Berling Associates, Inc. 1 T.E.A.M. EFFORT A Primer on Process Management (A View From The...

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Berling Associates, Inc.

T.E.A.M. EFFORT

A Primer on Process Management

(A View From The Improvements Team Perspective)

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Introduction

The purpose of this presentation is to provide the reader with an orientation to a T.E.A.M. Effort. T.E.A.M. is an acronym for:

Training ourselves to best do our jobs

Enabling ourselves by acquiring the tools we need to serve our customers

Aligning all of our business processes to serve our customers at a profit

Measuring what we do and continually improve how we serve our customers at a profit

It is a term that is used to describe a company’s effort focused on the improvement of business processes. At its core, this presentation is a primer on process management. There are references in certain pages of this booklet to the Knowledge Store. This is a knowledge management software application which is available from flatbridge, an affiliate of Berling Associates.

This presentation is written as if it is being presented by a company improvement team to its employees.

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Where Do We Want To Go

Integrate the notion of continuous process improvement into our culture, by continually

Training ourselves to best do our jobs

Enabling ourselves by acquiring the tools we need to serve our customers

Aligning all of our business processes to serve our customers at a profit

Measuring what we do and continually improving how we serve our customers at a profit

In the near-term, firmly establish the structures to enable the T.E.A.M. Effort to advance within the company

In the intermediate-term make continuous process improvement an integral part of the way we do business

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1. Invests in people

2. Sets clear standards for performance

3. Has consistent management leadership focused on attaining performance excellence through a focus on continuous process improvement

4. Holds ourselves accountable for our performance

5. Identifies all activities with a process

6. Measures all process inputs and outputs

7. Has every process consistent with outputs acceptable to the users

8. Does it right the first time

9. Approaches our business with a cross-functional team effort

10. Eliminates waste

11. Has a culture where everyone wants to improve how we do things

12. Puts performance excellence as the focal point of all processes

13. Prevents, not reacts

14. Celebrates good efforts

15. Clearly articulates its values and mission

16. Has clear and consistent communication

17. Has no functional barriers

Through T.E.A.M. We Want To Assist In Building A Company That

Where Do We Want To Go

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To Get To Where We Want To Go We Need To Enable Top Management To

Demand Improvement/Demand Results

Demand means a clear expectation of improvement results with clear yardsticks and a feedback process

Say Improvement Is Not Optional; It Is Mandatory

Doing nothing is not an option. What you do to improve is optional. Failure is not an option. We will succeed

Focus the Efforts and Energy of the Organization

You cannot stop or cause a river to flow; you can channel the flow in the most productive way

Change the Structure of the Organization to Align with Processes

No restructure for the sake of change; but reorganize around redesigned work

Reinforce the Right Things When They Speak

Constant communication of the right messages will be important during our journey

Be Serious

Continuous process improvement will enable us to win at performance excellence

What Do You Expect From - T.E.A.M.

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What Is Our Goal

We Want All Of Our T.E.A.M. Efforts To Result In

Long-term continuous improvement

Proper allocation of process resources

Trust in a cross-functional team environment throughout the organization

Major reduction in micro-management

Production of products and services which are consistently improving over time

Production of products and services that exceed the needs and expectations of our customers at a profit

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Where Are We Today

1 2 3 4 5 6 7 8 9 10

Control Leadership

1 2 3 4 5 6 7 8 9 10

Exclusive (mine, I) Inclusive (we, our)

1 2 3 4 5 6 7 8 9 10

Fire Fighting Managing Process

1 2 3 4 5 6 7 8 9 10

Blame People Solve Problems

To Chart Our Progress We Should Measure Where We Are Now

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1 2 3 4 5 6 7 8 9 10

Just-In-Case Just-In-Time

1 2 3 4 5 6 7 8 9 10

Correction Prevention

1 2 3 4 5 6 7 8 9 10

Opinion Data (metrics)

1 2 3 4 5 6 7 8 9 10

Reactive Proactive

Where Are We Today

To Chart Our Progress We Should Measure Where We Are Now

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How We Change

Steps To Change

Will – today, tomorrow will be more than wished and hoped for

Belief – requires knowledge and understanding of tools

Wherewithal –requires resources, know how, and know why

Action – happens when management creates the system

System For Change

Plan – T.E.A.M. work plan for our direction

Leadership – problems caused by managers can be fixed by managers

Information – everyone must know roles and responsibilities

Rewards – what is in it for me; people perform in relation to the way they are measured and rewarded

If the message is not loud and clear, people will go back to doing it the way they have always done it

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Our Goal Is Continuous Focus On Improvement

1. Every manager is member of a management team

2. Each management team manages the processes through the use of SPC charts or other metrics

3. Process improvement team resources are focused on processes that are either out-of-control or not operating at a satisfactory level

4. Performance excellence (quality and productivity) is the focal point of all processes

5. Everyone’s job is continuous improvement to attain performance excellence

6. Every activity is included in a process

7. Every process is defined and mapped with measurable inputs and outputs

8. Every person is trained

9. Every person knows who his/her process interfaces are and what the standards are for inputs and outputs

We Will Look Like This When We Are Focused On Performance Excellence

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Dimensions Of Performance Excellence

Conformance to specifications – hand tool will have the correct weight

Performance – refers to a grade of service, typically the number one way customers think of quality

Quick response – measured in delay or elapsed time, i.e. how long a customer waits on the phone for a “live” voice

Features – elements of our pricing plans

Reliability – failure free operation over time

Durability – how long our product lasts

Aesthetics – beauty and elegance, i.e. of how the tools present before being picked up

Perceived quality – perception based on brand image

Humanity – providing customer/vendor support with the right degree of friendliness, attentiveness, humility, etc

Value – what any one is willing to pay for any of the dimensions above

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What Process Do We Use

The focus of process management is on the management of business processes for long-term continuous improvement, not on supervising people for short-term results

Process management is a methodology for creating and maintaining an organization’s effort so as to deliver performance excellence, continuously

This is accomplished by systematically working with the company’s business processes on a continuing basis

This systematic effort has four phases

Focus AnalyzeDefine Improve

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Identify business concerns and opportunities

Obtain input and determine issues

Prioritize issues

Determine processes that effect the issue

Determine responsibility for processes

Deploy to appropriate area of responsibility


For a managed process, describe the process

Establish boundaries of responsibility

Identify standards that address requirements

Develop measures with respect to standards

Streamline/standardize the process

Design data-gathering procedures

Collect data

For each measure, is the process consistent

If inconsistent, address special causes

In consistent, evaluate process acceptability

If acceptable, monitor for opportunities

If unacceptable, monitor for opportunities

Maintain continuous feedback

Process Management Highlights

This is how we manage our processes after all of our processes are mapped

What Process Do We Use

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Process Management

A Process is

An activity or group of activities that generate a measurable output

The unique set of activities for which the organization was created

A Process is not

A generic single word for nonspecific activities like

Communicating

Reading

Reviewing

Discussing

Approving

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Phase One - Focus

This Systematic Effort Has Four Phases

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Identify Issues And Prioritize Significant Processes

Consider the issues, and the process or processes that drive each issue, then assign the issue to a process team

Identify Concerns and Opportunities

Determine Issues

Prioritize Issues

What Processes Affect The Issue

Who Maintains The Process

Assign The Business Issue

Obtain Inputs

DEFINE

IMPROVE

Phase One - Focus

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Identify Concerns And Opportunities

What – actively evaluate the internal and external environment

Why – to

Identify concerns and opportunities requiring action

Identify key issues that impact organizational performance

Ensure all issues are identified in a timely fashion

Start with current business issues

How – by asking

Were we not meeting requirements?

What things, if improved, would have the greatest impact?

What changes are expected?

What changes are today versus tomorrow?

What causes the biggest day-to-day headaches?

What issues do we address over and over?

Where are our competitors beating us?

Where are we beating ourselves?

Focus

IDENTIFY CONCERNS AND OPPORUTNITIES

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Obtain Inputs

What – gather input data from internal or external sources

Why - to

Align processes with standards for performance excellence

Guide and focus improvement efforts

Learn what problems we cause at process interfaces

Learn to set metrics from the perspective of the customer

How

Internal resources – surveys, interviews, frequent visits, etc.

External resources (customers, suppliers, etc.) – surveys, interviews, focus groups, site visits, returns analysis, etc.

Focus

OBTAIN INPUTS

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Determine Issues

What – combine all inputs to form a single list of issues

Why - to

Maintain a balanced perspective

Establish a common understanding of the major business issues

Break down complex issues into manageable segments

How

Ask – what do you mean by ….; what exactly is ……

Ask “why” five times

Focus

DETERMINE ISSUES

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Asking Why Five Times

Ask: Why does it take so long for a customer to be issued a credit for a return?

Answer: A significant amount of research is required before approval can be given to each credit request.

Ask: Why is so much research required before approval?

Answer: When the returns paperwork is received from the Warehouse, there is no authorization number recorded and Credit needs to research it before approval can be given.

Ask: Why does the Warehouse accept a return without an approval number on the accompanying paperwork?

Answer: The Warehouse accepts all returns and sends the paperwork accompanying the return to Credit.

Ask: Why did the customer believe he could return the merchandise in the first place?

Answer: Someone in Customer Support authorized the customer to return the merchandise.

Ask: Why did the person in Customer Support who approved the return not record the return authorization number and associate it with the original invoice?

Answer: There is not business process in place to do that.

The business issue changes from the first question about the time it takes to issue the credit for the return, to the larger business issue that there is not a business process in place for collecting the “right” information, at the right time.

Determine Issues

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Prioritize Issues

What – identify the more critical business issues

Why - to

Focus efforts on most important issues

Start with the most important issues

How

Review facts, inputs, etc. for each business issue

Identify current impact on business performance

Identify what happens if not addressed

Assign a relative importance, i.e. high, medium, low

Focus

PRORITIZE ISSUES

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What Processes Affect The Issue

What – identify the processes that drive the selected business issue

Why - to

Ensure the appropriate processes are being proactively managed and improved

Transition from reacting to issues to improving process causes of the issues

How

Identify the output associated with the selected issue and then identify the process that produces that output

Ask, to address this issue

Where in the organization do we start

What outputs are improved by addressing this business issue, i.e. where is the benefit

Focus

WHAT PROCESSES AFFECT THE ISSUE

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Who Maintains The Process

What – identify who in the organization is responsible for maintaining the process underlying the selected business issue

Why – to ensure that teams manage only those processes they are can directly influence

How – by asking

Does it is process require all or most of the team members or functions they represent to accomplish

Does this process relate to or support this team’s mandate

Is this process linked closely to the business activities of the team

If this process were improved, would this team

Provide the resources

Make the improvements

Initiate the improvement activities

Establish the priority of this process

Does a team lower in the organization have the necessary authority, resources, knowledge, and experience to improve this process

Focus

WHO MAINTAINS THE PROCESS

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Assign The Business Issue

What – determine what team has the proper responsibility and authority for taking action on the selected business issue and for managing the process

Why - to

Ensure that all appropriate teams are working on addressing the identified business issues (some issues impact many teams)

Reach closure within your team on issues so you can move forward

How – identify the appropriate area of responsibility and assign the business issues for analysis

Focus

ASSIGN THE BUSINESS ISSUE

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Phase Two - Define


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Describe The Process And Set Boundaries Of Responsibility

Reach a common understanding of process flow, develop appropriate metrics and establish boundaries of responsibility

Describe The ProcessEstablish Boundaries

of ResponsibilityIdentify Standards That Address Requirements

Develop Measures With Respect To Standards

FOCUS

ANALYZE

Phase Two - Define

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Describe The Process

What –

Create a chronological map of the way that work, materials, information, paperwork, etc. moves through a process

Describe how work is currently done or how new processes will operate

Why - to

Provide basis for common understanding of how processes operate

Map interrelationships of process activities in a natural flow of inputs through transition to outputs

Assist in defining boundaries of responsibility leading to identification of internal and external process interfaces

Assist in determining where measures can be applied to analyze processes

Set the stage for process analysis and improvement

How – through process maps and other documentation

Define

DESCRIBE THE PROCESS

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Establish Boundaries Of Responsibility

What – define managerial boundaries within/between organizations

Why - to

Clearly establish primary responsibilities for process management

Understand where responsibilities begin and end

Avoid multiple management processes

How – assign responsibility to those teams which “naturally” own the process due to location in organization, nature of organization responsibilities, etc.

Define

ESTABLISH BOUNDARIES OF RESPONSIBILITY

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Identify Standards That Address Requirements

What - define the standards to quantify process performance

Why – to establish performance criteria to attain performance excellence

Definitions

Customer requirement – a want or need associated with a product or service as expressed by characteristics and specifications

Standard – a quantified representation of expected process performance necessary to meet and/or exceed customer requirements

Define

IDENTIFY STANDARDS THAT ADDRESS REQUIREMENTS

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Develop Measures With Respect To Standards

What – determine what measures will be used to measure the standards for performance excellence

Why

If you do not measure it, it will not improve

Simple metrics help all teams to focus

How

Think like a customer, i.e. quality and service

Think like a business manager, i.e. cost, productivity and yield

Select a few precise metrics that will tell you how a process is performing

Define

DEVELOP MEASURES WITH RESPECT TO STANDARDS

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Phase Three - Analyze


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Utilize Measures To Understand Process Behavior With Respect To Requirements

Streamline the ProcessDesign Data Gathering

Procedures Collect DataEnsure Each Measure Is

Consistent

DEFINE

IMPROVEEvaluate Process for

AcceptabilityTake Steps to Address

Process Issues

Phase Three - Analyze

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Streamline The Process

What – analyze and simplify the process

Why – to

Immediately make any obvious improvements

Avoid improving activities that are better eliminated

Enhance an activities that need to be

Identify and eliminate differing methods by creating standard processes where appropriate

How

Evaluate the process looking for: duplication of effort, bottlenecks, rework loops, ambiguous accountability, complexity

Review each activity asking: can it be eliminated, can it be combined, can it be performed somewhere else more effectively, can it be error-proofed, can it be standardized

Modify the process in order to: simplify, augment, eliminate non-value added activities, standardize, reduce throughput time, error proof, eliminate bottlenecks, etc.

Analyze

STREAMLINE THE PROCESS

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Design Data Gathering Procedures

What – determine when, where, and how data should be collected

Why – to ensure data will be collected in an efficient and effective manner

How

Consider the practical aspects of data collection

Who will collect the data

How will the data be collected

How frequently will data be collected

How much data will be collected

How much does the data collection cost

How will the data be analyzed

Are special forms required

Will people need training in data collection

Verify the quality of the data

Analyze

DESIGN DATA GATHERING PROCEDURES

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Collect Data

What – collect, tabulate, and display data according to defined procedures

Why - to

Provide an objective basis for evaluating the consistency and acceptability of the process

Provide base line data of process performance

Provide data to guide improvement activities

How – using tools to gather data, i.e. check sheets, data forms, run charts, control charts

Analyze

COLLECT DATA

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Ensure Each Measure Is Consistent

What – determine if the process is operating in a stable predicable manner with respect with each metric

Why - to

Distinguish between the need to address a special cause and fundamental process improvement

Determine if we can predict the future behavior of the process with respect to each measure

Permit more effective use of process improvement resources by correctly distinguishing between common and special causes

How

Analyze the data with the appropriate methods and proceed accordingly

Be careful not to address symptoms versus underlying causes

Analyze

ENSURE EACH MEASURE IS CONSISTENT

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Evaluate Process For Acceptability

What – compare process performance to the standard established

Why - to

Determine if the process is currently meeting the established standards

Provide information to assist in prioritizing improvement efforts

How

Compare process performance against established standards for each metric

For each metric determine if the process is currently and will continue to meet the standard

Analyze

EVALUATE PROCESS FOR ACCEPTABILITY

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Take Steps To Address Process Issues

What – take appropriate action to identify and eliminate root causes of process inconsistency

Why - to

Prevent the reoccurrence of undesirable process behavior

Identify causes of desirable process behavior and incorporate into standard methods

Achieve consistent, predictable process behavior

How

Apply problem solving techniques to address the process inconsistency

Take action to

Eliminate the cause (bad thing)

Incorporate the cause (good thing)

Analyze

TAKE STEPS TO ADDRESS PROCESS ISSUES

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Phase Four - Improve


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Is the Process Acceptable

Improve the Process Identify the Opportunity

Maintain Continuous Monitoring

FOCUS

ANALYZE

Continually Enhance Process Performance

Phase Four - Improve

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Is The Process Acceptable

What – determine if process performance is acceptable to the organization a this point in time

Why – to prioritize improvement efforts

How

For each metric, assess

Feasibility for improving the process

Negative effects of continuing without improving the process

Benefits of improving the process

Consider other activities underway

Decide if the process is acceptable at this point in time; if

Yes – proceed to monitor for future opportunities

No – proceed to take necessary steps to improve

Improve

IS THE PROCESS ACCEPTABLE

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Improve The Process

What – develop and implement plans to address the improvement opportunity

Why - to

Address the identified opportunity with respect to one or more of the standards

Increase customer satisfaction, at a profit

How

Decide what resources are required, i.e. skills, personnel, money, equipment, time, etc.

Decide who should improve the process

If a process team, designate it

Use the problem solving process to close the gap between current and desired performance

Improve

IMPROVE THE PROCESS

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Identify The Opportunity

What – decide if an appropriate opportunity exists for improving an existing process or developing a new process at this point in time

Why – to properly direct and prioritize improvement efforts on a continual basis

How – each organization unit regularly assesses the results of on-going monitoring to decide if any of their processes present an opportunity at this point in time; if

Yes – proceed to take necessary steps to improve

No – proceed to maintain continuous monitoring

Improve

IDENTIFY THE OPPORTUNITY

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Maintain Continuous Monitoring

What

Obtain continuous information monitoring current process performance

Ensure customer needs and wants are continually reflected in performance standards

Why - to

Maintain performance excellence as a mantra

Stay abreast of changing customer needs and wants

Provide current information for prioritizing opportunities

How – each organization unit must gather feedback on a continuing basis either directly or from other sources, i.e. customer surveys, complaint analysis, returns analysis, etc.

Improve

MAINTAIN CONTINUOUS MONITORING

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The Tools We Use

We have a unique set of tools and vocabulary we use as we undertake our process management activities

These tools enable us to have consistency across our documentation and analytical efforts

Process measurements provide a basis for decision making and take work to properly define

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Lexicon Of Our Jargon

Activity - Details of a process which focus on roles and objectives. Questions answered include: Who gets the work done? When is an activity started?

Business Rule - Boundaries or requirements for a process, typically expressed as an If… then… statement. Example: If an order is received before 5:00, then it must be entered into the system that day. Business Rules can delineate responsibility, identify deadlines, and codify reasons behind actions.

Capability Inventory - List of what skills and knowledge is available to an individual filling a position.

Capability Requirement - List of the skills which a person must have in order to perform all tasks associated with an activity, procedure, or work step.

Current State - The way a process is done today, regardless of whether that process is efficient or effective.

Error - Any adverse impact to those dependent on the process, regardless of whether they are internal to Mizuno or external, like the customer. Errors may be potential or actual depending on whether the impact is certain or not.

Future State - The process as it will be after changes are affected to the Current State. The future state is designed to resolve and correct specific Errors.

HR Training - Activities which must take place to narrow any gaps between Capability Inventory and Capability Requirements.

Implementation - Making changes to change a process from Current State to Future State. The execution of a to-do list.

Input - Where information is coming from. An input can be another process or part of a process, a person (such as a customer calling), or a computer system.

We Have A Common Language In Our Process Management And Improvement Efforts

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Interface - Method of exchanging information. This can be via computer communication, telephone, mail, fax, or face-to-face communication. Interfaces can be In or Out, depending on the direction of flow of information.

Metric - Measurement by which a process or part of a process is measured. Must be a unit of time, currency, count, percentage, or amount.

Modification (Mod) - Change to a system, often required by a process change.

Objectives - Goal, or why a process or part of a process is being done.

Output - Information or product created by a process or part of a process.

Procedure - Task level of a process. Procedures are combined to form Activities and are further detailed by Work Steps.

Process Map - Visual representation of a process or part of a process. Used to identify the flow of communication and information flow within a process. Also shows decision points and handoffs between those involved in a process.

Team Leader - Individual responsible for collecting information, mapping, analyzing, and re-engineering a particular process.

Team Member - Individual responsible for documenting the Current State of parts of a process at the activity level and below.

Template - Form used for collecting information about a process or part of a process. The template acts as a reminder of what information will be entered into the system, especially after an interview.

Training Requirement - Difference between Capability requirements and Capability Inventory. Those skills required for a process which are missing.

Work Step - Lowest level of the process hierarchy, focusing on individual physical movements.

Lexicon Of Our Jargon

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Hierarchy For Process Management

Level Focus Example Answers

Group Collection of related processes

Process Relationships and dependencies

Process orders Why?

Activity Roles and objectives Customer calls; CS rep enters an order

Who? When?

Procedure Tasks Confirm customer information

What?

Work Step Physical movement Search on last name; confirm address; confirm call back number

How?

We Have A Common Organization Hierarchy For Our Documentation Of Process

Work Step is the lowest level in the hierarchy, focusing on individual physical movements

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Item Process Group Process Activity Procedure Work Step

Name

Chart

Objectives

Assigned To

Documents

Suggestions

To Do’s

Issues

Notes

Display Order

Triggers

Staff Position

Excel Spreadsheet

Inputs, Outputs, Interface In, Interface Out, Metrics, Errors, Business Rules, Capacities, Description, HR Training

Information We Collect Is Organized Within Our Hierarchy

Hierarchy For Process Management

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Process Maps Document Our Work

Process maps are chronological pictures of the way that work, materials, information, paperwork, etc. moves through the process. These maps are used to describe how work is currently done or to identify how new processes will operate.

Process maps

Provide a basis for a common understanding how processes operate

Map interrelationships of process activities in a natural flow of inputs through transition to outputs

Assist in defining boundaries of responsibility leading to identification of internal and external interfaces

Assist in determining where measures can be applied to analyze processes

Set the stage for systematic process analysis and improvement

To draw these maps we use certain symbols consistently

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Symbols We Use

Flow to/from outside flow

Trigger

Ref.

External reference – this allows links to be made to and from other flows. This other flow should be referenced inside the oval, and there should be a corresponding reference within the other flow.

Starts or kicks off a series of actions. A trigger is often a condition (inventory available) or an action (call from customer support)

Local reference – allows flow to jump across a diagram without the use of long lines. A reference of A jumps to corresponding A reference circle.

Our Symbols Are Our Shorthand

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A task to be completed. Define work done in terms of verb-noun combinations, e.g. scan barcode.

Allows the flow to follow different paths depending on the outcome of the decision or question. May have more than two outcomes.

Summarized action – presents the full details of the action defined elsewhere, with the name indicated here. This allows steps common to more than one flow to be defined once and re-used where necessary.

Action

Decision or Question

Defined Action

Symbols We Use

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Creating The Process Maps We Use

1. Define the process, activity or procedure to be mapped.

2. Assemble the right team members, usually consisting of a process mapper and the individuals who are involved in the process, activity or procedure to be mapped.

3. Establish the boundaries (the beginning and end points) of the process, activity or procedure.

4. Identify the steps within the process, activity or procedure.

5. Determine what is in scope. Identify related processes, activities or procedures, especially focusing on the interface points.

6. List the individual steps.

7. Determine who performs the operation, and list the responsible workers or areas across the top in a separate column.

8. Put the steps in order.

9. Place each step in the appropriate column under the workers or areas.

10. Connect the steps.

11. Assign the appropriate symbols.

12. Review.

12 Easy Steps In Drawing A Process Map

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Interface In

Interface Out

Step 1 Step 2

Step 1A

Step 3

Decision 1

A Clear Concise Visual Of Our Operations

The symbols and words from our lexicon help us to communicate effectively and efficiently

Creating The Process Maps We Use

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Interpreting The Process Maps We Use

Once The Process Map Is Drawn Think About It In The Following Ways

Determine who is involved in the process, activity or procedure

Form theories about root causes of issues with the operation

Identify ways to streamline the operation

Determine how to implement changes to the process

Locate cost-added-only steps

Provide training on how the operation works

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Bottlenecks – Points in the operation where it slows down may be caused by redundant or unnecessary steps, rework, lack or capacity or other factors.

Weak Links – Steps where problems occur because of inadequate training of process workers, equipment that needs to be repaired or replaced, or insufficient documentation.

Poorly Defined Steps – Steps which are not well-defined may be interpreted and performed in a different way by each person involved leading to process validation.

Cost-Added-Only-Steps – Such steps add no value to the output of the process and should be marked for elimination.

Examine Each Division Symbol – Collect data on how often there is a “yes” or “no” answer at decision points marked by diamond-shaped symbols. If most decisions go one way rather than the other, you may be able to remove this decision point.

Examine Each Rework Loop – Processes, activities and procedures with numerous checks generate rework and waste. Examine the activities proceeding the rework loop and identify those that need to be improved. Look for ways to shorten or eliminate the loop.

Examine Each Activity Symbol – Does the step help build a key quality characteristic into the end product? If not, consider eliminating it.

Investigate Those Developing The Process Map –

To see if they have drawn it to represent the process, activity or procedure as they envision it versus the process, activity or procedure as it is.

To see if those developing the map have depicted the obviously illogical parts of the operation. These are often not documented for fear of being called upon to explain why they allowed the process, activity or procedure to be that way.

Investigate The Process Map -

To see all rework loops are documented. Rework loops are either not seen or documented because people assume that rework is small or inevitable.

To ensure that the group developing the map truly understands how the operation works.

Interpreting The Process Maps We Use

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Our Standard Approach For Process Review

Task Co

mp

lete

Identification of Process, Activites and Procedures

1 Identify Process Owner2 Gather existing materials and enter into Knowledge Store3 Conduct appropriate system training with Team Member on entering Process information4 Confirm Process is entered into Knowledge Store5 Identify Activities performed and Objectives of Activities6 Confirm Activity information is entered into Knowledge Store7 Identify Procedures and related information8 Confirm Procedure information is entered into the Knowledge Store

Definition of Detail Work Steps Performed

9 Identify Work Steps for each Procedure10 List supporting information for each Work Step11 Confirm Work Steps and supporting information entered into the Knowledge Store12 List Business Rules13 Confirm Business Rules entered into Knowledge Store14 Complete Capabilities List (Minimum Expectations)15 Identify current metrics and Business Control Processes and make suggestions for enhancements.16 Record current metrics and error definitions at workstep level of Knowledge Store.17 Notify Project Manager that process is complete18 Verify contents of Knowledge Store and conduct QA procedures19 Create and review "Current State" Activity-Level and Procedure-Level Process Map 20 Upload Current State map to the Knowledge Store

A Detailed And Structured Methodology Drives Our Process Review

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Ideas for Change in Process and Identification of Immediate Training Needs

21 Create "Future State" Activity-Level and Procedure-Level Process Map22 Make Process Maps available in Knowledge Store23 Generate Re-Engineering To-Do List in Knowledge Store24 Generate Other To-Do List in Knowledge Store25 Document training requirements in the Training Section.26 Identify major issues to be reviewed with Team Leaders27 Generate Action WorkPlan for each issue28 Add appropriate suggestion/observations/to do's for enhancements.29 Review all documentation with Team Leaders30 Review all supporting materials with Team Members and update as appropriate31 Review and correct "Future State" Map32 Check interfaces in Future State map with other processes33 Test Processes

Review of KS Content and Future Work Plans

34 Review process changes with Team Leaders35 Update Process Maps36 Review To-Do lists37 Review related comments in General Observations database38 Update / create job description on HR site.


A Detailed And Structured Methodology Drives Our Process Review

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Process List

List of Activities

Activity SummarySheet

Objectives, Triggers,List of Procedures

Process Summary

List of Processes

Procedure Form

List of Work Steps,Inputs, Outputs,

Interfaces

CapabilityRequirements

Business Rules

CapabilityInventory

Training Needs(Business & System)

Metrics

Errors

Forms andDocuments

Process Mapping

"Current State" ProcessMaps

Process Analysis

Process Improvements

Process Mapping

"Future State" ProcessMaps

Re-engineeringTo-Do List

Other To-Do List

Implementation ofProcess

Improvements

Our Approach Is Process Oriented

Our approach for our initial process documentation and fact gathering is designed to build the Knowledge Store and to identify the “low hanging fruits” for change. It also sets a path for further investigation through its use of Business Issues, To Dos, etc. Additionally, our process lets people begin to become acquainted with process management


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Interview Checklist Date:

Interviewer:

Interviewee:

1. Identify Process Owner

2. Gather existing materials and enter into Knowledge Store

3. Conduct appropriate system training with Team Member on entering Process information

4. Confirm Process is entered into Knowledge Store

5. Identify Activities performed and Objectives of Activities as they relate to the procedure

6. Confirm Activity information is entered into Knowledge Store

7. Identify your Procedure and specify related information including job position.

8. Confirm Procedure information is entered into the Knowledge Store

9. Identify Work Steps for each Procedure

10. List supporting information for each Work Step

11. Confirm Work Steps and supporting information entered into the Knowledge Store

12. List Business Rules

13. Confirm Business Rules entered into Knowledge Store

14. Complete Capabilities List (Minimum Expectations)

15. Identify current metrics and Business Control Processes and make suggestions for enhancements.

Numerous Templates Are Available To Assist In The Data Gathering Process


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16. Record current metrics and error definitions at work step level of Knowledge Store.

17. Notify Team Leader that process is complete

18. Verify contents of Knowledge Store and conduct QA procedures

19. Create and review Current State Activity-Level and Procedure-Level Process Map

20. Upload Current State map to the Knowledge Store

21. Create Future State Activity-Level and Procedure-Level Process Map

22. Verify Process Maps available in Knowledge Store

23. Generate Re-Engineering To-Do List in Knowledge Store

24. Generate Other To-Do List in Knowledge Store

25. Document the minimum training required to perform the work steps in the training section of the template.

26. Identify major issues to be reviewed with Team Leaders

27. Identify current training needs

28. Generate Action Work Plan for each issue

29. Add appropriate suggestion/observations/to do's for enhancements.

30. Review all supporting materials with Team Members and update as appropriate

31. Review and correct Future Step Map

32. Check interfaces in Future State map with other processes

33. Test Processes

34. Review process changes with appropriate parties

35. Update Process Maps

36. Review To-Do lists

37. Review related comments in General Observations database

38. Update / create job description found on HR site.


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Procedure Template Name:Procedure Name:

Number Work Step Input Output Interface With Metrics Business Rules Capabilities Notes Triggers



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Activity Summary Name:Activity:Objectives:Trigger:

Number Procedure Name Who Performs(position)



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Errors Identified Name:

Number Error Description Error Type (s)* Error Source

*Error Types: system, process (including communication), training/knowledge, external (i.e. supplier)



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Issues Identified Name:

Number Issue



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General Observations Name:

Number Observation



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To-Do List Name:

Number To Do Assign To/ Follow-up Completion Date



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Analytical Tools Beyond Maps

Methods Materials Machines

People Environment Measurement

Process Output

A Process Is Some Combination Of The Below

Some combination of methods, materials, machines, people, environment and measurement is used together to perform a service, produce a product or to complete some other task

We focus on variations within each of these elements to understand how to influence process

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Process flow chart – track the flow of the product or service through all steps and stages

Pareto analysis – plot disturbances (i.e. defects, late deliveries, errors) at every point in the process flow; select the worse case (longest bar on the Pareto chart) for further study

Fishbone chart – make the “worst case” the spine of a fishbone chart. Secondary causes become secondary bones connected to the spine. Tertiary causes connect to secondary causes. Begin experiments on extremity “bones”

Histograms – sometimes it is useful to measure a process characteristic – perhaps one of the extremity bones – and plot the measurement data on a histogram. The shape provides clues to causes

Run diagrams and control charts – in many cases it is valuable to plot measured process data for critical characteristics on run diagrams and SPC charts

Scatter diagrams and correlation – when the process is in statistical control, it is time to consider improving it. One way to investigate things to be improved is by changing something and seeing what happens. The changes and the results go on scatter diagrams, to be checked for correlation. A good correlation is a “hit”; it identifies a likely cause and candidate for improvement

Six Primary Tools Of Process Analysis

These tools are not for design and quality engineers, but are for average personnel with a bit of math education


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Prateo Chart

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A B C D E

Type of Problem

Nu

mb

er o

r C

ost

of

Pro

ble

ms

Exp

erie

nce

d

Scatter Diagram

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0 1 2 3 4 5 6

Observed Value of Variable 1

Ob

serv

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alu

e o

f V

aria

ble

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Histogram

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12

1 2 3 4 5 6 7 8

Observed Value of Variable

Nu

mb

er o

f T

imes

Ob

serv

ed

Shows magnitude of each of several effects; helps focus effort

Shows distribution of some variable; helps identify patterns

Shows associations between two variables; helps to identify possible cause-effect relationship

Variation in parameter

People Equipment

ProcedureMaterial

selection

trainingmaker

age

supplier

type

time

pressure

Shows possible causes of problem; aids in hypothesis generation


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Statistical techniques (metrics) and concepts are the best methods to help us describe, understand, study, control and eliminate variation

Statistical tools alone do not cause process improvement; they merely communicate information about process behavior and are typically placed on the inputs and outputs from a process

Our management system provides the

Ability to hear what is communicated

The training to understand what is communicated

The instructions about what to do and who is responsible when communications are received

We do this so we can

Produce products or services over time which are consistent

Produce products or services that meet the demands of our users (customers)

Do the above at an economical cost


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Develop Process Measurements

Measures provide

An objective basis for decision making

A baseline for improvement efforts

Agreed upon evaluation standards

Understanding of cause and effect relationships

Views to process capability

Before we establish measures we need to

Understand what it is we want to measure

Understand what it is we are measuring

Understand why we are measuring and what we want to improve

Dedicate resources to develop and maintain the measures

Communicate what we are attempting to accomplish with the measures

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The Details Of Process Measurements

A. Determine a Specific Purpose

1. What is the purpose of the measures?

2. Is the purpose clearly understood by all involved?

3. What will we learn from the measures?

4. How will this information help us with our business issues?

5. Will this information aid future efforts for process improvement?

B. Decide What Part of the Process to Monitor

1. Is it critical to our quality and service goals?

2. Will it tell us if we are improving?

3. Does this variation source have any effect on other process steps?

4. Do we have responsibility for the sequence of activities within the process?

C. Decide Which Process Variables to Monitor

1. What variables effect the operation or service?

2. What are the daily inputs to the process?

3. What expected or unexpected changes, maintenance or stoppages occur in the process?

D. Identify Monitoring Parameters

Who

1. Who will collect the data?

2. Who will write on the process log?

3. Are all shifts involved?

4. Is any training required?

5. Who will coach the people involved with data collection?

What and Where

1. What type of chart or data sheet do we want?

2. Are special forms needed for data entry?

3. Where will the blank data forms be kept?

4. Where will in-use data forms be kept or posted?

5. Is proper workspace available?

6. Who else needs to see this data?

7. Does everyone know how to interpret the information?

8. What corrective actions should be taken?

Development Of Measurements Is A Time Consuming and Thoughtful Process

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E. Determine if Data is Already Available

1. Doe we believe the data available is accurate and representative of the process?

2. Is this effort an unnecessary duplication of something that has already been done?

3. Is available data adaptable to what we want to find out?

4. Can available data provide us a base from which to start?

F. Coordinate Process Improvement with All Areas Effected

1. Has the effort been adequately coordinated with other organizations being effected?

2. Have people from all needed areas of expertise been involved?

3. Has budget authorization for the effort, if necessary, been coordinated?

G. Analyze Data

1. Does the data collector(s) understand and utilize the data?

2. Is the data readily available to anyone involved with improving the process?

3. How often will the group review this information together to formulate action plans?

4. Does the data require any further analysis or calculations?

5. Who will put together any additional information?

6. Who else needs to see this data?

7. Where will used data forms be kept?

8. How will all this information be brought together and stored so that it will be available for analysis or reference?

9. Who should be contacted if a problem or question should arise?

When

1. How often should the data be collected?

2. Do the scheduled time intervals allow the greatest amount of information about the process behavior to be collected?

3. Do the times accommodate all shifts?

4. How many pieces will be checked at each interval?

Where

1. Which process operations will produce needed samples during data collection and monitoring?

2. Why were they chosen?

3. Does any of the incoming material to this machine/process need to be monitored as well?


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How

1. How will measurements be taken?

2. What measuring device will be used?

3. Is all equipment calibrated?

4. Has everyone been trained in measuring with and reading this device?

5. What degree of numerical accuracy is required?

6. What could interfere with or reduce accuracy with measuring or reading?

7. What calculations will be made?

8. How will this information be plotted or charted?

9. Who will double-check accuracy occasionally?

10. How will this information help us to improve the process, the quality of the product or work smarter?

H. Pursue Action Plan

1. What alternative plans of action have been considered to improve the process based on the data?

2. What measurement items have you selected to judge if you are improving?

3. What problem solving tools will be utilized based upon the “story” told by the data obtained?


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How It All Works Together

1. What is the Process?

(Process Map)

2. What is it currently doing?

(Control Chart/Metrics)

3. What do we want it to do?

(Process Operating Consistently)

4. How do we get it there?

(Change the Procedure or Business Rule)

Over time a process in control is stable, subject to only common causes of variation, and predictable

Currently much of our effort is focused at “A”, with our processes in control our focus changes to “B” allowing us to manage the business versus reacting to problems

Define the Process

Investigate Process Behavior

Problem Solve Until Process Is

Consistent

Establish A Project Team To Improve

The Process

Monitor Process For Continuous

Improvement Opportunities

Not Consistent Consistent

Unacceptable Acceptable

Continuous Improvement Loop

The Goal

Introduce Change

Introduce Change

“A” “B” “B”

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What Structure Do We Use To Move Forward

The Management Team is the current Steering Committee for the T.E.A.M. Effort. Over time the steering committee will be reduced in number of members and will report directly to the president.

The T.E.A.M. Leaders Team (TLT) are the operating arms and legs of the Steering Committee. The team is co-led, and for the time being report to the president. In addition to the co-leaders, the team has representatives from most of the major organization units. These representative are the “owners” of the business processes within the organization.

Project Teams will be formed to review and analyze business processes. These teams will typically be cross-functional and will be convened to focus on a particular issue. A T.E.A.M. Leader will typically head this team or will oversee/coordinate its activity.

The work of the Project Teams will typically be scoped and scheduled by the TLT. The range of projects for a rolling six-month period will be maintained by the TLT. This project plan will be approved by the Steering Committee. Ad hoc projects will arise from time to time and can be scheduled by the TLT. The projects will be typically driven by business issues that arise or identified improvements that need to be made.

The organization units as defined in the organization chart do not change. A primary goal of the TLT is to “transfer” knowledge about process management and measurement tools to the members of the organization units. Over time the organization unit personnel will be enabled to do more and more of the process analysis work.

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This is an executive level management team that currently includes the president and his direct reports. Over time the Steering Committee will transition to a smaller team of executive management members, which will report to the president.

This team provides focus for the T.E.A.M. effort throughout and across the organization.

This team creates the organization-wide top level metrics for performance excellence.

This team must continue to visibly change its behavior to demonstrate cross-functional and team management.

This team eliminates “command and control” techniques and installments practices to empower employees.

This team has primary control, overall responsibility for the T.E.A.M. Effort.

This team meets regularly, no less than monthly, to manage its processes.

This team becomes the primary advocate for performance excellence.

This team reconciles vision, mission, strategy, plans, roles within the organization.

Steering Committee

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Steering Committee’s Charter

Build Division Level Management Awareness and Understanding of T.E.A.M.

Become a Vocal T.E.A.M.Advocate

Review and Approve T.E.A.M. Plan

Provide Guidance in the Development of the T.E.A.M. Direction

Become the Exemplar for Cross-Functional Behavior

Assist in Identifying Key Measures of Success for T.E.A.M. and Business

Provide the Resources and Time Commitments for the Plan

T.E.A.M. will flounder if

Steering Committee is not an aggressive advocate

The organization does not sense the level of commitment and the seriousness of the effort

The work of all in the organization toward this effort is not recognized and lauded; (this work is on top of their existing duties)

The T.E.A.M. Effort is owned by the Steering Committee; the T.E.A.M. Leaders are the arms and legs of the Steering Committee

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T.E.A.M. Leaders Team

Made up of the owners of the business processes or their designees

Led or co-led by one or more of the members of the team

This team reports to the Steering Committee and is the execution vehicle for the process management programs of the Steering Committee. As such, this team is responsible for the oversight of the execution of business process improvement activities

Is the conduit for information from the organization units regarding business process improvement and measurement priorities to the Steering Committee

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The Team Leaders’ Charter

Map All Significant Business Processes and Identify Measures Inputs and Outputs

Initiate Data Collection with Metrics and Process Charts

Develop Control Strategies for the Operation of Processes

Obtain Feedback from Interface Points on performance excellence

Allocate Resources for Improvement Based on Feedback on Performance

Develop Measures and Data Gathering Procedures

Reconcile Processes and Measures

T.E.A.M. Leader effort is intensive

These steps lay the foundation for continuous improvement implementation

By taking the organization unit members through this process they will be indoctrinated in the process management and continuous improvement effort

Organization unit members will receive certain training during this period

At the conclusion of this process organization members will be able to assume ownership of the process improvement effort

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Expectations For T.E.A.M. Leaders

The business process owner from his respective organization unit

T.E.A.M. Effort facilitator/coordinator for the process improvement efforts within or associated with his organization unit

Coach

The members of his organization unit helping to identify the most feasible and economically beneficial process improvement projects

The project teams within his organization unit and across the company as they undertake their activities

Internal consultant

Help transfer knowledge about particular business processes to others in the organization

Assist in leading certain project teams in their business process improvement efforts

Trainer

Contribute to training design and development

Help conduct training needs assessments

Teach certain aspects of business process documentation, measurement and improvement

Change Agent/Champion - A general advocate and supporter of the T.E.A.M. Effort and all it entails

Our T.E.A.M Leaders Will Require Development As They Become

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Project Team

These teams are composed of employees with knowledge and multiple skills which are sometimes deeper that the members of the T.E.A.M.Leader Team.

These teams are typically cross-functional in composition and the membership is dictated by the nature of the project to be executed.

The teams include specialists or generalists from across the organization without regard to organization position of the individual. The need of the project tasks drive the skill sets assembled by the team.

The charter of the team is very specific and bounded. The time frame for the life of the team is typically under six-months.

A very specific and measurable team goal is specified.

After achieving the goal the team is disbanded.

As new projects are identified, new teams are constituted.

The work this team does can typically described as: study the process, apply process improvement analysis techniques, innovate a solution, implement changes within the project scope, prove results with measurable data, share their experience.

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Suggested Readings And References

The Quality movement has been prominent in the United States for over 25 years. During that time an uncountable number of articles have been written, many many classes have been taught, and numerous quality teams have made improvements to business processes. As a result, the depth and breadth of reading materials and reference books on the topic of Quality have grown exponentially. The authors of these materials have borrowed from each other as they have documented the approach to and the tools of quality. What has been outlined in this compendium includes ideas and techniques documented by those before us. Please find below a listing of places you might look for additional information on the Quality movement.

Out of Crisis; W. Edwards Deming

Kaizen; Masaaki Imai Guide to Quality Control; Kaoru Ishikawa

Managerial Breakthrough; J.M. Juran

What Is Total Quality Control? The Japanese Way; Kaoru Ishikawa trans. David Lu

The Man Who Discovered Quality; Andrea Gabor

Quality Is Free; Philip Crosby Today and Tomorrow; Henry Ford

Taguchi Technologies for Quality Engineering; Phillip Ross

The Memory Jogger; Goal; Michael Bassard

Measuring Up; Hall, Johnson, Turney

The Change Masters; Rosabeth Kanter

Various Publications; Tennessee Associates

Dynamic Manufacturing; Hayes, Wheelwright, Clark

World Class Manufacturing; Richard Schonberger

Various Publications; Organization Dynamics, Inc.

Building A Chain Of Customers; Richard Schonberger

Market Driven Quality; IBM

Leadership Through Quality; Xerox

Total Customer Service; Davidow and Uttal

The Goal; Eliyahu Goldratt

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Contact Information

Rob BerlingBerling Associates

550 Pharr RoadSuite 212

Atlanta, GA 30305

Tel. 404.365.9836Fax. 404.365.9837

Email: [email protected]

Date post:	26-Mar-2015
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