workshop october 2015. stage 2 research (research current state)
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WorkshopOctober 2015
Stage 2
Research (research current state)
6. Obtain approval to start the next stage of TRADE
1. Understand area of focus to be benchmarked2. Define performance measures3. Identify current performance
5. Review project progress and TOR
Equipment errors
Information errors
Time taken
Focus on best practices in: •Equipment transfer •Information transfer(training, utilisation of space, speed, managing small teams, safety systems)
4. Prioritise and finalise the practices to be benchmarked
Step 1 – Understand area of focus to be benchmarked
Literature review Review of company documentation Process flow charts Brainstorming Questionnaires Structured interviews Focus groups Expert presentations
There is a variety of company documentation that may help you to have a better understanding of your project
Annual reports Financial ratio analysis Operational performance reports Minutes of meetings Patents Audits Operational and quality system manuals Business excellence assessments Questionnaire data Project files Previous benchmarking projects Process flow charts
Management
Cause
Cause
Cause
Man
Cause
Cause
Cause
Method
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Measurement Machine Material
Effect
The Fishbone Diagram is a good tool to use to aid in the understanding of a problem/issue
Example of a Fishbone Diagram applied to the airline industry
Drawing a process flow
chart will help team
members to better
understand the current process and
the main areas for
improvement
Terms - plan the project
Completed benchmarkingproject
Start benchmarking project
Act - undertake data collection &analysis
Evaluate stage complete?
Yes
Deploy - communicate & implementbest practices
Terms stage complete?
Research - research current state
Research stagecompleted?
Deploy stage complete?
Yes
No
Evaluate - evaluate the process &outcomes
No
Act stage completed?
Yes
No
Yes
No
No
Yes
Common process flow chart symbols
Definitions
Process:
Any activity or series of activities that takes an input, adds value to it, and provides an output to a customer.
System:
A group of processes that are related and may or may not be connected.
The Process Picture
Supplier
Process• Add Value• Prevent Errors• Identify Errors• Correct Errors
Customer
MeasurementSystem
Feedback
Requirements
Input
Feedback Feedback
Requirements
Output
Process Hierarchy
ProcessesProcesses ProcessesProcesses
Sub-ProcessesSub-Processes
ActivitiesActivities
TasksTasks
Processes
Each symbol on the flowchart provides an opportunity for
improvement
• Operation symbols • Decision symbols • Inspection symbols • Delay symbols • Documentation symbols • File symbols • Transportation symbols
Process loops or branches are opportunities for improvement/
streamlining
Branch
Main
Loop
Using a Rainbow Flowchart where colours illustrate different types of processes or opportunities for improvement can be very useful
Start
End
NoYes No
Yes Yes
NoNo
Yes
Yes
No
Yes
No
No
YesYes
Yes
Yes
Yes
Yes
NoNo No
NoNo
No
Bureaucracy
Business Value-Add
No Value-Add
Value-Add
When reviewing the area of focus you are likely to identify many opportunities for improvement and potential solutions
• High level of bureaucracy• Out-of date processes• Overly complicated
• Not used processes• Costly• Time consuming• Irritating
Record potential solutions as you proceed through the project
Step 2 – Define performance measures
Cost – for example, labour cost, material cost, product/service cost
Quality – for example, error rate, complaint levels, defect levels
Time – for example, production time, cycle time, value added time, changeover time, delivery time, response time
Value – for example, customer satisfaction, staff satisfaction, community satisfaction
Performance Measures Record Sheet
Measure
Type of measure
Purpose
Relates to
Benchmark
Target
Current performance
Formula
Frequency
Who measures?
Source of data
Who acts on the data?
What do they do?
Notes and comments
1. What gets measured gets done;2. If you don't measure results, you can't tell
success from failure; 3. If you cannot see success, you cannot reward
it; 4. If you cannot reward success, you are
probably rewarding failure; 5. If you can't see success, you can't learn from
it; 6. If you can't recognize failure, you can't
correct it; 7. If you can demonstrate results, you can win
public support.
7 reasons for measuring performance and recognising success
Osborne, David, and Ted Gaebler. 1992. Reinventing Government: How the Entrepreneurial Spirit Is Transforming the Public Sector. Reading, MA: Addison-Wesley.
Step 3 – Identify current performance
What is your current performance? Historical trends?
Whatever you decide. Make sure you prioritise which processes are most
important to improve!
Step 4 – Prioritise and finalise the practices to be benchmarked
Review your findings from steps 1 to 3 and decide if you want to stick with your current Terms of Reference or make the project smaller or bigger…
Break the “area of focus” down into its component parts and
prioritise what is most important to improve
Practice/ process/ issue
Frequency of problems with process/issue (1 = Low, 5 = Moderate, 10 = High)
Importance of solving the problem/issue (1 = Low, 5= Moderate, 10 = High)
Feasibility of solving the problem/issue (1 = Low, 5= Moderate, 10 = High)
Total Score (FxIxF)
Training of staff 8 8 10 640
Recruitment of staff 5 5 8 200
Motivation of staff 6 8 8 384
Systems/procedures 9 8 6 432
Area of focus – inconsistent customer service levels
Examples of prioritisation criteria
– Does the process/practice/issue show a direct linkage to strategic direction and current objectives?
– Is the problem frequent/infrequent or critical/non-critical?
– Is the process owner behind the project and supportive of change?
– Can results be obtained within 6 months? – What is the likelihood of finding better practices? – What would be the likely cost of implementation?
Step 5 - Review project progress and TOR
Step 6 – Obtain approval to start the next stage of TRADE
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