February 23, 2012

Dan’s Second Rule of Process Mapping Continued

February 7, 2012 By

The second rule of process mapping is that the problems in the process should be easy to see. In my last post, I talked about using different colored post it notes and symbols to draw attention to process issues. I suggested using blue post it notes for worker frustrations, orange notes for quality issues, green post it notes for value-added activities, and red dots for delays and waiting.

The next way to make the problems visible is with data. Here is a list of items that can give us insight into process performance:

  • Process time (P/T)
  • Lead time (L/T)
  • Setup time
  • Batch sizes
  • Demand rate
  • Percent complete and accurate (%C%A)
  • Number of people
  • Inventory
  • Reliability
  • Available time

Process time is the amount of time spent working. One way you can get this data for a particular activity is to ask people “If you were not interrupted, how long would it take you to do _______?” Or you can use a stop watch to time someone when they are doing the activity. We represent process time as P/T.

Lead time is the amount of time from when the step or activity starts to when it ends. Lead time includes process time,  move time, set up time, wait time, review time, and rework time. There is lead time for a particular step. There is lead time for a complete process, called total lead time. Lead time is represented as L/T. If you find a small amount of process time for a step, yet a large amount of lead time, usually the difference is caused by waiting. A simple equation might make this easy to understand. Lead time = process time + wait time. 

Setup time is the amount of time consumed in preparation to do the work. For instance, suppose you have to do a report. Before you can start the report, you must go get files, load a software program, and finally scroll to the page you need. Now you can begin the report. Setup time is the work that precedes the work of the step. If setup time is large, it encourages people to do multiple activities of the step, which we call batching. In lean, we do not like batching. So in order to cut batch sizes down, setup time needs to be shrunk.

Batch sizes tell us how many items are processed at one time. Batching is only convenient for one person, the batcher. Everyone else has to wait for the batch to be done. Batching leads to waiting, overproduction, inventory, mistakes, extra processing, and movement. As we cut down on batch sizes and run them more frequently, the above issues diminish and we get closer to continuous flow (nirvana).

Demand rate comes from the customer. Demand rate is the time frame expected by the customer for something to be done.

The percent complete and accurate is our quality measure for office and service processes. Don’t we want everything we get to be complete and accurate? This measure is represented as %C%A.

The number of people refers to the number of people who perform a particular activity.

Inventory is measured by how long items are in inventory. This could be measured in seconds, minutes, hours, or days. Obviously if the amount of time something is in inventory is large, we want to find out why.

Reliability refers to the reliability of the systems and software you use. Here we are looking for uptime. If your system is “down” how long does that typically happen?

Lastly is available time. Available time is the amount of time allocated for this person to do this activity. In office and service work, people wear multiple hats. It could be that demands for other tasks impinge on the amount of time available for another task. By calculating available time and comparing that to demand rate, process time, and the number of people, we could see the cause of a bottleneck.

Below is a process map with some of these items. There is a time line across the bottom of the map that shows process time and lead time by step and also the sum totals for the process. Batch sizes, inventory and percent complete and accurate are also shown. If you compare this process map to the one from the prior post, you can see we converted the post it notes and symbols into data.

Process data helps us focus our resources. It tells us how large a problem might be. And when we institute countermeasures, it tells us if our countermeasures are working.

 

Filed Under: Lean Office, Process Mapping

Dan’s Second Rule of Process Mapping

January 30, 2012 By

Dan’s second rule of process mapping is that the problems in the process should be easy to see. The “as is” process map is the starting point for analyzing a process. I often talk about “lenses of analysis” which refer to the different ways we can look at the flow of work and information through an organization. In this blog entry, I am going to show some simple graphic symbols and comments to identify issues.

The first lens I use is the frustration lens. Here we ask those who work in the process what frustrates them. The frustrations are written on blue post it notes and placed on the map where the frustration is experienced. I like the frustration lens for these reasons:

  • People get to vent about the things in the process that aggravate them.
  • The frustrations often link to quality problems.
  • A grouping of blue post it notes highlights a big problem.
  • By finding quick fixes to the frustrations, buy-in for process improvement goes through the roof.
  • The frustrations often link to process design principles. Process design principles are best practices from world class organizations. I discuss 38 design principles in my book, Process Mapping, Process Improvement, and Process Management.

Another lens is time. Here we are looking for places where the work stops and waits. These are represented by red dots with a W. The W is for waiting. Ask your staff what is causing the waiting? Is it how work is prioritized? Is it a staffing problem? How can you shrink or eliminate these wait areas?

Where quality problems crop up, I use a pink or orange post it note with the quality problem written on it. You would want to know what is the root cause of quality issues. If we do not find root cause, the issue will likely resurface.

In the example below you can see a simple process map with these symbols. See how these symbols makes the map much more interesting and focuses our attention to where the problems are occurring.

 

In my next blog post I will discuss the types of data that we can insert in our process maps. We cover this and much more in our Process Mapping and Improvement seminar. Hope to see you there.

Filed Under: Process Mapping

Dan’s First Rule of Process Mapping

January 20, 2012 By

The first rule:  The process map should be easily understood by a naive person. What is the purpose of a process map? I believe it is to show the flow of work and information through an organization. Obviously, there can be a variety of paths that work and information can take, even in one process. Imagine what happens when we put all the variations that can happen on one map. It can look like spaghetti and meatballs. I have seen these maps and could not make any sense out of them. What is the value of the map if everyone gets confused?

Hence for the sake of clarity, do not pack every variation on one map. Instead put each variation on its own map. I title every map with the name of the process and the variation being shown. For instance, the map might be titled Sales Order Process, Order Validation Correct. While this might cause a little extra work for the mapper, it makes it much better for the person trying to understand it. Variations typically occur at reviews, inspections, or decisions. For instance, the reviewer asks, “Does it pass?” The answer could be “yes or no.” Each of those paths is a variation.

When I start mapping a process, I ask “Which variation of this process do you want to map?” We might start with what is considered “typical.” When I get to a decision or review, I ask “What typically happens here?” The person might say, “It typically passes.” I will not be mapping the “does not pass” route. That would go on another map.

Since I am on this topic, another issue surrounds “do loops.” In this case something does not pass an inspection and it gets sent back several steps in the process to do over. The do loop process can happen multiple times. Imagine a situation that the do loop can happened three times. You might indicate that with a 3 on the loop. What I suggest is to copy the do over steps as often as they occur. Why? The visual of all of the steps being repeated is a powerful message of the waste occurring. The do loop actually hides the impact of repeated work. Showing all of the steps as they occur makes the waste jump out.

My next entry will be on my second rule, which is: The problems in the process should be easy to see.

Check out our Process Mapping and Process Improvement seminars in San Francisco to learn these concepts and techniques. 

Filed Under: Process Mapping

Is Micromanaging an Aspect of Lean

January 10, 2012 By

What is micromanaging? It is when a manager closely observes or controls the work of her or his subordinates with excessive attention to minor details. In micromanagement, the manager not only tells a subordinate what to do but dictates that the job be done a certain way regardless of whether that way is the most effective or efficient one. A pattern of micromanagement suggests to employees that a manager does not trust their work or judgment, it is a major factor in triggering employee disengagement.

Two important factors are at work in micromanagement. First is the lack of trust that the employee will do the job well. Second is the underlying lack of respect regarding the worker’s intelligence and desire to do a good job.

If you have someone telling you how to do your job and monitoring it closely, it sends a message that the worker is not valued. Research has shown that being valued is one of the main factors in loyalty and retention.

How does Lean approach the goals of doing high quality work? The first step is to identify the best way of doing the job today. That would include evaluating worker quality and speed. When we can quantify a superior way to do something, shouldn’t everyone who does that job do it in the best way we know how to do it? That best way is called Standard Work. Standard Work is the best way to do work right now, which also implies we might find a better way to do it tomorrow, and then that way will become Standard Work.

In Lean we encourage and reward people for finding improvements in work processes and the ergonomic aspects of the work space. One of the ways to get workers to focus on improvements is to teach them to find waste. Then we want ideas to shrink or eliminate these wastes.

The most important place in a Lean organization is where the work is done, the Gemba. Consequently, the most important person is the one working in the Gemba. There is intense focus on the Gemba, with managers and supervisors doing “Gemba walks” regularly. In this fashion, lean can resemble micromanaging, but not with the attitude of distrust or disrespect. Quite the contrary, managers and supervisors have an eye for the things that get in the way of the worker. Managers and supervisors have the desire to partner with the worker to make the work processes and work space the most conducive to safe, efficient, and effective activities.

A micromanager would likely blame the worker when something goes wrong. In Lean, the manager would partner with the worker to uncover the root cause and jointly create countermeasures. It might be the workers responsibility to test the countermeasure, and ultimately implement it. We have confidence that the countermeasure will be implemented because the worker was highly involved in creating it. Remember people support what they help create. And people resist, fight, and sabotage what we ram down their throats.

Yes the devil is in the details. However there is a world of difference on how we manage them. If you find this useful, please check out our training class titled Analyzing and Improving Service and Office Operations.

Micromanaging Approach

Lean Approach

Little respect for the worker

The worker is the most important person

Little trust that the work is done correctly

The worker is following standard work

Boss tells me how to do the job

The worker is following standard work

Boss comes up with improvements

Worker engaged in finding improvements

Blame the worker when something goes wrong

Worker and supervisor jointly find root cause, jointly come up with countermeasures, and the worker tests and implements the countermeasures

 

 

 

 

 

 

Filed Under: Lean Office

Ensure 100% Quality at the Beginning of a Process

December 13, 2011 By

IT folks know this expression very well: “Garbage in, garbage out.” Same holds true for a process. If you allow errors, mistakes, and missing information at the beginning of the process, the cost of fixing it grows exponentially as the item moves downstream.

How can we apply this principle? One method is to install a gate at the beginning of the process. The gate can take the form of a review where the item is checked for completeness and accuracy. If it is not complete nor accurate, then it can not pass to the next step. The person reviewing can work with the supplier to fix the problem so it can then be accepted. How often do things get accepted in your organization, only to find out later there was something wrong with them? Then how much time, effort, and expense is consumed by trying to fix the problem? If we only spent the time up front, then the downstream issues would disappear. There are some places in a process where it makes lots of sense to invest time, resources and money. One of these places is the front end of a process.

Another option is with dedicated fields in software programs. If a particular data field has incomplete or wrong information, the field is flagged. Shoppers know this first hand by going to Amazon or other web merchants. Your order does not get accepted unless all of the information is complete and accurate.

If the quality problem is extensive, you should gather data on the frequency of occurrences by category. This data can be illustrated by a Pareto Diagram, which shows which item is most frequent in a descending order. See the example below.

Lastly, you will want to track how often the incoming information is correct. The graph below is a run chart of information coming from the sales force. This graph shows the percentage of correct information on a monthy basis.

 

 Fix the front end of the process first. Everyone downstream will be ecstatic. And your quality costs will plummet.

Contact us at Value Creation Partners to learn more.

Filed Under: Process Design Principles

Design your process around value-adding activities

December 6, 2011 By

The most important design principle is “Design you process around value-adding activities, not departments, job titles, or personalities.” To understand this principle, we first need to know what a value-adding activity would be. A value-adding activity can have any of these three characteristics:

  • It transforms information or material into what the customer wants
  • It is a service feature
  • It is a step the customer would pay for.

Here the steps in green are value-added steps.

After you have created an “as is” flow chart of your process, go back and identify those steps which are value-adding. I usually change these steps to green. Why green? Because money is green. Now look at your process and see how many steps are green. Probably not very many. Nirvana would be a process that would be pure green.

If you are working in an environment of turf protection, strong personalities, and issues about who should do what, then I suggest you do not initially make a functional-activity flow chart for your new process. Instead focus on creating the flow, the sequence of the steps, and optimizing around the value-adding steps. This will allow you to create a great process and not be derailed by arguments about turf, etc.

After you have hammered out a great flow, then put on the boxing gloves and figure out who should do each step. This where the second design principle is used. “Work is performed where is makes the most sense.” Does it make more sense for sales or marketing to do this work? Should the admin do this step or the manager? By keeping these discussions after you have the new flow, you will speed up your efforts significantly.

There is another school of thought in the process improvement community. This school wants you to focus on the non-value added steps and eliminate them or reduce then. I tried this technique once and this is what happened. The folks who were doing the non-value added steps argued with me that these steps were necessary. Secondly, it created a hostile and contentious atmosphere. Third, those folks are probably afraid they will loose their job since they are doing non-value work.

The above is completely circumvented by focusing on value-adding activities and trying to optimize those. By doing that, guess what happens? The non-value adding steps fall away, and you have avoided an unpleasant interaction with many people.

Future posts will highlight other design principles which I commonly use with clients. In addition I plan to write about creating value in processes when we redesign them.

Check us out at Value Creation Partners.

 

 

Filed Under: Process Design Principles

Improving Business Results Through Process Management

November 23, 2011 By

Business processes constitute a significant portion of an organization’s operating costs. And the more bureaucratic an organization is – the greater the potential to reduce operating costs. Management silos (hierarchical structure) can be devastating to an organization’s performance and cost structure. Walls need to be torn down, and the internal customer/supplier model embraced.

Unfortunately, line and staff departments have become too myopic or insular. Process management is imperative in order to manage and improve cross-functional business processes. And the more process-centric an organization is – the more performance-driven it will be. If you think you can be customer-centric, without being process-centric – think again. Processes must put the customer first.

Process Management Introduction

The stark reality is that processes (especially cross-functional processes) are usually not documented, not systematically and continually improved, and not managed. So why improve and manage processes? Simply, processes are the fundamental building blocks for achieving business results, and streamlined processes are critical to building and maintaining a competitive edge.

When I ask a client to give us a snapshot of their business, the discussion usually starts off with their history, an overview of products and services, core capabilities, and even their customer base. Along the way, an organization chart is typically thrown into the fray. But, perhaps the most revealing snapshot of all is an “organizational map” that shows the interrelationship of company-wide key business processes.

An organizational map is a top-level blueprint of the fundamental structure for an enterprise. This macro-level flowchart shows the interrelationship of business processes at a twenty-thousand foot elevation. It is the foundation from which to build an agile, competitive organization. Yet, alarmingly few organizations have taken the time to construct this “capstone” document.

Process Management begins the process of visualizing the organization as a whole – determining how one aspect of the system affects another. Leaders need to extend their vision beyond the project or function – beyond their department – to see the organization through a new set of glasses. They must focus on those key business processes that affect business objectives and critical success factors. Leaders must be visionary, and they must see the world anew.

Process Management Focus Areas & Tools

There are three general focus areas. These are: (1) making business processes effective – producing the desired results; (2) making processes efficient – minimizing the resources needed; and (3) making processes adaptable – being able to adapt to changing stakeholder and customer business needs.

An integrated holistic approach is essential to process management. Process mapping and flowcharting (down to the task level) are central to this effort. You can use a combination of several process flowcharting techniques – process maps, block diagrams, standard flowcharts, functional flowcharts, and geographic flowcharts. But remember, the journey starts with an “organization map – a macro-level flowchart.”

Process maps provide a composite overview of the business process, from an organizational context. Block diagrams provide a quick overview of a business process. Flowcharts are used to analyze the detailed interrelationships of a business process, and geographic flowcharts illustrate the process flow among locations.

Process Management Roadmap

A systematic approach (roadmap) is needed to improve business performance. There are proven strategies, methods, and tools to create a streamlined organization with a significantly lower cost structure. An integrated process management approach should link the organization’s mission, culture, business objectives, and key processes.

Our methodology consists of ten integrated tools and/or steps:

  • Bureaucracy elimination – remove unnecessary administrative tasks, approvals, and paperwork.
  • Duplication elimination – remove identical activities that are performed at different parts of the business process.
  • Value-added assessment – evaluate every activity in the business process to determine its contribution to meeting stakeholder/customer requirements.
  • Task elimination/simplification – reduce the overall complexity of the process.
  • Process cycle time reduction – determine ways to compress cycle time to meet or exceed stakeholder/customer expectations, with fewer resources.
  • Error proofing – make it difficult to do the activity incorrectly, while standardizing the activity at the same time.
  • Problem definition/solving – utilize a problem solving methodology (roadmap) that focuses on identifying and eliminating root causes.
  • Technology/automation considerations – apply technology platforms and enterprise/legacy applications in innovative ways.
  • Business process reengineering – use a radical approach to change the process, when the previous streamlining methods have not provided the desired results.
  • Performance measurement – identify appropriate performance measures that will paint a composite picture of the business process performance.

Process Management Absolutes

There are a dozen process management absolutes that must be considered when you embark on a process management journey. You might also view these as “best practices.” Either way, these are critical to success:

  • Ensure management commitment upfront
  • Create an environment where departments are partners, not competitors
  • Reward cross-functional collaboration
  • Take a disciplined, integrated approach to process improvement
  • Allocate resources based on process needs
  • Link process improvement initiatives to your strategic plan
  • Identify critical business issues to drive improvement
  • Ensure that product and service processes are customer-driven
  • Put comprehensive and reliable process metrics in place
  • Define and implement strategies to keep each process measure in control
  • Measure levels of internal/external customer satisfaction for each process
  • Reward individuals for their contributions to process improvement

For more information on Process Management, contact Value  Creation Partners (925) 459-8755

Filed Under: Process Improvement