1. Process Improvement & Management
Process Mapping 4
4/17/2017
Process Improvement & Management
Week 2 1

2. Process for a NYC police officer to fix a flat tire
1. Officer fills out a Tire Replacement Request (TRR) form. 2. Tire Integrity Unit reviews the TRR. 3. Officer picks up tire at an approved vehicle maintenance facility. 4. City approved vendor replaces tire. 5. Used tire is returned to the police garage. 6. Precinct commander signs off on TRR. 7. Tire Integrity Unit compares original and signed TRR forms and files them.

3. Questions to ask about that process?
Why is the operation done this way?
Who is the customer(s)?
What does the customer need?
Where is each operation conducted? Proximity?
When is each operation performed?
How did it evolve to this?
Appropriate measures for monitoring this process? 3

4. Process Improvement & Management Methodology
Process Definition & Assessment: Understand and define a process,
Process Analysis: Get a detailed understanding of the process and generate an improvement plan,
Process Implementation: Implement improvements and gain feedback

5. 1. Process Definition & Assessment
Identify:
ownership & purpose/objectives,
scope and boundaries,
external customers, their requirements, and outputs they receive (current performance),
internal customers, their requirements, and outputs they receive (current performance)
suppliers and inputs available.
What are the key metrics for the process and what step(s) need the most improvement?

6. 2. Process Analysis (via Mapping)
Detail steps of the process. For each step:
Who are the customers?
What are the inputs?
What is the transformation?
What are the outputs?
Identify the trouble spots
Is a particular step creating the overall low performance measurement for the process?
Is a step “adding value” ? If not eliminate or improve, benchmark against “best practices”.
Find supporting evidence, brainstorm and developing improvement plan.

7. 3. Process Implementation
1) Implement improvement
on a pilot basis if appropriate
2) Feedback
how is it working
3) Revise if necessary
4) Apply system-wide
5) Return to step 2.

8. Process Mapping 8

9. 9

10. 10

11. Process Mapping Purpose
4/17/2017
Process Mapping Purpose
Improve existing or design new process
First step for analyzing and improving processes
Simple to construct
Simple to understand
Visual descriptive tool backed up by a process chart with more detailed data 11

12. Types of maps
All maps start with the basic process flow map
Blueprint typically used to:
Determine points prone to errors and develop mistake –proofing mechanisms
Differentiate between processes which interact with the customer and those which happen “behind the scenes”.
Value Stream Map typically used to:
Examine resource & value of each step from a customer’s perspective
Assess valuable resource use at each step
Elements of different maps can be combined depending on the goal 12

13. Other areas to analyze with maps
Process Mapping 4
4/17/2017
Other areas to analyze with maps
Find repetitive operations
Identify potential bottlenecks
Describe directions and distances of flows (people, material and information)
Look at resource use and minimums
Create better value & reduce waste 13 13

14. Blockbuster Process Flow Map
“Check out process”

15. Starbucks Blueprint Map
Line of Visibility
Take Drink Order
Collect Payment
Deliver Drink
Make Drink
Order Supplies
Prepare Mixes
Materials
(Coffee, flavors, milk, cups, etc.)
Fail Point
Not seen by customer
Seen by customer

16. Car Repair Blueprint Service visible to customer
Process Mapping 4
Car Repair Blueprint
4/17/2017
* = Points critical to the success of the service
† = Points at which failure is most often experienced
Service visible to customer
Service not visible to customer
Customer drops off car
Mechanic makes diagnosis*
Discuss needed work with customer*
Customer departs with car
Collect payment
Notify customer
Check
parts availability†
Perform work†
Parts available
Order parts
Inspect/ test and repair
Perform corrected work
Corrective work necessary
Repair not authorized
Repair complete
Parts not available
Repair authorized 16

17. Getting Started with a map
Basic steps are:
Identify the entity that will serve as your focal point:
Customer?
Order, item, proposal, policy, or similar concept that passes through a series of process steps.
Identify clear boundaries, starting and ending points, and lines of demarcation between customer, order, and other relevant information flows.
Keep it simple
Does this detail add any insight?
Do we need to map every exception condition? 17

18. Typical Mapping Symbolsor
Operation (task or work activity)
Inspection
Decision point (typically requires a “yes” or “no”)
Document or order created
Delay
Storage
Transportation: Move Materials, customers or employees 18

19. Value-stream Map symbols
Identifies improvement opportunity
Shipment
External Source (suppliers & Customers)
Process
Process Resource Descriptor
Inputs
Outputs 19

20. Start Big: Look at the major process steps
(example here is a Value Stream Map) 20

21. Comparing Usage to Needs Visually (bottom of map)
2. Identify a key resource that you would like to track (labor, value-add time, energy, water, etc.)
Comparing Usage to Needs Visually (bottom of map) 21

22. Example: Water used versus needed22

23. 3. Focus on an opportunity area for improvement or
Innovation for new concept developers 23

24. 4. Create a process map focusing specifically on that opportunity area24

25. 5. Visualize an improved “Future State” for the opportunity areas
(brainstorm about how to do things differently) 25

26. Business Non-value-add (BNVA) Non-value-add (NVA)
Value add Lens: Distinguish between Value-Add and Non Value-Add Process Step
Value Add (VA)
Business Non-value-add (BNVA)
Non-value-add (NVA) 26

27. Value Add Steps
Work that contributes to what your customers want out of your product or service
Analysis of asset value
Annuity calculations
Comparison of rates and benefits
Does it meet these criteria?
Adds a desired function, form, or feature to the product or service
Enables a competitive advantage (reduced price, faster delivery, better quality)
Includes activities that a customer would be willing to pay. 27

28. Business Non-Value Add
Activities that your customer doesn’t want to pay for (it does not increase value in their eyes) but are required for some reason
Accounting, legal, regulatory
Is task required by law or regulation?
Does task reduce financial/liability risk?
Does task support financial requirements?
Does process break down if task is removed? 28

29. Non-value Add
Work that does not add value in the eyes of the customer and they would not want to pay for it (nor is it required for BNVA)
Rework, multiple signatures & copies, counting, handling, inspecting, set-up, downtime, transporting, moving, delaying, storage. 29

30. Non-Value Adding Activities (continued)
These activities increase the process time significantly. NVA consume 95% of process time in many businesses.
Differentiate between:
Non-Value-Adding But Necessary activities (set-up and some inspections)
Waste
Consumes resources
Does not increase value
(inspections, moves, storage, and delays)

31. Retail Banking Processes
Time required to open a checking account with a $500 cashier’s check and no prior banking relationship
Activity time: total time for activity (minutes)
Customer time: customer’s time in activity (minutes)
Activity time Customer time
Best Bank
Average
Worst Bank
Worst 20 Banks >=60 >=48
– 124 U.S. bank study (Frei and Harker)

32. Process Chart (supplements & helps support Map)
Measure A B
Activity
(O, I, S, D, TP, TI)
Value Code
(V/B/N)
Description of activity
O= operations; I= inspections; S= storage; D=delay;
TP= transportation of people
TI= transportation of inventory or materials 32

33. Linking Processes to Value with Metrics (i.e. measures A and B)
Possible Measures or Metrics:
Link desired customer value to process
Time (measure distance traveled and task time)
Cost
Quality
Flexibility
Sustainability metrics
Set standards
Guide design of new or redesign of existing process 33

34. Types of Measures (typical)
Description
Quality
Key product or service characteristic of interest to you and your customer: mistakes, failures, complaints, returned items, repairs, time, etc.
Material
Materials that go into the product or service at different steps: components, paper, solvent, resin, paints, books, lots, water, etc.
Cost
Time, expenses, labor at each step
Delivery
Things that impact delivery of the product or services to your customer: instructions, shortages, defaults in payment, delays or wait time.
Energy Resources
KWH or BTUs, miles per gallon, et. 34

35. Other Measures Measure Description Safety
Accidents, mistakes, breakdowns
Courtesy
Politeness, respect, consideration, friendliness
Accessibility
Ease of access and ease of contact
Understanding
Finding out the needs, expectations, and satisfaction level of the customers
Responsiveness
Willingness to help and provide prompt service
Innovation
Number of Radical ,Incremental, etc. new products introduced
Local content
Materials or labor content in process step produced in regions of importance. 35

36. Example including Time & Quality Measures36

37. Typical causes of Poor Process Performance
Problems with
Products/Design
Difficulties
observed with
the process
Problems with
Metrics
Problems with
Process
Problems with
Customers/Mix

38. Mapping Exercise can lead to Potential Changes:
Process Mapping 4
4/17/2017
Mapping Exercise can lead to Potential Changes:
Raw materials
Product (output) design
Job design
Processing steps used
Management control information
Equipment or tools
Suppliers
i.e. Anything but customers may be changed unless they do not add value!! 38 38

39. Questions to ask to improve process
What does the customer need?, operations are necessary? Can some operations be eliminated, combined, or simplified? Can the product be redesigned to address an issue?...
Who is performing the job? Can the operation be redesigned to use labor better? Can operations be combined to enrich jobs? ….
Where is each operation conducted? Can layout or proximity be changed to improve communication?
When is each operation performed? Is there excessive delay or storage? Are some operations creating bottlenecks? …..
How and Why is the operation done? Can better methods, procedures, or equipment be used? Can we reduce resources ? 39

40. In Class Mapping Exercise (Team):
Do an overall map of the process for either
Producing shoes or apparel (Nike article)
Getting an oil change from a “quick” provider
Participating in an inefficient service that you know all too well.
Start with major function steps and decide on 2 appropriate metrics.
Pick one of the major steps, explode it
Evaluate value-adding and non-value adding activities (V,B,N). Justify your decision.
How would you modify non-value added activities that do not align your mission
Show the opportunity areas for changes & potential innovations that get will improve performance. 40