1. 1. Lean Webinar Series Metrics-Based Process Mapping November 5, 2009 CompanyLOGO
2. 2. Learning Objectives Participants will learn: Key differences between a value stream and metricsbased process maps. Key time and quality metrics for effective improvement in office and service settings. Step-by-step approach for creating current and future state maps. How to use the MBPM as a standard work and process monitoring tool. 2009 Karen Martin & Associates2
3. 3. Macro vs. Micro - Review Value Stream Mapping (yesterdays webinar) Macro view Rooftop perspective, 30,000 ft view Future state designed by leadership Strategic What are we going to do?Metrics-Based Process Mapping Micro view In the weeds Future state designed by frontline workers Tactical How are we going to do it? 2009 Karen Martin & Associates3
4. 4. The Work We Do: Degrees of Granularity 30,000 ft View (Strategic)Value Stream ProcessStep In the Weeds (Tactical) 2009 Karen Martin & AssociatesProcessStepValue Stream MapProcessStep Metrics-Based Process Map4
5. 5. Traditional Mapping Method: Process Flow Chart Look up Customer in Eclipse SALESNew Customer?YesEnter Order SALESProduct in Stock?YesPrint Ship Ticket SALESLoad Trucks SHIPPINGNo NoEnter Customer Information ADMINYesPerform Credit Check FINANCEOkay?Notify Sales COD Only; Notify Admin No to update Customer Profile FINANCEOrder Material PURCHASINGReceive Material RECEIVINGWheres the quality? Wheres the time? 2009 Karen Martin & Associates5
6. 6. What is a Metrics-Based Process Map? A visual process analysis tool, which integrates: Functional orientation of traditional swim lane process maps Key Lean time and quality metricsTool which highlights the disconnects / wastes / delays in a process Keeps the improvement focus properly directedServes as standard work for workforce training and process monitoring 2009 Karen Martin & Associates6
7. 7. Metrics-Based Process Mapping (MBPM)
8. 8. When is the MBPM Used? For current state analysis and future state design during an office/service-based Kaizen Event. As a stand alone improvement tool. 2009 Karen Martin & Associates8
9. 9. Mapping Prep If Not Part of a Kaizen Event Select a skilled, objective facilitator. Create a mapping charter who, what, where, when & why. Define the scope. Select the fence posts (first and last steps). Select a specific situation or set of conditions.Select the team. No more than 10. Include representatives from all functions within the fence posts, including customers and suppliers. Include people who currently do the work. If too many people involved, narrow your scope. If possible, include objective outside eyes. 2009 Karen Martin & Associates9
10. 10. Document the Current State Step 1 Label the map in the upper right hand corner. Include process name, conditions mapped, date, and facilitator name and/or team members. 2009 Karen Martin & Associates10
11. 11. Step 1: Label the map Process Name Included/Excluded Conditions Current State MBPM Date Facilitator and/or Team NamesUse 36 wide white paper with 6 swim lanes (hand drawn, chalk lines, or pre-printed). Email me if you want a preprinted version you can print on a plotter printer.
12. 12. Document the Current State Step 2 Label the swim lanes with the functions involved. Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.) 2009 Karen Martin & Associates12
13. 13. Step 2: List functions Function AFunction BFunction CFunction DFunction EFunction FProcess Name Included/Excluded Conditions Current State MBPM Date Facilitator and/or Team Names
14. 14. Document the Current State Step 3 Document all activities/steps on 3 x 6 post-its. Use verb/noun format; clear and concise. Include function. Separate tasks that have different quality outputs or timeframes; combine tasks otherwise. Place post-its in appropriate swim lane, sequentially. 2009 Karen Martin & Associates14
15. 15. Step Step 1 2Ticking clockParallel Steps (concurrent activities)
16. 16. MBPM Post-it Conventions Activity (Verb / Noun)Function that performs the task
17. 17. Document the Current State Map the rule (80%), not the exceptions (20%). For metrics with ranges, use the median.Continue to add conditions to your scope if you need to. To minimize it depends answers. 2009 Karen Martin & Associates17
18. 18. Document the Current State Step 4 Number the activities. Number the activities sequentially from left to right. For parallel activities, add A, B, etc. Example: Step 8A, Step 8B, etc.Dont number the post-its until the map is final. 2009 Karen Martin & Associates18
19. 19. MBPM Post-it Conventions Step # Activity (Verb / Noun)Function that performs the task
20. 20. Step Step 1 2Parallel Steps: 8A & 8B
21. 21. Document the Current State Step 5 Add activity-specific information: Number of staff involved (if relevant) Barriers to flow Batches Shared resources Equipment downtime Etc.Key metrics (include units of measure) Process Time (PT) Lead Time (LT) Percent Complete & Accurate (%C&A) 2009 Karen Martin & Associates21
22. 22. MBPM Post-it Conventions Step # Activity (Verb / Noun)Function that performs the task # Staff (if relevant) Barriers to flow (if relevant)PT (process time) % Complete & AccurateLT (Lead time)
23. 23. MBPM Post-it Conventions Step # Activity (Verb / Noun)Function that performs the task # Staff (if relevant) Barriers to flow (if relevant)PT (process time) % Complete & AccurateLT (Lead time)
24. 24. Task-Level Metrics: Time Process time (PT) The time it takes to actually perform the work, if one is able to work on it uninterrupted Includes task-specific doing, talking, and thinking aka touch time, work time, cycle timeLead time (LT) The elapsed time from the time work is made available until its completed and passed on to the next person or department in the chain aka throughput time, turnaround time, elapsed time 2009 Karen Martin & Associates24
25. 25. Lead Time vs. Process Time Scenario 1 Lead TimeProcess TimeWork ReceivedWork passed to next stepLT = PT + Waiting / Delays 2009 Karen Martin & Associates25
26. 26. Lead Time vs. Process Time Scenario 2Lead TimeProcess Time Work passed to next stepWork ReceivedLT = PT + Waiting / Delays 2009 Karen Martin & Associates26
27. 27. MBPM Post-it Conventions Step # Activity (Verb / Noun)Function that performs the task # Staff (if relevant) Barriers to flow (if relevant)PT (process time) % Complete & AccurateLT (Lead time)
28. 28. Key Lean Metric: Quality %Complete and Accurate (%C&A) % time downstream customer can perform task without having to CAC the incoming work: Correct information or material that was supplied Add information that should have been supplied Clarify information that should or could have been clearThis output metric is measured by the immediate downstream customer and all subsequent downstream customers. If workers further downstream deem the output from a particular step to be less than 100%, multiply their assessment of quality with the previous assessments. 2009 Karen Martin & Associates28
29. 29. Metrics Reminders Typically obtained via interview; questions must be high quality PT & LT You can chunk these metrics for a series of post-its when necessary When wide variation, do one of three things: Narrow your scope (pick a specific circumstance) Use the median Indicate the variation, but use the median for the timeline%C&A Determined by immediate downstream customer and all subsequent downstream customers Response is placed on the post-it for the output step 0% at a particular step is not rare 2009 Karen Martin & Associates29
30. 30. Documenting the Current State Step 6 Define the Timeline Critical Path Longest LT unless dead-end step If longest LT is a dead end step, then bring the next longest LT to the timelineUse colored marker 2009 Karen Martin & Associates30
31. 31. Step 6: Define the Timeline Critical PathFor parallel activities: Chose the longest LT unless a dead-end activity
32. 32. Documenting the Current State Step 7 Create the timeline Bring down the PT & LT from the timeline critical path steps. 2009 Karen Martin & Associates32
33. 33. Step 7: Create the Timeline
34. 34. Document the Current State Step 8 Calculate the summary metrics Timeline PT Sum Timeline LT Sum % Activity (PT Sum/Total LT Sum) x 100Rolled First Pass Yield (RFPY) %C&A x %C&A x %C&A Include ALL post-its, not just critical path 2009 Karen Martin & Associates34
35. 35. Summary Metrics: Labor Requirements Total PT Sum of all activities, not just timelineLabor Requirements # FTEs=Total PT (in hrs) X # occurrences/year Available work hrs/year/employeeFreed = CS FTEs - FS FTEs Capacity * FTE = Full-time Equivalent (2 half time employees = 1 FTE) 2009 Karen Martin & Associates35
36. 36. Metrics-Based Process Mapping Summary Metrics Metric Timeline PT Timeline LT% Activity Rolled First Pass YieldTotal Process Time Labor requirements Freed capacityCurrent StateProjected Future StateProjected % Improvement
37. 37. Document the Current State Step 9 Identify the value-adding (VA) and necessary non-value-adding (N) activities Use small colored post-its labeled with VA or N. All unlabelled post-its represent waste. NOTE this is the first of two bridge steps between current state documentation and future state design. 2009 Karen Martin & Associates37
38. 38. Step 9: Label the value-adding (VA) and necessary non-value adding (N) activities 2009 Karen Martin & Associates38
39. 39. Document the Current State Step 10 Circle (with a red marker) the step-specific metrics that indicate the greatest opportunity for improvement. Low step-specific %activity, low %C&A, etc. This is the second of the two steps that provide the bridge between current state documentation and future state design 2009 Karen Martin & Associates39
40. 40. Step 10: Circle the data that indicates the greatest need for improvement
41. 41. Current State Facilitator Tips Keep the team focused on current state. Quickly flip chart future state ideas to capture them, then return to current state. If the LT is 8 hrs for a block, it doesnt matter if the PT is 5 or 8 mins. Limit debates over things that dont matter. If three people perform the work three different ways, select one way for the current state map. Create a safe environment for telling the truth. It is what is it. No blame. No worries. People arent the problem. The process is the problem. Help digest how bad the process is. Itll be easy to be a rock star! 2009 Karen Martin & Associates41
42. 42. Typical Current State Findings Islands of value-adding activities All other time is waste. ReworkFirst StepAdding ValueLast StepFuture State Design: How can we progress from one VA or N step to the next and eliminate all waste? 2009 Karen Martin & Associates42
43. 43. Future State Design Goals Reduce overall LT & PT Improve quality (increase RFPY) Increase % activity Improve LT, PT, and %C&A at individual stepsMay need to perform root cause analysis before determining countermeasures to realize the future state Mapping steps Clean sheet or modify current state map Same steps as current state Calculate projected metrics 2009 Karen Martin & Associates43
44. 44. Future State Design Considerations Eliminate steps / handoffs Combine steps Create parallel paths Alter task sequencing and/or timing Implement pull Reduce / eliminate batches Improve quality Create an organized, visual workplace Reduce changeover Eliminate motion & transportation Standardize work Eliminate unnecessary approvals / authorizations Stop performing nonvalue adding (NVA) tasks Co-locate functions based on flow; create cells (teams of crossfunctional staff) Balance work to meet takt time requirements44
45. 45. The Right Process Standardize work Mistake proof work Make problems visual Fix problems immediately Create continuous flow Level demand Balance work Create pull systems 2009 Karen Martin & Associates45
46. 46. Future State Facilitator Tips Reduce resistance by pointing out how boring waste is and how energizing it is to provide customer value. Spark innovation by using examples outside your own company / industry. Guarantee the team that they will not lose a paycheck and that theyll be properly trained for any new role they take on. Guarantee the team that if the process is more difficult (after a learning curve), youll revisit the improvement. Guarantee the team that youll only make a process change if its indeed an improvement. 2009 Karen Martin & Associates46
47. 47. Document Projected Future State Results MetricCurrent StateProjected Future StateProjected % ImprovementCP PTCP LT AR RFPY Total PT Labor requirements Freed capacity 2009 Karen Martin & Associates47
48. 48. PACE Prioritization Matrix Easy4523 1322817 31021116 15 20 19146 711 218 12DifficultEase of Implementation9HighAnticipated BenefitLow
49. 49. Create an Action Plan: Who, What, When, Where, and How? Future State Implementation Plan Value Stream Outpatient ImagingImplementation Plan Review DatesExecutive Sponsor Allen Ward11/1/2007Value Stream Champion Sally McKinsey11/21/2007Value Stream Mapping Facilitator Dave Parks12/13/2007Date Created 10/18/2007 Block # 2Goal / Objective Improve quality of referralImprovement ActivityType KEImplement standard work for referral processOwner Sean O'RyanPROJ1/10/2008 Implementation Schedule (weeks) 2 3 4 5 6 7 8 9 10 11 12Dianne Prichard3, 4Reduce lead time beween schedulingand Cross-train and colocate work teams preregistration steps5, 6Eliminate the need for two patient checkinsCollect copays in ImagingKEMichael O'Shea6Eliminate bottleneck in waiting areaBalance work / level demandKEDianne Prichard9Eliminate lead time associated with transcription stepImplement voice recognition technologyPROJSam Parks10Eliminate batched readingReduce setup requiredKESam Parks7Reduce inventory costs, regulatory risk and storage needs5S CT supplies area; implement kanbanKEMichael O'Shea12Reduce delay in report deliveryImplement additional fax portsPROJMartha Allen12Reduce delay in report deliveryIncrease percentage of physicians receiving electronic delivery (rather than hard copy)KE1Martha AllenApprovals Executive SponsorValue Stream ChampionValue Stream Mapping FacilitatorSignature:Signature:Signature:Date:Date:Date:Date Complete
50. 50. The Improved State Becomes Standard Work Current State Metrics-Based Process Map0PT Units 1 0SecondsHoursMinutesDaysLT Units 15 6 -1 0SecondsHoursMinutesDaysProcess Details Specific Conditions Domestic orders through sales force Occurrences per Year 37,500 Hours Worked per Day 8 Date Mapped 25-Jun-08Step # Function / Department1 CustomerMapping Team Diane O'Shea Sean Michaels Sam Parks Sally Dampier Michael PrichardProcess Name Order Fulfillment12ActivityPTLT%C&AFax PO to Sales Rep00Ryan Austin Mary TownsendFacilitator Dave Morgan 3445%PTLT%C&AActivityPTLT%C&AReview PO; clarify with customer as needed20290%Fax PO to warehouse104ActivityPTLT%C&AActivityPTLT%C&ACheck inventory levels; notify Sales Rep re: status2 Sales RepActivity590%5495%Fax PO to Sales Rep50.3390%5 Finance6Warehouse / ShippingCritical Path PT Critical Path LT Rolled %C&A Total PT020 0010 245% 205 490% 105 490%0.33 95%590% 5
51. 51. Electronic Documentation? Archive the teams work Distribute the maps to remote locations Document the new standard work for the process Training/retraining staff Monitoring process performanceCommunicate the impact of Kaizen Events and other improvement activities 2009 Karen Martin & Associates51
52. 52. Recommended ResourcesChapter 12 Manual method
53. 53. Learning Objectives Participants will learn: Key differences between a value stream and metricsbased process maps. Key time and quality metrics for effective improvement in office and service settings. Step-by-step approach for creating current and future state maps. How to use the MBPM as a standard work and process monitoring tool. 2009 Karen Martin & Associates53
54. 54. Thank You! Link to todays slides (pdf format) http://www.ksmartin.com/files/01ag89/mbpmj9eU Y43.pdf www.ksmartin.com/files/mbpm_webinar.pdfNext webinar Kaizen Events tell a friend! Part I December 4 Planning Part II December 5 Executing & Follow-upRegister for monthly newsletter and webinar announcements tell a friend! www.ksmartin.com/subscribe 2009 Karen Martin & Associates54
55. 55. For Further QuestionsKaren Martin, Principal 7770 Regents Road #635 San Diego, CA 92122 858.677.6799 ksm@ksmartin.com 2009 Karen Martin & Associates55
56. 56. Using the Excel-Based Tool 2008 Karen Martin & Mike Osterling56
57. 57. Why Capture the MBPM Electronically? Archive the teams work Distribute the maps to remote locations Document the new standard work for the process Training/retraining staff Monitoring process performance Communicate the impact of Kaizen Events and other improvement activities 2008 Karen Martin & Mike Osterling57
58. 58. Product Information The CD contains three files: Essentials.pdf describes the step-by-step approach for creating MBPMs manually, using paper and post-its Users Guide.pdf describes the tools functionality and the steps to creating electronic versions of the MBPMs MBPM.xlt the Excel-based tool MappingIncluding a Quick Start Guide for mature Excel users and those who already know how to create MBPMs 2008 Karen Martin & Mike Osterling58
59. 59. The Excel-Based Tool: Easy to Use Intuitive design Custom tool bar and pull-down menus Color-coded cells Automated metrics calculations Mistake-proofing audit feature Easily distribute electronic read only versions of the process flow to nonlicensed users 2008 Karen Martin & Mike Osterling59
60. 60. Tool LayoutSeven sheets Current State Future State Summary Metrics Audit Findings Metrics Descriptions Sample MBPM Quick Start GuideCustom toolbar with easy to use pull-down menus
61. 61. Custom Toolbar Features InsertRemoveMoveMap Management
62. 62. Map Structure Process StepsFunctionsCurrent State Metrics-Based Process Map0PT Units 1 0SecondsHoursMinutesDaysLT Units 15 6 -1 0SecondsHoursMinutesDaysProcess Details Specific Conditions Domestic orders through sales force Occurrences per Year 37,500 Hours Worked per Day 8 Date Mapped 25-Jun-08Step # Function / Department1 CustomerMapping Team Diane O'Shea Sean Michaels Sam Parks Sally Dampier Michael PrichardProcess Name Order Fulfillment12ActivityPTLT%C&AFax PO to Sales Rep00Ryan Austin Mary TownsendFacilitator Dave Morgan 3445%PTLT%C&AActivityPTLT%C&AReview PO; clarify with customer as needed20290%Fax PO to warehouse104ActivityPTLT%C&AActivityPTLT%C&ACheck inventory levels; notify Sales Rep re: status2 Sales RepActivity590%5495%Fax PO to Sales Rep50.3390%5 Finance6Warehouse / ShippingCritical Path PT Critical Path LT Rolled %C&A Total PT020 0 45%010 2 90%205 45 490% 100.33 95%590% 5Key Metrics & TimelineBlue color-coded cells indicate the critical path
63. 63. Color-Coded Summary Metrics SheetAuto-Calculates: Summary time and quality metrics for before and after maps Projected % improvement (color-coded for visual ease) Staffing requirements User-defined metrics
64. 64. Archiving your MPBM: 5 Easy Steps 1. 2. 3.Enter header information Insert functions and steps Create the current state map 4.Enter activities & key metrics Define the critical path Audit the mapCreate the future state map Enter activities & key metrics Define the critical path Audit the map 5.View the Summary Metrics Sheet 2008 Karen Martin & Mike Osterling64