Presentation on theme: "T.E.A.M. EFFORT A Primer on Process Management"— Presentation transcript:
1T.E.A.M. EFFORT A Primer on Process Management (A View From The Improvements Team Perspective)
2Introduction 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 jobsEnabling ourselves by acquiring the tools we need to serve our customersAligning all of our business processes to serve our customers at a profitMeasuring what we do and continually improve how we serve our customers at a profitIt 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.
3Where Do We Want To GoIntegrate the notion of continuous process improvement into our culture, by continuallyTraining ourselves to best do our jobsEnabling ourselves by acquiring the tools we need to serve our customersAligning all of our business processes to serve our customers at a profitMeasuring what we do and continually improving how we serve our customers at a profitIn the near-term, firmly establish the structures to enable the T.E.A.M. Effort to advance within the companyIn the intermediate-term make continuous process improvement an integral part of the way we do business
4Through T.E.A.M. We Want To Assist In Building A Company That Where Do We Want To GoThrough T.E.A.M. We Want To Assist In Building A Company That1. Invests in people2. Sets clear standards for performance3. Has consistent management leadership focused on attaining performance excellence through a focus on continuous process improvement4. Holds ourselves accountable for our performance5. Identifies all activities with a process6. Measures all process inputs and outputs7. Has every process consistent with outputs acceptable to the users8. Does it right the first time9. Approaches our business with a cross-functional team effort10. Eliminates waste11. Has a culture where everyone wants to improve how we do things12. Puts performance excellence as the focal point of all processes13. Prevents, not reacts14. Celebrates good efforts15. Clearly articulates its values and mission16. Has clear and consistent communication17. Has no functional barriers
5To 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 ToDemand Improvement/Demand ResultsDemand means a clear expectation of improvement results with clear yardsticks and a feedback processSay Improvement Is Not Optional; It Is MandatoryDoing nothing is not an option. What you do to improve is optional. Failure is not an option. We will succeedFocus the Efforts and Energy of the OrganizationYou cannot stop or cause a river to flow; you can channel the flow in the most productive wayChange the Structure of the Organization to Align with ProcessesNo restructure for the sake of change; but reorganize around redesigned workReinforce the Right Things When They SpeakConstant communication of the right messages will be important during our journeyBe SeriousContinuous process improvement will enable us to win at performance excellence
6We Want All Of Our T.E.A.M. Efforts To Result In What Is Our GoalWe Want All Of Our T.E.A.M. Efforts To Result InLong-term continuous improvementProper allocation of process resourcesTrust in a cross-functional team environment throughout the organizationMajor reduction in micro-managementProduction of products and services which are consistently improving over timeProduction of products and services that exceed the needs and expectations of our customers at a profit
7To Chart Our Progress We Should Measure Where We Are Now Where Are We TodayTo Chart Our Progress We Should Measure Where We Are NowControl LeadershipExclusive (mine, I) Inclusive (we, our)Fire Fighting Managing ProcessBlame People Solve Problems
8To Chart Our Progress We Should Measure Where We Are Now Where Are We TodayTo Chart Our Progress We Should Measure Where We Are NowOpinion Data (metrics)Correction PreventionJust-In-Case Just-In-TimeReactive Proactive
9How We Change Steps To Change Will – today, tomorrow will be more than wished and hoped forBelief – requires knowledge and understanding of toolsWherewithal –requires resources, know how, and know whyAction – happens when management creates the systemSystem For ChangePlan – T.E.A.M. work plan for our directionLeadership – problems caused by managers can be fixed by managersInformation – everyone must know roles and responsibilitiesRewards – what is in it for me; people perform in relation to the way they are measured and rewardedIf the message is not loud and clear, people will go back to doing it the way they have always done it
10We Will Look Like This When We Are Focused On Performance Excellence Our Goal Is Continuous Focus On ImprovementWe Will Look Like This When We Are Focused On Performance ExcellenceEvery manager is member of a management teamEach management team manages the processes through the use of SPC charts or other metricsProcess improvement team resources are focused on processes that are either out-of-control or not operating at a satisfactory levelPerformance excellence (quality and productivity) is the focal point of all processesEveryone’s job is continuous improvement to attain performance excellenceEvery activity is included in a processEvery process is defined and mapped with measurable inputs and outputsEvery person is trainedEvery person knows who his/her process interfaces are and what the standards are for inputs and outputs
11Dimensions Of Performance Excellence Conformance to specifications – hand tool will have the correct weightPerformance – refers to a grade of service, typically the number one way customers think of qualityQuick response – measured in delay or elapsed time, i.e. how long a customer waits on the phone for a “live” voiceFeatures – elements of our pricing plansReliability – failure free operation over timeDurability – how long our product lastsAesthetics – beauty and elegance, i.e. of how the tools present before being picked upPerceived quality – perception based on brand imageHumanity – providing customer/vendor support with the right degree of friendliness, attentiveness, humility, etcValue – what any one is willing to pay for any of the dimensions above
12What Process Do We UseThe focus of process management is on the management of business processes for long-term continuous improvement, not on supervising people for short-term resultsProcess management is a methodology for creating and maintaining an organization’s effort so as to deliver performance excellence, continuouslyThis is accomplished by systematically working with the company’s business processes on a continuing basisThis systematic effort has four phasesFocusAnalyzeDefineImprove
13Process Management Highlights What Process Do We UseProcess Management HighlightsFocusAnalyzeDefineImproveIdentify business concerns and opportunitiesObtain input and determine issuesPrioritize issuesDetermine processes that effect the issueDetermine responsibility for processesDeploy to appropriate area of responsibilityFor a managed process, describe the processEstablish boundaries of responsibilityIdentify standards that address requirementsDevelop measures with respect to standardsStreamline/standardize the processDesign data-gathering proceduresCollect dataFor each measure, is the process consistentIf inconsistent, address special causesIn consistent, evaluate process acceptabilityIf acceptable, monitor for opportunitiesIf unacceptable, monitor for opportunitiesMaintain continuous feedbackThis is how we manage our processes after all of our processes are mapped
14Process Management A Process is An activity or group of activities that generate a measurable outputThe unique set of activities for which the organization was createdA Process is notA generic single word for nonspecific activities likeCommunicatingReadingReviewingDiscussingApproving
15This Systematic Effort Has Four Phases Phase One - FocusThis Systematic Effort Has Four PhasesFocusAnalyzeDefineImprove
16Identify Issues And Prioritize Significant Processes Phase One - FocusIdentify Issues And Prioritize Significant ProcessesIdentify Concerns and OpportunitiesDetermine IssuesPrioritize IssuesWhat Processes Affect The IssueWho Maintains The ProcessAssign The Business IssueObtain InputsDEFINEIMPROVEConsider the issues, and the process or processes that drive each issue, then assign the issue to a process team
17IDENTIFY CONCERNS AND OPPORUTNITIES Identify Concerns And OpportunitiesWhat – actively evaluate the internal and external environmentWhy – toIdentify concerns and opportunities requiring actionIdentify key issues that impact organizational performanceEnsure all issues are identified in a timely fashionStart with current business issuesHow – by askingWere 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?FocusIDENTIFY CONCERNS AND OPPORUTNITIES
18Obtain InputsWhat – gather input data from internal or external sourcesWhy - toAlign processes with standards for performance excellenceGuide and focus improvement effortsLearn what problems we cause at process interfacesLearn to set metrics from the perspective of the customerHowInternal resources – surveys, interviews, frequent visits, etc.External resources (customers, suppliers, etc.) – surveys, interviews, focus groups, site visits, returns analysis, etc.FocusOBTAIN INPUTS
19Determine IssuesWhat – combine all inputs to form a single list of issuesWhy - toMaintain a balanced perspectiveEstablish a common understanding of the major business issuesBreak down complex issues into manageable segmentsHowAsk – what do you mean by ….; what exactly is ……Ask “why” five timesFocusDETERMINE ISSUES
20Determine 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.
21Prioritize Issues What – identify the more critical business issues FocusWhat – identify the more critical business issuesWhy - toFocus efforts on most important issuesStart with the most important issuesHowReview facts, inputs, etc. for each business issueIdentify current impact on business performanceIdentify what happens if not addressedAssign a relative importance, i.e. high, medium, lowPRORITIZE ISSUES
22WHAT PROCESSES AFFECT THE ISSUE What – identify the processes that drive the selected business issueWhy - toEnsure the appropriate processes are being proactively managed and improvedTransition from reacting to issues to improving process causes of the issuesHowIdentify the output associated with the selected issue and then identify the process that produces that outputAsk, to address this issueWhere in the organization do we startWhat outputs are improved by addressing this business issue, i.e. where is the benefitFocusWHAT PROCESSES AFFECT THE ISSUE
23WHO MAINTAINS THE PROCESS What – identify who in the organization is responsible for maintaining the process underlying the selected business issueWhy – to ensure that teams manage only those processes they are can directly influenceHow – by askingDoes it is process require all or most of the team members or functions they represent to accomplishDoes this process relate to or support this team’s mandateIs this process linked closely to the business activities of the teamIf this process were improved, would this teamProvide the resourcesMake the improvementsInitiate the improvement activitiesEstablish the priority of this processDoes a team lower in the organization have the necessary authority, resources, knowledge, and experience to improve this processFocusWHO MAINTAINS THE PROCESS
24ASSIGN THE BUSINESS ISSUE What – determine what team has the proper responsibility and authority for taking action on the selected business issue and for managing the processWhy - toEnsure 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 forwardHow – identify the appropriate area of responsibility and assign the business issues for analysisFocusASSIGN THE BUSINESS ISSUE
25This Systematic Effort Has Four Phases Phase Two - DefineThis Systematic Effort Has Four PhasesFocusAnalyzeDefineImprove
26Describe The Process And Set Boundaries Of Responsibility Phase Two - DefineDescribe The Process And Set Boundaries Of ResponsibilityDescribe The ProcessEstablish Boundaries of ResponsibilityIdentify Standards That Address RequirementsDevelop Measures With Respect To StandardsFOCUSANALYZEReach a common understanding of process flow, develop appropriate metrics and establish boundaries of responsibility
27Describe The Process What – DefineDESCRIBE THE PROCESSWhat –Create a chronological map of the way that work, materials, information, paperwork, etc. moves through a processDescribe how work is currently done or how new processes will operateWhy - toProvide basis for common understanding of how processes operateMap interrelationships of process activities in a natural flow of inputs through transition to outputsAssist in defining boundaries of responsibility leading to identification of internal and external process interfacesAssist in determining where measures can be applied to analyze processesSet the stage for process analysis and improvementHow – through process maps and other documentation
28ESTABLISH BOUNDARIES OF RESPONSIBILITY DefineESTABLISH BOUNDARIES OF RESPONSIBILITYWhat – define managerial boundaries within/between organizationsWhy - toClearly establish primary responsibilities for process managementUnderstand where responsibilities begin and endAvoid multiple management processesHow – assign responsibility to those teams which “naturally” own the process due to location in organization, nature of organization responsibilities, etc.
29IDENTIFY STANDARDS THAT ADDRESS REQUIREMENTS DefineIDENTIFY STANDARDS THAT ADDRESS REQUIREMENTSWhat - define the standards to quantify process performanceWhy – to establish performance criteria to attain performance excellenceDefinitionsCustomer requirement – a want or need associated with a product or service as expressed by characteristics and specificationsStandard – a quantified representation of expected process performance necessary to meet and/or exceed customer requirements
30DEVELOP MEASURES WITH RESPECT TO STANDARDS DefineDEVELOP MEASURES WITH RESPECT TO STANDARDSWhat – determine what measures will be used to measure the standards for performance excellenceWhyIf you do not measure it, it will not improveSimple metrics help all teams to focusHowThink like a customer, i.e. quality and serviceThink like a business manager, i.e. cost, productivity and yieldSelect a few precise metrics that will tell you how a process is performing
31This Systematic Effort Has Four Phases Phase Three - AnalyzeThis Systematic Effort Has Four PhasesFocusAnalyzeDefineImprove
32Phase Three - AnalyzeUtilize Measures To Understand Process Behavior With Respect To RequirementsStreamline the ProcessDesign Data Gathering ProceduresCollect DataEnsure Each Measure Is ConsistentDEFINEIMPROVEEvaluate Process for AcceptabilityTake Steps to Address Process Issues
33STREAMLINE THE PROCESS AnalyzeSTREAMLINE THE PROCESSWhat – analyze and simplify the processWhy – toImmediately make any obvious improvementsAvoid improving activities that are better eliminatedEnhance an activities that need to beIdentify and eliminate differing methods by creating standard processes where appropriateHowEvaluate the process looking for: duplication of effort, bottlenecks, rework loops, ambiguous accountability, complexityReview 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 standardizedModify the process in order to: simplify, augment, eliminate non-value added activities, standardize, reduce throughput time, error proof, eliminate bottlenecks, etc.
34DESIGN DATA GATHERING PROCEDURES AnalyzeDESIGN DATA GATHERING PROCEDURESWhat – determine when, where, and how data should be collectedWhy – to ensure data will be collected in an efficient and effective mannerHowConsider the practical aspects of data collectionWho will collect the dataHow will the data be collectedHow frequently will data be collectedHow much data will be collectedHow much does the data collection costHow will the data be analyzedAre special forms requiredWill people need training in data collectionVerify the quality of the data
35Collect DataAnalyzeCOLLECT DATAWhat – collect, tabulate, and display data according to defined proceduresWhy - toProvide an objective basis for evaluating the consistency and acceptability of the processProvide base line data of process performanceProvide data to guide improvement activitiesHow – using tools to gather data, i.e. check sheets, data forms, run charts, control charts
36ENSURE EACH MEASURE IS CONSISTENT AnalyzeENSURE EACH MEASURE IS CONSISTENTWhat – determine if the process is operating in a stable predicable manner with respect with each metricWhy - toDistinguish between the need to address a special cause and fundamental process improvementDetermine if we can predict the future behavior of the process with respect to each measurePermit more effective use of process improvement resources by correctly distinguishing between common and special causesHowAnalyze the data with the appropriate methods and proceed accordinglyBe careful not to address symptoms versus underlying causes
37EVALUATE PROCESS FOR ACCEPTABILITY AnalyzeEVALUATE PROCESS FOR ACCEPTABILITYWhat – compare process performance to the standard establishedWhy - toDetermine if the process is currently meeting the established standardsProvide information to assist in prioritizing improvement effortsHowCompare process performance against established standards for each metricFor each metric determine if the process is currently and will continue to meet the standard
38TAKE STEPS TO ADDRESS PROCESS ISSUES AnalyzeTAKE STEPS TO ADDRESS PROCESS ISSUESWhat – take appropriate action to identify and eliminate root causes of process inconsistencyWhy - toPrevent the reoccurrence of undesirable process behaviorIdentify causes of desirable process behavior and incorporate into standard methodsAchieve consistent, predictable process behaviorHowApply problem solving techniques to address the process inconsistencyTake action toEliminate the cause (bad thing)Incorporate the cause (good thing)
39This Systematic Effort Has Four Phases Phase Four - ImproveThis Systematic Effort Has Four PhasesFocusAnalyzeDefineImprove
40Continually Enhance Process Performance Phase Four - ImproveContinually Enhance Process PerformanceANALYZEIs the Process AcceptableIdentify the OpportunityMaintain Continuous MonitoringImprove the ProcessFOCUS
41IS THE PROCESS ACCEPTABLE ImproveIS THE PROCESS ACCEPTABLEWhat – determine if process performance is acceptable to the organization a this point in timeWhy – to prioritize improvement effortsHowFor each metric, assessFeasibility for improving the processNegative effects of continuing without improving the processBenefits of improving the processConsider other activities underwayDecide if the process is acceptable at this point in time; ifYes – proceed to monitor for future opportunitiesNo – proceed to take necessary steps to improve
42Improve The ProcessImproveIMPROVE THE PROCESSWhat – develop and implement plans to address the improvement opportunityWhy - toAddress the identified opportunity with respect to one or more of the standardsIncrease customer satisfaction, at a profitHowDecide what resources are required, i.e. skills, personnel, money, equipment, time, etc.Decide who should improve the processIf a process team, designate itUse the problem solving process to close the gap between current and desired performance
43IDENTIFY THE OPPORTUNITY ImproveIDENTIFY THE OPPORTUNITYWhat – decide if an appropriate opportunity exists for improving an existing process or developing a new process at this point in timeWhy – to properly direct and prioritize improvement efforts on a continual basisHow – 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; ifYes – proceed to take necessary steps to improveNo – proceed to maintain continuous monitoring
44MAINTAIN CONTINUOUS MONITORING ImproveMAINTAIN CONTINUOUS MONITORINGWhatObtain continuous information monitoring current process performanceEnsure customer needs and wants are continually reflected in performance standardsWhy - toMaintain performance excellence as a mantraStay abreast of changing customer needs and wantsProvide current information for prioritizing opportunitiesHow – 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.
45The Tools We UseWe have a unique set of tools and vocabulary we use as we undertake our process management activitiesThese tools enable us to have consistency across our documentation and analytical effortsProcess measurements provide a basis for decision making and take work to properly define
46Lexicon Of Our JargonWe Have A Common Language In Our Process Management And Improvement EffortsActivity - 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.
47Lexicon Of Our JargonInterface - 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.
48Hierarchy For Process Management We Have A Common Organization Hierarchy For Our Documentation Of ProcessLevelFocusExampleAnswersGroupCollection of related processesProcessRelationships and dependenciesProcess ordersWhy?ActivityRoles and objectivesCustomer calls; CS rep enters an orderWho? When?ProcedureTasksConfirm customer informationWhat?Work StepPhysical movementSearch on last name; confirm address; confirm call back numberHow?Work Step is the lowest level in the hierarchy, focusing on individual physical movements
49Information We Collect Is Organized Within Our Hierarchy Hierarchy For Process ManagementInformation We Collect Is Organized Within Our HierarchyItemProcess GroupProcessActivityProcedureWork StepNameChartObjectivesAssigned ToDocumentsSuggestionsTo Do’sIssuesNotesDisplay OrderTriggersStaff PositionExcel SpreadsheetInputs, Outputs, Interface In, Interface Out, Metrics, Errors, Business Rules, Capacities, Description, HR Training
50Process 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 mapsProvide a basis for a common understanding how processes operateMap interrelationships of process activities in a natural flow of inputs through transition to outputsAssist in defining boundaries of responsibility leading to identification of internal and external interfacesAssist in determining where measures can be applied to analyze processesSet the stage for systematic process analysis and improvementTo draw these maps we use certain symbols consistently
51Our Symbols Are Our Shorthand Symbols We UseOur Symbols Are Our ShorthandExternal 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 flowTriggerRef.
52Symbols We UseA 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.ActionDecision or QuestionDefined Action
5312 Easy Steps In Drawing A Process Map Creating The Process Maps We Use12 Easy Steps In Drawing A Process MapDefine 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.
54A Clear Concise Visual Of Our Operations Creating The Process Maps We UseA Clear Concise Visual Of Our OperationsInterface InInterface OutStep 1Step 2Step 1AStep 3Decision 1The symbols and words from our lexicon help us to communicate effectively and efficiently
55Once The Process Map Is Drawn Think About It In The Following Ways Interpreting The Process Maps We UseOnce The Process Map Is Drawn Think About It In The Following WaysDetermine who is involved in the process, activity or procedureForm theories about root causes of issues with the operationIdentify ways to streamline the operationDetermine how to implement changes to the processLocate cost-added-only stepsProvide training on how the operation works
56Interpreting 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.
57A Detailed And Structured Methodology Drives Our Process Review Our Standard Approach For Process ReviewA Detailed And Structured Methodology Drives Our Process Review
58A Detailed And Structured Methodology Drives Our Process Review Our Standard Approach For Process ReviewA Detailed And Structured Methodology Drives Our Process Review
59Our Approach Is Process Oriented Our Standard Approach For Process ReviewOur Approach Is Process OrientedOur 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
60Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering ProcessInterview Checklist Date:Interviewer:Interviewee:Identify Process OwnerGather existing materials and enter into Knowledge StoreConduct appropriate system training with Team Member on entering Process informationConfirm Process is entered into Knowledge StoreIdentify Activities performed and Objectives of Activities as they relate to the procedureConfirm Activity information is entered into Knowledge StoreIdentify your Procedure and specify related information including job position.Confirm Procedure information is entered into the Knowledge StoreIdentify Work Steps for each ProcedureList supporting information for each Work StepConfirm Work Steps and supporting information entered into the Knowledge StoreList Business RulesConfirm Business Rules entered into Knowledge StoreComplete Capabilities List (Minimum Expectations)Identify current metrics and Business Control Processes and make suggestions for enhancements.
61Our Standard Approach For Process Review Record current metrics and error definitions at work step level of Knowledge Store.Notify Team Leader that process is completeVerify contents of Knowledge Store and conduct QA proceduresCreate and review Current State Activity-Level and Procedure-Level Process MapUpload Current State map to the Knowledge StoreCreate Future State Activity-Level and Procedure-Level Process MapVerify Process Maps available in Knowledge StoreGenerate Re-Engineering To-Do List in Knowledge StoreGenerate Other To-Do List in Knowledge StoreDocument the minimum training required to perform the work steps in the training section of the template.Identify major issues to be reviewed with Team LeadersIdentify current training needsGenerate Action Work Plan for each issueAdd appropriate suggestion/observations/to do's for enhancements.Review all supporting materials with Team Members and update as appropriateReview and correct Future Step MapCheck interfaces in Future State map with other processesTest ProcessesReview process changes with appropriate partiesUpdate Process MapsReview To-Do listsReview related comments in General Observations databaseUpdate / create job description found on HR site.
62Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering ProcessProcedure TemplateName:Procedure Name:NumberWork StepInputOutputInterface WithMetricsBusiness RulesCapabilitiesNotesTriggers
63Who Performs(position) Our Standard Approach For Process ReviewNumerous Templates Are Available To Assist In The Data Gathering ProcessActivity SummaryName:Activity:Objectives:Trigger:NumberProcedure NameWho Performs(position)
64Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering ProcessErrors IdentifiedName:NumberError DescriptionError Type (s)*Error Source*Error Types: system, process (including communication), training/knowledge, external (i.e. supplier)
65Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering ProcessIssues IdentifiedName:NumberIssue
66Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering ProcessGeneral ObservationsName:NumberObservation
67Our Standard Approach For Process Review Numerous Templates Are Available To Assist In The Data Gathering ProcessTo-Do ListName:NumberTo DoAssign To/ Follow-upCompletion Date
68A Process Is Some Combination Of The Below Analytical Tools Beyond MapsA Process Is Some Combination Of The BelowMethods Materials MachinesPeople Environment MeasurementProcessOutputSome combination of methods, materials, machines, people, environment and measurement is used together to perform a service, produce a product or to complete some other taskWe focus on variations within each of these elements to understand how to influence process
69Six Primary Tools Of Process Analysis Analytical Tools Beyond MapsSix Primary Tools Of Process AnalysisProcess flow chart – track the flow of the product or service through all steps and stagesPareto 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 studyFishbone 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 causesRun diagrams and control charts – in many cases it is valuable to plot measured process data for critical characteristics on run diagrams and SPC chartsScatter 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 improvementThese tools are not for design and quality engineers, but are for average personnel with a bit of math education
70Analytical Tools Beyond Maps Shows magnitude of each of several effects; helps focus effortShows distribution of some variable; helps identify patternsVariation in parameterPeopleEquipmentProcedureMaterialselectiontrainingmakeragesuppliertypetimepressureShows associations between two variables; helps to identify possible cause-effect relationshipShows possible causes of problem; aids in hypothesis generation
71Analytical Tools Beyond Maps Statistical techniques (metrics) and concepts are the best methods to help us describe, understand, study, control and eliminate variationStatistical 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 processOur management system provides theAbility to hear what is communicatedThe training to understand what is communicatedThe instructions about what to do and who is responsible when communications are receivedWe do this so we canProduce products or services over time which are consistentProduce products or services that meet the demands of our users (customers)Do the above at an economical cost
72Develop Process Measurements Measures provideAn objective basis for decision makingA baseline for improvement effortsAgreed upon evaluation standardsUnderstanding of cause and effect relationshipsViews to process capabilityBefore we establish measures we need toUnderstand what it is we want to measureUnderstand what it is we are measuringUnderstand why we are measuring and what we want to improveDedicate resources to develop and maintain the measuresCommunicate what we are attempting to accomplish with the measures
73Development Of Measurements Is A Time Consuming and Thoughtful Process The Details Of Process MeasurementsDevelopment Of Measurements Is A Time Consuming and Thoughtful ProcessA. Determine a Specific Purpose1. 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 Monitor1. 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 Monitor1. 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 ParametersWho1. 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 Where1. 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?
74The 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?When1. 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?Where1. 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 Available1. 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 Effected1. 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 Data1. 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?
75The Details Of Process Measurements How1. 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 Plan1. 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?
76How It All Works Together Define the ProcessInvestigate Process BehaviorProblem Solve Until Process Is ConsistentEstablish A Project Team To Improve The ProcessMonitor Process For Continuous Improvement OpportunitiesNot ConsistentConsistentUnacceptableAcceptableContinuous Improvement LoopThe GoalIntroduce 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 predictableCurrently 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
77What 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.
78Steering CommitteeThis 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.
79Steering Committee’s Charter Build Division Level Management Awareness and Understanding of T.E.A.M.Become a Vocal T.E.A.M.AdvocateReview and Approve T.E.A.M. PlanProvide Guidance in the Development of the T.E.A.M. DirectionBecome the Exemplar for Cross-Functional BehaviorAssist in Identifying Key Measures of Success for T.E.A.M. and BusinessProvide the Resources and Time Commitments for the PlanT.E.A.M. will flounder ifSteering Committee is not an aggressive advocateThe organization does not sense the level of commitment and the seriousness of the effortThe 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
80T.E.A.M. Leaders TeamMade up of the owners of the business processes or their designeesLed or co-led by one or more of the members of the teamThis 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 activitiesIs the conduit for information from the organization units regarding business process improvement and measurement priorities to the Steering Committee
81The Team Leaders’ Charter Map All Significant Business Processes and Identify Measures Inputs and OutputsInitiate Data Collection with Metrics and Process ChartsDevelop Control Strategies for the Operation of ProcessesObtain Feedback from Interface Points on performance excellenceAllocate Resources for Improvement Based on Feedback on PerformanceDevelop Measures and Data Gathering ProceduresReconcile Processes and MeasuresT.E.A.M. Leader effort is intensiveThese steps lay the foundation for continuous improvement implementationBy taking the organization unit members through this process they will be indoctrinated in the process management and continuous improvement effortOrganization unit members will receive certain training during this periodAt the conclusion of this process organization members will be able to assume ownership of the process improvement effort
82Our T.E.A.M Leaders Will Require Development As They Become Expectations For T.E.A.M. LeadersOur T.E.A.M Leaders Will Require Development As They BecomeThe business process owner from his respective organization unitT.E.A.M. Effort facilitator/coordinator for the process improvement efforts within or associated with his organization unitCoachThe members of his organization unit helping to identify the most feasible and economically beneficial process improvement projectsThe project teams within his organization unit and across the company as they undertake their activitiesInternal consultantHelp transfer knowledge about particular business processes to others in the organizationAssist in leading certain project teams in their business process improvement effortsTrainerContribute to training design and developmentHelp conduct training needs assessmentsTeach certain aspects of business process documentation, measurement and improvementChange Agent/Champion - A general advocate and supporter of the T.E.A.M. Effort and all it entails
83Project TeamThese 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.
84Suggested 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 DemingKaizen; Masaaki ImaiGuide to Quality Control; Kaoru IshikawaManagerial Breakthrough; J.M. JuranWhat Is Total Quality Control? The Japanese Way; Kaoru Ishikawa trans. David LuThe Man Who Discovered Quality; Andrea GaborQuality Is Free; Philip CrosbyToday and Tomorrow; Henry FordTaguchi Technologies for Quality Engineering; Phillip RossThe Memory Jogger; Goal; Michael BassardMeasuring Up; Hall, Johnson, TurneyThe Change Masters; Rosabeth KanterVarious Publications; Tennessee AssociatesDynamic Manufacturing; Hayes, Wheelwright, ClarkWorld Class Manufacturing; Richard SchonbergerVarious Publications; Organization Dynamics, Inc.Building A Chain Of Customers; Richard SchonbergerMarket Driven Quality; IBMLeadership Through Quality; XeroxTotal Customer Service; Davidow and UttalThe Goal; Eliyahu Goldratt
85Contact InformationRob BerlingBerling Associates550 Pharr RoadSuite 212Atlanta, GA 30305TelFax