Name

Department

Title

Process

Lean Applied to Business Processes SA&D Guide

Opportunity

/ Target #3

Charter

MissionSWOT

Analysis SIPOCVision

SIPOC

(Prep)

Mission

/ Vision

(Prep)

High Level

Process

Map

Metric Gap/

Constraint

Analysis

Opportunities/

Targets

Opportunity

/ Target #1

Charter

Opportunity

/ Target #2

Charter

Opportunity/

Target #4

Charter

SWOT

Analysis

Root

Cause

Analysis

Action

Plan

Report

Out

Future

State

ProjectsProcess

Metrics

High Level

Process

Map (Prep)

Value Stream

Mapping/

Analysis

Rapid

Improvement

Events

Strategic

Alignment Repeat Quarterly

Just Do

Its

Lean

Counter-

measures

2All slides originally developed and supported by William Peterson, LeanBP.com

Constraint/

Gap FocusFocus on a Few

w/a High Impact

Process

ImprovementFind the Proper

Level & the Right

Process

Implementation

Action & Follow-

up to Strategy

Processes Improvement Guide

Seeing the Process Lean Countermeasures

Root Cause Analysis Implementation

• Strategic Alignment & VOC

• SIPOC/High Level Map

• Constraint/Gap Analysis

• Value Stream Mapping

• Value Added/ NVA Discussion

• Walk the Process

• Handoffs

• Percent complete and accurate

• Touch time/cycle time

• Work in Process (WIP)

• Spaghetti Diagram

• Ideal State/BPR

• Information at Point of Use

• 5S-Sort, Set in Order, See, Standardize, Sustain

• Visual Management

• Situational Awareness

• Method Sheets/WIP Boards

• Standard Work/Error Proofing

• Template/Checklists

• Optimize WIP

• Email Protocol

• Cell-No Multitasking

• Battle Rhythm Meetings

• Single Text Negotiation

• Brainstorming Eight Wastes

• Cause & Effect Diagram

• 5 Whys

• Check Sheets/ Pareto Analysis

• Future State (7Ws)

• Action plan/ Implementation

• Feedback Loop

3All slides originally developed and supported by William Peterson, LeanBP.com

Mission

Vision

(Name of Process) (verb) to (what the process does) in order to (why the process exists)

while (balancing metric).

A (percent)% reduction in (cycle time/touch time/rework) by (date)

4

CharterMission – Copied from the previous mission statement

Burning platform – the why that creates a sense of urgency to look at this process

Process Description – high level scope of the process (from beginning handoff to the ending handoff)

Problem Statement – a negative statement of what’s wrong, not why it’s wrong.

Sponsor – person creating the sense of urgency

Process Owner – person accountable for process

Team Lead – person with the authority in the event

Facilitator – person who is leading the process improvement project

Team – members of the VSM event

5

SIPOC

Suppliers Inputs Policies Outputs Customers

• Who provides

inputs to you?

• What inputs

are needed to

create

outputs?

• What triggers

you to act?

• What policies,

rules, or

regulations

are in place?

• What do your

customers

need from

you?

• To whom do

you provide

products,

info, or

services?

• Who are the

internal and

external

customers?

6

High-Level Process Map (60,000 foot view)

First step or trigger for

action

Categorize and

Prioritize

Gather Information

AnalyzeCoordinate

DraftFinal Step or

handoff

Volume = How many over what

period of time?

WIP = How many are in the system

now?

Lead Time =How long does it take

to get through the system from

request?

Cycle Time = How long does it take to get through the

system once started?

Rework = What % of the time does it go back a step?

Constraint = Where is the kink in the hose/system?

7

SWOT AnalysisIn

tern

al

Ex

tern

al

Strengths

Opportunities

Weaknesses

Threats

• What you count on to achieve the

mission

8

• Attributes of our job or department

that could hinder your mission

• External resources or events that could

leverage to achieve your mission

• External events that may hinder your

mission

Gap Analysis Problem Statement

We need to reduce the amount of time spent (constraint) in

order to (potential uses of time).

9

Current State- Seeing the Process

• Create a Value Stream Map (yellow Post-its)

• Hand-offs Orange Post-its (% Complete & Accurate at each hand-off)

• Perform a Value-Add vs. Non-Value-Add Assessment

• Determine Cycle Time & Touch Time (for each and total overall)

• Determine Takt Time, if applicable

• Determine number of Steps (VA vs. NVA)

• Compute Rolled Throughput Yield (multiply % Complete and Accurate)

• Estimate Work In Process (WIP= lead time x throughput yield)

• Identify the Constraints

10

Root Cause Analysis

• Brainstorming 8 Wastes

• Create a Spaghetti Diagram

• Cause and Effect Diagram

• 5 Whys

• Check Sheets

• Pareto Analysis

11

12

Lean Applied to Business Processes Reference GuideTypes of Wastes Recommended Countermeasure

1. Lack of Organization Focus or Situational Awareness; Unarticulated, unwritten, or under communicated mission,

vision, norms; too many or incorrect metrics; inability to delegate

and micromanagement

Situational Awareness through Visual Management, articulating,

documenting and communicating Strategic Alignment and

Deployment (SA&D) – Working within Circle of Influence, Leading

Change by Example and Communication

2. Inventory- excessive Work in Process (WIP); projects and

tasks started, not finished, prioritizing/reprioritizing, tracking and

reporting, batching, multitask, etc.

SA&D to Keep WIP Optimal and Visual (WIP Boards) Limit

Multitasking (Personal and Organizational), focus on finish vs. start

too early, determine optimal batch

3. Transportation-inefficient movement of information; handoffs, expediting, facilitating, multiple approvals

Pull Systems using WIP Boards, Reconciling Handoffs, Single Text

Negotiation, and Standard Work

4. Motion; Time wasted searching (even mental) 5S, Information Organization Methodology, Visual Mgt.

5. Waiting; Waiting for the person working before us batching,

starting another task just to fill time

Create Battle Rhythms with Optimal WIP

Use Small Pockets of time to ‘Sharpen the Saw’

6. Defects; Not handing off 100% complete and accurate,

hidden factory

Single Text Negotiation, Standard Work, Service Level Agreements,

and Checklists

7. Over-Processing; Excessive effort in delivering results with

reinvention, variation, scheduling, micro-managing, inspections,

ad-hoc meetings, and excess precision

Common problem solving methodology, understanding the

difference between special and common cause variation, Standard

Work, and Checklists

8. Over-Production; Delivering activities that weren’t asked for

or required; overproduction of initiatives, tasking, emails, reports,

metrics, and distribution lists

Theory of Constraints, SA&D (asking customers), 5S applied to

reports, metrics, and files, and Email Reduction techniques – daily

standups in front of WIP Board, common email protocolAll slides originally developed and supported by William Peterson, LeanBP.com

Cause and Effect Diagram

Lack of Org. Focus Inventory Transportation Motion

Waiting DefectsOver-Processing Overproduction

Undesirable

Effect

Insert Here Insert Here Insert Here Insert Here

Insert Here Insert Here Insert Here Insert Here

13

Insert Here

Circle of Influence-based on the work of Stephen Covey

14

Consider your:Circle of Control• What are the things you can control?

• What processes belong to you alone?

• Start with this concept

Circle of Influence• Who/What can you currently

influence?

• Who/What should you influence?

Circle of Concern• Who/What concerns you?

• Who/What should concern you?

The Seven W Questions of Process Design based on the work of Dr. Michael Hammer

• Who should complete this process?

• When should we complete the process?

• Where should the process work take place? On-site vs. Off-site?

• Whether this process should take place at all?

• What are the interconnections? How many handoffs are really needed?

• What inputs (data) and information is needed?

• What degree is acceptable for success?

15

Plan-Do-Check-Act

16

PDCAPlan• Clarify the problem

• Break down the problem

• Set improvement targets

• Determine root causes

• Develop counter measures

Do• See counter measures through

Check• Confirm results and process changes

Act• Standardize successful processes

Future State- Plan

• Create a Value Stream Map (yellow Post-its)

• Hand-offs Orange Post-its (% Complete & Accurate at each hand-off)

• Perform a Value-Add vs. Non-Value-Add Assessment

• Create a Spaghetti Diagram

• Determine Cycle Time & Touch Time (for each and total overall)

• Determine Takt Time, if applicable

• Determine number of Steps (VA vs. NVA)

• Compute Rolled Throughput Yield (multiply % Complete and Accurate)

• Estimate Work In Process (WIP= lead time x throughput yield)

• Identify the Constraints

17

Action Plan- PlanAction items to improve process

18

Examples of Lean Countermeasures Used- Do

• 5S

• Visual Mgt.

• Standard Work

• Check Sheets

• Templates

• Error Proofing

• Cells (Everything at point of use in quantity needed)

• Single Text Negotiations

• Cutting Batches

• Kanban

• Pareto Analysis

19

Results- Check• How the metrics improved?

• How has the balancing metric changed?

• How has this event affected the original problem statement/mission?

• How will the change be institutionalized?

• Next steps

20

Anecdotes- CheckDescribe the implementation: obstacles, decisive moments, leadership support or lack of leadership support, funny stories, etc.

21

Future Steps- ActNext steps

22

Savings and Dates

• Date Project Started -

• Date Project Completed –

• Total Time Savings –

• Total Monetary Savings –