metrics: the good, the bad, and the ugly

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Can (John) Saygin, Ph.D. Assistant Vice President for Sponsored Project Administration Office of the Vice President for Research Professor, College of Engineering Center for Advanced Manufacturing and Lean Systems Phone: 210.458.5194 [email protected] Metrics: The Good, The Bad, and The Ugly Metrics: The Good, The Bad, and The Ugly

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Metrics: The Good, The Bad, and The Ugly. Metrics: The Good, The Bad, and The Ugly. Can (John) Saygin, Ph.D. Assistant Vice President for Sponsored Project Administration Office of the Vice President for Research Professor, College of Engineering - PowerPoint PPT Presentation

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Page 1: Metrics: The Good, The Bad, and The Ugly

Can (John) Saygin, Ph.D.Assistant Vice President for Sponsored Project Administration

Office of the Vice President for ResearchProfessor, College of Engineering

Center for Advanced Manufacturing and Lean SystemsPhone: [email protected]

Metrics: The Good, The Bad, and The Ugly

Metrics: The Good, The Bad, and The Ugly

Page 2: Metrics: The Good, The Bad, and The Ugly

Outline

• Lean: What does it mean?• IOM 2013 Report• From Data to Metrics• Success Stories of Lean• We want to hear from you

Page 3: Metrics: The Good, The Bad, and The Ugly

LEAN

Page 4: Metrics: The Good, The Bad, and The Ugly

LEAN: SEE WASTE and ELIMINATE IT

Waste (Non-Value Added): Anything that adds cost, time, effort without adding value

Waiting

Over-ProductionDefects

Motion

Wastes

Inventory Transport

Under-Utilization of

Human Talent Over-

ProcessingDEFINE VALUE!!!

Page 5: Metrics: The Good, The Bad, and The Ugly

HOW DO YOU MEASURE WASTE?• Metric: a standard of measurement

• Performance Metric: Standards of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed.

• Deviation |Actual| - |Target|

Page 6: Metrics: The Good, The Bad, and The Ugly

LEAN METRICS

Lean Metrics – the appropriate measurements and goals for the Lean Improvement activities

Commonly used Time-based Lean Metrics• Individual Cycle Time• Total Cycle Time• Queue Time• Total

• non-time based metrics, such as: cost, customer satisfaction, on-time delivery, and quality.

And many more…

Page 7: Metrics: The Good, The Bad, and The Ugly

TRAP… “averages”

Page 8: Metrics: The Good, The Bad, and The Ugly

• "If you can't describe what you are doing as a process, you don't know what you are doing."

PROCESS… FLOW

- W. Edwards Deming

Page 9: Metrics: The Good, The Bad, and The Ugly

DEFINE-MEASURE-ANALYZE-IMPROVE-CONTROL DMAIC must be a “continuous process”

• Define the system, the voice of the customer and their requirements, and the project goals, specifically.

• Measure key aspects of the current process and collect relevant data, including controllable and uncontrollable factors.

• Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.

• Improve the current process based upon data analysis using techniques: Future process

• Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems and continuously monitor the process.

METRICS

Page 10: Metrics: The Good, The Bad, and The Ugly

• To successfully use lean metrics:– Standardize measurements

• Make sure the results are accurate and consistent– Metrics should be easy to collect

• Gather data where it is most useful– Make the Lean Metric Visual

• Make information accessible

• Goal: Predictable Output– Stable Output is more

important than spikes of outstanding performance

10

Success with Lean Metrics

Page 11: Metrics: The Good, The Bad, and The Ugly

Process Design & Improvement

Process Flow Validation

Process Flow Automation

Do the Right Thing Do it Right Do it Better

EFFECTIVENESS(Performance directly linked

to Desired Outcomes)

EFFICIENCY(Rate of Desired Outcomes)

WHAT HOW

Continuous Improvement: A Mindset

11

Operational Performance Metrics

Programmatic Performance Metrics

Page 12: Metrics: The Good, The Bad, and The Ugly

Eliminate Whenever Possible

12

Policies Functions ProcessesLaws , Regulations, Rulesat various levels

5 Why’s… Do not target the symptoms

Get to the Root-Cause

Page 13: Metrics: The Good, The Bad, and The Ugly

INSTITUTE OF MEDICINE

2013 Report

Page 14: Metrics: The Good, The Bad, and The Ugly

IOM Report (2013)

Page 15: Metrics: The Good, The Bad, and The Ugly

Mission, Vision, Goals

Page 16: Metrics: The Good, The Bad, and The Ugly

Complexity, Inconsistency, Cost

Page 17: Metrics: The Good, The Bad, and The Ugly

“Learning Health Care System”

Continuous Improvement

CTSA 2.0

Additional Complexity:

Network(12 sites in 2006 to

61 sites in 2013)

Page 18: Metrics: The Good, The Bad, and The Ugly

Lack of… Metrics

Page 19: Metrics: The Good, The Bad, and The Ugly

IOM 2013 Report – Page 8

Page 20: Metrics: The Good, The Bad, and The Ugly

Learning Healthcare System

Page 21: Metrics: The Good, The Bad, and The Ugly

Lean Enterprise

Page 22: Metrics: The Good, The Bad, and The Ugly

Are they different?

Page 23: Metrics: The Good, The Bad, and The Ugly

Where to Start?

Page 24: Metrics: The Good, The Bad, and The Ugly

Lean in IOM 2013 – Page 67

Page 25: Metrics: The Good, The Bad, and The Ugly

Evaluation -- Page 81

Page 26: Metrics: The Good, The Bad, and The Ugly

Evaluation Individual CTSAs (pp.82-83)

Page 27: Metrics: The Good, The Bad, and The Ugly

15 Metrics (Page 84)

Page 28: Metrics: The Good, The Bad, and The Ugly

June 2013 Meeting

Page 29: Metrics: The Good, The Bad, and The Ugly

Programmatic Performance MetricsOperational Performance Metrics

Page 30: Metrics: The Good, The Bad, and The Ugly

FROM DATA TO METRICS

Page 31: Metrics: The Good, The Bad, and The Ugly

“In God we trust… All others, bring data.”

W. Edwards Deming

Page 32: Metrics: The Good, The Bad, and The Ugly

Reference: "Data, Information, Knowledge, and Wisdom" by Gene Bellinger, Durval Castro, Anthony Mills

Data represents a fact or statement of event without relation to other things.

Information embodies the understanding of a relationship of some sort, possibly cause and effect.

Knowledge represents a pattern that connects and generally provides a high level of predictability as to what is described or what will happen next.

A) It is raining.B) The temperature dropped 15 degrees and then it started raining.C) If the humidity is very high and the temperature drops substantially the atmospheres is often unlikely to be able to hold the moisture so it rains.

Page 33: Metrics: The Good, The Bad, and The Ugly

The Big Picture

Reference: "Data, Information, Knowledge, and Wisdom" by Gene Bellinger, Durval Castro, Anthony Mills

Page 34: Metrics: The Good, The Bad, and The Ugly

Where to focus when determining metrics…

Page 35: Metrics: The Good, The Bad, and The Ugly

Actionable Information… Not just data

Page 37: Metrics: The Good, The Bad, and The Ugly

Job by itself…

Page 38: Metrics: The Good, The Bad, and The Ugly

Myopic Nature: Single Metric!!!

Page 42: Metrics: The Good, The Bad, and The Ugly

Source:

Source -- http://www.juiceanalytics.com/writing/choosing-right-metric/

Page 43: Metrics: The Good, The Bad, and The Ugly

SUCCESS STORIES OF LEAN

An Example from UTSA Human Resources…

Page 44: Metrics: The Good, The Bad, and The Ugly

http://camls.utsa.edu/

Page 45: Metrics: The Good, The Bad, and The Ugly

HR at UTSA

Background• Human Resource (HR) managing

“On-Boarding Process” of new hires– Orientation, tax and insurance paperwork,

computer and email accounts, requests for keys, telephone line, parking, etc.

• Problems:– New hires often take 2 weeks to be truly “on-board”– HR team spends hours on missing data & error corrections

everyday– Lots of “waiting” among offices

You are hired!

Page 46: Metrics: The Good, The Bad, and The Ugly

Objectives:• Shorten new hire time• Improve work readiness• Increase compliance

Methodology:• Lean training for entire office• Value stream mapping

and implementation planning

The Improvement Project

HR at UTSA

Page 47: Metrics: The Good, The Bad, and The Ugly

Root Causes• Disconnected operations• Isolated resources• Ineffective (error prone)

paperwork process

Solutions• Redesigned workflow (new

“value stream map”)• Partners with OIT, ID Card

Office, Parking, etc.• Standardized web forms

The Findings

HR at UTSA

Page 48: Metrics: The Good, The Bad, and The Ugly

• New process provides integrated resources at the Orientation for New Employees

• New hires are ready on Day 2 versus 2 Weeks• 100% accuracy of I-9’s• $231,319 net savings

in 1st year

The Results

HR at UTSA

Page 49: Metrics: The Good, The Bad, and The Ugly

IT IS TIME TO HEAR FROM

YOU…

Page 50: Metrics: The Good, The Bad, and The Ugly

Think of processes or functions that you perform…

Write on a piece of paper:• The Good: You are comfortable with it. You do

it well.• The Bad: You are not comfortable with it.

However, you work so hard and you get it done.

• The Ugly: You are not comfortable with it. Your performance varies when doing it.

Do it yourself

Page 51: Metrics: The Good, The Bad, and The Ugly

Discuss as a team and compile your notes on a large sticky paper

Do it as a team…

Good Bad Ugly

Page 53: Metrics: The Good, The Bad, and The Ugly