rapid transformation making change happen fast
DESCRIPTION
TRANSCRIPT
May 2010
Rapid TransformationMaking Change Happen Fast
Larry W DyerDirector, Process Improvement
Master Black BeltCoventry Health Care
Agenda
• Lean and Six Sigma Overview• What is Kaizen?• How to execute a Kaizen• Kaizen examples• Where to start with Kaizen• Top 10 reasons projects fail
2Rapid Transformation WC Process & Strategy
Assumptions
• You have some exposure to Six Sigma and Lean• You understand what the project charter is• You understand that projects with a high return on investment and
moderate to low effort are executed first
3Rapid Transformation WC Process & Strategy
Every Firm Is Driven to Improve Quality, and Reduce Cost and Lead Time
• Customer loyalty and retention• Shorter customer lead time demands• Downward price pressure: lower costs• Lower invested capital• Capacity expansion
Rapid Transformation WC Process & Strategy 4
Why Do These Goals Require Both Lean and Six Sigma?
• In a value stream, the work often spends up to 95% of its time waiting • Poor quality increases the lead time to customer
– 10% defect rate can increase lead time by 40% and reduces available capacity
• Capacity problems can be masked by slow cycle times• Lean tools accelerate lead time reduction• Six sigma brings a process under control
Rapid Transformation WC Process & Strategy 5
Customer Value Added TimeBusiness Value Added Time
Non-Value Added TimeWait Time
Findings indicate:• Long process time• Process Cycle Efficiency Poor - 0.069% (World Class Standard = 50%)• Wait times are extremely long
Valu
e A
dded
Tim
eN
on-V
alue
Add
ed T
ime
*Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14 Day 15
95% of Time Waiting, For What?
Rapid Transformation WC Process & Strategy 6
What is Lean Six Sigma?
• Lean Six Sigma is a combination of two process improvement methodologies – Lean and Six Sigma
• Lean is all about speed.– Pioneered by Ford and perfected by Toyota – Focuses on eliminating waste and finding better ways to do things– Helps eliminate steps that add no value
• Six Sigma is all about quality and repeatability.– Started by Motorola in the 80s; improved by GE– Focuses on reducing defects and variation and incorporates
powerful statistical tools to “control” a process– “Six Sigma Quality” literally means 3.4 defects per 1 million “parts”– It is the origin of the DMAIC process
Rapid Transformation WC Process & Strategy 7
Greatest Challenges to Successful Deployment
From ASQ, Quality Progress, August 2009
Why?
Why?
Rapid Transformation WC Process & Strategy 8
77 of 5,000 hospitalsConfidence level 95%Confidence interval +-11%
Why Lean Six Sigma?
• Why use them together?– Because Lean cannot bring a process under statistical control, and
Six Sigma alone cannot dramatically improve process speed.• Six Sigma is the “Unifying Framework”
– It provides the improvement infrastructure (role definitions, deployment model, etc.) and the overriding methodology (DMAIC).
• Lean provides additional improvement tools to “turbo charge” improvement efforts.
Rapid Transformation WC Process & Strategy 9
When to Use LSS for Process Improvement
• When to Use:– You have a challenging goal to reach or issue to solve
– Driven by the business strategy
– Issues that are valuable for the business to resolve
– Problems that “have stood the test of time”
– Solution is not known
– You are willing to commit people to identify and resolve the issue– You want a more robust solution than traditional methods can
provide– You want group ownership of a course of action
• When NOT to Use:– You don’t have a specific challenge or clear issue to solve– You already have a solution and course of action– You don’t have a process to improve
Rapid Transformation WC Process & Strategy 10
Rapid Transformation
• Relies heavily on:– Lean techniques
– Statistical Process Control
• Uses Kaizen Format• Focuses on a subset of Six Sigma Tools
– Stakeholder Analysis
– FMEA
– Value Stream Mapping
– Non-Value Added Analysis
– Root Cause Analysis
– Quick Improvement Techniques
LeanIs
Cool!
Rapid Transformation WC Process & Strategy 11
What is Kaizen?
• Kai = to take apart• Zen = to make good• Kai + zen = taking something apart to make it better• Team activity• Rapid improvement within a short time• Well planned and highly structured• Essentially an accelerated DMAIC project
Rapid Transformation WC Process & Strategy 12
When to Kaizen
• When obvious waste sources have been identified
• When the scope and boundaries of a problem are clearly defined and understood
• When implementation risk is minimal
• When results are needed immediately - i.e., capacity constraints, setup reduction, acute quality problems, safety/ergonomic issues
• In the early stages of a project to gain momentum and build credibility
Rapid Transformation WC Process & Strategy 13
When to Use Kaizen
ProjectIdea
IncrementalImprovement?
Re-engineerProject
SmallProject?
LargeProject
ProcessSpeed?
ProcessQuality Project
Kaizen
PerformValue Stream
Mapping
Break intoSmall Projects
Yes
No
Yes
Yes
No
No
Use “Inter-Ocular” analysisRapid Transformation WC Process & Strategy 14
Kaizen Goal
• Focus on each step in the process• Reduce the Non-Value Added Steps• Minimize the Business Value Added Steps• Streamline the Customer Value Added Steps• Eliminate All Waste
Product Lead Time
Customer Value Added
Non-Value Added
Start Finish
Business Value Added
Rapid Transformation WC Process & Strategy 15
Kaizen Benefits
• Provides momentum for the project• Drives value ($) early, thus improving ROI• Helps the Company
– Eliminate hidden costs of waste
– Ensure work provides value
– Allows major improvements quickly
• Helps You– Eliminate waste and interruptions
– Influence the work you do every day
– Be part of the solution
• Reduces stress on project team to ‘Get Something Done!’
Rapid Transformation WC Process & Strategy 16
Kaizen VS Traditional DMAIC Project
• Team is 5 Days Full Time vs. 4 Mo Part Time– Actual team hours may be close
• Resources Dedicated – 100% Dedicated for 5 days
• Scope Completed/Problem Identified Going In– Team does not have time for scope assessment
• Basic Data Gathered• May use Tribal Knowledge vs. Detail Analysis
– Solution may be known but historically not listened to
• 30-Day Follow Up Action Items– Items that cannot be finished that week
Rapid Transformation WC Process & Strategy 17
Kaizen Structure
Team Training
Issue List
Area Discovery
Cause & EffectCause & Effect
Goal
Brainstormed Ideas
Final Presentation Effort
Benefit
.5
1.51.0
2.02.5
.5
3.03.54.04.55.0
1.01.52.02.53.03.54.04.55.0
12
3
4
5
89
10
76
Action Items
What Who When Status
Implementation
Rapid Transformation WC Process & Strategy 18
Kaizen Preparation
• Begin preparation 2 weeks before start of the Kaizen event– Collect necessary data
– Notify participants of their involvement
– Create introductory training for participants
– Share the project charter
– Collect preliminary process maps
– Complete any meeting logistic issues
– Hold Kaizen– Meet for one week– No interruptions– No cell phones
MeetingLogistics
Order lunchSoft drinks
Ice TeaCoffee
Etc.
Kaizen! Timeline (Maximum of 45 Days from Start of Event Prep, Through Event, to Final
Follow-up)Pre-Event PrepPre-Event Prep
(3-10 days)(3-10 days)Kaizen! EventKaizen! Event
(3-5 days)(3-5 days)Event Follow-upEvent Follow-up
(30-35 days)(30-35 days)
Rapid Transformation WC Process & Strategy 19
Facilitation Keys
• Keep Team On Track!– No emails or blackberrys
• Event will be stressful• Drive them to success• Be a part of scope and team selection if possible• Plant seeds but don’t overpower the team with your ideas
Rapid Transformation WC Process & Strategy 20
Kaizen Team Rules
• Throw out all of your fixed ideas about how to do things.– That is the way it has always worked!– It has to be that way! It won’t work any other way!
• Maintain a positive attitude (how will it work, not how it won’t).• Practice mutual respect. Treat others as you want to be treated.
Never leave disagreements unspoken. • The only stupid questions are the ones not asked.• Ask “Why?” at least five times until you find the ultimate cause.• We’re not interested in assigning blame - only in creating
solutions!• One person, one vote – position doesn’t matter.• Have fun!• Understand the process, and…JUST DO IT!
Rapid Transformation WC Process & Strategy 21
Toolset Used During Kaizen
• Any tool may be used to aid the team during a Kaizen event from a Process Map to a Designed Experiment.
• Bottom line is you use any tool that is needed!– Pareto
– Fishbone
– Process map
– Spaghetti Diagram
– Cycle Time/Takt Time
– NVA Analysis
– Time Studies
2004 Completed Upgrades(days from completed conversion to go live)
170000220000220000
320000
600000
0
20
40
60
80
100
120
140
160
180
< 30Days
> 120Days
30-60Days
60-90Days
90-120Days
Conversions Completed in Days
Nu
mb
er o
f C
on
vers
ion
s
0
100000
200000
300000
400000
500000
600000
700000
Rev
enu
e Conversions
HW Cost
Sum
It takes too long to do hardware conversions
HW Vendor Analyst
Customer Cache’
Process
Vendor ships HW to Misys, Misys ships HW to customer
No one is watching the Analyst to see that things
are finished in a timely manner
Each Analyst does the conversion differently,
no consistency
No incentive to do it faster.
Customer does not test in a timely manner
One Analyst does the entire conversion, no one checks
his work
Customer has no incentive to install Cache’ keys early because he begins to pay
when installed
Cache’ keys are not loaded as soon as purchased
HW must be installed at the customer site before we
can get started
Task steps are performed serially
Customer has control of part of the process
Finance does not purchase keys in a timely manner
Cache’ keys are purchased to far in advance
The customer must stage the HW on the network before the key is loaded
Customer has other priorities and testing takes a back seat
Analyst completes tasks that could be delegated
Customer is short of money and stretches out the go live to delay payment
Customer is not required to pay until the site goes live
Analyst must complete conversions by the end of
the month.
Mortgage Delinquency "per call" Task Time Analysis
0
20
40
60
80
100
120
140
Research Process Dial Contact Follow-upS
eco
nd
s
CVA BVA NVA
Rapid Transformation WC Process & Strategy 22
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Office161
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160-1
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Purchase Order Approval Process
138-10
Indicates an in-box or outbox where work (forms/information) waits to be worked on or transferred
Lines indicate paper/information travel:- No set path- Lots of rework
Kaizen Toolset: Resource Flow Layout
The Spaghetti Chart
230 yards
Rapid Transformation WC Process & Strategy 23
Kaizen Schedule
Rapid Transformation WC Process & Strategy 24
Week’s Activities
Monday • Team Training
– What is a Kaizen?– Project and Goal Background– Present Data/Burning Platform– Specialized Training Geared Toward Project Goal
• Discovery– Team Spends Afternoon in Project Area– Map the Existing Process– Gather Insights from Personnel– Observe Issues/Conduct Studies– Evaluate Risk– Keep Detailed Notes
Rapid Transformation WC Process & Strategy 25
Failure Mode Effects Analysis
• Document – What will happen if our project fails?
– What will happen if the implementation fails?
Prepared By: Date Prepared: Business Unit:
Process Step/Input Potential Failure Mode
Potential Failure Effects
Sev
erit
y Potential Causes
Occ
urr
ence Current Controls
Det
ecti
on
RP
N In
itia
l Actions / Recommendations What we need to do
Owner Actions Taken/ What we've already done S
ever
ity
Occ
urr
ence
Det
ecti
on
RP
N F
inal
Erode existing internal controls
Increases compliance problems and negative visibility with ABOR and community
9 10 10 900 Empower Departments and make them accountable, be sensitive to the existing control systems in place.
Team
Department Heads do not support our solutions
Increases compliance problems and negative visibility with ABOR and community
9 10 10 900 Reach out to department heads and instruct them on their fiduciary responsibilities.
Controller or VP
Inappropriate delegation of duties
Cause more work at the unit or business office level
9 10 10 900 Reach out to department heads and instruct them on their fiduciary responsibilities.
During multiple transitions/changes across campus, units may be resistant to change in process improvement
Loss of revenue and increase in workload at all levels
6 10 7 420 Market the benefits of the new P Card process. Show them it will reduce their workload.
Departments could stop using Pcard as a result
Loss of revenue and increase in workload at all levels
8 10 5 400 Market the benefits of the P Card. What it saves us.
Breakdown in communications/ training
5 No updated training related to Pcard skills/policy update/best practices
7 4 140 Make sure we have a consistent message and guidance from the P Card department and Financial Compliance. Annual retraining or training when cards reissued.
Lack of support from executive levels
Continued potential for increased Pcard non-compliance
9 Change of institutional priorities
10 1 90 Involve the Sr. VP and Provost
Initial Assessment Final Assessment
Project Sponsor:
Failure Modes and Effects Analysis (FMEA)
Process/Product Name: Project Name:
Rapid Transformation WC Process & Strategy 26
Week’s Activities (Cont.)
Tuesday
• Area Discovery (Cont.)– Review Monday Activities
– Process Map
– Gather Insights from Personnel
– Document Problems Found
– Analyze Problems to Determine Root Causes
– Begin to Define Future Metrics
Our ability to assess the performance of a process we wish to improve is only as good as our ability to measure it.
Rapid Transformation WC Process & Strategy 27
There are usually three views of a process:
Process Mapping
What you THINK it is..
11What it ACTUALLY is..
22 33What it SHOULD be..
Rapid Transformation WC Process & Strategy 28
The Hidden Operation
Work Arounds
Op i Op i + 1
Analysis ScrapOff-LineCorrection
Correctable
?
Verified
?
NoYes
Quick FixesInspections
Scrap
Rework
Extra EquipmentIncreased Inventory
Increased Cycle Time
Frustration
Defects
Customer Dissatisfaction
Cost
Rapid Transformation WC Process & Strategy 29
Example: High-level Swim Lane Process Map
Rapid Transformation WC Process & Strategy 30
Example: High-level Swim Lane Process Map
CPR RFP HW/SW Quoting Process (updated 11/2/05)
Sal
esT
echn
ical
S
ales
Pro
posa
l Gro
upS
yste
ms
Inte
grat
ion
Com
mer
cial
O
pera
tions
Impl
emen
tatio
nQ
uotin
g
CVA
BVAStandard
Special
Review RFP
Develop HW Quote
Complete Configurator
Detail Spreadsheet
Std or Special Config?
Integrate summary
sheet from Configurator
Create Summary of SW Costs
Develop Implementation Cost Proposal
Develop Configuration
Request answers to questions
Look at web page to see if RFP received
Conference call with sales,
determine who to involve
Contact people, hold
kickoff meeting
Integrate Implementation
costs into Configurator
Review HW Quote, add to Configurator
totals
Integrate HW list without
pricing
YesMassage to get the price
they want
Answer quoting
questionsReceive RFP
Create customer
formatted cost sheets
Review Profit Analysis
Perform Profitability
Analysis
Interview Sales
Interview Clients
Quote Required?
Receive RFP No
Determine CPR modules
to bid
Advise on HW configuration
Advise on Implementation
costs
Revise HW Configuration
Revise QuoteQuote
Acceptable?
Review configuration
No
Yes
Adjust for currency
(international pricing)
Negotiate 3rd party pricing/
deal
Modify implementation
prices and hours
Quote Required?
Yes
Complete
Rapid Transformation WC Process & Strategy 31
Identify Waste
• Each process activity can be tested for its value-add contribution
• Ask the following two questions to identify non-value added activity:• Is the form, fit or function of the work item
changed as a result of this activity?• Is the customer willing to pay for this activity?
Call for an Order
Answer phone
Asks for
more?
Greetings and
mention specials
Calculate price
Rewrite Order
Order still OK?
Gets address & phone
#
Add to Order
Give order to Cook
Rewrite order
Yes
Yes
No
NoRequest order from
customer
Writes on scratch
pad
Asks cook for
time estimate
Inform customer
of price/time
No
Thanks customer & hangs
up
Completes order from from note
pad
Another call
waiting
Writes time on scratch
pad
Writes time on scratch
pad
Confirm order
Yes
1
1
New order?
No
No
Verify with
notes
Yes
2
2
OK
Not OK
3
3
NVA
NVA
NVA
NVA
NVA
NVA
NVA
Rapid Transformation WC Process & Strategy 32
Get to the Root Cause
• Ask Why 5 times– The follow-up time with clients is inconsistent. Why?
– Client follow-up expectations vary. Why?
– The Account Managers set unrealistic expectations with the clients. Why?
– Account Managers are not trained on what expectations to set. Why?
– No training has been developed about setting expectations. Why?
– Each client has a unique service level agreement and that information has never been published.
33
Week’s Activities (Cont.)
Wednesday
• Brainstorm Issues– Capture Ideas/Solutions
– Evaluate Studies
• Reduce and Prioritize Ideas– Affinitize Ideas/Solutions
– Multivoting
– Rank using Benefit/Effort Matrix
• Midweek Status MeetingBenefit Effort Cost
No. Brainstorm Votes L, M, H H, M, L H, M, L Total
55
Create Pre-Hire Status:Create a pre-hire status in the hiring process to generate the EID, Net ID, Background check, Email, parking permit 17 9 9 9 729
49
Eliminate the Cat Card requirement to get U of A Net IDReplace the requirement for the Cat Card ID with a HR generated PIN number for UA Net ID and email generation 11 9 9 9 729
52Directive from the president that all new programs/processes developed must be designed around a paperless infrastructure 7 9 9 9 729
31Create an electronic background consent form and make availabile to the candidate with the application 6 9 9 9 729Interim Solution to Electronic Workflow:Prototype enhancements to the current applicant tracking system to capture requirements for the PeopleSoft system (hiring information and workflow) 9 3 9 243
4 Implement an electronic process for I9 and eVerify 8 9 9 3 243
1
Electronic Workflow:Develop web based workflow for the hiring process (Include electronic signature) Include electronic forms on the web based workflow (all the forms currently in the hiring packet)Allow online tracking of the status of hiring packagesIncorporate the business rules into any online forms for the hiring process. As you click the type of hire, you see different information. Be able to view employment type and FLSA.Once new employees are in the payroll system, an email is sent to their payroll representative informing them the employee is in the systemIntegrate the GA hiring into the electronic workflow 36 9 1 9 81
16
Web-Based Training:Develop interactive, web-based tutorial training for the hire process that includes special requirements for hiring international candidates and Gas 7 3 3 9 81
15 Create specialized hiring process briefing for 3Ds 1 3 3 9 81
39
Hiring Center:Create a centralized hiring center including I9, eVerify Cat CardEstablish a reporting date for faculty to allow for adquate new hire activities (completion of I9 and other forms)Schedule the orientation to work in concert with the hiring processEstablish a new hire faculty orientation session for the spring sessionThe new hire all-employee orientation will include help in access to systems, parking, etc.The hiring center will manage administrative activities during orientation 28 9 1 3 27
42
Do not require I9 to enter data into PSOS. Complete your I9 when you report to the Hiring Center on your start day. Add a verification step before their first payroll date to ensure the I9 has been completed. 8 1 3 9 27
1. Brainstorm Improvements
Interface Siebel/Softrax to validate assets/invoices Set up common SKU numbers in Siebel/Softrax
Use automated tools to identify the assets at a siteEliminate use of email and put documentation into SiebelDetermine exactly what is required in the assets. Are we asseting too much or too little?
Require client support to check/validate asset during service deliveryDevelop rules in Siebel to catch some of the common errorsTie the asset task to the job function (whoever performs the function does the assetting)Collect best practices on how to update assets, then create asset workflows that will work for all departmentsRetire departmental databases (PSIT, SiteData, A-I List, Biglist). Provide required assetting information on quotes (show the detailed assets in the contract)Do a complete asset inventory and update the assets as part of the inventoryWhen implementation hands a site over to support, they have to enter that asset before they are able to hand the site over.Develop an Asset process that is 80% automated.Insert a step in finance so that when the maintenance on a product stops, the action will also be recorded in SiebelAdd keycodes to the applications to identify what is actually in use at the siteAllow the customer to view asset information (versions, etc.) and report asset discrepancies
2. Multivoting
3. Rank by Benefit/ Effort/Cost
Nominal Group TechniqueTotal Score by Idea No.
0
20
40
60
80
100
120
140
5 3 16 74 9 100 52 104 81 18 99 67 60 19 55 25 57 96 10 59 47 65 22 85 44 26 84 58
Idea Numbers
Sco
re
Top 20
135
9333
Rapid Transformation WC Process & Strategy 34
Mid-Kaizen Review
Mid-Week Status Meeting:
• Purpose:
– Review team successes with management team
– Review proposed Kaizen activities for implementation
– Address any obstacles impacting implementation
– Gain agreement from Management to proceed
• Responsibility for Conducting the Meeting: Kaizen Team and Project Sponsor
• Frequency: End of third day
• Duration: 30-45 Minutes
• Attendees: Kaizen Team, Project Sponsor ,Management
Rapid Transformation WC Process & Strategy 35
Week’s Activities (Cont.)
Thursday-Friday• Improve
– Build the new process
– Document Action Items
– Develop plan to pilot the new process
• Control– Train in the new process
– Pilot the process
– Create/Update Company Procedures to document and sustain improvements
– Finalize metrics to measure new process
– Present results to Management Team, complete follow-up, monitor results over time
Rapid Transformation WC Process & Strategy 36
No. Action ItemsResponsible
PartyEstimatedDue Date
ActualDue Date Remarks
1Ask U of A attorney. Determine if we can ask candidates (after they accept the position) to provide their SSN in online forms Lee 12/12/2008
2Ask U of A attorney. Can the Loyalty Oath be transmitted electronically, signed and transmitted back? Lee 12/12/2008
3Policy decision from the president. Get commitment to accept electronic signature (i.e., digital signature, check box, etc.) on all forms in the hiring process. Leslie and Jacqueline 12/31/2008
4 We need to be able to create UANetID with EID and birth date or something similar.Jennifer and Michele Norin 12/12/2008
5
Add additional status values to the status field in the Recruiting SystemWelcome Packet SentHire Complete Leslie 4/30/2009
6Ask U of A attorney. Is electronic signature sufficient for the U of A employment application? Lee 12/12/2008
7Analyze the existing new hire form and identify what additional information should be captured.
Leslie, Jenny, Lee, Elizabeth 1/15/2009
8Track the list of requirements created as part of the Hiring team and their incorporation within Mosaic. Report the results to the team. Leslie Ongoing
9Modify the department welcome letter to let the candidate know to contact the business manager when their UANetID is created. Jennifer 12/19/2008
10 Define the detailed contents of the Department and HR welcome packets. Jennifer and Leslie 12/19/2008
11Redesign the electronic new hire form to capture safety training, compliance information, etc. (identify what new information must be captured). Include a member of Mosaic. Steve 1/15/2009
12For positions requiring driving, develop standard language explaining how to register and attend driving classes. To be included in the Welcome Packet. Steve 1/15/2009
13Develop a charter for the hiring center concept (New Employee Connection). Draft complete. Leslie 3/1/2009
14
Develop a list of questions that will indicate to the department or college when a needs assessment is needed. Make this a online form so the college will know the results of the needs assessment immediately. Include a discussion on use of search firms during the needs assessment. Lee and Leslie 12/12/2008
15
Develop the content for a presentation on the revised process. In 3D training, talk about the value of the needs assessment. Include value of centralized advertising and how to advertise. Jennifer 4/1/2009
16
Provide screening guidance (upload to web site) to departments, include:list of unlawful questionswhat questions to ask when interviewinghow to respond to candidatesCollect and maintaining the search files (interview notes)Ranking and/or scoring template Leslie 12/19/2008
17 Use the To-be process maps to create we-based tutorials and resource. Leslie and a team 4/1/200918 Change the name "faculty application" to "applicant profile". Leslie 4/1/2009
19Review the email message for non-selected candidates. Allow that email to be viewable by departments. Leslie 12/12/2008
20Prototype new process components in the current applicant tracking system to capture requirements for the PeopleSoft system (hiring information and workflow) Leslie 4/1/2009
21 Establish a new hire faculty orientation session for the spring session Recommendation
22
Discuss with the budget office the following. Revise the hiring form and add the RBC # and budget information. Allow for the approval for the hiring form to suffice for approval of the RBC. Jenny 12/12/2008
More on Process Mapping
Process Mapping Hints
• If your process handles or creates a “work product” or thing, then use this as part of your map indicating the information that is added, used, or changed.
– Header sheets are a good example
• Include samples of all information referenced as a part of the process. – If you use a chart, graph, report, or other information as part of your task, include a physical
copy on the map.
• This can not be done as separate parts pasted together. – It is a group activity where each person “teaches” the others what their role is and what work
they perform.
• It ALWAYS takes longer than you think…
Rapid Transformation WC Process & Strategy 38
Example: Simple Process Map
39Rapid Transformation WC Process & Strategy 39
Example: Moderately Complex Process Map
40Rapid Transformation WC Process & Strategy 40
Example: Complex Process Map
Rapid Transformation WC Process & Strategy 41
Example: Value Stream Map
Rapid Transformation WC Process & Strategy 42
Black Belt with 8 Simultaneous Projects
And No Prioritization:
Why is it Important to Complete Projects Fast?
• Minimize the number of active projects
• Maximize the allocation of resources (intellectual capital) to the projects with the greatest return on investment
Black Belt focused on 2 Projects at a time of Highest Priority:
WC Process & Strategy 43
Project 1
Project 2
Project 3 $$
Project 4
Project 5
Project 6
Project 7
Project 8Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Project 1
Project 2 $$ Project Benefit
Project 3
Project 4
Project 5
Project 6
Project 7
Project 8Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
October 13, 2009
Three Project Examples
Problem• It takes too long to load software on new
servers for customers • Services and licenses are not billed to the
customer until the customer takes the server live (60-120 days)
Background Healthcare company upgrades/optimizes servers for customers to enable their products to
run efficiently and effectively
Results HW revenue billed in 15 days 80% of services revenue billed in 30 days A $125,000 one time revenue increase was
achieved by accelerating the billing of inventoried hardware
A $137,000 cost avoidance was achieved by reducing project hours and interest on inventory.
1 staff member was redeployed to fix a bottleneck in the Systems Integration Group
Approach The DMAIC methodology was used in this
Lean project to reduce cycle time and hours
Process mapping identified non-value added work in the existing processes
SMEs accelerated parallel tasks to the front of the process
Finance compressed the revenue recognition to the front of the life cycle
Hardware Conversion Cycle Time Reduction
Observation
Indiv
idual V
alu
e
51464136312621161161
200
150
100
50
0
_X=12UCL=20.2LCL=3.8
1 2
Observation
Movin
g R
ange
51464136312621161161
160
120
80
40
0__MR=3.1UCL=10.0LCL=0
1 2
1
1
1
1
HW Conversion Cycle Time in Days
University Hiring Process
Recruitment 12/05/08
Submit Job Requisition Job Posted Offer Accepted
Pro
vost
Hu
ma
n R
eso
urc
es
De
pa
rtm
en
tD
ea
n/
Co
lleg
e
There is a need to hire
Review requisition Problem?
Call the department and
make corrections Yes
Post to web siteNo
Collect and review applications
Adjust recruiting strategy
Follow department screening process
Yes Yes
No
YesCollege review
required?
Review and approve
Perform final review of posting
Place Advertisements
Prepare advertisements
Advertise positionApplicant Pool
Sufficient?
No
Yes
Yes
No
No
No
Schedule interviews (in person or by
phone)RA, TA or student?
Yes
Draft job description
Dean approval required?
ApproveEvaluate funding
source
Hiring pool available?
Review applicants in pool
YesReview Needs
Assessment formAssessment Required?
Perform Needs Assessment,
Document results online
The needs assessment includes a recruiting and
advertising strategy.
Yes
No
Review recommendation
Complete online job requisition
The online requisition includes the following:Identify the search committee or hiring authority
Identify duties, salary range, qualifications, KSAs, Security sensitive status
Develop the job descriptionDetermine the pre-screening questions
Identify recruiting strategy and funding sources
NoNo
No
Provost review required?
Review and approve
Yes
The hiring authority is automatically notified when approval is indicated in the
automated system
The hiring authority is automatically notified when approval is indicated in the
automated system
The hiring authority is automatically notified when approval is indicated in the
automated system
The department generally advertises in discipline-
specific journals.
YesCentralized Ad recommended?
Yes
Review HR and/or Department
screening tools
Evaluate the quality and
diversity of the applicant pool
Identify non-competitive applicants
Change Non-competitive
applicant status in the Recruiting
System to notify candidates
Close out and disposition non-
selected candidates
Extend verbal offer, negotiate
termsCheck references
End of Recruiting Process
Alternate candidate?
Candidate identified?
Candidate Accepts
Eligible for hire?
Candidate must be enrolled and taking a minimum number of units. If the candidate is International there are special requirements.
Visa status is verified. TA must be able to speak English and attend orientation.
YesDetermine FTE, Salary and start
date
Yes
Terminate processNo End Process
These are under development by HR.
The hiring pool is a concept that HR is pursuing to pre-qualify candidates for high
volume positions or frequent short-term positions.
Connects to the hiring process
All shaded items
Represents items under development
Background There is a mix of centralized and decentralized (automated and manual) hiring processes with no clear
process ownership, resulting in different hiring processes for different types of employees
Problem 4 manual hiring processes No clear process ownership 30% of the hiring forms have multiple
defects Many workarounds and shadow systems
Approach Process mapped all four systems Identified the sources of defects Removed reliance on Cat Card Accelerated other activities Automated new process in PeopleSoft
Results Centralized HR process Virtual and in-person services Removed Cat Card as a requirement Accelerated hiring dramatically Reduced department workload
Root Causes No forms tracking Lost/incomplete forms Process redundancies No hiring process training Needed services require Cat Card
Benefit Effort Cost
No. Brainstorm Votes L, M, H H, M, L H, M, L Total
55
Create Pre-Hire Status:Create a pre-hire status in the hiring process to generate the EID, Net ID, Background check, Email, parking permit 17 9 9 9 729
49
Eliminate the Cat Card requirement to get U of A Net IDReplace the requirement for the Cat Card ID with a HR generated PIN number for UA Net ID and email generation 11 9 9 9 729
52Directive from the president that all new programs/processes developed must be designed around a paperless infrastructure 7 9 9 9 729
31Create an electronic background consent form and make availabile to the candidate with the application 6 9 9 9 729Interim Solution to Electronic Workflow:Prototype enhancements to the current applicant tracking system to capture requirements for the PeopleSoft system (hiring information and workflow) 9 3 9 243
4 Implement an electronic process for I9 and eVerify 8 9 9 3 243
1
Electronic Workflow:Develop web based workflow for the hiring process (Include electronic signature) Include electronic forms on the web based workflow (all the forms currently in the hiring packet)Allow online tracking of the status of hiring packagesIncorporate the business rules into any online forms for the hiring process. As you click the type of hire, you see different information. Be able to view employment type and FLSA.Once new employees are in the payroll system, an email is sent to their payroll representative informing them the employee is in the systemIntegrate the GA hiring into the electronic workflow 36 9 1 9 81
16
Web-Based Training:Develop interactive, web-based tutorial training for the hire process that includes special requirements for hiring international candidates and Gas 7 3 3 9 81
15 Create specialized hiring process briefing for 3Ds 1 3 3 9 81
39
Hiring Center:Create a centralized hiring center including I9, eVerify Cat CardEstablish a reporting date for faculty to allow for adquate new hire activities (completion of I9 and other forms)Schedule the orientation to work in concert with the hiring processEstablish a new hire faculty orientation session for the spring sessionThe new hire all-employee orientation will include help in access to systems, parking, etc.The hiring center will manage administrative activities during orientation 28 9 1 3 27
42
Do not require I9 to enter data into PSOS. Complete your I9 when you report to the Hiring Center on your start day. Add a verification step before their first payroll date to ensure the I9 has been completed. 8 1 3 9 27
Rapid Transformation WC Process & Strategy 46
Sales to Project Scheduling Process
Problem Interfaces were not scheduled Staff had inconsistent workload Forecasting revenue was impossible
Background The time required to schedule interfaces was highly variable with a mean of 30 days from
the receipt of the Purchase Order. This variability made it difficult to predict revenue on a monthly basis.
Results A new scheduling process was developed,
trained and validated. The sample mean of the time to schedule
was reduced by 90% from 30 days to 3 days.
Statistical control achieved, weekly monitoring confirms compliance to process SOPs.
Approach A Kaizen was used to quickly understand
the problem and the data. The DMAIC methodology was used to
redesign the scheduling process. Process mapping identified non-value
added work in the existing processes and highlighted areas for improvement.
New tools were developed to accurately track call events
New procedures were written and employees were trained in the new process.
151413121110987654321
80
60
40
20
0
Sample
Sam
ple
Mean
__X=7.08UCL=13.77
LCL=0.39
1 2
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150
100
50
0
Sample
Sam
ple
Range
_R=13.8UCL=27.7
LCL=0
1 2
Xbar-R Chart of AI Days to Schedule (Before/ After Process Change)
Sample Mean reduced by 82% from 37 to 7.
Rapid Transformation WC Process & Strategy 47
Where to Deploy Kaizen in the Hospital
Lean Deployment Locations and Success
From ASQ, Quality Progress, August 2009
Rapid Transformation WC Process & Strategy 49
Six Sigma Deployment Locations and Success
From ASQ, Quality Progress, August 2009
Rapid Transformation WC Process & Strategy 50
Greatest Challenges to Successful Deployment
From ASQ, Quality Progress, August 2009
Why?
Why?
Rapid Transformation WC Process & Strategy 51
77 of 5,000 hospitalsConfidence level 95%Confidence interval +-11%
To 10 Reasons for Less Than Successful Projects
52
• Project Sponsor not active• Project not linked to corporate strategy• Poorly defined Charter – Team has to spend time to get the charter
right• Scope too large or scope creep• Poor understanding of requirements
• Process• Customer• Business• No organizational buy-in – stakeholders not involved
• This is not a lean or six sigma project to begin with• Team focus
• Not honoring time commitment• Trying to do too much (boil the ocean)
• Jumping from Define to Improve
Rapid Transformation WC Process & Strategy
References
• Six Sigma– Thomas Pyzdek (2004). The Six Sigma Handbook. New York:
McGraw-Hill • Lean (Kaizen)
– Jeffrey K. Liker (2004). The Toyota Way, New York: McGraw-Hill – James P. Womack and Daniel T. Jones, Lean Thinking, New
York: McGraw-Hill• Lean/Six Sigma
– George, M. L. (2002). Lean six sigma: Combining six sigma quality with lean speed. New York: McGraw-Hill
– George, M. Rowlands, D. & Kastle, B. (2003). What is lean six sigma? New York: McGraw-Hill.
Rapid Transformation WC Process & Strategy 53