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T.E.A.M. EFFORT A Primer on Process Management

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1 T.E.A.M. EFFORT A Primer on Process Management
(A View From The Improvements Team Perspective)

2 Introduction Training ourselves to best do our jobs
The purpose of this presentation is to provide the reader with an orientation to a T.E.A.M. Effort. T.E.A.M. is an acronym for: Training ourselves to best do our jobs Enabling ourselves by acquiring the tools we need to serve our customers Aligning all of our business processes to serve our customers at a profit Measuring what we do and continually improve how we serve our customers at a profit It is a term that is used to describe a company’s effort focused on the improvement of business processes. At its core, this presentation is a primer on process management. There are references in certain pages of this booklet to the Knowledge Store. This is a knowledge management software application which is available from flatbridge, an affiliate of Berling Associates. This presentation is written as if it is being presented by a company improvement team to its employees.

3 Where Do We Want To Go Integrate the notion of continuous process improvement into our culture, by continually Training ourselves to best do our jobs Enabling ourselves by acquiring the tools we need to serve our customers Aligning all of our business processes to serve our customers at a profit Measuring what we do and continually improving how we serve our customers at a profit In the near-term, firmly establish the structures to enable the T.E.A.M. Effort to advance within the company In the intermediate-term make continuous process improvement an integral part of the way we do business

4 Through T.E.A.M. We Want To Assist In Building A Company That
Where Do We Want To Go Through T.E.A.M. We Want To Assist In Building A Company That 1. Invests in people 2. Sets clear standards for performance 3. Has consistent management leadership focused on attaining performance excellence through a focus on continuous process improvement 4. Holds ourselves accountable for our performance 5. Identifies all activities with a process 6. Measures all process inputs and outputs 7. Has every process consistent with outputs acceptable to the users 8. Does it right the first time 9. Approaches our business with a cross-functional team effort 10. Eliminates waste 11. Has a culture where everyone wants to improve how we do things 12. Puts performance excellence as the focal point of all processes 13. Prevents, not reacts 14. Celebrates good efforts 15. Clearly articulates its values and mission 16. Has clear and consistent communication 17. Has no functional barriers

5 To Get To Where We Want To Go We Need To Enable Top Management To
What Do You Expect From - T.E.A.M. To Get To Where We Want To Go We Need To Enable Top Management To Demand Improvement/Demand Results Demand means a clear expectation of improvement results with clear yardsticks and a feedback process Say Improvement Is Not Optional; It Is Mandatory Doing nothing is not an option. What you do to improve is optional. Failure is not an option. We will succeed Focus the Efforts and Energy of the Organization You cannot stop or cause a river to flow; you can channel the flow in the most productive way Change the Structure of the Organization to Align with Processes No restructure for the sake of change; but reorganize around redesigned work Reinforce the Right Things When They Speak Constant communication of the right messages will be important during our journey Be Serious Continuous process improvement will enable us to win at performance excellence

6 We Want All Of Our T.E.A.M. Efforts To Result In
What Is Our Goal We Want All Of Our T.E.A.M. Efforts To Result In Long-term continuous improvement Proper allocation of process resources Trust in a cross-functional team environment throughout the organization Major reduction in micro-management Production of products and services which are consistently improving over time Production of products and services that exceed the needs and expectations of our customers at a profit

7 To Chart Our Progress We Should Measure Where We Are Now
Where Are We Today To Chart Our Progress We Should Measure Where We Are Now Control Leadership Exclusive (mine, I) Inclusive (we, our) Fire Fighting Managing Process Blame People Solve Problems

8 To Chart Our Progress We Should Measure Where We Are Now
Where Are We Today To Chart Our Progress We Should Measure Where We Are Now Opinion Data (metrics) Correction Prevention Just-In-Case Just-In-Time Reactive Proactive

9 How We Change Steps To Change
Will – today, tomorrow will be more than wished and hoped for Belief – requires knowledge and understanding of tools Wherewithal –requires resources, know how, and know why Action – happens when management creates the system System For Change Plan – T.E.A.M. work plan for our direction Leadership – problems caused by managers can be fixed by managers Information – everyone must know roles and responsibilities Rewards – what is in it for me; people perform in relation to the way they are measured and rewarded If the message is not loud and clear, people will go back to doing it the way they have always done it

10 We Will Look Like This When We Are Focused On Performance Excellence
Our Goal Is Continuous Focus On Improvement We Will Look Like This When We Are Focused On Performance Excellence Every manager is member of a management team Each management team manages the processes through the use of SPC charts or other metrics Process improvement team resources are focused on processes that are either out-of-control or not operating at a satisfactory level Performance excellence (quality and productivity) is the focal point of all processes Everyone’s job is continuous improvement to attain performance excellence Every activity is included in a process Every process is defined and mapped with measurable inputs and outputs Every person is trained Every person knows who his/her process interfaces are and what the standards are for inputs and outputs

11 Dimensions Of Performance Excellence
Conformance to specifications – hand tool will have the correct weight Performance – refers to a grade of service, typically the number one way customers think of quality Quick response – measured in delay or elapsed time, i.e. how long a customer waits on the phone for a “live” voice Features – elements of our pricing plans Reliability – failure free operation over time Durability – how long our product lasts Aesthetics – beauty and elegance, i.e. of how the tools present before being picked up Perceived quality – perception based on brand image Humanity – providing customer/vendor support with the right degree of friendliness, attentiveness, humility, etc Value – what any one is willing to pay for any of the dimensions above

12 What Process Do We Use The focus of process management is on the management of business processes for long-term continuous improvement, not on supervising people for short-term results Process management is a methodology for creating and maintaining an organization’s effort so as to deliver performance excellence, continuously This is accomplished by systematically working with the company’s business processes on a continuing basis This systematic effort has four phases Focus Analyze Define Improve

13 Process Management Highlights
What Process Do We Use Process Management Highlights Focus Analyze Define Improve Identify business concerns and opportunities Obtain input and determine issues Prioritize issues Determine processes that effect the issue Determine responsibility for processes Deploy to appropriate area of responsibility For a managed process, describe the process Establish boundaries of responsibility Identify standards that address requirements Develop measures with respect to standards Streamline/standardize the process Design data-gathering procedures Collect data For each measure, is the process consistent If inconsistent, address special causes In consistent, evaluate process acceptability If acceptable, monitor for opportunities If unacceptable, monitor for opportunities Maintain continuous feedback This is how we manage our processes after all of our processes are mapped

14 Process Management A Process is
An activity or group of activities that generate a measurable output The unique set of activities for which the organization was created A Process is not A generic single word for nonspecific activities like Communicating Reading Reviewing Discussing Approving

15 This Systematic Effort Has Four Phases
Phase One - Focus This Systematic Effort Has Four Phases Focus Analyze Define Improve

16 Identify Issues And Prioritize Significant Processes
Phase One - Focus Identify Issues And Prioritize Significant Processes Identify Concerns and Opportunities Determine Issues Prioritize Issues What Processes Affect The Issue Who Maintains The Process Assign The Business Issue Obtain Inputs DEFINE IMPROVE Consider the issues, and the process or processes that drive each issue, then assign the issue to a process team

Identify Concerns And Opportunities What – actively evaluate the internal and external environment Why – to Identify concerns and opportunities requiring action Identify key issues that impact organizational performance Ensure all issues are identified in a timely fashion Start with current business issues How – by asking Were we not meeting requirements? What things, if improved, would have the greatest impact? What changes are expected? What changes are today versus tomorrow? What causes the biggest day-to-day headaches? What issues do we address over and over? Where are our competitors beating us? Where are we beating ourselves? Focus IDENTIFY CONCERNS AND OPPORUTNITIES

18 Obtain Inputs What – gather input data from internal or external sources Why - to Align processes with standards for performance excellence Guide and focus improvement efforts Learn what problems we cause at process interfaces Learn to set metrics from the perspective of the customer How Internal resources – surveys, interviews, frequent visits, etc. External resources (customers, suppliers, etc.) – surveys, interviews, focus groups, site visits, returns analysis, etc. Focus OBTAIN INPUTS

19 Determine Issues What – combine all inputs to form a single list of issues Why - to Maintain a balanced perspective Establish a common understanding of the major business issues Break down complex issues into manageable segments How Ask – what do you mean by ….; what exactly is …… Ask “why” five times Focus DETERMINE ISSUES

20 Determine Issues Asking Why Five Times
Ask: Why does it take so long for a customer to be issued a credit for a return? Answer: A significant amount of research is required before approval can be given to each credit request. Ask: Why is so much research required before approval? Answer: When the returns paperwork is received from the Warehouse, there is no authorization number recorded and Credit needs to research it before approval can be given. Ask: Why does the Warehouse accept a return without an approval number on the accompanying paperwork? Answer: The Warehouse accepts all returns and sends the paperwork accompanying the return to Credit. Ask: Why did the customer believe he could return the merchandise in the first place? Answer: Someone in Customer Support authorized the customer to return the merchandise. Ask: Why did the person in Customer Support who approved the return not record the return authorization number and associate it with the original invoice? Answer: There is not business process in place to do that. The business issue changes from the first question about the time it takes to issue the credit for the return, to the larger business issue that there is not a business process in place for collecting the “right” information, at the right time.

21 Prioritize Issues What – identify the more critical business issues
Focus What – identify the more critical business issues Why - to Focus efforts on most important issues Start with the most important issues How Review facts, inputs, etc. for each business issue Identify current impact on business performance Identify what happens if not addressed Assign a relative importance, i.e. high, medium, low PRORITIZE ISSUES

What – identify the processes that drive the selected business issue Why - to Ensure the appropriate processes are being proactively managed and improved Transition from reacting to issues to improving process causes of the issues How Identify the output associated with the selected issue and then identify the process that produces that output Ask, to address this issue Where in the organization do we start What outputs are improved by addressing this business issue, i.e. where is the benefit Focus WHAT PROCESSES AFFECT THE ISSUE

What – identify who in the organization is responsible for maintaining the process underlying the selected business issue Why – to ensure that teams manage only those processes they are can directly influence How – by asking Does it is process require all or most of the team members or functions they represent to accomplish Does this process relate to or support this team’s mandate Is this process linked closely to the business activities of the team If this process were improved, would this team Provide the resources Make the improvements Initiate the improvement activities Establish the priority of this process Does a team lower in the organization have the necessary authority, resources, knowledge, and experience to improve this process Focus WHO MAINTAINS THE PROCESS

What – determine what team has the proper responsibility and authority for taking action on the selected business issue and for managing the process Why - to Ensure that all appropriate teams are working on addressing the identified business issues (some issues impact many teams) Reach closure within your team on issues so you can move forward How – identify the appropriate area of responsibility and assign the business issues for analysis Focus ASSIGN THE BUSINESS ISSUE

25 This Systematic Effort Has Four Phases
Phase Two - Define This Systematic Effort Has Four Phases Focus Analyze Define Improve

26 Describe The Process And Set Boundaries Of Responsibility
Phase Two - Define Describe The Process And Set Boundaries Of Responsibility Describe The Process Establish Boundaries of Responsibility Identify Standards That Address Requirements Develop Measures With Respect To Standards FOCUS ANALYZE Reach a common understanding of process flow, develop appropriate metrics and establish boundaries of responsibility

27 Describe The Process What –
Define DESCRIBE THE PROCESS What – Create a chronological map of the way that work, materials, information, paperwork, etc. moves through a process Describe how work is currently done or how new processes will operate Why - to Provide basis for common understanding of how processes operate Map interrelationships of process activities in a natural flow of inputs through transition to outputs Assist in defining boundaries of responsibility leading to identification of internal and external process interfaces Assist in determining where measures can be applied to analyze processes Set the stage for process analysis and improvement How – through process maps and other documentation

Define ESTABLISH BOUNDARIES OF RESPONSIBILITY What – define managerial boundaries within/between organizations Why - to Clearly establish primary responsibilities for process management Understand where responsibilities begin and end Avoid multiple management processes How – assign responsibility to those teams which “naturally” own the process due to location in organization, nature of organization responsibilities, etc.

Define IDENTIFY STANDARDS THAT ADDRESS REQUIREMENTS What - define the standards to quantify process performance Why – to establish performance criteria to attain performance excellence Definitions Customer requirement – a want or need associated with a product or service as expressed by characteristics and specifications Standard – a quantified representation of expected process performance necessary to meet and/or exceed customer requirements

Define DEVELOP MEASURES WITH RESPECT TO STANDARDS What – determine what measures will be used to measure the standards for performance excellence Why If you do not measure it, it will not improve Simple metrics help all teams to focus How Think like a customer, i.e. quality and service Think like a business manager, i.e. cost, productivity and yield Select a few precise metrics that will tell you how a process is performing

31 This Systematic Effort Has Four Phases
Phase Three - Analyze This Systematic Effort Has Four Phases Focus Analyze Define Improve

32 Phase Three - Analyze Utilize Measures To Understand Process Behavior With Respect To Requirements Streamline the Process Design Data Gathering Procedures Collect Data Ensure Each Measure Is Consistent DEFINE IMPROVE Evaluate Process for Acceptability Take Steps to Address Process Issues

Analyze STREAMLINE THE PROCESS What – analyze and simplify the process Why – to Immediately make any obvious improvements Avoid improving activities that are better eliminated Enhance an activities that need to be Identify and eliminate differing methods by creating standard processes where appropriate How Evaluate the process looking for: duplication of effort, bottlenecks, rework loops, ambiguous accountability, complexity Review each activity asking: can it be eliminated, can it be combined, can it be performed somewhere else more effectively, can it be error-proofed, can it be standardized Modify the process in order to: simplify, augment, eliminate non-value added activities, standardize, reduce throughput time, error proof, eliminate bottlenecks, etc.

Analyze DESIGN DATA GATHERING PROCEDURES What – determine when, where, and how data should be collected Why – to ensure data will be collected in an efficient and effective manner How Consider the practical aspects of data collection Who will collect the data How will the data be collected How frequently will data be collected How much data will be collected How much does the data collection cost How will the data be analyzed Are special forms required Will people need training in data collection Verify the quality of the data

35 Collect Data Analyze COLLECT DATA What – collect, tabulate, and display data according to defined procedures Why - to Provide an objective basis for evaluating the consistency and acceptability of the process Provide base line data of process performance Provide data to guide improvement activities How – using tools to gather data, i.e. check sheets, data forms, run charts, control charts

Analyze ENSURE EACH MEASURE IS CONSISTENT What – determine if the process is operating in a stable predicable manner with respect with each metric Why - to Distinguish between the need to address a special cause and fundamental process improvement Determine if we can predict the future behavior of the process with respect to each measure Permit more effective use of process improvement resources by correctly distinguishing between common and special causes How Analyze the data with the appropriate methods and proceed accordingly Be careful not to address symptoms versus underlying causes

Analyze EVALUATE PROCESS FOR ACCEPTABILITY What – compare process performance to the standard established Why - to Determine if the process is currently meeting the established standards Provide information to assist in prioritizing improvement efforts How Compare process performance against established standards for each metric For each metric determine if the process is currently and will continue to meet the standard

Analyze TAKE STEPS TO ADDRESS PROCESS ISSUES What – take appropriate action to identify and eliminate root causes of process inconsistency Why - to Prevent the reoccurrence of undesirable process behavior Identify causes of desirable process behavior and incorporate into standard methods Achieve consistent, predictable process behavior How Apply problem solving techniques to address the process inconsistency Take action to Eliminate the cause (bad thing) Incorporate the cause (good thing)

39 This Systematic Effort Has Four Phases
Phase Four - Improve This Systematic Effort Has Four Phases Focus Analyze Define Improve

40 Continually Enhance Process Performance
Phase Four - Improve Continually Enhance Process Performance ANALYZE Is the Process Acceptable Identify the Opportunity Maintain Continuous Monitoring Improve the Process FOCUS

Improve IS THE PROCESS ACCEPTABLE What – determine if process performance is acceptable to the organization a this point in time Why – to prioritize improvement efforts How For each metric, assess Feasibility for improving the process Negative effects of continuing without improving the process Benefits of improving the process Consider other activities underway Decide if the process is acceptable at this point in time; if Yes – proceed to monitor for future opportunities No – proceed to take necessary steps to improve

42 Improve The Process Improve IMPROVE THE PROCESS What – develop and implement plans to address the improvement opportunity Why - to Address the identified opportunity with respect to one or more of the standards Increase customer satisfaction, at a profit How Decide what resources are required, i.e. skills, personnel, money, equipment, time, etc. Decide who should improve the process If a process team, designate it Use the problem solving process to close the gap between current and desired performance

Improve IDENTIFY THE OPPORTUNITY What – decide if an appropriate opportunity exists for improving an existing process or developing a new process at this point in time Why – to properly direct and prioritize improvement efforts on a continual basis How – each organization unit regularly assesses the results of on-going monitoring to decide if any of their processes present an opportunity at this point in time; if Yes – proceed to take necessary steps to improve No – proceed to maintain continuous monitoring

Improve MAINTAIN CONTINUOUS MONITORING What Obtain continuous information monitoring current process performance Ensure customer needs and wants are continually reflected in performance standards Why - to Maintain performance excellence as a mantra Stay abreast of changing customer needs and wants Provide current information for prioritizing opportunities How – each organization unit must gather feedback on a continuing basis either directly or from other sources, i.e. customer surveys, complaint analysis, returns analysis, etc.

45 The Tools We Use We have a unique set of tools and vocabulary we use as we undertake our process management activities These tools enable us to have consistency across our documentation and analytical efforts Process measurements provide a basis for decision making and take work to properly define

46 Lexicon Of Our Jargon We Have A Common Language In Our Process Management And Improvement Efforts Activity - Details of a process which focus on roles and objectives. Questions answered include: Who gets the work done? When is an activity started? Business Rule - Boundaries or requirements for a process, typically expressed as an If… then… statement. Example: If an order is received before 5:00, then it must be entered into the system that day. Business Rules can delineate responsibility, identify deadlines, and codify reasons behind actions. Capability Inventory - List of what skills and knowledge is available to an individual filling a position. Capability Requirement - List of the skills which a person must have in order to perform all tasks associated with an activity, procedure, or work step. Current State - The way a process is done today, regardless of whether that process is efficient or effective. Error - Any adverse impact to those dependent on the process, regardless of whether they are internal to Mizuno or external, like the customer. Errors may be potential or actual depending on whether the impact is certain or not. Future State - The process as it will be after changes are affected to the Current State. The future state is designed to resolve and correct specific Errors. HR Training - Activities which must take place to narrow any gaps between Capability Inventory and Capability Requirements. Implementation - Making changes to change a process from Current State to Future State. The execution of a to-do list. Input - Where information is coming from. An input can be another process or part of a process, a person (such as a customer calling), or a computer system.

47 Lexicon Of Our Jargon Interface - Method of exchanging information. This can be via computer communication, telephone, mail, fax, or face-to-face communication. Interfaces can be In or Out, depending on the direction of flow of information. Metric - Measurement by which a process or part of a process is measured. Must be a unit of time, currency, count, percentage, or amount. Modification (Mod) - Change to a system, often required by a process change. Objectives - Goal, or why a process or part of a process is being done. Output - Information or product created by a process or part of a process. Procedure - Task level of a process. Procedures are combined to form Activities and are further detailed by Work Steps. Process Map - Visual representation of a process or part of a process. Used to identify the flow of communication and information flow within a process. Also shows decision points and handoffs between those involved in a process. Team Leader - Individual responsible for collecting information, mapping, analyzing, and re-engineering a particular process. Team Member - Individual responsible for documenting the Current State of parts of a process at the activity level and below. Template - Form used for collecting information about a process or part of a process. The template acts as a reminder of what information will be entered into the system, especially after an interview. Training Requirement - Difference between Capability requirements and Capability Inventory. Those skills required for a process which are missing. Work Step - Lowest level of the process hierarchy, focusing on individual physical movements.

48 Hierarchy For Process Management
We Have A Common Organization Hierarchy For Our Documentation Of Process Level Focus Example Answers Group Collection of related processes Process Relationships and dependencies Process orders Why? Activity Roles and objectives Customer calls; CS rep enters an order Who? When? Procedure Tasks Confirm customer information What? Work Step Physical movement Search on last name; confirm address; confirm call back number How? Work Step is the lowest level in the hierarchy, focusing on individual physical movements

49 Information We Collect Is Organized Within Our Hierarchy
Hierarchy For Process Management Information We Collect Is Organized Within Our Hierarchy Item Process Group Process Activity Procedure Work Step Name Chart Objectives Assigned To Documents Suggestions To Do’s Issues Notes Display Order Triggers Staff Position Excel Spreadsheet Inputs, Outputs, Interface In, Interface Out, Metrics, Errors, Business Rules, Capacities, Description, HR Training

50 Process Maps Document Our Work
Process maps are chronological pictures of the way that work, materials, information, paperwork, etc. moves through the process. These maps are used to describe how work is currently done or to identify how new processes will operate. Process maps Provide a basis for a common understanding how processes operate Map interrelationships of process activities in a natural flow of inputs through transition to outputs Assist in defining boundaries of responsibility leading to identification of internal and external interfaces Assist in determining where measures can be applied to analyze processes Set the stage for systematic process analysis and improvement To draw these maps we use certain symbols consistently

51 Our Symbols Are Our Shorthand
Symbols We Use Our Symbols Are Our Shorthand External reference – this allows links to be made to and from other flows. This other flow should be referenced inside the oval, and there should be a corresponding reference within the other flow. Starts or kicks off a series of actions. A trigger is often a condition (inventory available) or an action (call from customer support) Local reference – allows flow to jump across a diagram without the use of long lines. A reference of A jumps to corresponding A reference circle. Flow to/from outside flow Trigger Ref.

52 Symbols We Use A task to be completed. Define work done in terms of verb-noun combinations, e.g. scan barcode. Allows the flow to follow different paths depending on the outcome of the decision or question. May have more than two outcomes. Summarized action – presents the full details of the action defined elsewhere, with the name indicated here. This allows steps common to more than one flow to be defined once and re-used where necessary. Action Decision or Question Defined Action

53 12 Easy Steps In Drawing A Process Map
Creating The Process Maps We Use 12 Easy Steps In Drawing A Process Map Define the process, activity or procedure to be mapped. Assemble the right team members, usually consisting of a process mapper and the individuals who are involved in the process, activity or procedure to be mapped. Establish the boundaries (the beginning and end points) of the process, activity or procedure. Identify the steps within the process, activity or procedure. Determine what is in scope. Identify related processes, activities or procedures, especially focusing on the interface points. List the individual steps. Determine who performs the operation, and list the responsible workers or areas across the top in a separate column. Put the steps in order. Place each step in the appropriate column under the workers or areas. Connect the steps. Assign the appropriate symbols. Review.

54 A Clear Concise Visual Of Our Operations
Creating The Process Maps We Use A Clear Concise Visual Of Our Operations Interface In Interface Out Step 1 Step 2 Step 1A Step 3 Decision 1 The symbols and words from our lexicon help us to communicate effectively and efficiently

55 Once The Process Map Is Drawn Think About It In The Following Ways
Interpreting The Process Maps We Use Once The Process Map Is Drawn Think About It In The Following Ways Determine who is involved in the process, activity or procedure Form theories about root causes of issues with the operation Identify ways to streamline the operation Determine how to implement changes to the process Locate cost-added-only steps Provide training on how the operation works

56 Interpreting The Process Maps We Use
Bottlenecks – Points in the operation where it slows down may be caused by redundant or unnecessary steps, rework, lack or capacity or other factors. Weak Links – Steps where problems occur because of inadequate training of process workers, equipment that needs to be repaired or replaced, or insufficient documentation. Poorly Defined Steps – Steps which are not well-defined may be interpreted and performed in a different way by each person involved leading to process validation. Cost-Added-Only-Steps – Such steps add no value to the output of the process and should be marked for elimination. Examine Each Division Symbol – Collect data on how often there is a “yes” or “no” answer at decision points marked by diamond-shaped symbols. If most decisions go one way rather than the other, you may be able to remove this decision point. Examine Each Rework Loop – Processes, activities and procedures with numerous checks generate rework and waste. Examine the activities proceeding the rework loop and identify those that need to be improved. Look for ways to shorten or eliminate the loop. Examine Each Activity Symbol – Does the step help build a key quality characteristic into the end product? If not, consider eliminating it. Investigate Those Developing The Process Map – To see if they have drawn it to represent the process, activity or procedure as they envision it versus the process, activity or procedure as it is. To see if those developing the map have depicted the obviously illogical parts of the operation. These are often not documented for fear of being called upon to explain why they allowed the process, activity or procedure to be that way. Investigate The Process Map - To see all rework loops are documented. Rework loops are either not seen or documented because people assume that rework is small or inevitable. To ensure that the group developing the map truly understands how the operation works.

57 A Detailed And Structured Methodology Drives Our Process Review
Our Standard Approach For Process Review A Detailed And Structured Methodology Drives Our Process Review

58 A Detailed And Structured Methodology Drives Our Process Review
Our Standard Approach For Process Review A Detailed And Structured Methodology Drives Our Process Review

59 Our Approach Is Process Oriented
Our Standard Approach For Process Review Our Approach Is Process Oriented Our approach for our initial process documentation and fact gathering is designed to build the Knowledge Store and to identify the “low hanging fruits” for change. It also sets a path for further investigation through its use of Business Issues, To Dos, etc. Additionally, our process lets people begin to become acquainted with process management

60 Our Standard Approach For Process Review
Numerous Templates Are Available To Assist In The Data Gathering Process Interview Checklist  Date: Interviewer: Interviewee: Identify Process Owner Gather existing materials and enter into Knowledge Store Conduct appropriate system training with Team Member on entering Process information Confirm Process is entered into Knowledge Store Identify Activities performed and Objectives of Activities as they relate to the procedure Confirm Activity information is entered into Knowledge Store Identify your Procedure and specify related information including job position. Confirm Procedure information is entered into the Knowledge Store Identify Work Steps for each Procedure List supporting information for each Work Step Confirm Work Steps and supporting information entered into the Knowledge Store List Business Rules Confirm Business Rules entered into Knowledge Store Complete Capabilities List (Minimum Expectations) Identify current metrics and Business Control Processes and make suggestions for enhancements.

61 Our Standard Approach For Process Review
Record current metrics and error definitions at work step level of Knowledge Store. Notify Team Leader that process is complete Verify contents of Knowledge Store and conduct QA procedures Create and review Current State Activity-Level and Procedure-Level Process Map Upload Current State map to the Knowledge Store Create Future State Activity-Level and Procedure-Level Process Map Verify Process Maps available in Knowledge Store Generate Re-Engineering To-Do List in Knowledge Store Generate Other To-Do List in Knowledge Store Document the minimum training required to perform the work steps in the training section of the template. Identify major issues to be reviewed with Team Leaders Identify current training needs Generate Action Work Plan for each issue Add appropriate suggestion/observations/to do's for enhancements. Review all supporting materials with Team Members and update as appropriate Review and correct Future Step Map Check interfaces in Future State map with other processes Test Processes Review process changes with appropriate parties Update Process Maps Review To-Do lists Review related comments in General Observations database Update / create job description found on HR site.

62 Our Standard Approach For Process Review
Numerous Templates Are Available To Assist In The Data Gathering Process Procedure Template Name: Procedure Name: Number Work Step Input Output Interface With Metrics Business Rules Capabilities Notes Triggers

63 Who Performs(position)
Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering Process Activity Summary Name: Activity: Objectives: Trigger: Number Procedure Name Who Performs(position)

64 Our Standard Approach For Process Review
Numerous Templates Are Available To Assist In The Data Gathering Process Errors Identified Name: Number Error Description Error Type (s)* Error Source *Error Types: system, process (including communication), training/knowledge, external (i.e. supplier)

65 Our Standard Approach For Process Review
Numerous Templates Are Available To Assist In The Data Gathering Process Issues Identified Name: Number Issue

66 Our Standard Approach For Process Review
Numerous Templates Are Available To Assist In The Data Gathering Process General Observations Name: Number Observation

67 Our Standard Approach For Process Review
Numerous Templates Are Available To Assist In The Data Gathering Process To-Do List Name: Number To Do Assign To/ Follow-up Completion Date

68 A Process Is Some Combination Of The Below
Analytical Tools Beyond Maps A Process Is Some Combination Of The Below Methods Materials Machines People Environment Measurement Process Output Some combination of methods, materials, machines, people, environment and measurement is used together to perform a service, produce a product or to complete some other task We focus on variations within each of these elements to understand how to influence process

69 Six Primary Tools Of Process Analysis
Analytical Tools Beyond Maps Six Primary Tools Of Process Analysis Process flow chart – track the flow of the product or service through all steps and stages Pareto analysis – plot disturbances (i.e. defects, late deliveries, errors) at every point in the process flow; select the worse case (longest bar on the Pareto chart) for further study Fishbone chart – make the “worst case” the spine of a fishbone chart. Secondary causes become secondary bones connected to the spine. Tertiary causes connect to secondary causes. Begin experiments on extremity “bones” Histograms – sometimes it is useful to measure a process characteristic – perhaps one of the extremity bones – and plot the measurement data on a histogram. The shape provides clues to causes Run diagrams and control charts – in many cases it is valuable to plot measured process data for critical characteristics on run diagrams and SPC charts Scatter diagrams and correlation – when the process is in statistical control, it is time to consider improving it. One way to investigate things to be improved is by changing something and seeing what happens. The changes and the results go on scatter diagrams, to be checked for correlation. A good correlation is a “hit”; it identifies a likely cause and candidate for improvement These tools are not for design and quality engineers, but are for average personnel with a bit of math education

70 Analytical Tools Beyond Maps
Shows magnitude of each of several effects; helps focus effort Shows distribution of some variable; helps identify patterns Variation in parameter People Equipment Procedure Material selection training maker age supplier type time pressure Shows associations between two variables; helps to identify possible cause-effect relationship Shows possible causes of problem; aids in hypothesis generation

71 Analytical Tools Beyond Maps
Statistical techniques (metrics) and concepts are the best methods to help us describe, understand, study, control and eliminate variation Statistical tools alone do not cause process improvement; they merely communicate information about process behavior and are typically placed on the inputs and outputs from a process Our management system provides the Ability to hear what is communicated The training to understand what is communicated The instructions about what to do and who is responsible when communications are received We do this so we can Produce products or services over time which are consistent Produce products or services that meet the demands of our users (customers) Do the above at an economical cost

72 Develop Process Measurements
Measures provide An objective basis for decision making A baseline for improvement efforts Agreed upon evaluation standards Understanding of cause and effect relationships Views to process capability Before we establish measures we need to Understand what it is we want to measure Understand what it is we are measuring Understand why we are measuring and what we want to improve Dedicate resources to develop and maintain the measures Communicate what we are attempting to accomplish with the measures

73 Development Of Measurements Is A Time Consuming and Thoughtful Process
The Details Of Process Measurements Development Of Measurements Is A Time Consuming and Thoughtful Process A. Determine a Specific Purpose 1. What is the purpose of the measures? 2. Is the purpose clearly understood by all involved? 3. What will we learn from the measures? 4. How will this information help us with our business issues? 5. Will this information aid future efforts for process improvement? B. Decide What Part of the Process to Monitor 1. Is it critical to our quality and service goals? 2. Will it tell us if we are improving? 3. Does this variation source have any effect on other process steps? 4. Do we have responsibility for the sequence of activities within the process? C. Decide Which Process Variables to Monitor 1. What variables effect the operation or service? 2. What are the daily inputs to the process? 3. What expected or unexpected changes, maintenance or stoppages occur in the process? D. Identify Monitoring Parameters Who 1. Who will collect the data? 2. Who will write on the process log? 3. Are all shifts involved? 4. Is any training required? 5. Who will coach the people involved with data collection? What and Where 1. What type of chart or data sheet do we want? 2. Are special forms needed for data entry? 3. Where will the blank data forms be kept? 4. Where will in-use data forms be kept or posted? 5. Is proper workspace available? 6. Who else needs to see this data? 7. Does everyone know how to interpret the information? 8. What corrective actions should be taken?

74 The Details Of Process Measurements
4. Does the data require any further analysis or calculations? 5. Who will put together any additional information? 6. Who else needs to see this data? 7. Where will used data forms be kept? 8. How will all this information be brought together and stored so that it will be available for analysis or reference? 9. Who should be contacted if a problem or question should arise? When 1. How often should the data be collected? 2. Do the scheduled time intervals allow the greatest amount of information about the process behavior to be collected? 3. Do the times accommodate all shifts? 4. How many pieces will be checked at each interval? Where 1. Which process operations will produce needed samples during data collection and monitoring? 2. Why were they chosen? 3. Does any of the incoming material to this machine/process need to be monitored as well? E. Determine if Data is Already Available 1. Doe we believe the data available is accurate and representative of the process? 2. Is this effort an unnecessary duplication of something that has already been done? 3. Is available data adaptable to what we want to find out? 4. Can available data provide us a base from which to start? F. Coordinate Process Improvement with All Areas Effected 1. Has the effort been adequately coordinated with other organizations being effected? 2. Have people from all needed areas of expertise been involved? 3. Has budget authorization for the effort, if necessary, been coordinated? G. Analyze Data 1. Does the data collector(s) understand and utilize the data? 2. Is the data readily available to anyone involved with improving the process? 3. How often will the group review this information together to formulate action plans?

75 The Details Of Process Measurements
How 1. How will measurements be taken? 2. What measuring device will be used? 3. Is all equipment calibrated? 4. Has everyone been trained in measuring with and reading this device? 5. What degree of numerical accuracy is required? 6. What could interfere with or reduce accuracy with measuring or reading? 7. What calculations will be made? 8. How will this information be plotted or charted? 9. Who will double-check accuracy occasionally? 10. How will this information help us to improve the process, the quality of the product or work smarter? H. Pursue Action Plan 1. What alternative plans of action have been considered to improve the process based on the data? 2. What measurement items have you selected to judge if you are improving? 3. What problem solving tools will be utilized based upon the “story” told by the data obtained?

76 How It All Works Together
Define the Process Investigate Process Behavior Problem Solve Until Process Is Consistent Establish A Project Team To Improve The Process Monitor Process For Continuous Improvement Opportunities Not Consistent Consistent Unacceptable Acceptable Continuous Improvement Loop The Goal Introduce Change “A” “B” 1. What is the Process? (Process Map) 2. What is it currently doing? (Control Chart/Metrics) 3. What do we want it to do? (Process Operating Consistently) 4. How do we get it there? (Change the Procedure or Business Rule) Over time a process in control is stable, subject to only common causes of variation, and predictable Currently much of our effort is focused at “A”, with our processes in control our focus changes to “B” allowing us to manage the business versus reacting to problems

77 What Structure Do We Use To Move Forward
The Management Team is the current Steering Committee for the T.E.A.M. Effort. Over time the steering committee will be reduced in number of members and will report directly to the president. The T.E.A.M. Leaders Team (TLT) are the operating arms and legs of the Steering Committee. The team is co-led, and for the time being report to the president. In addition to the co-leaders, the team has representatives from most of the major organization units. These representative are the “owners” of the business processes within the organization. Project Teams will be formed to review and analyze business processes. These teams will typically be cross-functional and will be convened to focus on a particular issue. A T.E.A.M. Leader will typically head this team or will oversee/coordinate its activity. The work of the Project Teams will typically be scoped and scheduled by the TLT. The range of projects for a rolling six-month period will be maintained by the TLT. This project plan will be approved by the Steering Committee. Ad hoc projects will arise from time to time and can be scheduled by the TLT. The projects will be typically driven by business issues that arise or identified improvements that need to be made. The organization units as defined in the organization chart do not change. A primary goal of the TLT is to “transfer” knowledge about process management and measurement tools to the members of the organization units. Over time the organization unit personnel will be enabled to do more and more of the process analysis work.

78 Steering Committee This is an executive level management team that currently includes the president and his direct reports. Over time the Steering Committee will transition to a smaller team of executive management members, which will report to the president. This team provides focus for the T.E.A.M. effort throughout and across the organization. This team creates the organization-wide top level metrics for performance excellence. This team must continue to visibly change its behavior to demonstrate cross-functional and team management. This team eliminates “command and control” techniques and installments practices to empower employees. This team has primary control, overall responsibility for the T.E.A.M. Effort. This team meets regularly, no less than monthly, to manage its processes. This team becomes the primary advocate for performance excellence. This team reconciles vision, mission, strategy, plans, roles within the organization.

79 Steering Committee’s Charter
Build Division Level Management Awareness and Understanding of T.E.A.M. Become a Vocal T.E.A.M.Advocate Review and Approve T.E.A.M. Plan Provide Guidance in the Development of the T.E.A.M. Direction Become the Exemplar for Cross-Functional Behavior Assist in Identifying Key Measures of Success for T.E.A.M. and Business Provide the Resources and Time Commitments for the Plan T.E.A.M. will flounder if Steering Committee is not an aggressive advocate The organization does not sense the level of commitment and the seriousness of the effort The work of all in the organization toward this effort is not recognized and lauded; (this work is on top of their existing duties) The T.E.A.M. Effort is owned by the Steering Committee; the T.E.A.M. Leaders are the arms and legs of the Steering Committee

80 T.E.A.M. Leaders Team Made up of the owners of the business processes or their designees Led or co-led by one or more of the members of the team This team reports to the Steering Committee and is the execution vehicle for the process management programs of the Steering Committee. As such, this team is responsible for the oversight of the execution of business process improvement activities Is the conduit for information from the organization units regarding business process improvement and measurement priorities to the Steering Committee

81 The Team Leaders’ Charter
Map All Significant Business Processes and Identify Measures Inputs and Outputs Initiate Data Collection with Metrics and Process Charts Develop Control Strategies for the Operation of Processes Obtain Feedback from Interface Points on performance excellence Allocate Resources for Improvement Based on Feedback on Performance Develop Measures and Data Gathering Procedures Reconcile Processes and Measures T.E.A.M. Leader effort is intensive These steps lay the foundation for continuous improvement implementation By taking the organization unit members through this process they will be indoctrinated in the process management and continuous improvement effort Organization unit members will receive certain training during this period At the conclusion of this process organization members will be able to assume ownership of the process improvement effort

82 Our T.E.A.M Leaders Will Require Development As They Become
Expectations For T.E.A.M. Leaders Our T.E.A.M Leaders Will Require Development As They Become The business process owner from his respective organization unit T.E.A.M. Effort facilitator/coordinator for the process improvement efforts within or associated with his organization unit Coach The members of his organization unit helping to identify the most feasible and economically beneficial process improvement projects The project teams within his organization unit and across the company as they undertake their activities Internal consultant Help transfer knowledge about particular business processes to others in the organization Assist in leading certain project teams in their business process improvement efforts Trainer Contribute to training design and development Help conduct training needs assessments Teach certain aspects of business process documentation, measurement and improvement Change Agent/Champion - A general advocate and supporter of the T.E.A.M. Effort and all it entails

83 Project Team These teams are composed of employees with knowledge and multiple skills which are sometimes deeper that the members of the T.E.A.M.Leader Team. These teams are typically cross-functional in composition and the membership is dictated by the nature of the project to be executed. The teams include specialists or generalists from across the organization without regard to organization position of the individual. The need of the project tasks drive the skill sets assembled by the team. The charter of the team is very specific and bounded. The time frame for the life of the team is typically under six-months. A very specific and measurable team goal is specified. After achieving the goal the team is disbanded. As new projects are identified, new teams are constituted. The work this team does can typically described as: study the process, apply process improvement analysis techniques, innovate a solution, implement changes within the project scope, prove results with measurable data, share their experience.

84 Suggested Readings And References
The Quality movement has been prominent in the United States for over 25 years. During that time an uncountable number of articles have been written, many many classes have been taught, and numerous quality teams have made improvements to business processes. As a result, the depth and breadth of reading materials and reference books on the topic of Quality have grown exponentially. The authors of these materials have borrowed from each other as they have documented the approach to and the tools of quality. What has been outlined in this compendium includes ideas and techniques documented by those before us. Please find below a listing of places you might look for additional information on the Quality movement. Out of Crisis; W. Edwards Deming Kaizen; Masaaki Imai Guide to Quality Control; Kaoru Ishikawa Managerial Breakthrough; J.M. Juran What Is Total Quality Control? The Japanese Way; Kaoru Ishikawa trans. David Lu The Man Who Discovered Quality; Andrea Gabor Quality Is Free; Philip Crosby Today and Tomorrow; Henry Ford Taguchi Technologies for Quality Engineering; Phillip Ross The Memory Jogger; Goal; Michael Bassard Measuring Up; Hall, Johnson, Turney The Change Masters; Rosabeth Kanter Various Publications; Tennessee Associates Dynamic Manufacturing; Hayes, Wheelwright, Clark World Class Manufacturing; Richard Schonberger Various Publications; Organization Dynamics, Inc. Building A Chain Of Customers; Richard Schonberger Market Driven Quality; IBM Leadership Through Quality; Xerox Total Customer Service; Davidow and Uttal The Goal; Eliyahu Goldratt

85 Contact Information Rob Berling Berling Associates 550 Pharr Road Suite 212 Atlanta, GA 30305 Tel Fax

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