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Client Logo DEVELOPMENT DOCUMENT Lean Six Sigma Assessment This document is confidential and is intended solely for the use and information of ____________________________.

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Presentation on theme: "Client Logo DEVELOPMENT DOCUMENT Lean Six Sigma Assessment This document is confidential and is intended solely for the use and information of ____________________________."— Presentation transcript:

1 Client Logo DEVELOPMENT DOCUMENT Lean Six Sigma Assessment This document is confidential and is intended solely for the use and information of ____________________________

2 1 Initial Lean Six Sigma Program assessment criteria Major GroupPrimary ContactPreliminary Lean Six Sigma Criteria Leadership Commitment 1) Leadership understands and executes LSS roles effectively 2) Dedicated resources committed in order to reach goals 3) Performance management dictated by Lean Six Sigma goals of senior leaders 4) Clear vision of customer focused strategy is defined and articulated to staff Operational Performance 1) Both processes and people are considered in managing process 2) Process improvement incorporated into individual expectations 3) Structured approach to problem solving 4) Improvement efforts based on business strategy Change Management 1) Project champions are identified and actively engaged 2) Cross functional teams are used to address problems 3) LSS reinforced via active communication and personnel accountability 4) Stakeholder concerns are addressed during change efforts Technology/Infrastructure 1) Measures are monitored and easily accessible 2) Knowledge Management systems in place 3) Lean concepts integrated into business processes and systems 4) Process improvement performance management in place Business Process Management 1) Focus on streamlining processes for value added activities 2) Relevant customer focused metrics are used in operations 3) Operations regularly review / update performance goals and implement best practices 4) Process owners are identified and actively engaged in process management

3 2 Change Management A spider chart was originally developed and will continue to be used to demonstrate Lean Six Sigma Program considerations and their key underpinnings Leadership Commitment Operational Performance Technology / Infrastructure Process Management Legend 0 - Center = Poor 3 - Half way between center and outer ring = Average 5 - Outer Ring = “World Class” Combined Evaluation: 1.8 Average Company Lean Six Sigma Assessment Radar Snapshot, circa May 2006 Illustrative This chart will be updated based on updated criteria developed by the team

4 3 CriteriaDetailed Definition Leadership understands and executes LSS roles effectively Executive and business unit leaders are LSS trained and they champion, participate in and actively drive LSS projects and staff training. Dedicated resources committed in order to reach goals Executive and business unit leaders have developed the necessary structure & culture to support long term implementation of the six sigma initiative. Executive and business unit leaders have allocated sufficient full time dedicated resources to achieve LSS Goals. Performance management dictated by Lean Six Sigma goals of senior leaders Executive and Business Unit Leaders ensure rigorous LSS project reviews and tollgates are regularly scheduled and participated in by leadership. Executive and business unit leaders routinely conduct Operational /Financial Reviews which include LSS objectives. Clear vision of customer focused strategy is defined and articulated to staff A customer based corporate communication strategy has been developed and implemented using active customer feedback loops and the results are measured. There is a communication vehicle set up with a mission to regularly solicit bottom up feedback and top down communication. Assessment criteria definitions: Leadership Commitment

5 4 Criteria evaluation questions: Leadership Commitment - 1 Scale Synopsis: How to Evaluate Criteria 5 Exceptional. All executive staff, champions, process owners, and belt candidates, have gone through an LSS overview. Their LSS roles and responsibilities are clearly identified and they understand how to conduct strategic alignment workshops, project selection workshops, project categorization, the LSS infrastructure, project tollgate reviews and celebrate project successes in their area. Additionally, they understand and recognize what an LSS project is and is not. 4 On going refinement and continually improving. Executive staff, champions, and process owner LSS roles and responsibilities are clearly identified throughout the organization. Champions proactively participate in LSS strategic alignment and project selection workshops. All Leaders have gone through LSS awareness and champion training. Executive and leadership staff perform regular toll gate reviews. Additionally, champions understand what an LSS project is and is not. 3 A systematic approach/methodology deployed in varying stages. Most Executives involved in the LSS program have gone through LSS awareness and champion training (8 to 16 hrs). Most leaders have helped select projects and actively support LSS efforts at their level. On that note, they understand what an LSS project is and is not. Some leaders do regular tollgate reviews. Others have at least occasional projects tollgate reviews. 2 General awareness. Most of the Executive and Senior Leadership has heard about LSS. Some leaders have taken 4 to 8 hours awareness training in LSS. Some executives are championing LSS projects and some leaders do regular tollgate reviews. Some projects may not be good candidates for LSS. 1 Some awareness of this practice. Some executive staff and senior management have heard about LSS. Most executive staff and senior management does not understand LSS or hasn’t heard about it. Some LSS projects may not be good candidates for LSS. Leadership Commitment Criteria: Leadership understands and executes LSS roles effectively

6 5 Criteria evaluation questions: Leadership Commitment - 2 Scale Synopsis: How to Evaluate Criteria 5 Exceptional. MBB/BB/GB resources are trained and 100% deployed on LSS process improvement projects and are consistently delivering results after multiple project waves that decrease the gaps in key business performance indicators. Ratios of BBs to general employee population is between 2 and 3% and all are mentored by MBBs. LSS is actively led and managed by a high level executive. There are dedicated deployment champions, process champions, and process owners tasked to perform and critique tollgates for all LSS projects. 4 On going refinement and continually improving. There are dedicated BBs with 100% of their time devoted to LSS projects. BB population is between 1% and 2% of the total employee population. MBBs mentor BBs and GBs. Most GBs are on BB led LSS teams. Process owners and champions understand their LSS roles and they conduct regular tollgates to monitor the progress of projects against strategic measures. The organization has gone through multiple waves of BB projects with quantifiable business results achieved by LSS projects. 3 A systematic approach/methodology deployed in varying stages. BB population is 0.5% to 1% of the total employee population. BBs are full time dedicated resources. There are some GBs but not all of them are helping on LSS teams and they may not be fully dedicated. MBB support is available through consulting or in house staff. Process Owners and Champions are aware of LSS but they do not regularly perform tollgates. 2 General awareness. There are some BBs in some parts of the organization. The ratio of dedicated BBs to the general population of the organization is less than 1%. BBs are not dedicated to their projects 100% of the their time. GBs on LSS projects are less than 50% dedicated. Process owners and champions are aware of LSS but do not regularly perform tollgates and may delegate their responsibility to non-executive staff. 1 Limited use of this practice. There are no dedicated resources to LSS BB/GB projects. Some awareness of LSS is present in various pockets of organization. Leadership Commitment Criteria: Dedicated resources committed in order to reach goals

7 6 Criteria evaluation questions: Leadership Commitment - 3 Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Executives participate in LSS project selection workshops multiple times per year. Project selection criteria are clearly defined at the business level and each project has financial and strategic goals defined before starting that directly impact the goals and success of senior executives. Executives regularly assess project performance. Process owners regularly report on performance of BB and GB projects to executives. More than 80% of projects are successful in delivering goals. 4 On going refinement and continually improving. Executives participate in LSS project selection workshops at least once every year. Project selection criteria are clearly defined at the business level. Projects are reported out by BBs and GBs to process owners at every tollgate. Process owner organizational success is dependent on LSS project success. Projects are reported to executives and business unit leaders by BBs and GBs at end of projects. More than 75% of projects are successful in achieving goals. 3 A systematic approach/methodology deployed in varying stages. Process owners participate in project selection workshops in their areas. Project selection criteria are clearly defined at least at the Process Owner level. LSS project success is tracked and regularly reported to Process Owners. Success of LSS efforts in each process is reported at least annually to Executives and business unit leaders. More than 50% projects are successful in achieving their process specific goals. 2 General awareness. There are some project selection workshops. Strategic alignment process is not linked to project selection workshops. Process Owners are present but their LSS responsibilities are not clearly understood. LSS projects are reported out to MBBs at every tollgate but to process owners only occasionally. There is a system to track project performance against their process goals. 1 Limited use of this practice. Process improvement projects are selected via an ad-hoc process. There is no formal goal setting process for each LSS project. There is no evidence of strategic alignment effort or project prioritization. Success rates of BB and GB projects are not tracked by executives and process owners. Leadership Commitment Criteria: Performance management dictated by LSS goals of senior leaders

8 7 Criteria evaluation questions: Leadership Commitment - 4 Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Strategy is continuously refined by formal and informal customer feedback processes that are built to monitor business performance as measured by customer needs. All echelons of management and front line employees understand their major customer's needs. There is a clear strategic alignment of LSS projects with customer needs. Strategic linkage of every LSS project is clearly defined and regularly communicated to all employees through a well established forum. Business score cards are accessible and ready available to all employees. 4 On going refinement and continually improving. There is a clear high level customer focused strategy defined which is communicated at least quarterly to all levels of the organization. Frequent updates are made to align LSS efforts with strategy and customer needs. Changes are regularly communicated via one way (passive) channels. Quantifiable metrics are communicated from executives to front line employees that show the LSS effort status and LSS' impact on strategic goals and business score cards. 3 A systematic approach/methodology deployed in varying stages. There is a clear customer focused strategy defined for all components of the organization. There is a process that conveys the impact of LSS efforts to customer centric strategic business goals. One way (passive) communications occur at least as frequently as two times a year. Most employees have some understanding of how their LSS efforts will link up to general strategic goals of the organization. 2 General awareness. There is a high level customer focused strategy but its perception is different at different levels. There is a lack of regular communication processes to clarify the strategic expectations of meeting customer requirements and be competitive in the market place. There are occasional communication efforts to convey the strategic intent of LSS effort. 1 Some awareness of this practice. There are different perceptions of how customer needs tie into strategic goals in different management echelons. It is difficult to determine the high level strategic significance of process improvement projects. Most projects are selected to locally optimize processes. Leadership Commitment Criteria: Clear vision of customer focused strategy is defined / articulated to staff

9 8 Criteria definitions: Operational Performance CriteriaDetailed Definition Both processes and people are considered in managing process Mistakes are looked at as opportunities for improvement, not cause for disciplinary action. Managers strive to find ways to mistake-proof processes rather than rely solely on individuals to prevent errors. The enterprise is viewed as an end-to-end value stream of activity where activities are interrelated and impact each other regularly. Process improvement incorporated into individual expectations Senior leadership drives the commitment for process improvement, evidenced by a shared responsibility for results. There is accountability throughout the organization for specific process improvement goals, and incentive structures are aligned with this accountability. Structured approach to problem solving Formalized approaches to resolving problems are evident in the organization. Data and root causes analysis drives decisions more than experience and gut feelings. The organization has a clearly defined approach to process improvement with experts to assist in facilitating the process. Improvement efforts based on business strategy Resources are allocated to improvement efforts with direct linkages to the strategic objectives of the organization. Projects are prioritized according to the good of the whole, rather than sub-optimizing for individual divisions within the organization. Concurrently, business strategy integrates plans for improvement efforts.

10 9 Criteria evaluation questions: Operational Performance - 1 Operational Performance Criteria: Both processes and people are considered in managing process Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Process is the focus of managing the business, and the people element is addressed by aligning incentives to the right behavior, as well as mistake-proofing the process. All employees and managers have a clear picture of the end-to-end value stream/process flow of work and consider upstream and downstream impacts to their work. Managers motivate employees based on process results. 4 On going refinement and continually improving. Managers have a good understanding of the enterprise-wide processes that their operation impacts, but employees have limited knowledge outside of their immediate team. Mistake-proofing is mainly achieved through automation where possible. Managers motivate employees based on process results. 3 A systematic approach/methodology deployed in varying stages. Managers have limited understanding of the entire value stream. Employees are managed based on individual productivity/quality goals with some linkage to the overall process outcome. Management by exception is the predominant method for improvement. 2 General awareness. Managers understand their own processes, and the overall standards for the organization, but have no understanding of the inner workings of other departments/divisions. Employees are evaluated based on individual productivity/quality goals, and unacceptable performance is dealt with through counseling. 1 Some awareness of this practice. Managing people is the primary focus of managers, with little consideration for the underlying process. Techniques such as building awareness of a problem with the staff or individual coaching is the primary means to improve performance.

11 10 Criteria evaluation questions: Operational Performance - 2 Operational Performance Criteria: Process improvement incorporated into individual expectations Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Managers at all levels are held accountable to specific expectations related to process improvement activities utilizing Lean Six Sigma methodologies. Expectations are integrated into a manager’s performance assessment. Individual employees are additionally held accountable for participation on process improvement teams, and the right behaviors are reinforced through incentives. Focus is on results vs. the number of projects completed. 4 On going refinement and continually improving. Managers are held accountable to specific process improvement activities, but no specific methodology is prescribed. Senior managers have primary accountability, and lower-level managers are not assessed based on participation. Individual employees are encouraged to assist in process improvement, but are not held accountable. Focus is on results vs. the number of projects completed. 3 A systematic approach/methodology deployed in varying stages. Pockets of the organization holds managers accountable for process improvement activities. Accountability, where it exists, focuses on number of projects versus project results. Employees are not held accountable for process improvement, or encouraged to participate consistently. 2 General awareness. There is an awareness of the benefits of process improvement, but no hard goals or accountability is in place. Clear objectives for a process improvement program are not universally understood throughout the organization. 1 Some awareness of this practice. A selected group of early adopters understand the benefits of process improvement activities, but there is no overall emphasis at the senior leadership level.

12 11 Criteria evaluation questions: Operational Performance - 3 Operational Performance Criteria: Structured approach to problem solving Scale Synopsis: How to Evaluate Criteria 5 Exceptional. The organization employs standard DMAIC, DFSS, and Lean problem solving methods. There is an infrastructure in place to support the ongoing use of methods (i.e. training, tool and methods library, and a LSS learning organization). Specialists are deployed in the organization to execute the approach, and a large number of managers/staff understand and incorporate the tools day-to-day. LSS methods are ingrained in the organizational culture. 4 On going refinement and continually improving. The organization employs a structured and data-driven approach to problem solving, but not necessarily contemporary LSS approaches. There is senior leadership support for structured problem solving, and there are individuals with deep knowledge and experience in the techniques who are called on for improvement “tiger teams.” 3 A systematic approach/methodology deployed in varying stages. There are various methods for problem solving used throughout the organization, but not one enterprise-wide approach. Leadership supports any problem solving, but prescribes no one method. Data supporting problem solving is not required. Various levels of expertise in process improvement exist, and knowledge is dispersed with no universal knowledge of who knows what. 2 General awareness. Selected individuals use a structured approach to problem solving, but there is no institutional support for their actions. Based on the part of the organization or the individual problem, various methods may be used. Using experience and gut feel is a frequent approach. 1 Limited use of this practice. There is little evidence of a structured approach to problem solving; all improvements are done ad-hoc.

13 12 Criteria evaluation questions: Operational Performance - 4 Operational Performance Criteria: Improvement efforts based on business strategy Scale Synopsis: How to Evaluate Criteria 5 Exceptional. The organization senior leadership prioritizes and selects improvement projects based on linkage to business strategy. Resources are allocated based solely on the strategic merit of the effort. Individual manager priorities are considered, but improvement efforts are based on those with the greatest overall impact to the enterprise. Process improvement itself is a business strategy. Strategic planning is flexible to changing environments. 4 On going refinement and continually improving. Organizational leadership considers strategic priorities when selecting improvement initiatives, but there is no formal prioritization process. Resources are aligned with the efforts that are deemed to be of strategic importance. There is no business strategy that specifically relates to process improvement, but the concept is integrated into other efforts. Strategic planning is flexible to changing environments. 3 A systematic approach/methodology deployed in varying stages. Process improvement is linked to strategy, but not formally. Managers consider organizational strategy in a decentralized manner. Resources are aligned with the efforts that are deemed to be of strategic importance, but individual divisions within the organization align their resources separately. 2 General awareness. Leadership is aware of the strategies of the organization, but do not use that as a driving factor for improvement efforts. Rather, improvement efforts are focused primarily on where they are experiencing the biggest “pain.” 1 Some awareness of this practice. Not all leaders are aware of the organization’s strategic objectives, and process improvement activities are not formal nor common.

14 13 Criteria definitions: Change Management CriteriaDetailed Definition Project champions are identified and actively engaged Leadership plays an active role in making time and resources available for improvement projects. They have completed training for change management and Champion roles/responsibilities. Evidence suggests that Champions assist in prioritizing projects and removing roadblocks. Cross functional teams are used to address problems The organization embraces the cross functional teaming and has provided formal education dependent on need. Evidence suggest that the organization has set up the environment so employees can work successfully in teams and supports results via follow through by process owners within and between work areas at all levels. LSS reinforced via active communication and personnel accountability Leadership has developed a communication plan that sends a clear and concise strategy of improvement to the organization. All employees understand the need to change, the path to improvement, their role and how they are accountable to the effort. Evidence suggest that when asked, employees know their role in the change effort and reasons why change is taking place. Stakeholder concerns are addressed during change efforts The organization is aware of how change affects stakeholders and has a plan to address their concerns during the process. The plan is evident in communications and actively ensuring the stakeholder is in constant awareness of the progress of the change.

15 14 Criteria evaluation questions: Change Management - 1 Change Management Criteria: Project champions are identified and actively engaged Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Evidence suggests that Champions actively remove roadblocks, participate in Tollgate Reviews, know the status of projects currently in work as well as future projects. When asked, employees can identify the Lean Six Sigma Project Champions. Champions have been trained and are used as “Keynote Speakers” for forums, training classes and high level meetings. 4 On going refinement and continually improving. Evidence suggests that Champions understand their role and are continually working towards removing roadblocks and education of all levels. The Champion does not rely on the Master Black Belt to coach him/her at all times. The Lean Six Sigma Expert is called upon “as needed”. 3 A systematic approach/methodology deployed in varying stages. Evidence suggests that the proper level of leadership has been trained in the roles and responsibilities of a Champion. Currently, there is a mid level of activity supporting the projects and tollgate reviews. The Champion relies on the Lean Six Sigma Expert to point them in the right direction. 2 General awareness; informal approach deployed with varying degrees of effectiveness. Those that have been trained may not be currently acting as a champion on a particular project but is aware of the role and responsibilities of a champion. 1 Some awareness of this practice; sporadic activity is evident however not at all levels of the Leadership. Small percentage (less than 20%) have been trained in Champion Role and expectations.

16 15 Criteria evaluation questions: Change Management - 2 Change Management Criteria : Cross functional teams are used to address problems Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Evidence suggests that cross functional teams are fully utilized through out the life cycle of all continuous improvement projects. Team members are equipped with the skills applicable to the project and successful cross functional projects have been completed. There is open communication within and between functions. Leadership communicates the benefits and progress of cross functional teams even if the impact is not in their immediate area. 4 On going refinement and continually improving. Evidence suggests that most teams (over 80%) are currently cross functional. Projects have the appropriate mix of team members to ensure that all areas are covered. The Leadership recognizes and supports that cross functional teaming is essential and engaged in assisting assignment of personnel. 3 A systematic approach /methodology of selecting team members is deployed in varying stages. There is a structure in place to ensure there is a pool of candidates from across the functional areas to assign to improvement projects. The organization has provided basic teaming, facilitation, group dynamics, basic problem solving, conflict resolution etc for appropriate levels to be able to assist in a cross functional team. Some (about 50%) of the teams are cross functional and have varying degrees of success. 2 General awareness of the value of cross functional teams. Currently there are few (30% or less) teams/projects utilizing members from cross functional areas. Leadership recognizes the value of cross functional teams but loss of resources continues to impede the commitment of team members. 1 Limited use of this practice. There is not a pool of team resources from cross functions. Leadership does not actively push for a mix of team members. There is little understanding of the value of cross functional teaming. Any teams that currently exists in a cross functional format was through an informal understanding between area leadership.

17 16 Criteria evaluation questions: Change Management - 3 Change Management Criteria: Process Improvement reinforced via active communication and personnel accountability Scale Synopsis: How to Evaluate Criteria 5 Exceptional. There is a formal communication plan that delivers a consistent and urgent message about the need to improve, provides regular updates on progress and continually reinforces the need to stay on a focused path via communication about successes and personal accountability. Each employee can say how the change affects them and the benefits of supporting the changes. The message to change and support LSS activities is relayed in all levels of all meetings. Technology supports the communication of LSS activities and personal accountability. 4 On going refinement and continually improving. Planned LSS activities are communicated to the organization, successes and future projects are celebrated. Employees understand LSS is an ongoing process that relies on them to make successful by way of participation, commitment and understanding. Leadership is consistent but not urgent about LSS and the effort. 3 A systematic approach/methodology deployed in varying stages. There is a general message about LSS, what to expect for the employees and indication that they will have an accountability issue. The message is not consistent at all levels. Champions have been trained in their role and have crafted an “elevator speech” for what LSS is and how it affects employees. 2 General awareness; informal approach deployed with varying degrees of effectiveness. Some consistent communication messages in pockets of the organization about Process Improvement/ LSS and what it means to each employee. Employees know they have a role but are not quite sure what the expectations are in that role. 1 No awareness or communication plan that explains Process Improvement / Lean Six Sigma, the projects and benefits. Employees are unsure of what Process Improvement efforts are in place, what it means, what their role is and the benefits of Process Improvement. The concept is new to all parties involved.

18 17 Criteria evaluation questions: Change Management - 4 Change Management Criteria: Stakeholder concerns are addressed during change efforts Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Stakeholders are kept informed at every step in the improvement project. Their concerns are addressed via open communication and tollgate reviews. Stakeholders know the reasons for the improvement projects and how it will be and overall benefit. Suggestions, ideas and concerns are duly noted and addressed at any time. The stakeholder is in constant contact with the project team to ensure success. There is a proactive 2 way effort to maintain the stakeholders interest at all times. 4 On going refinement and continually improving. Stakeholders are included in weekly meetings, tollgate reviews and informal updates. Comments and suggestions from the Stakeholder are incorporated into the process. 3 A systematic approach/methodology deployed in varying stages. Stakeholders are included in Tollgate reviews as an FYI support. Stakeholders opinions and input are noted but not always implemented. 2 General awareness; informal approach deployed with varying degrees of effectiveness. The stakeholder analysis is conducted and information logged. Informal meetings with stakeholders in regard to the change on a need to know basis. 1 The stakeholder is considered on a minor level when executing projects. There is limited awareness of the needs of the stakeholder. The stakeholder analysis/checklist may or may not completed when starting an improvement project.

19 18 Criteria definitions: Technology / Infrastructure Criteria Detailed Definition Measures are monitored and easily accessible The measures in place accurately describe process performance from a customer or stakeholder viewpoint. There is a process in place for regular and frequent review of these measures so that issues are identified before they affect customers or stakeholders. The measures are readily available to the employees working in the process, and can be accessed with a minimal amount of effort by either automatic notification or simple reports. Detailed information on each metric is similarly available and accessible by all employees. Knowledge Management systems in place Lean Six Sigma projects status and results are captured in a searchable database. Practitioners regularly input information on their projects so that, at any time, management and LSS staff can see the relevant information, view project timelines, manage project details, note areas of responsibility, or review team members and Champions. The system is accessible to search for best practices or similar projects. Lean concepts integrated into business processes and systems Business processes support Lean concepts and capabilities such as Hoshin planning, standard work, understanding customer value, optimizing value streams, maximizing flow, creating pull, and striving for perfection. Process improvement performance management in place A specific process improvement competency is considered an organizational necessity for success within the organization, and is therefore considered in performance management plans. Considerations such as support for process improvement, championing projects, obtaining technical skills, and participation in teams lead to individual success. Additionally, individual projects, their successes, and their propagation throughout the organization are evaluated factors.

20 19 Criteria evaluation questions: Technology / Infrastructure - 1 Technology/Infrastructure Criteria: Measures are monitored and easily accessible Scale Synopsis: How to Evaluate Criteria 5 Exceptional. Measures are in place and regularly monitored such that process problems are identified prior to customer impact. Statistical process controls are in place for key measures. Process control and reaction plans are in place and utilized when measures are out of specification. 4 On going refinement and continually improving. Measures are in place and regularly monitored in all areas such that process problems can be quickly identified in all areas. Getting measures information is either automated or very simple. Managers react to the measures, but not in a standardized way – they tend to “chase” the measures.” 3 A systematic approach/methodology deployed in varying stages. Measures are in place and are regularly monitored so that process problems can be quickly identified, but only in some areas. Focus is more on reporting than process improvement. It may be burdensome to get the measures and there may be resulting resistance or confusion in utilizing them. 2 General awareness. Measures are in place but are not regularly monitored such that process problems are quickly identified. Measures are not reported out in any systemized manner. 1 Some awareness of this practice. Some measures are in place, however, if in place, measures are not effective reflectors of business or individual performance. Managers do not trust or use measures.

21 20 Criteria evaluation questions: Technology / Infrastructure - 2 Technology/Infrastructure Criteria: Knowledge Management systems in place Scale Synopsis: How to Evaluate Criteria 5 Exceptional. A knowledge management process is specified and used regularly. Up-to-date information on process improvement projects are available to the entire organization using a facilitating technology. Best practices typically propagate throughout the organization using this system. 4 On going refinement and continually improving. A knowledge management process is specified and used regularly. Projects are not always up-to-date in the system. It employs a facilitating technology solution, but best practices, though shared, rarely propagate throughout the organization.. 3 A systematic approach/methodology deployed in varying stages. A knowledge management process is specified and used regularly, but information is inconsistent. It does not employ any facilitating technology solution. Best practices, though available, rarely propagate throughout the organization. 2 General awareness. A knowledge management process has been specified but is utilized only occasionally. It does not employ any facilitating technology solutions. Best practices are rarely shared. 1 Some awareness of this practice. There is no identified knowledge management philosophy or procedures. Process improvements are confined to individual experiences.

22 21 Criteria evaluation questions: Technology / Infrastructure - 3 Technology/Infrastructure Criteria: Lean concepts integrated into business processes and systems Scale Synopsis: How to Evaluate Criteria 5 Exceptional. The workplace is very organized and the workforce participates in structured improvement activities. Detailed processes, indicators, and procedures prompt employee reaction to process indicators. Quantitative leadership audits with a detailed checklist are supported by similar lower level audits occurring on a more frequent basis. Preventative maintenance, system changes, and procedures are predictive in nature and involve employee input. FIFO inventory management is in place and is determined by direct demand (pull) from the customer through the process such that shortages do not occur. All employees understand what adds customer value. 4 On going refinement and continually improving. The workplace is very organized, and the workforce actively participates in additional improvement activities. Employees proactively respond to process indicators when they are out of desired ranges. Quantitative leadership audits are used. Employees minimize waste and non-value activities at their own initiative. Inventory is managed by FIFO but some may be outside dictated channels and there are occasional shortages. Most employees understand what adds customer value. 3 A systematic approach/methodology deployed in varying stages. The workplace is very organized and locations for materials or information and procedures are clearly identified. Employees understand and respond to process indicators when prompted by management. Quantitative leadership audits occur to evaluate value added performance and waste material or activities. Inventory is managed by FIFO but is also determined by scheduling or goals as opposed to direct demand. 2 General awareness. The workplace is somewhat organized but waste and non-value activities are generally not addressed. Process indicators are presented to employees but the employee contribution is not specified. Information on downtime and service levels exists but there are underlying components that are vague or unidentified. Inventory levels are measured but not managed by FIFO. 1 Some awareness of this practice. The workplace is generally disorganized. While basic forms may be in place, there are few process indicators available to employees below leadership. There is little or no information on downtime or service levels. It is difficult to identify inventory levels and inventory is not located near where the work is done.

23 22 Criteria evaluation questions: Technology / Infrastructure - 4 Technology/Infrastructure Criteria: Process improvement performance management in place Scale Synopsis: How to Evaluate Criteria 4 Exceptional. An understanding of Lean Six Sigma components is required for success within the organization. It is a specific competency in performance review frameworks. It has specified in organizational career paths linked to advancement, and it's importance is clearly communicated as a desired organizational trait. 3 On going refinement and continually improving. Performance management frameworks consider process improvement as a separate competency but it is not a specific progression determinant. 2 General awareness. Performance management frameworks consider process improvement, but it is combined with other competencies and, as such, is not a specific requirement. 1Some awareness of this practice. Performance management frameworks do not consider process improvement.

24 23 Criteria definitions: Process Management CriteriaDetailed Definition Focus on streamlining processes for value added activities The organization has defined the value added processes and is streamlining them. The focus of streamlining is reducing lead times and cycle times, identifying and eliminating waste, and maximizing value added activity. Relevant customer focused metrics are used in operations The incorporation of customer focused metrics is the framework for gauging the effectiveness of continuous improvement activities and customer satisfaction. In order to meet and exceed customer expectations the organization has identified key performance metrics that are focused on the customer defined value. These metrics have been deployed throughout the organization and are used regularly. Operations regularly review / update performance goals and implement best practices The organization has implemented a standard process that deploys objectives from the top level managers completely thorough the organization. This process supports the overall goals of the organization. In addition, the organization must regularly review and adjust to the performance of organizations, divisions, departments and individual employees utilizing a standard common measurement and review system. This system identifies opportunities for improvement and leverages identified best practices for replication. Process owners are identified and actively engaged in process management Process Stream owners have been identified and are clearly aware and involved in program activities. Improvement actions are fully managed and supported by process owners with relative key metrics showing improvements The process owners are managing, developing, aligning, and communicating guidance plans and objectives.

25 24 Criteria evaluation questions: Process Management - 1 Business Process Management Criteria: Focus on streamlining processes for value added activities Scale Synopsis: How to Evaluate Criteria 5 Exceptional. The value stream is being used to manage overall improvements (Quality, Cost and Time). Cross functional work teams are identified that focus on continuous improvement. Set objectives and targets exist and constraints identified and managed. Waste is eliminated or reduced. Continuous improvement is prioritized. 4 Ongoing refinement and continually improving. The organizational has mapped the entire process and identified Value Added Percent, Non- Value Added Percent, lead times, cycle times, and quality rates. 3 A systematic approach/methodology is deployed in varying stages. The organization is focused on increasing value added metrics and decreasing non value added content. Metrics are indicating an increase and sustainability in the value added percent of the work content over the last 12 months with a reduction in lead / cycle times. 2 General awareness. The organization has identified opportunities for improvement in current process, identified key metrics and implemented some lean tools to deliver improved to metrics of the affected process. 1Some awareness of this practice. The organization has defined what is value-add according to the voice of the customer.

26 25 Criteria evaluation questions: Process Management - 2 Business Process Management Criteria: Relevant customer focused metrics are used in operations Scale Synopsis: How to Evaluate Criteria 5 Exceptional. The organization has well developed metrics that are focused on delivering value to the customer. The current metrics used by all of operations include quality rates, delivery rates, safety rates, productivity measures. Each of these is correlated to cost measurements. 4 Ongoing refinement and continually improving. The organization has well developed metrics that are focused on delivering value to the customer. The current metrics are developed and used by some (but not all) of operations. The current metrics used by operations include quality rates, delivery rates, safety rates, productivity measures. The majority of these are correlated to cost measurements. 3 A systematic approach/methodology is deployed in varying stages. The organization has defined the value from the customer and developed metrics that are focused on the delivery of value to the customer. The focus of these measures is productivity and cost. 2 General awareness. The organization has defined the value from the customer and developed metrics that are focused on the delivery of value to the customer. 1 Some awareness of this practice. The organization is utilizing a standard cost accounting metric reporting system. The entire organization is aware of the system and commonly utilizes it.

27 26 Criteria evaluation questions: Process Management - 3 Business Process Management Criteria: Operations regularly review / update performance goals and implement best practices ScaleSynopsis: How to Evaluate Criteria 5 Exceptional. The organization has a well functioning standard process that is operational across all departments in which performance goals are updated weekly and reviewed bi-weekly by the appropriate manager. Counter measures that are developed for any performance goals that are not meeting targets. A process supports and delivers business results with respect to capturing, sharing and replicating internal and external best practices. This includes a communication process that shares best practices in the organization. 4 Ongoing refinement and continually improving. The organization has developed and adopted a standard performance review process that is integrated at all levels of the organization. The review process occurs at least monthly. Counter measures exist and common reporting/analysis of operations is in place. 3 A systematic approach/methodology is deployed in varying stages. The organization has developed and adopted a standard performance review process that is integrated at all levels of the organization and includes metrics. 2 General awareness. Performance metrics are reviewed by managers in the form of an annual performance review.process. 1 Some awareness of this practice. The organization does not have a common standard process to review and update key performance measures.

28 27 Criteria evaluation questions: Process Management - 4 Business Process Management Criteria: Process owners are identified and actively engaged in process management Scale Synopsis: How to Evaluate Criteria 5 Process owners are managing current work streams in a very efficient manner up to and including Process Owners that coach, teach and motivate employees. Process owners hold regular reviews to understand current state and provide support. Planning systems have been cascaded throughout the organization with employees aware of and supporting them. The current performance metrics are being sustained and improving over time (3-6 Months). 4 Ongoing refinement and continually improving. Process owners are managing current work streams in a very efficient manner up to and including coaching, teaching and motivating employees. Improvements demonstrate that they have been sustained over time. Planning systems have been cascaded throughout the organization with employees aware of and supporting them. 3 A systematic approach/methodology is deployed in varying stages. Process owners have developed short term and long term process planning tools and key metrics for their work streams. The metrics and plans have been communicated to employees. Improvements have been made, but there is limited evidence that they have been sustained. 2 General awareness. Process Owners have been identified and have awareness of the systems and have begun. developing short and long term plans to meet objectives. 1 Some awareness of this practice. Current systems and processes may have an apparent process owner but they are not actively engaged. Work streams are managed haphazardly and have no contemporary management systems to lead and guide either daily or long term planning and activity.


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