metrics-based process mapping
DESCRIPTION
Recorded webinar: http://slidesha.re/LRBvC4 Subscribe: http://www.ksmartin.com/subscribe To purchase the book: http://bit.ly/MBPMbk Metrics-Based Process Mapping is a highly effective tool for improving office, service, and knowledge work processes.TRANSCRIPT
Company
LOGO
Lean Webinar Series: Metrics-Based Process Mapping
November 10, 2011
© 2011 Karen Martin & Associates, LLC
Welcome!
To new friends and old across the U.S.
(28 states)
To our global friends in:
Australia
Brazil
Canada
Hong Kong
Romania
The Netherlands
Uruguay
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© 2011 Karen Martin & Associates, LLC
Schedule & Materials
Schedule
Content – 11:00 a.m.-12:00 p.m. PT
Q&A – 12:00-12:30 p.m. PT
Link to slides (pdf format)
www.ksmartin.com/files/webinarmaterials/11-
10-2011_slides.pdf (full slides)
www.ksmartin.com/files/webinarmaterials/11-
10-2011_handout.pdf (2 slides per page)
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© 2011 Karen Martin & Associates, LLC
Announcements
Final webinars of 2011
A3 Problem-Solving – Tuesday, Dec 6 (Part 1 of 2)
A3 Problem-Solving – Wednesday, Dec 7 (Part 2 of 2)
Learning needs for Jan-Mar 2012? Email: [email protected]
Resources & tips
Newsletter – www.ksmartin.com/subscribe
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www.vimeo.com/karenmartinassoc - Recorded webinars & 3-part MBPM series
When you leave the webinar, please click “File – Exit” vs. exiting
your browser.
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© 2011 Karen Martin & Associates, LLC
Two Ways to Listen
5
OR
If the control panel
indicates that you’re in
“listen only” mode, you
haven’t entered your
audio pin.
Computer speakers Telephone
© 2011 Karen Martin & Associates, LLC
Two Ways to Ask Questions
6
1. Raise your hand – you
will be un-muted and
can ask verbally.
2. Type your question
into the question log.
© 2011 Karen Martin & Associates, LLC
Learning Objectives
Participants will learn:
Key time and quality metrics for effective improvement
in office, service, and knowledge work settings.
Step-by-step process for creating current and future
state maps.
How to use MBPM to document the new standard work
and monitor process performance.
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The Work We Do:
Degrees of Granularity
8
Value
Stream
Process Process Process
Step Step Step
Value Stream
Map
Micro
View (Tactical;
heavy
frontline
involvement)
Macro
View (Strategic;
heavy
leadership
involvement)
Metrics-Based
Process Map
Source Refrigeration & HVAC, Inc.
Current State Value Stream Map
Serv ice Deliv ery
Created February 11, 2009
CONFIDENTIAL
Customer
Receive
customer call
Call Center
PT = 2 mins.
%C&A = 60%
Review &
Post Invoices
Posting Admin
PT = 3 mins.
%C&A = 98%
Batch: 1x/day
0.0833
hours
2 minutes
2 hours
5 minutes
1.5
hours
90 minutes
1.25 hours
75 minutes
2 hours
120 minutes
4 hours
5 minutes
10.7
hours
10 minutes
48
hours
25 minutes
4 hours
3 minutes
10.7
hours
10 minutes
2 hours
4 minutes
480
hours Lead Time = 572 hours
Process Time = 349 minutes
Select &
Dispatch Tech
Dispatcher &
Service
Manager
PT = 5 mins.
%C&A = 60%
Make Repair;
Call to raise
the NTE
Tech
PT = 120 mins.
%C&A = 40%
Complete Call
in GP
Dispatcher
PT = 5 mins.
%C&A = 80%
Review
Service Call
Data
Service
Manager
PT = 10 mins.
%C&A = 50%
Batch: 2x/day
Review Open
Ticket Report
Billing Admin
PT = 25 mins.
%C&A = 75%
Upload time
card
Tech
PT = 0 mins.
%C&A = 70%
Batch: 1x/day
Close call in
Verisae
Account
Manager
(West)
PT = 1 mins.
%C&A = 90%
Batch: 1x/day
Process Time
Cards
Payroll Admin
PT = 10 mins.
%C&A = 90%
Batch: 1x/day
Process A/P
A/P Admin
PT = 15 mins.
%C&A = 85%
Batch: 1x/day
Tech
Assess
Problem
PT = 90 mins.
%C&A = 90%
Tech
Special Order
Part
Tech
Pick up Part
at Parts Store
PT = 75 mins.
%C&A = 95%
Tech
Get Part from
Truck
PT = 0 mins.
120 m.
Great
Plains
Verisae
(Customer)
Review
Invoices;
Close in
Verisae (Pac)
Account
Manager
PT = 10 mins.
%C&A = 85%
Batch: 3-5x per wk
Enter Invoices
into Verisae &
Excel; Mail
Invoices
Billing Admin
PT = 4 mins.
%C&A = 95%
Batch: 1x/week
Excel
Spreadsheet
(Customer)
40%
Receive
Cash; Post
Payment
Collections
75 m. 120 m. 240 m. 640 m. 6 days 240 mins. 640 m. 120 m. 60 days90 m.5 m.
?%
?%
Supplier
%C&A %Complete and Accurate
AR Activity Ratio
FTE Full Time Equivalent
LT Lead Time
PT Process Time
RFPY Rolled First Pass Yield
Acronym Key
Lead Time to invoice = 86.2 hrs
Process Time =5.9 hrs.
NOTE: Business hours
Activity Ratio = 6.8%
RFPY = 1.1%
Lead time to cash = ? days
Service Value Stream
Current State
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2
3
1 – Information Flow
2 – Material Flow (physical or electronic)
3 – Timeline
Dispatch Repair Billing
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Traditional Mapping Method:
Process Flow Chart
How is this process performing?
Look up Customer
in Eclipse
SALES
New
Customer?
Enter Order
SALES
Print Ship Ticket
SALES
Load Trucks
SHIPPING
Enter Customer
Information
ADMIN
Perform Credit
Check
FINANCE
Okay?
Notify Sales COD
Only; Notify Admin
to update
Customer Profile
FINANCE
Yes
No
No
YesProduct in
Stock?
Yes
Order Material
PURCHASING
No
Receive Material
RECEIVING
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How do we know what to improve?
Traditional Swim Lane Process Maps
© 2011 Karen Martin & Associates, LLC 12
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 metrics
Highlights the disconnects / wastes / delays in a
process.
Keeps the improvement focus properly directed
Serves as standard work for workforce training
and process monitoring.
Metrics-Based Process Mapping
(MBPM)
© 2011 Karen Martin & Associates, LLC
When is the MBPM Used?
For current state analysis and future state
design during an office/service-based
Kaizen Event.
For complex processes, it consumes 1-2 days
As a standalone improvement tool.
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© 2011 Karen Martin & Associates, LLC
Mapping Preparation (if not part of a Kaizen Event)
Select a skilled, objective facilitator.
Scope the process being mapped
Opt for narrow current state focus so you can explore deeply and minimize
variation.
No decision trees in MBPM (interferes w/ timeline); loopbacks are linearized.
Select a cross-functional team of no more than 10.
Process workers (30-50% of the team)
Upstream suppliers
Downstream customers
Subject matter experts (e.g. I.T., legal, etc.)
Outside eyes
Draw 6” wide swim lanes on the 36” paper.
Pre-drawn lines – template available:
www.ksmartin.com/files/tools/MBPM_swimlanes.pdf
Chalk line
Manually draw
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© 2011 Karen Martin & Associates, LLC
Supplies Needed
36” wide white paper
Scissors & masking tape
3 x 6” post-its (multiple colors)
2 x 2” post-its (green and yellow)
Sharpie markers
A red or other brightly colored marker
Calculators
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Step 1: Label the map
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names
Step 2: List functions involved in process.
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names
Function A
Function B
Function C
Function D
Function E
Function F
Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.)
Step 1
Step 2
Parallel Steps (concurrent activities)
Ticking clock
Step 3: Document all activities (steps) on
3 x 6” post-its; place sequentially.
© 2011 Karen Martin & Associates, LLC
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 (according to the ticking clock).
Be “the thing.”
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Step 3: Document task & function
Activity
(Verb / Noun) Function that
performs the
task
Step #
Step 4: Number the Activities
Note: For parallel
activities, use
alpha modifiers --
e.g. 8A, 8B, etc.
# Staff
(if relevant)
Barriers to Flow
(if relevant)
• Batching
• Shared
resources
• System
downtime
• Etc.
PT (Process Time)
LT (Lead Time) % Complete &
Accurate
Step 5: Add step-specific information
© 2011 Karen Martin & Associates, LLC 24
Key Lean 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 time
Lead time (LT)
The elapsed time from the time work is made available
until it’s completed and passed on to the next person or
department in the chain
aka throughput time, turnaround time, elapsed time
Includes Process Time
© 2011 Karen Martin & Associates, LLC
Step-Specific Lead Time vs.
Process Time
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Lead Time
Work
Received
Work passed
to next step
Process Time
LT = PT + Waiting / Delays
© 2011 Karen Martin & Associates, LLC
Key Lean Metrics: 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 clear
This 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.
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© 2011 Karen Martin & Associates, LLC
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
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© 2011 Karen Martin & Associates, LLC
Dealing with high variation
metrics
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.
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© 2011 Karen Martin & Associates, LLC 29
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
Step 6: Define the “Timeline Critical Path”
For parallel activities: Chose the longest LT unless a
“dead-end” activity
Complex Process with Many Concurrent
Activities (Parallel Steps)
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Step 7: Create the Timeline
© 2011 Karen Martin & Associates, LLC
Timeline for Concurrent Work /
Parallel Flows
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PT = 5 min
LT = 8 hrs
Close file
PT = 1 min
LT = 4 hrs
Sign P.O. Sign
Contract
Email packet
to Supplier
Bring longest lead time (and its associated PT)
to the timeline, unless it’s a “dead end step.”
PT
LT
1 min
4 hrs
© 2011 Karen Martin & Associates, LLC
Step 8 – Calculate Summary
Metrics
Timeline PT Sum
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 (next slide)
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© 2011 Karen Martin & Associates, LLC
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
# FTEs* Available work hrs/year/employee**
=
* FTE = Full-Time Equivalent (2 half-time employees = 1 FTE)
**Available work hrs/yr/emp = # full-time hrs – paid holidays, vacation & sick time.
Full time is typically 2,080 hrs per year.
Metric Current State Projected
Future State
Projected %
Improvement
Timeline PT 110 mins
Timeline LT 7 days
% Activity 3.3%
Rolled First
Pass Yield 9.2%
Total Process
Time 170 mins
Labor
requirements 106 FTEs
Freed capacity
Metrics-Based Process Mapping
Summary Metrics
© 2011 Karen Martin & Associates, LLC
Analyzing the Current State
Step 9 – Identify the value-adding (VA)
and necessary non-value-adding (N)
activities
This is the first of two “bridge steps” between
current state documentation and future state
design.
Use small colored post-its labeled with “VA” or
“N”.
All unlabelled post-its represent waste.
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© 2011 Karen Martin & Associates, LLC
Customer-Defined Value
Value-Adding (VA) - any operation or activity your external customers value and 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 product (good or service) the customer receives. Necessary – support processes, regulatory
requirements, etc.
Unnecessary – everything else - WASTE
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© 2011 Karen Martin & Associates, LLC
Eight Wastes (Muda)
Overproduction
Inventory
Waiting
Over-Processing
Errors
Motion (people)
Transportation (material/data)
Underutilized
people
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© 2011 Karen Martin & Associates, LLC
Step 9: Label the value-adding (VA) and
necessary non-value adding (N) activities
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© 2011 Karen Martin & Associates, LLC
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 “bridge step” between
current state documentation and future state
design
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Step 10: Circle the data that indicates
the greatest need for improvement
© 2011 Karen Martin & Associates, LLC
Typical Current State Findings
Islands of value-adding activities
All other time is “waste.”
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Adding Value
Rework
First Step Last Step
Future State Design: How can we progress from one
“VA” or “N” step to the next and eliminate all waste?
© 2011 Karen Martin & Associates, LLC
Future State Design
Goals Reduce overall LT & PT
Improve quality (increase RFPY)
Increase % activity
Improve LT, PT, and %C&A at individual steps
May 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
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© 2011 Karen Martin & Associates, LLC
The Right Process
Standardize work
Mistake proof work
Make problems visual
Fix problems immediately
Create continuous flow
Level demand
Balance work
Create pull systems
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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 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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© 2011 Karen Martin & Associates, LLC
Future State Projected 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
# FTEs Available work hrs/year/employee
=
Freed
Capacity = Current State FTEs – Future State FTEs
Document Projected
Future State Results
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Metric Current State Projected
Future State
Projected %
Improvement
CP PT 110 mins 85 mins 23%
CP LT 7 days 4 days 43%
Activity Ratio 3.3% 4.4% 33%
RFPY 9.2% 50.4% 448%
Total PT 170 mins 140 mins
Labor
requirements* 1.7 FTEs 1.4 FTEs 18%
Freed capacity 600 hrs =
0.3 FTEs
*Demand = 1,200 per year
PACE Improvement Prioritization Grid
High Low Anticipated Benefit
Ease o
f Im
ple
men
tati
on
Dif
fic
ult
E
as
y
20
7
5 13
4 23
1
22 8 9
2
10
16
11
6
12
14 19
15
17
3 21
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Value Stream
1 2 3 4 5 6 7 8 9 10 11 12
2 Improve quality of referral KE Sean O'Ryan
3, 4Reduce lead time beween schedulingand
preregistration stepsPROJ
Dianne
Prichard
5, 6Eliminate the need for two patient check-
insKE
Michael
O'Shea
6 Eliminate bottleneck in waiting area KEDianne
Prichard
9Eliminate lead time associated with
transcription stepPROJ Sam Parks
10 Eliminate batched reading KE Sam Parks
7Reduce inventory costs, regulatory risk
and storage needsKE
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 OwnerImplementation Schedule (weeks) Date
Complete
Date Created
11/21/2007
Allen Ward
Sally McKinsey
Dave Parks 12/13/2007
10/18/2007 1/10/2008
Future State Implementation Plan
Executive Sponsor
Value Stream Champion
Value Stream Mapping Facilitator
Implementation Plan Review Dates
11/1/2007
Outpatient Imaging
Create an Action Plan: Who, What, When, Where, and How?
© 2011 Karen Martin & Associates, LLC
Electronic Documentation?
Archive the team’s 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
Excel product demo: www.vimeo.com/27016122 Fast forward to 8:00 to begin tool demo.
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The Improved State Becomes Standard Work
0
1
0
15
6
-1
0Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
1Fax PO to Sales
Rep0 0 45%
2
Review PO;
clarify with
customer as
needed
20 2 90%Fax PO to
warehouse10 4 90%
5
6
Check inventory
levels; notify
Sales Rep re:
status
5 4 95%Fax PO to Sales
Rep5 0.33 90%
0 20 10 5 5
0 2 4 4 0.33
45% 90% 90% 95% 90%
0 20 10 5 5
Rolled %C&A
Critical Path LT
Total PT
Critical Path PT
5431 2
Mary Townsend
Hours Worked per Day Sally Dampier
Occurrences per Year Sam Parks
Current State Metrics-Based Process Map
Dave Morgan25-Jun-08
8 Facilitator
Process Details
Michael Prichard
Order FulfillmentProcess Name
Specific Conditions Domestic orders through sales force
37,500
Date Mapped
Sean Michaels
Sales Rep
Ryan AustinDiane O'Shea
Mapping Team
LT Units
Function /
Department
PT Units
Step # ►
Customer
Finance
Warehouse /
Shipping
Seconds
Minutes
Hours
Days
Seconds
Minutes
Hours
Days
Color-Coded Summary Metrics Sheet
The Excel mapping tool auto-calculates:
Summary time and quality metrics for before and after maps
Projected % improvement (color-coded for visual ease)
Staffing requirements
User-defined metrics
© 2011 Karen Martin & Associates, LLC 54
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 MBPM
Phase I
© 2011 Karen Martin & Associates, LLC 55
Creating the Current State MBPM
Phase 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
For Further Learning
Chapter 12 – Manual method www.vimeo.com/karenmartinassoc
3-part MBPM series (including
Excel tool demo)
Excel tool for
electronically archiving
Onsite workshops (8-24 participants) & facilitated mapping sessions
Public workshops:
Portland, Oregon – February 22, 2012 (ASQ)
Winnipeg, Manitoba, Canada – June 4, 2012 (CME)
Chicago, Illinois – October 15, 2012 (AME)
© 2011 Karen Martin & Associates, LLC
Learning Objectives
Participants will learn:
Key time and quality metrics for effective improvement
in office, service, and knowledge work settings.
Step-by-step process for creating current and future
state maps.
How to use MBPM to document the new standard work
and monitor process performance.
57
58
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
For Further Questions
Connect & learn
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