Class 5: Chapter 3S Process Mapping 7 Analysis Class 5 Plan Roster feedback News of Note Chapter 3 Key Terms An Overview of Chapter 3S –Learning objectives

News of Note The need for precision Obama has a Kenyan Post-Colonial view Moslem confusion New threat—natural gas New Products Rick Rescorla—9-11 Hero –Plus the hundreds of first –Responders who gave theirl lives, –Note that many Korans were destroyed in prayer rooms at the WTC and the Pentagon.

1.Work through various process mapping steps 2.Assess processes 3.Determine type of activity a processes represents 4.Understand when and how to apply process mapping tools 5.Change a process for increased productivity 3S–3 Learning Objectives

“Process” of Process Mapping 1.Determine desired process outcomes and metrics 2.Identify and bound the critical process 3.Document the existing process (“current state” map)—much will be learned 4.Analyze process and priorities improvements 5.Recommend changes (“future state” map) 6.Implement changes and monitor process 3S–4

1. Identify Desired Outcomes What should the process achieve? –Reduced cost –Shorter lead time –Improved quality—what aspect of quality –More reliable deliveries –Other? 3S–5

2. Identify and Bound Critical Process Critical processes typically are one of the following: 1.A bottleneck 2.Visible to the customer 3.Consumes largest amount of resources 4.A shared process—can we make changes? 5.Highest level of variance 6.A unique skill or core competency 7.Point of problems/issues to the firm 3S–6

3. “Current State” Map Current State: the ‘as is’ of the processes A process map is a diagram of the process activities 3S–7

3. “Current State” Map Identify minimum acceptable level of detail on map Use display formats as need to depict complete processes Watch for ‘hidden’ steps Capture relevant data 3S–8

3. “Current State” Map Process Flow Table: record of process activities, key attributes and sequence 3S–9

Table 3S - 2 3S–10

3. “Current State” Map Physical Layout Diagram: documents horizontal and vertical movements 3S–11 Figure 3S-2

4. Analyze and Improve Value Adding Activity: moves a item closer to the form or location desired by customer Necessary but not Value Add: needed but doesn’t directly add value Waste Generating: consumes resources without adding value Question Mark Activity: not easily categorized, keep asking “why?” to get to root reason for these activities 3S–12

4. Analyze and Improve Disposing: what should be done with a specific activity –Keep: leave intact –Combine: merge an activity with others that are similar –Rethink: modify to improve value add –Eliminate: appropriate for waste activities Repositioning: where to position an activity in the overall process 3S–13

5. “Future State” Map Prioritize identified process improvements: 1.Make change immediately 2.Postpone change pending resources 3.Determine if change is not desirable or feasible 3S–14

6. Implement and Monitor Improvements Process Improvement is often iterative, and may require trial and error Significant changes require careful monitoring and stakeholder support 3S–15

Process Mapping and Analysis Summary 1.Process mapping and analysis is a multi-stage process 2.Processes can be characterized into six basic activities 3.Multiple tools, including graphs, help to document the ‘current state’ and ‘future state’ of processes 3S–16

Key Chapter 3S Terms Tools –Process flow diagrams& tables –Value stream mapping –Service blueprinting—line of visibility Actions –Combine –Dispose –Eliminate wasteful activities –Note that it is a value adding activity –Note that is necessary but not value adding –Reposition and/or rethink