Work Standardization & Metrics-Based Process Mapping

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Work Standardization &

Metrics-Based Process Mapping

© 2011 Karen Martin & Associates

Learning Objectives

The benefits of work standardization.

The step-by-step process for work standardization.

How to standardize “high variation work.”

Characteristics of job aids.

Current state documentation techniques.

How to create Metrics-Based Process Maps.

2

Building a Lean Enterprise

Process

Stabilization

Tools

Building a Lean Enterprise


Standardized Work Defined

The current single best way to

complete an activity with the highest

degrees of safety and efficiency,

which produces consistent and

high quality outcomes.

5


Standardized Work

A tool for maintaining quality, safety,

productivity, and employee morale

at the highest possible levels.

6


Standardized Processes Yield

Consistent Quality Results

7

People

LEAN = People using standard processes to get results

Standardization

Desired

Results

R1

R2

R3

R4

People

TRADITIONAL = People doing what they can to get results

Inconsistent

Results

Inconsistent

Processes


Benefits of Standardized Work

Consistent quality

Improved productivity

Easier, more effective training

Predictability; better decisions

Foundation for making improvement

8


Standardized Work

Standardized work nips common

problems in the bud so that staff

can focus instead on solving

uncommon problems.

― Bill Marriott, CEO, Marriott Hotels

9


The Improvement Process

10

Plan

Do

Check

Act


Process for Creating

Standardized Work

1. Define scope – “fence posts” and conditions.

2. Form improvement team.

3. Study the current state to gain a deep understanding.

4. Design the improved state.

5. Document the improved state.

6. Test and gain consensus.

7. Finalize and implement new standardized process.

8. Measure results; adjust if needed.

9. Monitor ongoing performance.

11

Key Success Factor – Plan & Communicate via Charter

12

Implementation

Complete

1

2 1

3 2

4 3

5 4

5

1 6

2 7

3 8

4 9

5 10

1

2 1

3 2

4 3

5 4

5

6

7

8

9

Contact Information

Name

Testing

Complete

Future State

Design

Contact Information

Value Stream

Champion

Current State

Analysis

Facilitator

Executive

Sponsor

Process Owner

Specific

Conditions

Value Stream /

Process

Customer Demand

Last Step

First Step

Improvement CharterImprovement Scope Leadership Due Dates

Root Cause

Analysis

Trigger

Event Drivers / Current State Issues Core Improvement Team

Results

Validated

Required

Interim Briefing

Attendees

Boundaries &

Limitations

Implementation

Timeframe

Function

Event Goals & Measurable Objectives

Benefit(s) to Customers, Company, Staff Additional Support

Results Validation - Planned Method & Frequency

NameFunction

To download:

www.ksmartin.com/files/templates/improvement_charter.xls



Standardized Work










13


Standardizing Work – Step 1

Define Scope

Select the first and last steps (fence posts) between

which you’ll standardize the process.

1 2 3 4 5 6 7 8

Area of Focus

Limit the conditions initially to reduce variation as you

seek to deeply understand the current state. Aim to

apply the future state to as broad a set of conditions

as possible.

14


Narrowing the Scope:

Select Specific Conditions

15

Imaging

Inpatient

Outpatient

X-Ray

CT / MRI

X-Ray

CT / MRI


Narrowing the Scope:

Example

Order

Fulfillment

Process

International

Domestic

Service Parts

Consumables

Units

Non-

Warranty

Warranty

Service Parts

Consumables

Units

Non-

Warranty

Warranty



Standardized Work










17


Improvement Team

No more than 10.

Composition:

Process workers (approx 50% of the team)

Upstream suppliers (internal and/or external)

Downstream customers (internal and/or external)

Outside eyes – people who have no “skin in the

game”; 100% objective

Support services

Subject matter experts

18



Standardized Work










19


Studying the Current State

Steps: observe, measure, document, analyze

Go to gemba (genchi genbutsu)

Document the current state – Options:

Spaghetti diagrams, photos, drawings, etc.

Metrics-based process map (MBPM)

Identify variation in terms of inputs, data, people,

equipment & supplies, environment, etc.

Study root cause(s) of variation

What are the best practices?

20


The Work We Do:

Degrees of Granularity

21

Value

Stream

Process Process Process

Step Step Step

Value Stream

Map

In the Weeds

Tactical -

HOW?

Primarily

Workers

Rooftop View

Strategic -

WHAT?

Primarily

Leadership

Metrics-Based

Process Map

22

Traditional Mapping Method:

Process Flow Chart

Where’s the quality? Where’s the time?

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

© 2011 Karen Martin & Associates 23

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

Tool which highlights the disconnects / wastes /

delays in a process.

Keeps the improvement focus properly directed

Means for documenting standardized work for

workforce training and process monitoring.


Lean Facilitator

Range of Necessary Traits

Skills / Knowledge Defining value; identifying waste

Improvement tools (root cause analysis, flow-enhancing tools, etc.)

Project & time management

Team building / facilitation

Mediation; consensus building

People effectiveness – from front line workers to execs

Authority / Respect Designated change agent / influence leader

Trustworthy

Comfortable removing obstacles & reaching out to senior leadership

Personality / Energy Naturally curious

Challenging, yet supportive

Positive, upbeat, energetic

Pushy without irritating

Objectivity / Fairness No attachment to the work being improved

24


(MBPM)


Document the Current State

Step 1 – Label the map in the upper right

hand corner.

Include process name, conditions mapped,

date, and facilitator name and/or team

members.

26

Step 1: Label the map

Process Name

Included/Excluded Conditions

Current State MBPM

Date

Facilitator and/or Team Names

Use 36” wide white paper with 6” swim lanes (hand drawn, chalk

lines, or pre-printed). Pre-printed 8’ template is available at:

www.ksmartin.com/files/templates/MBPM_swimlanes.pdf



Step 2 – Label the swim lanes with the

functions involved.

Include external functions, if appropriate (e.g.

customers, suppliers/contractors, etc.)

28

Step 2: List functions

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



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.

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Activity

(Verb / Noun) Function that

performs the

task

Step 3: Document the Activities

Step 1

Step 2

Parallel Steps (concurrent activities)

Ticking clock



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.

33



Step 4 – Number the activities.

Number the activities sequentially from left to

right.

For parallel activities, add “A,” “B,” etc.

Example: Step 8A, Step 8B, etc.

Don’t number the post-its until the map is

“final.”

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Step #

Step 4: Number the Activities

Note: For parallel

activities, use

alpha modifiers --

e.g. 8A, 8B, etc.



Step 5 – Add task-level information:

Number of staff involved (if relevant)

Barriers to flow Batches

Shared resources

Equipment downtime

Etc.

Key metrics (include units of measure) Process Time (PT)

Lead Time (LT)

Percent Complete & Accurate (%C&A)

36

# 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


Key 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, not merely waiting time.

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Lead Time vs. Process Time

Scenario 1

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Lead Time

Work

Received Work passed

to next step

Process Time

LT = PT + Waiting / Delays


Lead Time vs. Process Time

Scenario 2

40

Lead Time

Work

Received

Work passed

to next step

Process Time

LT = PT + Waiting / Delays


Key Lean Metric: 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.

41


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 %C&A for a post-it is the product of all downstream responses

Response is placed on the post-it for the output step

0% at a particular step is not rare

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Documenting the Current State

Step 6 – Define the “Timeline Critical Path”

Longest LT unless “dead-end” step

If longest LT is a dead end step, then bring the

next longest LT to the timeline

Use colored marker

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Step 6: Define the “Timeline Critical Path”

For parallel activities: Chose the longest LT unless a

“dead-end” activity


Documenting the Current State

Step 7 – Create the timeline

Bring down the PT & LT from the timeline

critical path steps.

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Step 7: Create the Timeline



Step 8 – Calculate the summary metrics

Time - Percent Activity

Quality - Rolled First Pass Yield (RFPY)

Labor Effort

Complete metrics grid

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Summary Metrics: Time

Percent Activity (%Act) (also referred to as

Activity Ratio)

The percentage of time anything is being done

to the work passing through the system (whether

value-adding or non-value-adding)

%Act = (∑PT ÷ ∑LT) × 100

100 – %Act = % Time Work is Idle

Common finding = 1-10%

Could also calculate %VA to show much activity

is value-adding – is typically lower than % Act.

48


Summary Metrics: Quality

Rolled First Pass Yield (RFPY)

The percent of value stream output that passes

through the process “clean,” with no “hiccups,”

no rework required.

RFPY = %C&A x %C&A x %C&A…

Common finding = 0-15%

Multiply ALL %C&A’s, even if parallel processes

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Summary Metrics: Labor Effort

Total PT

Sum of all activities, not just timeline

Labor Effort

50

Total PT (in hrs) X # occurrences/year

# FTEs Available work hrs/year/employee

=

•FTE = Full-time Equivalent (2 half time employees = 1 FTE)

Metric Current State Projected

Future State

Projected %

Improvement

Timeline PT

Timeline LT

% Activity

Rolled First

Pass Yield

Total Process

Time

Labor effort

Freed capacity


Summary Metrics



Step 9 – Identify the value-adding (VA)

and necessary non-value-adding (N)

activities

Use small colored post-its labeled with “VA” or

“N”.

All unlabelled post-its represent waste.

NOTE – this is the first of two “bridge steps”

between current state documentation and

future state design.

52


Step 9: Label the value-adding (VA) and

necessary non-value adding (N) activities

53


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

54


Eight Wastes (Muda)

Overproduction

Inventory

Waiting

Over-Processing

Errors

Motion (people)

Transportation (material/data)

Underutilized

people

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Typical Current State Findings

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Value Add

Necessary

NVA

Available

to work on Available to

next step

Unnecessary

NVA

“N”

Post-it

“VA”

Post-it

Future State Design: How can we advance from one “VA”

or “N” step to the next and eliminate all waste?



Step 10 – Circle the step-specific metrics

that indicate the greatest opportunity for

improvement.

Low step-specific %activity, low %C&A, etc.

This is the second of the two steps that

provide the bridge between current state

documentation and future state design.

Use a brightly colored marker

57

Step 10: Circle the data that indicates

the greatest need for improvement



Study the current state to gain a deep understanding

(observe, measure, document)

Go to the Gemba

Document the current state – Options:

Spaghetti diagram

Metrics-based process map (MBPM)

Photos/drawings

Identify variation in terms of inputs, data, people, equipment &

supplies, environment, etc.

Study root cause(s) of variation

Five why’s

Cause-and-effect diagram (fishbone)

Pareto

What are the best practices?

59


Current State Facilitator Tips

Keep the team focused on current state. Quickly flip chart future state ideas to capture them, then return

to current state.

If the LT is 8 hrs for a block, it doesn’t matter if the PT is 5 or 8 mins. Limit debates over things that don’t matter.

If three people perform the work three different ways, select one way for the current state map.

Create a safe environment for “telling the truth.” “It is what is it. No blame. No worries.”

“People aren’t the problem. The process is the problem.”

Help them “digest” how “bad” the process is. “It’ll be easy to be a rock star!”

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Standardized Work










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Design the improved state.

Assure it’s an improvement, not merely

change.

Avoid “process tampering.”

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Plan

Do

Check

Act


Avoid “Process Tampering”

Process tampering is making changes without:

a complete understanding of the process.

the basis (measurement) to predict how the process

will perform with the improvement in place.

Process tampering is often a result of firefighting

– dousing the flames without the basic

understanding of what caused them and root

cause corrective action.

Process tampering typically doesn’t lead to

improvement and often worsens the process.

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Process Improvement Process Tampering

Simplifies Complicates

Fire Prevention Fire Fighting

Measurable Subjective

Fact Driven Opinion Driven

Improves Morale Erodes Morale

Prediction Detection

Customer Focus Mandatory Customer Focus Optional

Processes are Improved Blame is Established

Saves Money Costs Money

Avoid “Process Tampering”


Future State Design

Standardize work, resulting in:

Increased quality RFPY and %C&A for individual process steps

Increased responsiveness / better flow Timeline LT and LT for individual process steps

Increased % Activity

Reduced labor effort (to free capacity) Total PT for entire process

Increased safety

Less stress; increased morale

65

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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Standardizing Work While

Allowing for Variation

Create a “process spine”

Standard work at key milestone points

Controlled variation between the standard

work points

Accommodates the “art” of knowledge work

x x x x x

Standardized Work

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

18

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?


Document Projected

Future State Results

70

Metric

Current State

Projected

Future State

Projected %

Improvement

Timeline PT

Timeline LT

% Activity

RFPY

Total PT

Labor Effort

Freed capacity


Summary Metrics: Labor Effort

Total PT

Sum of all activities, not just timeline

Labor Effort

71

Total PT (in hrs) X # occurrences/year

# FTEs Available work hrs/year/employee

=

* FTE = Full-time Equivalent (2 half time employees = 1 FTE)

NOTE: Can convert into labor expense if want to show financial

impact of waste. Or report in hours if less than 1 FTE

difference.

Freed

Capacity = Current State FTEs – Future State FTEs


Calculating % Improvement

Current State – Improved State

Current State x 100


Future State Facilitator Tips

Reduce resistance by pointing out how “boring” waste is and how energizing it is to provide customer value.

Spark innovation by using examples outside your own company / industry.

Guarantee the team that they will not lose a paycheck and that they’ll be properly trained for any new role they take on.

Guarantee the team that if the process is more difficult (after a learning period), you’ll revisit the improvement.

Guarantee the team that you’ll only make a process change if it’s indeed an improvement.

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Standardized Work










74



Document the improved state

Reduce reliance on traditional standard

operating procedures (SOPs)

Increase reliance on the metrics-based process

map itself and “job aids.”

Include the expected process performance

metrics.

75

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

From Metrics-Based Process Mapping: An Excel-Based Solution (Productivity Press)

Color-Coded Summary Metrics Sheet

Auto-Calculates:

Summary time and quality metrics for before and after maps

Projected % improvement (color-coded for visual ease)

Staffing requirements

User-defined metrics

Standardized Work Job Aids

• Simple

• Visual

• Physical

• Posted at

point of use

• Created by

people who

do the work

and tested

by others


Job Aid Criteria

Serves as memory jogger

Simple

Just the facts

Strong emphasis on

reducing variation to

improve safety, quality &

efficiency

Visual - Strong use of:

Color

Photos

Drawings

Physical

Posted where the work is

done (and/or carried by

process worker)

Not hidden in a computer

Created by the people

who do the work

With strong involvement by

the customer

Test thoroughly!

Gain consensus!

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“Rings of Knowledge” (ROKs) &

“Memory Jogger” Job Aids


Standardized Work for Electronic

Data Entry

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Assembly Visual Aid DESC.: Threading Operation

CELL: 25

1Take part from cart

2 Inspect for cracks, burrs and poor plating (see

sample boards)

Step 1

Authorized By: Joe Blow

OP#: 2

DOC. NO. : V25-2A

MODEL(S): All model “A”s

DATE: 03 / 03 / 97

1. Place body in machine fixture.

2. Make sure part is seated in fixture as shown in photo

Step 2

1. Pull the red button located at the front of the

machine

Step 3

1. Switch button from “manual” to “automatic”

Step 4

1. Once part is threaded, take out of fixture and load

next part

2. Review that part is threaded properly

Step 5

1. Place piece on mounting rail for next operation.

Step 6

Page 1 of 2

Inspect work done at previous station Value add operations Self inspection

Checklists

assure all

critical tasks

are done

within defined

timeframes



Standardized Work










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Improvement Testing

Purpose: Work out the bugs and gain

consensus (to enable sustainability)

Run on “real time” processes.

Have others review, comment, etc.

As broad a sample as is “reasonable.”

Adjust as needed.

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Plan

Do

Check

Act



Standardized Work










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88

Plan

Do

Check

Act


Finalize & Implement

Implementation = relevant and effective

training.

Consider non-traditional means.

Never communicate changes by email

alone.

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Plan

Do

Check

Act



Standardized Work










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Measure Results

Use the same metrics so you compare

apples to apples.

Adjust if needed.

Communicate results!

Post the results in a high traffic location.

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92

Plan

Do

Check

Act



Standardized Work










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Monitor ongoing performance –

continuously improve as needed.

Who?

Establish a “process owner” – supervisor or below

How often?

How are results communicated?

Who coordinates ongoing improvement?

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“You get what you expect and you

deserve what you tolerate.”



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Plan

Do

Check

Act


Work Standardization: Summary

Must be created by the people who actually do the

work.

Remove all obstacles to worker success.

Beware of over-standardization re: process and

environment – it’s the results that matter.

Must be clearly and easily communicated; MBPM

and job aids are indispensible tools.

Must be monitored and modified frequently.

Frequent retraining may be necessary.

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Resources

Chapter 12 – Manual method

http://www.amazon.com/gp/product/1563273802?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1563273802

http://www.amazon.com/gp/product/1563273519?ie=UTF8&tag=karmarass-20&linkCode=as2&camp=1789&creative=390957&creativeASIN=1563273519

Additional Resources

98

Chapter 9 Chapter 5 Chapter 12


Learning Objectives

The benefits of work standardization.

The step-by-step process for work standardization.

How to standardize “high variation work.”

Characteristics of job aids.

Current state documentation techniques.

How to create Metrics-Based Process Maps.

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100

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San Diego, CA 92122

858.677.6799

[email protected]

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Work Standardization & Metrics-Based Process Mapping

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Transcript of Work Standardization & Metrics-Based Process Mapping