metrics-based process mapping: part 2 of 3
DESCRIPTION
Recorded webinar: http://slidesha.re/18boq16 Part 1 - http://slidesha.re/15qe1qW Part 3 - http://slidesha.re/139L8Sb (Excel tool product demo) Subscribe: http://www.ksmartin.com/subscribe To purchase the book: http://bit.ly/MBPMbk Metrics-Based Process Mapping (MBPM) is a methodology that was developed to support the adoption of lean practices in office, service, and knowledge work environments. Designed and developed by Karen Martin & Mike Osterling, this technique integrates the functional orientation of conventional swim-lane process maps with the time and quality metrics used in value stream mapping.TRANSCRIPT
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LOGO
Metrics-Based Process Mapping Part 2 of 3
2
Karen Martin, PrincipalKaren Martin & Associates
www.ksmartin.com
Mike Osterling, PresidentOsterling Consulting www.mosterling.com
Chapter 12 –Metrics-Based Process Mapping
(manual method)
Excel Tool for Archiving Completed Maps
Available from Productivity Press, Amazon, or any major bookseller
About Us
© 2010 Karen Martin & Associates 3
Metrics-Based Process Mapping:Three-Part Series
Part 1: Document the current state.Part 2: Analyze the current state; design
and implement the future state.Part 3: Document the improved process.
© 2010 Karen Martin & Associates 4
1. Label the map in upper right corner. Process name, date, facilitator and/or team members
2. List the functions involved in left column.3. Document all activities/steps.
Verb/noun; concise language; include function as well.
4. Number the activities. One number per column; concurrent activities are
labeled A, B, C, etc.
5. Add activity-specific metrics (PT, LT, %C&A), barriers to flow, and number of staff involved (if relevant). Include units of measure (mins, hrs, days, etc.)
Creating the Current State MBPMPhase I
Metrics-Based Process Mapping (MBPM)
© 2010 Karen Martin & Associates 6
Creating the Current State MBPMPhase II
6. Define the critical path. Longest LT unless “dead-end” step; use colored marker
7. Create the timeline.8. Calculate the summary metrics
CP PT Sum, CP LT Sum, AR, RFPY, Total PT, Labor Required
9. Define the value-adding and necessary non-value-adding activities Use small colored post-it labeled with “VA” and “N.”
10. Circle the step-specific metrics that indicate the greatest opportunity for improvement. Use red marker. Longest LTs, Low %C&As, High PTs, Low step-specific ARs
Step 6: Define the “Timeline Critical Path”
For parallel activities: Chose the longest LT unless a “dead-end” activity
Step 7: Create the Timeline
© 2010 Karen Martin & Associates
Document the Current State
Step 8 – Calculate the summary metrics Critical Path (timeline) PT Sum Critical Path (timeline) LT Sum % Activity (PT Sum/Total LT Sum) x 100
Rolled First Pass Yield (RFPY) %C&A x %C&A x %C&A… Include ALL post-its, not just critical path
Labor Requirements (see next slide)
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© 2010 Karen Martin & Associates
Summary Metrics: Labor Requirements
Total PT Sum of all activities, not just timeline
Labor Requirements
10
Total PT (in hrs) X # occurrences per year# FTEs*Available work hrs per year per employee
=
* FTE = Full-time Equivalent (e.g. Two half-time employees = 1 FTE)
Available work hour per year per employee
= 2,080 – (paid holidays + paid vacations)
© 2010 Karen Martin & Associates
Summary Metrics: Current State Findings
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Metric Current State ProjectedFuture State
Projected % Improvement
Timeline Process Time Sum
Timeline Lead Time Sum
Activity Ratio
Rolled First Pass Yield
Total Process Time
Labor requirements
Freed capacity (FTEs)
© 2010 Karen Martin & Associates
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.
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© 2010 Karen Martin & Associates 13
Defining Value
Value-Adding (VA) - any operation or activity your external customers valueand are (or would be) willing to pay for.Non-Value-Adding (NVA) - any operation
or activity that consumes time and/or resources but does not add value to the service provided or product sold to the customer. Necessary - regulatory or necessary for the
business to function effectively, etc. Unnecessary - everything else - WASTE
© 2010 Karen Martin & Associates
Step 9: Label the value-adding (VA) andnecessary non-value adding (N) activities
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Step 10: Circle the data that indicates the greatest need for improvement
Greatest need for improvement:• High LT• High PT• Low PT/LT ratio• %C&A below 80%• Other barriers to flow
Root Cause Analysis: 4 Key ToolsCauseCause--andand--Effect DiagramEffect Diagram
Machine Measurement Environment
People Material / Info Method
Budgets Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
Machine Measurement Environment
People Material / Info Method
Budgets Submitted Late
Lack of experience
Time availability
No sense of import
No stnd spread sheet
Email vs. FedEx
No standard work
Input rec’d late
Forecast in other system
Manual vs. PC
System avail.
No milestones
$ vs. units
Weather delays
Dispersed sales force
Changing schedule
5 Why’sWhy? Why? Why? Why? Why?
P a r e t o Cha r t Cr e di t Appl i c a t i on De l a y s
2 9 0 9
6 2 7 5 6 1
2 4 2 1 8 0
2 4 9 3
4 1 %
7 7 %8 6 %
1 0 0 %9 7 %9 4 %
0
500
1000
1500
2000
2500
3000
3500
N o S i g n a t u r e I n s u f f i c i e n t
B a n k I n f o
N o p r i o r
a d d r e s s
C u r r e n t
C u s t o me r
N o C r e d i t
H i s t o r y
O t h e r
Re a son f or D e l a y
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Check Sheets Quantify Occurrences
|Equipment failure
|||||||||||||Changing customer requirements w/ no adjustment to expected delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring rework
|||||||Material shortage
Tally Reason
|Equipment failure
|||||||||||||Changing customer requirements w/ no adjustment to expected delivery
||||||||||Order entry error
|||Staffing/absenteeism
|||||Quality issue requiring rework
|||||||Material shortage
Tally Reason
Future State Design Considerations
Eliminate steps / handoffs Combine steps Create parallel paths Alter task sequencing
and/or timing Implement pull systems Reduce / eliminate batches Improve quality Create an organized, visual
workplace Reduce changeover Eliminate motion &
transportation
Standardize work Eliminate unnecessary
approvals / authorizations
Stop performing non-value adding (NVA) tasks
Co-locate functions based on flow; create cells (teams of cross-functional staff)
Balance work to meet takt time requirements
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© 2010 Karen Martin & Associates
Summary Metrics:Projected Future State Results
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Metric Current State ProjectedFuture State
Projected % Improvement
Timeline Process Time Sum
Timeline Lead Time Sum
Activity Ratio
Rolled First Pass Yield
Total Process Time
Labor requirements
Freed capacity (FTEs)
© 2010 Karen Martin & Associates
Summary Metrics: Labor Requirements
Total PT Sum of all activities, not just timeline
Labor Requirements
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Total PT (in hrs) X # occurrences/year# FTEsAvailable work hrs/year/employee
=
* FTE = Full-time Equivalent (2 half time employees = 1 FTE)
Freed Capacity = Current State FTEs – Future State FTEs
PACE Improvement Prioritization Grid
High LowAnticipated Benefit
Ease
of
Imp
lem
enta
tion
Diff
icul
tEa
sy
20
7
513
4 23
1
2289
2
10
16
11
6
12
1419
15
173
21
18
Value Stream
1 2 3 4 5 6 7 8 9 10 11 12
2 Improve quality of referral KE Sean O'Ryan
3, 4 Reduce lead time beween schedulingand preregistration steps PROJ Dianne
Prichard
5, 6 Eliminate the need for two patient check-ins KE Michael
O'Shea
6 Eliminate bottleneck in waiting area KE Dianne Prichard
9 Eliminate lead time associated with transcription step PROJ Sam Parks
10 Eliminate batched reading KE Sam Parks
7 Reduce inventory costs, regulatory risk and storage needs KE Michael
O'Shea
12 Reduce delay in report delivery PROJ Martha Allen
12 Reduce delay in report delivery KE Martha Allen
Implement voice recognition technology
Reduce setup required
Cross-train and colocate work teams
Implement additional fax ports
Collect copays in Imaging
Balance work / level demand
5S CT supplies area; implement kanban
Value Stream Mapping Facilitator
Increase percentage of physicians receiving electronic delivery (rather than hard copy)
Approvals
Executive Sponsor Value Stream Champion
Signature:
Date: Date: Date:
Signature: Signature:
Block# Goal / Objective Improvement Activity
Implement standard work for referral process
Type Owner Implementation Schedule (weeks) Date Complete
Date Created
11/21/2007Allen WardSally McKinseyDave Parks 12/13/200710/18/2007 1/10/2008
Future State Implementation PlanExecutive Sponsor
Value Stream ChampionValue Stream Mapping Facilitator
Implementation Plan Review Dates11/1/2007
Outpatient Imaging
Create an Action Plan: Who, What, When, Where, and How?
© 2010 Karen Martin & Associates 22
Metrics-Based Process Mapping:Three-Part Series
Part 1: Document the current state.Part 2: Analyze the current state; design
and implement the future state.Part 3: Document the improved process.
© 2010 Karen Martin & Associates 23
Karen Martin, Principal7770 Regents Road #635
San Diego, CA 92122858.677.6799
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