed If arrears are owed to D.C. Request an audit from Audit Program Management Send memo to Legal Unit to prepare Proof of Claim when audit is received from Audit Program Management Wait for discharge notice Federal regulations prevent the discharging of child support in bankruptcy cases. They also regulate the types of enforcement actions that can take place before the bankruptcy is discharged. If the address for the NCP is different on the bankruptcy filing than the one in DCCSES the address will be verified and updated in DCCSES. Wage Withholding for current support is allowed on most Chapter 7 Bankruptcy cases and withholding for arrears is suspended. Notice sent to CP advises him/her that OAG/CSED does not represent him/her in bankruptcy matters.
Staff Training Right Mix of Lecture and Distance Learning On-going Web-enabled Training / Discussions with Management On-going Assessment of Training Needs Effective Use of Supervisors in Training Training Updates and Enhancements
Quality is simple, but not easy
Everything is a system and we are a part of it.
Quality in Fact versus Quality in Feeling
Excellent processes start and end with customers.
Process Excellence Self Check 1. What is our purpose? 2. Who are our customers? 3. What do they want? What do they need? 4. How do we know? 5. How can we maintain awareness of customer needs and shifts every day? 6. Given this, what outputs / services (including features and attributes) must we provide? 7. What systems, processes, and methods must be in place? 8. How do we monitor these systems processes, and methods to assure that they are in control and reliably, consistently, and flawlessly delivering the output needed by our customers? 9. What inputs do we need for these systems, processes, and methods? 10. What suppliers can best provide us with these inputs? 11. How do we know? 12. How do we monitor the input from our suppliers?
Causes of Dissatisfaction Employee Based Failure to follow policy / procedure Organization Based Service / outcome specs don t meet expectations Over-promises System / process failure Failure of units to coordinate Customer Based Incorrect expectations Customer error / incompetence
Service Recovery - HEAR Hear Listen to the complaint don t interrupt Determine what the unmet expectation is Probe to gather details and key source of dissatisfaction Empathize Show true concern by using statements such as That must be very frustrating for you. Apologize Irregardless of where fault lies, apologize for the problem: I am very sorry that this has happened. Recover Make a commitment to provide a positive customer outcome Gather information about the issue Respond to customer with full resolution (ideally at first contact) Determine if customer is fully satisfied with resolution Determine Root Cause of issue Document issue, resolution, root cause, and provide information to process owner(s) Eliminate root cause Mine problem data for further improvement
Process Excellence Definitions Process Excellence Definitions Process A set of tasks performed by a process team and managed by a process owner that transforms inputs from suppliers into useful outputs for customers. Customer A person or organization outside of the process boundaries that receives an output from the process. Supplier A person or organization outside of the process boundaries that provide inputs to the process. Input What the Supplier provides in order for the process to begin. Output The product or service that a process produces. Task Steps or actions required to complete the process, provide the service, and/or deliver the product. These may be sequential or in some cases discreet. Process Owner A designated person who has the responsibility, authority, and accountability for assuring process responsiveness to achieve customer satisfaction and process improvements to reduce waste. Process Team A team of employees responsible for working with the process owner to assure process responsiveness to achieve customer satisfaction and process improvements to reduce waste.
All Work is a Process Serving a Customer Defining a process A set of sequential tasks performed by a process team led by a process owner Requirements that transforms inputs (Calls, data, or written documents from suppliers, etc.) into useful outputs (Information, services, or decisions for customers, etc.) Inputs from Suppliers Process Tasks Resources Outputs to Customers
Three Disciplines of Excellence Three Disciplines of Excellence Organizational Excellence Process Excellence Outcome Excellence
Process Excellence Kaizen Plan / Do / Learn / Integrate Lean Six Sigma Process Customer Centric Value Producing Excellence Simplified Standardized Improving Process Excellence I L P D Just-Do-Its A D M A I C ASSIGN (ownership) DEFINE (processes & risks) MEASURE (performance) ANALYZE (performance) IMPROVE (performance) CONTROL (monitor) Process Management Process Design Process Improvement
Doing the Right Things Right The Right Things Add Value Eliminate or minimize non-value-added activities Done Right On time On quality On cost
Building Excellence Waste is more present in knowledge work but harder to see Focusing on the customer (value added work) shines a light on waste. Improve / Kaizen Right work done right Right work done wrong Delete Wrong work done right Wrong work done wrong
Removing the Muda WAITING DELIVERY EXCESS INVENTORY / SUPPLY Value added work Emphasize Scrutinize REWORK / CORRECTION LIMITING CREATIVITY WASTE! Incidental work Minimize MOTION OVER PROCESSING OVERPRODUCTION
Building Excellence Show Me The Muda! What work is above the line? Value-Added Activities Process Task Process Task Process Task Process Task Process Task Non-Value-Added Activities Process Task Process Task Process Task Process Task Process Task What work is below the line? How can we eliminate or minimize work below the line?
Good is the Enemy of Great 99.9% accuracy in taking your new-born baby home from the hospital = 4,000 people per year who would take home the wrong baby 99.9% quality in surgical procedures = 70,000 patients per year who would have surgery performed on the wrong body part Airline fatality rates are better than 6 Sigma. A drop off to 4.5 Sigma (99.87%) would increase fatalities by 382 times
Improvement is the Enemy of Excellence Being satisfied with improvement endangers achieving what is truly possible Only a relentless pursuit of perfection results in a Culture of Excellence Sigma Sigma 6 5 4 3 2 1 DPMO (Defects Per Million Opportunities) 3.4 233 6,210 66,807 308,538 691,462 YIELD 99.99966% 99.977% 99.38% 93.3% 69.1% 30.9%
ASSIGN (ownership) DEFINE (processes & risks) MEASURE (performance) ANALYZE (performance) IMPROVE (performance) CONTROL (monitor) ASSIGN (ownership) DEFINE (processes & risks) MEASURE (performance) ANALYZE (performance) IMPROVE (performance) CONTROL (monitor) Is Your Process Standardized? HMS Pathway to Process Excellence Standardize Process Performance Standardize Improve A D M A I C Standardize Lean Six Sigma Improve Plan / Do / Learn / Integrate I P L D Kaizen Standardize Improve Standardize Plan / Do / Learn / Integrate I P L D Kaizen Improve Plan / Do / Learn / Integrate I P L D Kaizen Standardize Improve A D M A I C Lean Six Sigma Good Time
Is Your Process Systematic? A D L I R: Approach Is it Defined? Deployment Is it Standardized? Learning Is it being Reviewed against customer requirements? Improvement Is it Improving? Results Is it Being Measured?
Designing & Improving Processes Lean Six Sigma Kaizen Plan / Do / Learn / Integrate I P Just-Do-Its L D A D M A I C ASSIGN (ownership) DEFINE (processes & risks) MEASURE (performance) ANALYZE (performance) IMPROVE (performance) CONTROL (monitor) Assign process ownership Define the process by documenting As-Is Define Voice of the Customer (Critical to Quality CTQs) Measure Quality, Timeliness, Cycle-Time, and Efficiency Evaluate the processes capability of meeting stakeholder requirements Determine the root causes for performance gaps Design standardized process to eliminate root causes Document the Should-Be process Install controls to maintain the gain
Excellence Tools SIPOC Use to define and design processes Suppliers Inputs Customer Marketing Product Development Operations Operations Customer requirements Product specs. Product design Account information Account information Senior management Resolution authority Process Tasks Process Beginning Boundary Task: Step # (Note: Tasks below are not necessarily in chronological order but may be performed in parallel) 1.01 Gather customer requirements 1.02 Develop new product 1.03 Launch new product 1.04 Invoice customer 1.05 Collect funds Ending Boundary Task: 1.06 Resolve customer issues Outputs Who Performs Marketing Product specs. Product Product design. Development. Operations Sold product / account info. Billing & Paid accounts Collections Billing & Paid accounts Collections Customer Loyal customer Service Product design Operations Customers External customer Shareholder / Taxpayer Shareholder / Taxpayer External customer
Flow Chart Excellence Tools Use to understand relationships, bottlenecks, root causes, and moments of truth Process #: Process Name : Product Development & Launch Legend Input / Output Task Decision Connector Created 00/00/00, Revised 00/00/00 WHO INPUT PROCESS OUTPUT MARKETING Customer Rqmts. GATHER CUSTOMER REQUIREMENTS Product Specs. PRODUCT DVLPMT. Product Specs. DEVELOP NEW PRODUCT Product Design OPERATIONS Product Design LAUNCH NEW PRODUCT Sold Products / Acct. Info. BILLING & COLLECTIONS Account Info. INVOICE CUSTOMER COLLECT FUNDS Paid Accounts CUSTOMER SERVICE Resolution Authority RESOLVE CUSTOMER ISSUES Loyal Customers
Excellence Tools Process Performance Agreement Use to establish internal service level agreements and performance metrics with your customers and suppliers Category Definition Goal Source Quality Timeliness Cost
Kaizen What three things can you do to improve how you deliver delight to your customers? When will you do it? How will you know it is working?
WICSEC Conference September 7th - September 11th, 2008 Improving Performance through Business Process Improvement Presentation to WICSEC T. Vernon Drew President Center for the Support of Families Mike Kendall Vice President, Process Engineering and Quality HMS