1. NOTICE: If PRINTING, choose Best or High Quality on your Printer Options A few pages contain fine lines or smaller text. Program Manager: Robert L. Webb (865) 363-7127 RobertLWebb@comcast.net System Support: Patrick.Ferguson@tennessee.eduThe Science of Business Improvement: Visual Management by Data for Profit MaximizationCreate or improve your visual management system. A 10 item task listcompletes your system! Turn your improvement program into a science.Start by posting this array and replace with your filled-in sheetsto drive profit improvement using data and visual analysis. Available as a spiral bound copy book, CD or E-file Download.NOTICE: If PRINTING, choose Best or High Quality on your Printer Options

2. The Science of Business Improvement: Visual Management by Data for Profit Maximization A complete system to learn and deploy:Visible Performance TrackingManagement by Data Problem Solving Effective Action Quick Process MappingWaste Analysis in Dollars ($) Data Driven Profit Maximization CIS/TMEP Ferguson Profit Improvement Module Copyright 2010 patrick.ferguson@tennessee.edu Patrick A. FergusonDeveloped and supported by UT-CIS and: 3. The Science of Business Improvement:Visual Management by Data for Profit MaximizationStarting Condition DiagramPrint or Copy the Page Numbers as shown and display on your war room wall.Complete the steps outlined on Pages 4, 54 and 62. Cover Page & Summary 15 523OPTIONAL26 30Section 233 56Instructions 55 Page 54 61111 11 System11 11Page 1Overview:59 60 Scorecard Page 3 7222529 32 366112 Section 1Worksheet Instructions ListingPage 43739 Section 363 64 InstructionsPage 62 Ending Condition DiagramYour completed system will look almost identical, except:1. The sheets will display your filled-in information.2. Your visual process map will display multiple Page 56.www.RobertLWebb.comFerguson Profit Improvement Module Rev. 031810 You may choose to also post beside or below this standard display:All rights reserved, Patrick A. Ferguson, Copyright 2010.a big calendar, your master schedule, other key documents, etc.patrick.ferguson@tennessee.edu; www.CIS.Tennessee.edu 4. Visual Management by Data for Profit MaximizationTABLE OF CONTENTS -- WORKSHEET LISTINGYou will use only 20 templates* to complete your system. The remaining will be alternate chart axes variations not chosen. PagePage 1* Page 1 - Implementation Progress ScorecardOptional Worksheets for Daily & Weekly tracking 2Executive Summary 37DAILY Tracking Template BLANK (0-100 y-axis) 3One-Page System Overview38DAILY Tracking Template BLANK39WEEKLY Tracking Template BLANK (0-100)Section 1 Instructions: 40WEEKLY Tracking Template BLANK 4Visual Performance Tracking & Improvement 41Customer Service Tracking Weekly (%) 5Monthly Tracking Chart Example42Customer Service Tracking Weekly BLANK 6Problem Solving Worksheet Example 43Quality Tracking Daily Yield (%) 7Action Plan Example 44Quality Tracking Daily BLANK 8Monthly Chart Template BLANK with axis labels 45Quality Tracking Weekly Yield (%) 9Monthly Chart Template BLANK with blank axes46Quality Tracking Weekly BLANK 10 Monthly Chart Template BLANK no y-axis label47Productivity Tracking Daily Ratio of ($)11* Management by Data - Problem Solving Worksheet48Productivity Tracking Daily (%)12* Business Problem Solving Universal Tool 49Productivity Tracking Weekly Ratio of ($) 13 Action Plan Template BLANK50Productivity Tracking Weekly (%) 14 Action Plan Template BLANK no column headings 51Productivity Tracking Weekly BLANK 15 Profit Tracking and Dual-Axis Chart Example 52Sales Tracking Weekly (%)16* Profit Tracking Monthly EBITDA% 53Sales Tracking Weekly BLANK 17 Profit Tracking Monthly Dollars ($) 18 Profit Tracking Monthly BLANK19* Profit Action Plan Section 2 Instructions - 5420* Customer Service Tracking Monthly (%)Quick Process Mapping & Visual Analysis 21 Customer Service Tracking BLANK55 Process Mapping Card Example22* Customer Service Action Plan 56 Process Mapping Card BLANK23* Quality Tracking Monthly Yield (%)57* Process Mapping Card BLANK reduced ink 24 Quality Tracking Monthly BLANK 58 Process Mapping Card BLANK no attribute labels25* Quality Action Plan 59* Process Map Summary Matrix Template26* Productivity Tracking Monthly (Ratio of $) 60 Process Map Action Plan Example 27 Productivity Tracking Monthly (%) 61* Process Improvement Action Plan Template 28 Productivity Tracking Monthly BLANK29* Productivity Action Plan30* Inventory Tracking Monthly (Turns per Year) Section 3 Instructions - 62 31 Inventory Tracking Monthly BLANK Profit Maximization Strategy32* Inventory Action Plan 63* Rank Your Profit Opportunities in Dollars ($)33* Sales Tracking Monthly (%) to Budget or Goal64* Management by Data - Profit Maximization Strategy 34 Sales Tracking Monthly ($) 35 Sales Tracking Monthly BLANK Ferguson Profit Improvement Module Rev.031810. Copyright 201036* Sales Action Plan All rights reserved. Patrick A. Ferguson, www.RobertLWebb.com 5. Ferguson Profit Improvement Module, Rev. 031810 www.RobertLWebb.comAll rights reserved. Copyright 2010 Visual Management by Data for Profit Maximization Previous Score, DateCompany/Area Scored ByDateScore (1/0) Item Action OwnerDue Date 1 PROFIT 2Visible Performance Tracking, CUSTOMER SERVICE Goal Setting, 3 Problem Solving QUALITY 4 and Action Plans for:PRODUCTIVITY 5 INVENTORY TURNS 6 SALES Post a basic order fulfillment 7Quick Process Map with Visual AnalysisCalculate a list of 8Profit Improvement Opportunities - Ranked in Dollars ($)Use the Performance, Process and Profit data to determine your 9 Management by Data - Profit Maximization Strategy10Use a team goal incentive system tied to profit improvement Total Set a GOAL to score a 10 on this task list to maximize profit using Visual Management by Data. System Support: Robert Webb, Program Manager (865) 363-7127 ; Bob@RobertLWebb.com patrick.ferguson@tennessee.edu or your local CIS representative at www. CIS.Tennessee.edu1 6. Visual Management by Data for Profit MaximizationExecutive Summary: This book is a system of business improvement tools to increase profits using optimized, datadriven methods. The project is completed by your management team and consists of 10 tasks to achieve. You use about 20 Pages of the printed workbook to complete your visual management system. The remaining 40 templates will be the alternate chart variations that did not apply. The GOAL of the module is to learn and implement: Visual Performance Tracking and data driven Action Plans for the metrics: Profit, Customer Service, Quality, Productivity, Inventory and Sales Quick Process Mapping and visual analysis for data driven improvement Business Problem Solving & Effective Countermeasures Calculate waste levels by type to Rank Profit Improvement Opportunities in ($) Create and deploy your Management by Data Profit Maximization Strategy. The result yields a complete and working visual system that you can use indefinitely for profitimprovement. The use of this system will prioritize and drive your improvement strategies and actions toimprove performance and increase profit in a scientifically optimized manner. It is extremely valuable to know: Where? and How? to apply your improvement resources toincrease profit in the fastest and most effective manner. Visual management by data provides correct answers to your most important questionswithout risk and with minimal time investment.2 7. System Implementation Overview Use the Page 1 - Scorecard to monitor your implementation progress. If you need cost justification data for your improvement system, you can use Page 63 at anytime. Implementation is divided into (3) Sections:SECTION 1: Visible Performance Tracking & Data Driven Improvement SystemPages 4 - 36 Display a 6 x 3 matrix to form your visual management system. Use the template Pages provided. Each column of (3) sheets is used to improve a key profit driving metric.CUSTOMERINVENTORYPROFIT SERVICE QUALITYPRODUCTIVITYTURNSSALESPerformance Tracking ChartsData AnalysisToolsData DrivenAction PlansSECTION 2: Quick Process Mapping and Visual AnalysisPages 54 - 61 Map your basic order fulfillment process and quantify the performance attributes of each step. Use visual data analysis to rank and prioritize performance needs and improvement actions. xxSummaryStep 1 Step 2 Step 3 Step 4 Step 10 Table & Action Plan ... AnalysisSECTION 3: Opportunity Calculations in ($) and Profit Maximization Strategy Pages 62 - 64 Use Page 63 to calculate waste levels in dollars ($) to rank your profit improvement opportunities. Use Page 64 as your visual management tool for action sequencing and goal monitoring. Compare your SECTION 1 and SECTION 2 Action Plans to your profit opportunity rankings and verify that your implementation sequence of planned actions is correct for profit maximization. Adjust your Action Plans as necessary based on your cumulative data analysis. ProfitProfitOpportunity MaximizationCalculations Strategy System Implementation COMPLETE!3 8. SECTION-1 Instructions: Visible Performance Tracking & Data Driven Improvement System Display your completed sheets on a board or wall to create your visual management system.GOAL= Post a 6 x 3 matrix of sheetsCUSTOMER INVENTORY PROFIT SERVICEQUALITY PRODUCTIVITY TURNS SALESGoal vs. Performance Tracking Charts 1(Profit Drivers)CompletedChart Examples: Use Page: 20 or 21 23 or 2426, 27 or 28 30 or 3133, 34 or 35 Pages 5 & 1516, 17 or 18 Visibly track MONTHLY performance vs. goal for key profit driving indicators. If the standard charts listed above are not ideal, you can easily make custom monthly chartsusing the templates on: Page 8, 9 or 10YourownVisual Data Analysis 2 & Problem SolvingCompletedOK to substitute a page on this row with anyExample:Use: Page 11 for any or allself-made data summary & analysis sheet 3 Pages Page 6 make aworking Visibly post your Data Analysis & Problem Solving sheets when yourcolumnperformance goal for that metric was not achieved for that month. By addressing the actionable root causes of the most frequent or costliest issues by metric,You are using Management by Data to drive your improvement actions. If you need a hint on possible root causes & effective countermeasures use: Page 12 PROFIT CUSTOMERQUALITY PRODUCTIVITYINVENTORYSALES SERVICETURNS Improvement Action Plans 3 Completed Page 19 222529 32 36 Example:Page 7 Fix the root causes of the top issues your data analyses revealed and post visibly the Action Planfor each metric to improve. OK to list an action item on multiple plans If the Action Plan templates above are not ideal, you can make your own using: Page 13 or 14 TAKE ACTION per your improvement plans and stay firm to target dates. SECTION-14COMPLETEOptional: POST all other documents your team uses for improvement below or beside these standard columnsReview and PRESENT RESULTS MONTHLY as a scripted portion of your business performancereview meeting and use as your driver of effective action toward profit improvement! Optional D/W tracking Optional Pages: Post visibly below/beside your 6 x 3 primary matrix, any additional data reports. Pages 37 to 53 Templates for often used DAILY & WEEKLY tracking charts are provided:4 9. Company/AreaYEARMONTHLY TRACKINGMetric OwnerNationalRalphEXAMPLE Custom Works 2010CUSTOMER SERVICE Schmidlap www.RobertLWebb.com Patrick. A. Ferguson copyright 2010 100 100 GOAL = 95%96 96[ ON-TIME DELIVERY (%) - ERROR (%) ]92 9288 8884 8480 Quench tank incident80 TPM program launched for Quench Tanks76 76 and Blasters 7/2 & 7/11.72 7268 6864 6460 Draw in by hand the GOAL LINE and the 6056 ACTUAL PERFORMANCE for key5652metrics on at least a MONTHLY basis. 5248 4844When a monthly target is not achieved, 4440 use data, problem solving and effective 40countermeasures worksheets to improve.36 ; 3632 3228 2824 24Optional to make a brief note on the chart for a major event.20The charts look cleaner without notes. 2016 16 Do make reference to any change in the monhtly calculation method,12or easily remake the chart with your improved data.12 8 8 4 4 0 0 LAST JAN FEBMAR APR MAYJUN JUL AUG SEP OCTNOV DEC YEAR5 10. Management by Data - Problem Solving Worksheet www.RobertLWebb.com Patrick. A. Ferguson , copyright 2010 Company/AreaCircle Problem Type:Process Name:Process IDProcess Owner Data Recorder(s)Dates/Times Pacific MedicalQualityDeliveryJ. TorranceAlice B. (1st) March 11 - 06:00 to Inventory Productivity Patient care daily service visit PC-4Service & SupplyPete F. (2nd) March 17 - 22:00 (Nashville Office)Sales Safety ________ 1. Chart the Issues by Type and Amount REASONS FOR LATE or INCOMPLETE DELIVERY14 Color in the boxes to record occurrencesIssueDescription TotalA7 14 shifts12 No resource available 4 Quantity10BBrought wrong medicine/supply item8 COut of stock upon delivery attempt 116 DScheduling error2Time Duration:4 customize Ethe scale2such asF=5 0CIRCLE the issue above with the highest total (or cost) A B CDEF Brainstorm the contributing causes of this issue in Step 2. 2. Brainstorm Contributing Causes 3. Root Cause Analysis of the Selected CauseLIST the possible contributing causes of the selected issue Problem and Selected Cause: For Patient Care daily service visits,CIRCLE a selected cause to drive down to the root cause for effective actionstandard supply quantities to carry are not known and are causingRank/Rating MethodMachine late and incomplete delivery issues. 2Delivery schedule changed 1 The one available was broken Personnel are not told of any list or quantities of supplies Why? 9 Standard supply qtys. not known4 Components werent compatibleto carry. 6 Process training was incomplete4 Wrong size for the job Variation in supply usage by day (and region); Why? 7 Special reqmts. not documentedTribal knowledge of what to bring is shared locally. No training in stock management has been provided; Why?1Found to be expired3 Didnt restock before leavingTrue cost of delivery outages not understood. 3 Didnt match the paperwork 5 Not notified of the requirementNo standard procedures are in place to define delivery Why? 5 Used more than expected2 Couldnt find any in the stockroom stock quantities and replenishment procedures by region. Calculations for standard item consumption by region Why? and optimum quantities to carry havent been conducted.MaterialMan/Other6CIRCLE the Actionable Root Cause(s) 4. Record the COUNTERMEASURES onto the ACTION PLAN 6 11. Company/AreaREVISION DATEOwnerPROFIT Action Plan Summary EXAMPLE www.RobertLWebb.com copyright 2010 Est. Work Days TargetItem #AreaAction Title Action Responsible to Complete Notes, Status, Financials($) dateImplement visual scheduling at Clean/Anneal (constraintStarted 10/18 last year, 75% complete. Improve1Customer Service operation); Train back-up packers (2) and tester (1); UpgradeA. Adams 2006-Jan Target Savings = $350K, $13K of On-Time Delivery JRJ machine. $22K budget remaining.Apply error proofing to Accessory Kit packout. 4% returned last yr. due to Kitting errors. [126 missing pt., 54 wrong2Customer Service Reduce ReturnsEstimated Days of WORK required to complete the action, B. Burns 10 07-Feb cord, 35 wrong booklet]. $150K lostindependent of the target date. profits. Target 90% reduction.Require supplier certification on top 25 non-conforming partsStart with BAKERSFIELD (6 of top 10Supplier3Qualityreceived last year. Provide detailed inpection criteria andC. Carr2508-Mar line stoppages due to parts); $540K inCertificationscertification forms. unplanned downtime. Defect Reduction Implement TPM system in Wash Tanks and Spray Booth4QualityVentiliation.D. Davis2009-Apr Filters ordered, to arrive 3/6.in Coating Line Balancing at Implement 5S, lean layout and line balancing in Target 15% productivity improvement5Productivity E. Engle1526-FebFinal Assembly Assembly/Test/Pack. [$240K per year savings] Do Machine 3 first, then copy over to 4Setup Reduction Conduct Setup Reduction Kaizens in Hot Forming (4). Train6Productivityand implement. Install visual tracking system.F. Favre4011-Jun & 5. Then #1, 2, & infeed conveyors.in Forming Event 1 is 2/18Review usage data from last 3 & 12 months, review standard Obsolete raw materials to be removed Adjust Reorder7Inventory Turnslead times for current accuracy, apply new inventory level G. Goode512-Jul by 4/12, take down racks to create Points & Qtys. formulas for top 20% by $. space for new cell.Call Gerry at Wannamaker Electrial Supply (865) 867-5309 Vendor ManagedTarget to free-up $120K cash. Emailed8Inventory Turnsand get VMI proposal for all transducers, motors and H. Hull1025-Apr the PN and usage list to Gerry on 1/14.Inventory electrical hardware. Get second quote from Shelby. Date pushed back from 5/25.Web Marketing9 Sales Launch user interface tools on website. I. Iverson4514-Sep $15K overbudget (orig. $65K). Target Launch1y/3y sales growth =3% / 15% Failed preliminary explosion test on New Product Complete regulatory testing (7/14) and ship 50 prototype 10 Sales J. Jones 15015-Oct 3/31. Greta to modify cap design andLaunch - KV24 units to Tony Bee in Paramus, NJ [lab address] provide samples by 6/28.7 12. Company/Area YEAR MONTHLY TRACKING Metric Owner www.RobertLWebb.comPatrick. A. Ferguson, copyright 2010 GOAL = LAST JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOVDEC10 YEAR 13. Management by Data - Problem Solving Worksheet www RobertLWebb.com Patrick. A. Ferguson , copyright 2010 Company/Area Circle Problem Type: Process Name Process IDProcess Owner Data Recorder(s)Dates/Times Quality Delivery Other: _______Inventory Productivity Sales SafetyProfit1. Chart the Issues by Type and Amount TITLE: Color in the boxes to record occurrencesIssue Description TotalA QuantityBCDTime Duration:EF 0 CIRCLE the issue above with the highest total (or cost) A B CDEFBrainstorm the contributing causes of this issue in Step 2. 2. Brainstorm Contributing Causes 3. Root Cause Analysis of the Selected CauseLIST the possible contributing causes of the selected issue Problem and Selected Cause:CIRCLE a selected cause to drive down to the root cause for effective action Rank/RatingMethodMachine Why? Why? Why? Why? Why?11Material Man/Other CIRCLE the Actionable Root Cause(s)4. Record the COUNTERMEASURES onto the ACTION PLAN 14. Business Problem Solving Universal Toolwww.RobertLWebb.com Patrick. A. Ferguson,copyright 2010CompanyDateProblem Description How often?When?Problem Location Recorded by How much? When not? Check Common ActionableDue all thatEffective Countermeasures Ownerapply Root Causes Date 1. Create and post a Standard Work Procedure (SWP) todefine the step-by-step best practice for the operation.Use photos or templates where necessary.There wasnt a standard procedure to 2. Train all primary and backup personnel for that process.follow. 3. Observe and certify their competency throughdemonstration and testing. 4. Record the training history and verification results.The standard procedure was wrong or Correct the SWP. Train and verify to the revised procedure.incomplete.The standard procedure wasnt followed orMethod Train to the SWP and verify.wasnt known. Reduce waste in the process to allow time. Balance the workThere wasnt enough time, so a step in the such that all required steps in the SWP can be properlySWP was skipped or shortened. performed in the allotted cycle time.The SWP was not followed because of Apply 5S (Systematic Organization) and Lean Layout.disorganization or bad work flow. Utilize standard work verification by using processThe training of the person performing the certification criteria. Record the training and verificationprocess was not properly verified. history for each standard process.The goal was not known, or the actualUse visual scheduling/communication and visible performanceprocess performance was not known. tracking.The material used was received out ofApply error-proofing. Utilize supplier material certificationspecification. processes, verify. Change materials or specifications. Increase inventory turns toThe material went bad.Material reduce dwell time. Change storage method. Correct the material specifications or process parameters.The material specification was wrong. Update the SWP, communicate and verify.The wrong item/component was used. Apply error-proofing, 5S.The process ran out of material Apply error-proofing, visual controls, 5S.unexpectedly.The tooling setup or machine settings to Apply error-proofing. Verify the SWP and training.the SWP were wrong.The setup or run specifications were wrong. Correct the SWP. Train and verify to the new SWP.MachineThe wrong tooling/machine was used.Apply error-proofing, 5S.The machine or tooling was not properlyVerify the SWP and training. Use visible tracking of TPMmaintained or has degraded.activity and visual process performance tracking.The machine function or process design isFix or replace the necessary components and processes toinadequate.operate within the defined process specifications.A trained and verified operator was notVisibly track skill levels for all critical processes. Defineavailable. primary and back-up personnel training needs per process.ManThe operator didnt know to look or forgot Apply error-proofing. Add steps to the SWP if necessary,to look. train and verify.The operator made a processing error.Apply error-proofing, 5S. Recertify process if needed.write-in 12 15. Company/Area REVISION DATE Metric Owner www.RobertLWebb.comPatrick. A. Ferguson copyright 2010 Est. Work Days Target Item # Area Action Title Action Responsible to Complete Notes, Status, Financials($) Date13 16. Company/AreaYEARMONTHLY and YEAR to DATE TRACKING Metric Owner EXAMPLENational JesseDual AxisCustom Works 2010 PROFITKringles www.RobertLWebb.comPatrick. A. Ferguson copyright 20107070 66 66 62 62MAKE ANY CHART a DUAL AXIS Chart 58if you choose to track 58 54YEAR-to-DATE Performance vs. Goal54or any other 2-axis tracking5050 46 46 42 42DUAL AXIS LABEL [ EBITDA (%) ] 38 38 34 GOAL LINE 3430 MONTHLY TRACKING 30 26 26 22 22 18 18 14 141010 66Use the Y-axis at the RIGHT edge for your YTD values. 22 00-2 You can use the same values as the Y-axis on the LEFT if -2 YEAR to DATE TRACKINGyou are tracking a (%).-6Optional---10 Otherwise, write-in a YTD scale at 5 or 10X the LEFT axis 50 -14 values if you are tracking a Total YTD Quantity. 40-------------------------------------------------------------------------------- -18 Or, write-in any custom axis values for 2-axis tracking such as30 -22(%) on the LEFT axis and ($) on the RIGHT axis. 20 -2610-30 0 LAST JAN FEBMAR APRMAYJUNJUL AUG SEP OCTNOVDEC YTD YEAR15 17. Company/Area YEAR MONTHLY TRACKING Metric Owner PROFITwww.RobertLWebb.comPatrick. A. Ferguson, copyright 2010 7070 6666 6262GOAL = 5858 5454 5050 4646 4242EBITDA (%) 3838 3434 3030 2626 2222 1818 1414 10106622 0 -2-2 -6-6 -10 -10-14-14-18-18-22-22-26-26 -30 -30LAST JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOVDEC16YEAR 18. Company/Area YEAR MONTHLY TRACKING Metric OwnerPROFITwww.RobertLWebb.com Patrick. A. Ferguson, copyright 2010 20 200 PROFIT in Units of $ __________ 19 190 18 180YR. GOAL = 17 170 16 160 15 150 14 140 13 130YEAR to DATE 12 120 11 110 10 1009 908 807 706 605 504MO. GOAL = 403 302 201 100 0-1-10-2-20-3-30-4-40 -5 -50 LAST YEAR JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOV DEC AVG.MO.17 19. Company/Area YEARMONTHLY TRACKING Metric Owner CUSTOMER SERVICEwww.RobertLWebb.comPatrick. A. Ferguson, copyright 2010100100 [ ON-TIME DELIVERY (%) - ERROR (%) ] 9696 9292 GOAL = 8888 8484 8080 7676 7272 6868 6464 6060 5656 5252 4848 4444 4040 3636 3232 2828 2424 2020 1616 12128844 0 0LAST JAN FEB MAR APRMAY JUNJUL AUG SEP OCTNOVDECYEAR20 20. Company/Area REVISION DATEMetric OwnerCUSTOMER SERVICE Action Plan Summarywww.RobertLWebb.comPatrick. A. Ferguson copyright 2010Est. Work Days Target Item # Area Action Title ActionResponsible to Complete Notes, Status, Financials($)Date22 21. Company/Area YEARMONTHLY TRACKING Metric Owner QUALITY www.RobertLWebb.comPatrick. A. Ferguson, copyright 2010100100 9696 9292 GOAL = 8888 8484 8080 7676 (Roll-through) YIELD (%) 7272 6868 6464 6060 5656 5252 4848 4444 4040 3636 3232 2828 2424 2020 1616 12128844 0 0LAST JAN FEB MAR APR MAYJUNJUL AUG SEP OCTNOVDECYEAR23 22. Company/Area YEAR MONTHLY TRACKING Metric OwnerPRODUCTIVITY www.RobertLWebb.comPatrick. A. Ferguson, copyright 20102525 $ PRODUCED per PRODUCTION $ PAID24242323 GOAL =2222212120201919181817171616151514141313121211111010 99 88 77 66 55 44 33 22 11 00 LAST JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOVDEC YEAR26 23. Company/Area YEAR MONTHLY TRACKING Metric OwnerPRODUCTIVITY www.RobertLWebb.comPatrick. A. Ferguson, copyright 2010165165 160 160 155 155 GOAL = 150 150 145 145 PRODUCTIVITY (%)140140 135 135 130 130 125 125 120 120115115 110 110 105 10510010095 95 909085 8580 8075 7570 70 656560 6055 5550 5045 4540 40 LAST JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOVDEC YEAR27 24. Company/Area YEARMONTHLY TRACKING Metric OwnerINVENTORY TURNS www.RobertLWebb.com Patrick. A. Ferguson, copyright 2010252524242323 GOAL =22222121 INVENTORY TURNS per Year20201919181817171616151514141313121211111010 99 88 77 66 55 44 33 22 11 00 LAST JAN FEB MAR APRMAY JUNJUL AUG SEP OCTNOVDEC YEAR30 25. Company/Area YEAR MONTHLY TRACKING Metric Owner SALESwww.RobertLWebb.com Patrick. A. Ferguson, copyright 2010 175175170 170165 165 (% to BUDGET or GOAL)160 160155 155 150150145 145140 140135 135130 130 125125120 120115 115GOAL =110 110105 105 100100 95 95 90 90 SALES 85 85 80 807575 70 70 65 65 60 60 55 555050LASTYEAR JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOV DECAVG.33 26. Company/Area YEAR MONTHLY TRACKING Metric OwnerSALESwww.RobertLWebb.com Patrick. A. Ferguson, copyright 20102525024 YR. GOAL = 2402323022220 SALES in Units of $ __________212102020019190YEAR to DATE181801717016160151501414013130121201111010100 990MO. GOAL = 880 770 660 550 440 330 220 110 00 LAST YEAR JAN FEB MAR APR MAY JUNJUL AUG SEP OCTNOV DEC AVG.MO.34 27. Company Area MonthOwnerwww.RobertLWebb.comDAILY TRACKINGPatrick. A. Ferguson, copyright 2010 10010090GOAL =9080807070606050504040303020201010 0 YTD LAST0 AVG MO.1 23 45 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 DAY of the MONTH37 28. CompanyAreaYear Ownerwww.RobertLWebb.com WEEKLY TRACKING Patrick. A. Ferguson, copyright 2010 100 10090 GOAL =9080 8070 7060 6050 5040 4030 3020 2010 10 0 LAST 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 0 YEAR39WEEK of the YEAR 29. SECTION-2 Instructions: Quick Process Mapping and Visual Data Analysis Making Your Process Map with Data Use the blank cards on Page 56 or 57 to map the basic steps of your order fulfillment process. A completed card example is on Page 55. Customize your card attribute fields using Page 58.ExceptionLoop xx xStep 1 Step 2 Step 3Step 4Step 5 Step 6 Step 7 Step 8 Your map may: split-and-rejoin, split-and-end, use arrows, Step B1Step B2 have exception loops, be very long, be coded by type/area, etc. Customize your map flow to best represent your main process.1. Brainstorm your process steps by writing draft Descriptions on a stack of mapping cards.2. Arrange them in order on a table and review with your team for accuracy and clarity.3. Check for steps that would be clearer if written as two cards. Combine steps for brevity as well.4. Write-in the agreed Step #s on your draft set. Make a clean, updated set for clarity. Discard draft.5. Brainstorm the step Attributes as described on the templates. a. Use the best data you have but move quickly. Estimate, guess or leave blank for later. b. Add or substitute any attribute data that would be beneficial for process analysis. c. Highlight any critical performance gaps or special features with COLOR and/or symbols6. Post visibly your Process Map on a board or wall, near your performance tracking for best results.Map Analysis and Action7. Use Page 59 to make a visual Process Flow Matrix & Attributes chart. Display result.8. Rank your step priorities based on your process analysis. Use Expenditure, Condition and gaps.9. Use Page 60 & 61 to create and post your data driven Process Improvement Action Plan.10. Take Action! Update your Action Plan at least monthly and review. Update Map as improved.Section 2 COMPLETE!You are using management by data to improve your process for profit.11. For more detailed analyses targeting specific process Steps, the same Pages and methods abovecan be used to create and post additional detailed maps for effective analysis & actions to improve.54 30. www.RobertLWebb.com Patrick. A. Ferguson, copyright 2010 Quick Process Mapping and Visual Analysis Tool 1. Write the Process Step Description of each major step. 2. Define the attributes where needed (estimate). 3. (Enter the Step #s after you have made a card for each step) Write the known issues, more data or more detail inside of the folded card FOLD in HALFcanuseStep # Condition Rating 7 XSticking Point? (Harmful process stoppages) Poor Step Description: Make a card for all major steps inPrioritize improvements your primary business process. by condition rating and expenditure ranking where applicable Write a 1-2 sentence description of each step and estimate the attributes below: Example: Highlight critical performance gaps5 x 0.40 x 20 = 40 days Monthly Expenditure(Man hours, days or $)Performance %Avg. Inventory # of Personnel Process Time Total Time w/delay Cycles per Month 64% 2.2 50.15 0.40daysdays 2040passdays wortheachMan days.55 31. www.AnythingLean.comwww.RobertLWebb.comDiscount code: WEBB Patrick. A. Ferguson, copyright 2010 Quick Process Mapping & Visual Analysis Tool1. Write the Process Step Description of each major step.2. Define the attributes where needed (estimate).3. (Enter the Step #s after you have made a card for each step)Write the known issues, more data ormore detail inside of the folded card FOLD in HALFcanuseStep # Condition RatingSticking Point?Step Description:Monthly Expenditure(Man Hours/Days or $)Performance % Avg. Inventory# of PersonnelProcess TimeTotal Time w/delay Cycles per Month56 32. EXAMPLE Quick Process Mapping and Analysis Tool - Process Improvement Action PlanPAGE #www.RobertLWebb.comCompany/Area TeamRecorded by Revision Date Patrick A. Ferguson, copyright 20101 of 3patrick . ferguson@tennessee.edu StickingDue Rank Step #Description TitleCondition IssuesActionsOwnerPoint? DatePending Order --1 Receipt and Entry42 Order ReviewXReview meetings not scheduledin a timely manner.Post visibly the standard reviewschedule and meeting procedures.Bubba 04-Jul or C and PricingFax machine malfunctionsThrow machine off top of building and13Send proposal package tocustomer and receive POXXXintermittently and documents arereplace. Email a scanned set to customer as Ike03-Mar or "A" missing or unreadable.back-up. Step 3 was ranked by the team as the #1 PRIORITY Customer changes to project scope Add to start of standard review meeting to best improve their total process performance. bypass our team review process. procedures, track visibly. Miles28-Jun Rankings were determined by analyzing data from each Material price increases during theAdd commodity price variables to the Process Map Step # . Use Expenditure, Condition anddevelopment lead time are not Rex 09-Aprpurchase agreement documentation.critical attributes to compare Steps and prioritize needs.passed on to the customer.Make Engineering drawingsDrawings and BOMs frequentlyEstablish thorough vetting procedures and34and distribute to Production and MaterialsX issued with conflicting parts lists.post visibly in Eng. Conf room.Pedro 05-MayAudit 100% of released sets until 98%+" accuracy for 3 straight months. PostLeonatodaytracking chart of audit results by wk. Order raw materials andOverseas shipment delays from Get pricing from an alternate overseas55 supplies X electrical hardware supplier. supplier and from local suppliers. Mary 25-DecPick the material kits by POMaterial kits are being issued short Retrain to the SWP and apply26line item and deliver to productionXXor wrong.error-proofing using kit weight checks. Navin 20-Mar --7Plasma cut base pieces.60 33. SECTION-3 Instructions: Opportunity Calculations in ($) and Profit Maximization Strategy Optimize your Process and Performance Action Plan resources for the highest profit yield. 1. Use Page 63 Rank Your Profit Improvement Opportunities by Dollar ($) to fill-in your known orestimated business data into the formula blocks to calculate your waste types by category.This worksheet can be used for a specific process or for the business operations as a whole. 2. Rank the waste types from high to low for your operations. 3. Use Page 64 Management by Data Profit Maximization Strategy to write-in your calculatedtotals into the Annual Estimated Waste ($) column by waste type and list the associated rankingin the Rank column. 4. For your highest ranking waste types, set an improvement target in the Reduction Goal column.You can also calculate the expected profit increase for your reduction targets. 5. List the primary Improvement Actions beside the targeted wastes. You may reference anexisting item on an Action Plan from your Performance or Process improvement systems.or, this Profit opportunity analysis is now prompting a new improvement action to be listed. 6. Update your profit opportunity calculations sheet at least Yearly to optimize strategies.System Completion: Reap the total benefits of management by data designed for profit maximization. 7. Still using Page 64, review carefully your Improvement Action list and target dates: a. Compare your current Due Dates to your Profit Increase Goals ($) and determine if yourimplementation sequence of planned actions is optimized for rapid profit improvement. b. Adjust your Performance and Process Action Plans to reflect your Page 64 implementationsequence strategy optimized for profit. c. Set your Total Annual Profit Improvement GOAL and profit realization timeline. d. Update this page at least Quarterly as part of your strategic business planning process. e. Follow closely your Performance and Process improvement system procedures youestablished in completing Sections 1 & 2. 8. Post your list of all GOALS ACHIEVED and benefits to your business. CELEBRATE WINS! 9. To promote reporting accuracy and improvement speed, use a team goal incentive system tied toprofit improvement.62 34. Rank Your Profit Improvement Opportunities in Dollars ($)Company/Area Processes Included: (or write TOTAL) TeamDatewww.RobertLWebb.com Patrick. A. Ferguson, copyright 2010 RankWaste Type Estimate FormulaAnnual Waste in ($) Unplanned DowntimeAverage Hourly Process Months per YearWaste ($) per year WaitingHours per Month Rate ($) Machines+Labor (Unplanned Downtime) XX 12 = Process Change/SetupAverage Hourly Process Months per YearWaste ($) per year Waiting Hours per MonthRate ($) Machines+Labor (Process Change/Setup) XX 12 = Total Number ofAverage Annual Cost ($)Estimated Percent (%) of TimeWaste ($) per year Waiting Process Support Personnelper Support Person in Waiting Waste(Support Personnel) XX= Total Current On-HandCalculated Inventory Level ($) Hard savings estimate fromWaste ($) per yearInventory ($) Raw+WIP+FGat your target Turn Rate inventory reduction (30%) Inventory( -) X 0.30 =# of Forklifts (or similar) Annual Total Cost ($)Measured or EstimatedWaste ($) per yearTransportationin operation per Lift w/Fuel+Drivers Waste Level (%) (On-Site Material Moving)XX=Shuttling Costs ($) per yr. Cost ($) of Transportation Expedited Freight surchargeWaste ($) per yearTransportation Transport + Labor + Ovrhd. Errors and Delays per yr.Cost ($) per year not billable (Shuttling, Error/Delay, Expedite)++= Packaging discards & trash Excess Utility & Natural Resource Environmental impact or Energy & Waste ($) per yearhandling+ disposal Cost ($)/yr. consumption Cost ($) per yr.related Costs ($) per year Natural Resources++=Estimated Scrap Average Cost ($) per Lb./Pc. Scrap Handling, DisposalWaste ($) per year Defects (Lbs. or Pcs.) per year including added valueand Other Costs ($) per yr. (Scrap)( X) +=Average Rework Time Total Cost ($) Annual # of Items Reworked Waste ($) per year Defectsper Item (Hours) per Rework Hour (Rework) XX= Total Number ofAverage AnnualWork Time (%)Waste ($) per year Defects Inspection & Test PersonnelCost ($) per Specialistnot billable (Inspection & Testing) XX=Annual Cost ($) of Service Annual Warranty Credits &Annual Cost ($) of ReturnsWaste ($) per year Defects and Field Repair not billable Forgiveness Discounts ($) and Lost Business(Customer Received) ++=Average Annual Cost ($)Est. Percentage (%) of Time Total Number of EmployeesWaste ($) per year per Employee Spent in Motion Waste MotionXX= Extra Processing Hours perAverage Hourly Process Months per YearWaste ($) per year ProcessingMonth above known method Rate ($) Machines+Labor(Process Inferiority) XX 12 =Run Hours per Month on Average Hourly Process Months per YearWaste ($) per year Processing process steps not billableRate ($) Machines+Labor(Non-Value Added) XX 12 =Operating Waste Reduction Opportunities Total =$per yearModule inventor: PatrickFerguson@charter net CPA, Editor, Contributor, assistance contact: Bob@RobertLWebb com Market Share Waste Editor, Contributor: chuck beasley@tennessee eduProducts: www AnythingLean com Discount code: WEBB Underutilized People,Total AttainableAttainable Market ShareAverage TargetWaste ($) per year Market Volume ($) per year Available (%) to CaptureProfit Margin (%) Capacity, Special Skillor Innovation XX= 63