1Copyright © 2011 SOS Consulting, LLC. All rights reserved.
Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Creating Successful Change Using Continuous
Improvement Methods
SWaMFest VIISeptember 15, 2011
Copyright © 2011 SOS Consulting, LLC. All rights reserved.
Susan O. Schall, Ph.D. President/Owner of SOS Consulting,
LLC since 2004 with clients in the chemical, food & beverage, automotive, industrial supply, education, and printing industries.
Over 20 years experience delivering improved performance using engineering, statistical and process improvement methodologies.
Prior to consulting, Susan held a variety of process improvement and leadership roles at RR Donnelley, GE Lighting, DuPont and Eastman Kodak.
B.S. in Mathematics from SUNY, Fredonia; B.S., M.S., and Ph.D. in Industrial Engineering from Penn State University.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Workshop Outcomes
At the end of this workshop, you will: Understand the basic principles of Continuous
Improvement and similarity with common change management models.
Be familiar with key Continuous Improvement tools and how they can be used to successfully manage change.– What– How– Examples of application
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Agenda
Overview of Continuous Improvement Overview of Organizational Change Models Key Continuous Improvement Tools for Change
– Strategic focus– Helping employees “see” – Communication– Action planning– Hold the gains
Workshop Summary
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Overview of Continuous Improvement
What is Continuous Improvement?
Continuous Improvement (CI) is a never-ending approach to improving organizational performance.
It is based on two premises:– The world will continue to become increasingly
complex and competitive.– The performance of a process will degrade over time
if energy is not applied to maintain and/or improve it.
It is how you meet the increasing needs of customers and stakeholders.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
World Increasing Complex
Based on: Improving Performance: How to Manage the White Space on the Organization Chart, Geary A. Rummler & Alan P. Brache
Providers
Receivers
Alternatives
EnvironmentTechnology – Regulation – Economy – Culture
Funding
Materials
Equipment
HumanResources
Outputs
Requests / Requirements
Outputs
Any Organization
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“Now here, you see, it takes all the running you can do, to keep in the
same place. If you want to get somewhere else, you must run at
least twice as fast as that!”
Red Queen from Lewis Carroll’s Through the Looking Glass
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
“In business, the competition will bite you if you keep running; if you stand still, they will swallow you.”
William Knudsen, industrialist
Process Degradation
Process Degradation
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Types of Continuous Improvement
Daily improvement– Incremental improvement made by those individuals that
are part of the process. – Seeks to standardize and stabilize process performance
and to implement daily controls to sustain the improvement over time.
– Involves use of basic process improvement tools.
Breakthrough improvement– Step change improvement. – Usually created by fundamental changes to the process.– Typically involves the use of advanced process
improvement tools such as Six Sigma, simulation/ modeling, new technology, etc.
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Continuous Improvement
Breakthrough Improvement
DailyImprovement
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Principles ofContinuous Improvement
Value is in the eyes of the customer (receiver). All work is a process. Processes can be measured. Variation exists everywhere. Variation creates waste which leads to process
degradation. Understanding and reducing variation and waste
are key to successful improvement. Involve and empower employees.
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What is Value?
Value Added Activity Non-Value Added ActivityAn activity that changes the size, shape, fit, form, or function of material or information (for the first time) to meet customer demands and requirements.
An activity that consumes time or resources, but does not satisfy customer demands and requirements.
Value add is typically ≤ 5% Non-value add is typically ≥ 95%
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
What is a Process?
A process is a series of activities (value added and non-value added) that converts inputs into outputs to
satisfy customer needs.
ProcessInputs Outputs
Suppliers Customers
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Process Examples
Business– Order entry– Invoicing– Product / service
development– Material / service
acquisition– Product / service
delivery– Personnel hiring– Budgeting
Other– Planning a family
vacation– Getting ready for work– Buying a car– Preparing dinner– Ordering shoes on-line– Obtaining a new
prescription
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Two types of measures:1. Result - Describe the outputs of the process2. Driver - Describe the inputs and/or steps of the process
Measuring Process Performance
Drivers Results
ProcessInputs Outputs
Suppliers Customers
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Variation and Waste
Variation is Everywhere
σ Materials
σ Equipment
σ Work Practices
σ People
σ Measurement
σ Demand
σ Environment
The 8 Wastes
Defects
Over Production
Waiting
Not Engaging Employees
Transportation
Inventory
Motion
Excess Processing
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Generates
Generates
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Hidden Costs of Variation and Waste
Overtime
Rework
Inspection/ChecksMissed Schedules
Budget Overruns
Hidden Costs(Difficult to measure)
Lost
Opportunity
Traditional Costs(Easily identified)
Lost Sales/Orders
Change Requests
Long Cycle Times
Expediting Costs
Productivity Loss
Employee Morale, Turnover
Late Delivery
Excess Inventory
Lost Customer Loyalty
Low Customer Satisfaction
Outsourcing
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Improving Process Performance
ProcessInputs Outputs
Must change inputs & process To impact results
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Involve & Empower Employees
Employees understand the needs of the customer.
Employees think and solve problems. Employees on the front lines can identify and fix
the myriad of small problems that invariably add up to big problems.
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Key Continuous Improvement Tools
Strategic Focus– Shared Vision, Mission &
Core Values– Voice of Customer– Key Measures– Prioritization Matrix– Charter
Process Understanding / Documentation– Process Map/Flow Chart– Work Instructions– Visual Communication– Control Plan
Process Analysis– Value Analysis– Pareto Chart– Histogram– Run Chart– Basic Statistics– Scatter Plot– Fishbone Diagram
Team/Stakeholder– Action Register– Stakeholder Analysis– Communication Plan– RACI
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Overview of Organizational Change
Models
What is Change? According to the dictionary, change is:
– The act, process, or result of altering or modifying.– The replacing of one thing for another.– A transformation or transition from one state, condition or
phase to another.– Something different; variety.
Synonyms for change include:– Alteration– Modification– Transformation– Adjustment– Variation
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Types of Change Incremental change
– Constant process to eliminate problems and improve efficiencies.
– Seeks to maintain “fit” among all components of the organization.
– Aligned with daily improvement.
Radical change– Usually brought on by fundamental shifts in the external
environment.– Typically requires dramatic changes in strategy and abrupt
departures from traditional work structures, job requirements, rituals, and habits.
– Aligned with breakthrough improvement.25
Incremental vs Radical Change
Radical Change
Incremental Change
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Kotter: Why Organizational Change Fails
Allow Too Much Complacency Fail to Create a Sufficiently Powerful Guiding
Coalition Underestimate the Power of Vision Under Communicate the Vision Permit Obstacles to Block the Vision Fail to Create Short-Term Wins Declare Victory Too Soon Neglect to Anchor Changes Firmly in Organization
Culture
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From: John P. Kotter. Leading Change. Boston, MA: Harvard Business School Press, 1996.
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Kotter’s Eight-Stage Change Process
1. Establish a Sense of Urgency2. Create the Guiding Coalition3. Develop a Vision and Strategy4. Communicate the Change Vision5. Empower Broad-Based Action6. Generate Short-Term Wins7. Consolidate Gains and Produce More Change8. Anchor New Approaches in the Culture
From: John P. Kotter. Leading Change. Boston, MA: Harvard Business School Press, 1996.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Five Elements Needed for Creating Change
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Vision IncentiveSkills Resources Action Plan Change
IncentiveSkills Resources Action Plan Confusion
Vision Incentive Resources Action Plan Anxiety
Vision Skills Resources Action PlanGradualChange
Vision IncentiveSkills Action Plan Frustration
Vision IncentiveSkills ResourcesFalseStarts
Creativity
Innovation
AnxietyResistance
Confusion
Transition Zone
Bridges: Managing Change
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Excitement
Anticipation
Confusion
FrustrationReservation
Denial
Ending
Uncertainty
Exploration
Commitment
Adapted from William Bridges. Managing Transitions. Cambridge, MA: Perseus Books,1991
AccomplishmentHigh Energy
Learning
ReliefUnsure
Ambivalence
New Beginning
Skepticism
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Ending Transition Zone New Beginning Communicate the
What, Why and How
Acknowledge emotions, don’t get defensive
Mark Endings
Allow resistance to surface
Provide information about the future/use personnel support structures
Encourage creativity and innovation
Talk to employees about individual transitions
Integrate details into meetings and events
Reward and Recognize
Celebrate
Ensure organizational support for new beginning
Managing Change: Tactics by Phase
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Get leadership to play a role
Expose key leaders and stakeholders to these concepts/ conduct trainings
Communicate the What, Why and How
Consider how it integrates into other areas of the plan
Adapted from William Bridges. Managing Transitions. Cambridge, MA: Perseus Books,1991
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Brain Barriers to Strategic ChangeRight Thing Wrong Thing
Done Well
Done Poorly
From: J. Stewart Black & Hal B. Gregersen. Leading Strategic Change: Breaking Through the Brain Barrier. New York: Prentice-Hall, 2002.
Brain Barrier 1: When opportunities or threats stare people in the face, they fail to see the need to change
Brain Barrier 2: Even when people see the need to change, they often fail to move
Brain Barrier 3: Even when people move, they fail to finish
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
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Leading Strategic ChangeRight Thing Wrong Thing
Done Well
Done Poorly
From: J. Stewart Black & Hal B. Gregersen. Leading Strategic Change: Breaking Through the Brain Barrier. New York: Prentice-Hall, 2002.
1. Repeat message2. Create high-
impact, inescapable confrontations of the facts
1. Make sure destination is clear
2. Provide skills, resources, tools
3. Deliver valuable rewards along the way
1. Provide champions
2. Make the results visible
Common Themes
Strategic focus Helping employees “see” the need for change Communication Action planning Hold the gains
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Continuous Improvement Tools for Change
Key CI Tools for Managing Change Strategic Focus
– Shared Vision, Mission & Core Values
– Voice of Customer– Key Measures– Prioritization Matrix– Charter
Helping Employees “See”– Simple Flow Chart– Cross Functional Flow Chart– Histogram– Run Chart– Pareto Chart
Communication– Visual Communication– Stakeholder Analysis– Communication Plan
Action Planning– Action Register– RACI
Hold the Gains– Work Instructions– Control Plan
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Role of Leaders in Managing Change
Create a climate where truth is heard*– Lead with questions, not answers.– Engage in dialog and debate, not coercion.– Conduct autopsies, without blame.– Build red flag mechanisms that turn information into
information that cannot be ignored.
* Jim Collins. Good to Great. New York: Harper Collins, 2001.
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Strategic Focus Tools
Shared Vision, Mission & Core Values Voice of the Customer Key Measures Prioritization Matrix Improvement Project Charter
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Strategic Change & Improvement
Strategic Change & Improvement
Identify Opportunities
Prioritize & Select
Charter
Scope
Shared Vision, Mission, Values, Key Measures & Voice of Customer
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Shared Vision, Mission, Values, Key Measures & Voice of Customer
Identify Opportunities for Change/Improvement
Shared Vision & Performance Targets
Opportunities to reach the
goals
Problems, Defects, Dissatisfaction
Issues needing attention
Potential Opportunities
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Vo
ice
of
the
Cu
sto
mer
Un
met
o
r n
ew
nee
ds
Missio
n &
Co
re Valu
es
Un
align
ed
Pro
du
cts &
Services
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Mission, Vision & Core Values
Mission: Statement of purpose– Essence of organization; does not change over time.
Core Values: Principles of the organization– Guide behavior and decisions in pursuit of the Mission
and Vision.
Vision: Description of the desired future state of the organization– Clarifies direction for change.– Gap with Current State provides motivation to take
action.
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Relationship Current State, Mission, Vision and Core Values
Vision
Time
Current State
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Discovering Mission, Vision & Core Values
You do not create or set your organization’s Mission and Core Values.
You discover them by looking inside the organization.
Before a vision can emerge, an organization must be clear about its identity.– Organizational Identity = Mission + Core Values
They have to be authentic.– It needs to match in a way that persons familiar with
the organization will recognize it.
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Voice of the Customer Voice of the Customer (VOC) is used to describe
customers’ needs and their perceptions of your product and/or service.
VOC helps identify what is value added in the process.– Non-value added activities are sources of variation
and waste.
Can be used to provide focus to change & improvement efforts.
Can also be used to create a sense of urgency in the organization.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
VOC Data Collection
Customer What & Why Reactive Sources
ProactiveSources Summary
Who is your customer –
internal and/or external?
What do you want to ask them and what information do you need to probe for?
Why are you asking these questions –what information are you expecting to gain?
What reactive actions will you take to gain the information –customer complaint data, monthly scorecard information, customer feedback, etc.
What proactive actions will you take to gain the information –surveys, interviews, customer focus groups, meetings, etc.
What information did you gain from the probing? What does the customer need from your process?
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Proactive: Customer Interview Important information gathering technique to
understand voice of customer. Fosters cooperative working relationship with
customer. Ask open-ended questions such as:
– “Tell us about your job …”– “What barriers do you face in doing your job …?”– “What issues do you encounter when …?”– “Tell me more about …” – “Give me an example of ….”– Use what, how, when or why words
LISTEN!
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Proactive: Customer Survey Measure of what a person knows, likes and dislikes,
and/or thinks about your product and/or service. Must be well designed.
– Identify needs and goals of survey.– Define participants.– Determine format and administration of survey.– Generate survey questions.
• Keep short, simple and relevant• Keep clean• Provide instructions
– Test/pilot with several participants.– Determine how survey results will be analyzed before
administration.50
Proactive: Focus Group A small group of people are asked about their
perceptions, opinions, beliefs and attitudes towards a product and/or service.
Questions are asked in an interactive group setting where participants are free to talk with other group members.
Useful when desired information about behaviors and motivations is more complex than a survey is likely to reveal and when the dynamic interchange between the group members may result in more in-depth and unbiased information than one-on-one interviews.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Translate VOC to Customer Requirements
Voice of Customer(Actual Statements)
Key Customer Issue / Need
Customer Requirement
“This remote does not work!”
Does not understand the operation of the remote.
All remote functions are useable with little to no instructions.
“I don’t want to listen to a bunch of options and then wait on hold.”
Wants to talk to a person quickly when calls for customer service.
Less than 3 options on the phone tree and sufficient CSRs to handle peak calls.
“Why do I have to fill out another form? You already have my information on file.”
Does not want to spend time repeatedly providing the same information before obtaining service.
Verify information and update only when there are changes.
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CTQ Tree Translates customer expectations into requirements.
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Cup of Coffee
Temperature
Taste
Volume
Cost
Hot
Good
Full Cup
Cheap
Degrees F
Customer Taste Satisfaction
Number of Ounces
$
Between 150 & 155 Degrees F
At least 4 on Scale of 1-5
No Less Than 10 Oz
No More Than $1
Drivers CTQCs Measures RequirementNeed
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Procedure for Creating CTQ Tree
Identify customer needs. For each need, determine what fulfilling that
need would mean to the customer. This is a “driver.”
Keep asking the same question – “what would that mean” – until you reach a level where a clear and measurable specification can be written.– Example: “timely and accurate” means “quick
delivery”; “quick delivery” means receipt the next day.
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On-line Ordering CTQ Tree
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Delighters
Must Be
Delight
Neutral
Dissatisfaction
Cu
sto
me
r S
ati
sfa
cti
on
Degree ofAchievement
FulfilledAbsent
PleasedResignedto Reality
NotPleased
Taken forGranted
The Kano Model
– Must be characteristics are generally taken for granted—unless they are absent!
– Delighters are generally not mentioned, since the customers are not dissatisfied with their absence.
– Customers generally discuss or bring up issues related to More Is Bettercharacteristics.
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On-line Ordering Kano Model
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Delighters
Must Be
Delight
Neutral
Dissatisfaction
Cu
sto
me
r S
ati
sfa
cti
on
Degree of
Achievement
FulfilledAbsent
Not
Pleased
Taken for
Granted
Received NextBusiness Day
Sizes &Colors
Catalog up-to-date
Website menus easy to navigate
Links to items correct
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Key Measures High-level indicators of the success of the organization. Often reflect:
– Customer requirements– Financial expectations– Targets for each product/service family and market– Expectations for each competitive advantage to be established
or enhanced
Should be:– Derived from strategic objectives. – Defined and measurable.– Clear to all who have to understand and be guided by them.– Balanced between financial, customer, internal process, and
learning & growth.
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SMART Measures
Specific – identified with a relevant strategic objective, strategy or process.
Measurable – mechanisms exist or can be developed to quantify the metric.
Action-oriented – provide insight into action required.
Relevant – to the critical processes of the organization.
Timely – available at the right moment for decision making.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Operational Definition
A clear, precise description of what is being measured.
Used to remove ambiguity in measurement and improve data integrity – no matter who does the measuring, the results are the same.– Example: One person may say an invoice is paid
when the request to pay is submitted to the accounting system, while another person may say it is paid when the check is cut, while yet another person may say it is paid when the check is cashed.
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Operational Definition ExampleTitle Average monthly invoice cycle time
Purpose Is the average time to pay invoices meeting target?
Description Invoice Cycle Time is the amount of time between when the billing information is received from a CSR as measured using the time stamp on the file to the time the invoice is sent to the customer as measured by the time stamp on the electronic customer notification.
Source of Data Invoice tracking report
Calculation (Time invoice sent to customer) – (Time billing information received from CSR)
Timeframe Calculated for all invoices processed in a given month (28 days)
Units Measured in minutes
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Identifying Key Measures Identify critical dimension(s) associated with each
strategic objective, strategy or process: Quality, Timeliness, Cost, Quantity
Brainstorm potential key measures for each critical dimension.
Evaluate each brainstormed potential key measure:– Does the measure assess performance of the strategic objective,
strategy or process?– Can your organization influence the outcome of the measure?– Can you establish a challenging goal for the measure?– Will the measure result in a number that can be analyzed?– Can you obtain an accurate and precise measurement?– Is it cost effective to track and report?
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Prioritization Matrix
Narrows options (change/improvement opportunities) by comparing and weighing choices against a set of criteria.
Identifies the option that best meets multiple criteria.
Rating of Importance
10 8 9 4 6
Impa
ct o
n C
usto
mer
Cos
t to
Im
plem
ent
Pro
babi
lity
of
Suc
cess
Res
ourc
es
Req
uire
d
Tim
e to
Im
plem
ent
Total
Option
1 Option A 3 9 3 1 3 1512 Option B 9 3 9 3 1 2133 Option C 3 1 1 1 3 694 Option D 3 3 1 1 9 121
Criteria
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Prioritization Matrix Procedure Create a list of opportunities for change/improvement. Create a list of strategic criteria for evaluating the
change/improvement opportunities. Rate importance of each criteria on a scale of 1 to 10, 10
being highest. Rate each opportunity versus the criteria using 0, 1, 3, 9
weighting:– 0 no impact– 1 minimal impact– 3 moderate impact– 9 strong impact
Cross multiply the criteria rating by the opportunity rating to arrive at a total score for each opportunity.
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Prioritization Matrix Example
Dollar impact of Opportunity (10)– 9: > $1 MM– 3 : $250 K to $1 MM– 1: < $250 K
Probability of Success (7)– 9: > than 80%– 3: 50 to 80%– 1: < 50%
Time to Complete (5)– 9: ≤ 4 months– 3: 5 to 6 months– 1: > 6 months
Customer Impact (8)– 9: strong positive and
visible impact– 3: low positive or no visible
impact– 1: negative or no impact
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Rating of Importance ---> 10 7 5 8
Opportunities Do
llar
Imp
act
Pro
bab
ility
of
Su
cces
s
Tim
e to
C
om
ple
te
Cu
sto
mer
Im
pac
t
Total
Time Reconcile Balance Sheet 3 3 3 3 90Invoice Posting First Match Rate 9 3 3 9 198
Interco Manual Invoicing Errors 3 3 3 3 90Time to Archive Financial Docs 1 9 3 3 112Cost Center Splits 1 1 1 3 46Manual Payment Processing 3 3 9 9 168T&E Reconciliation Time 1 3 3 1 54Vendor Data Error Rate 9 3 3 3 150
Impact Ratings
Prioritization Matrix ExampleOpportunities Criteria
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Prioritization Matrix Example
Rating of Importance ---> 10 7 5 8
Opportunities Do
lloar
Im
pac
t
Pro
bab
ility
of
Su
cces
s
Tim
e to
C
om
ple
te
Cu
sto
mer
Im
pac
t
Total
Invoice Posting First Match 9 3 3 9 198Manual Payment Processing 3 3 9 9 168Vendor Data Error Rate 9 3 3 3 150Time to Archive Financial Docs 1 9 3 3 112Time Reconcile Balance Sheet 3 3 3 3 90Interco Manual Invoicing Errors 3 3 3 3 90
T&E Reconciliation Time 1 3 3 1 54Cost Center Splits 1 1 1 3 46
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Charter Opportunities A charter is a one-page document that defines in
clear, specific terms the task an individual or team is to accomplish.
Includes:– Process and process owner (senior leader who has
responsibility for the process and its results)– Opportunity statement– What’s in/out of scope– Objectives (metrics, baseline, goal, entitlement)– Milestone dates– Team members
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Opportunity Statement Factual statement of situation including a
description of what key measure is involved and current level of performance. – Does not assign blame.– Does not assume cause(s) or include solution(s).
Example:– Accounts Payable processes over 150,000 invoices per
year; of those, 35% are being paid out after the contracted 60 day terms. Overdue payments to our enterprise partners are the number one reason for ship and credit holds, resulting in a loss of $2 Million of revenue and on-time performance.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Improvement Project Objectives
Baseline –performance over recent past.– Preferably last 12 months.
Entitlement – best conceivable performance. Goal – desired performance at end of the
change/improvement effort; chosen to close the gap between baseline and entitlement.
Note: Effort should include “balance” metrics.– Primary key measure: Reduce cycle time– Balance measure: Product quality
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Closing the Performance Gap
EntitlementBaseline Closing the
Gap
GoalPerformance Gap
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IMPROVEMENT TEAM CHARTER
Dept/Location:
Process Owner/Champion:
Process:
Date Created/Revised:
Opportunity Statement: In Scope (What is in focus):
Out of Scope (What will not be considered):
Objectives: Metric Baseline Goal Entitlement
Financial Impact:
Milestone Dates:
Team:
Name Role
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Tools for Helping Employees “See”
Process Variation and Waste– Simple Flow Chart– Cross Functional Flow Chart
Process Performance– Histogram– Run Chart– Pareto Chart
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Process Flow Charting Makes the process visible to all members of the
process. Encourages a deeper and broader understanding of
the process. Helps identify process disconnects. Used to identify opportunities to reduce variation
and waste and to create a sense of urgency for change/improvement.
Two common types:– Simple flow chart– Cross functional flow chart
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Simple Flow Chart Detailed representation of the process including:
– Action steps– Decision points– Delays – Movement
Helps employees “see” the sequence of steps in the actual process.
Helps employees “see” the opportunities for variation and waste needing change/ improvement.
Basis for identifying result and driver measures of the process.
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Invoice Process Simple Flow Chart
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Paint Manufacturing Simple Flow Chart
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Loan Approval Simple Flow Chart
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Kidney Transplant Flow Chart
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Based on: Matthew Franchetti & Kyle Bedal. “Perfect Match,” Six Sigma Forum Magazine, August 2009.
Cross Functional Flow Chart
Rearranges flow chart process steps into rows or “swim lanes”.– Rows represent individuals, roles or functions. – Steps fall in appropriate row.– Also known as swim lane flow chart.
Clearly shows hand-offs between individuals and/or functions.
Helps employees “see” opportunities for variation and waste needing change/ improvement.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Invoice Process Cross Functional Flow Chart
87
Sha
red
Ser
vice
C
ente
rP
lann
ing
&
Con
trol
Tea
m M
anag
erS
ecre
tary
Con
sulta
nt
Invoice Process Cross Functional Flow Chart
88
Clie
ntS
hare
d S
ervi
ce
Cen
ter
Acc
ount
Mgr
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Paint Manufacturing Cross Function Flow Chart
89
Paint Manufacturing
Blen
der
Sche
dule
rLa
b Te
chFi
ll O
pera
tor
Phase
Recipe
Charge Materials Mix Sample
Test Ok?
Charge Additional Material
Fill Tank Empty?
Empty Fill Tank
Wait Drop to Fill Tank
Loan Approval Cross Functional Flow Chart
90
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Identify Actual Process
You may think the process is:
When it is actually:
93
Go see the process!
Actual Process Example
94
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Increasing Process Understanding
Changing and improving the process requires increasing understanding of process details.
95
Process Performance ChartsHow are the six sales regions performing?Region 4Qtr96 3Qtr96 4Qtr95
North East 1148 976 952
South East 1337 1197 1196
North West 806 688 878
North Central
702 743 670
Mid‐Atlantic
781 807 802
South Central
359 447 462
• Basic charts help employees “see” the overall process performance, including the location and variability and patterns/trends in performance.
• Facilitate comparisons to requirements or targets or benchmarks.
• Help focus change/improvement efforts.
• Help create a sense of urgency.
• Include: Histogram, Run Chart, Pareto Chart
98
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Process Performance Charts
What Is This?A Picture is Worth a Thousand Words
99
Histogram A frequency bar chart where
the bars show the number of times a value or range of values occurs in the data.
A Histogram can be used to:– “See” the overall process
performance.– “See” the variation or spread
in the performance data.– Compare the process
performance against specifications or targets.
100
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Potential Histogram Patterns
101
Bimodal
Skewed
Bell-Shaped
Sales by Region
103
Time Northeast Southwest Northwest N. Central Mid-Atlantic S. Central1992_Q1 924 1056 1412 431 539 3971992_Q2 928 1048 1280 470 558 3911992_Q3 956 1129 1129 439 591 4141992_Q4 1222 1073 1181 431 556 4071993_Q1 748 1157 1149 471 540 4151993_Q2 962 1146 1248 496 590 4421993_Q3 983 1064 1103 506 606 3841993_Q4 1024 1213 1021 573 643 4481994_Q1 991 1088 1085 403 657 4411994_Q2 978 1322 1125 440 602 3661994_Q3 1040 1256 910 371 596 4701994_Q4 1295 1132 999 405 640 4261995_Q1 765 1352 883 466 691 4451995_Q2 1008 1353 851 536 723 4551995_Q3 1038 1466 997 551 701 3631995_Q4 952 1196 878 670 802 4621996_Q1 1041 1330 939 588 749 4201996_Q2 1020 1003 834 699 762 4541996_Q3 976 1197 688 743 807 4471996_Q4 1148 1337 806 702 781 359
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Sales by Region
104
140012001000800600400
14
12
10
8
6
4
2
0
Northeast
Freq
uenc
y
Histogram of Northeast
140012001000800600400
7
6
5
4
3
2
1
0
Southwest
Freq
uenc
y
Histogram of Southwest
140012001000800600400
5
4
3
2
1
0
Northwest
Freq
uenc
y
Histogram of Northwest
Sales by Region
105
140012001000800600400
7
6
5
4
3
2
1
0
N. Central
Freq
uenc
y
Histogram of N. Central
140012001000800600400
9
8
7
6
5
4
3
2
1
0
Mid-Atlantic
Freq
uenc
y
Histogram of Mid-Atlantic
140012001000800600400
18
16
14
12
10
8
6
4
2
0
S. Central
Freq
uenc
y
Histogram of S. Central
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Kidney Transplant HistogramOriginal Process
106
0
10
20
30
40
50
60
70
80
90
Number observations
Days for completion
Total Processing Time
Based on: Matthew Franchetti & Kyle Bedal. “Perfect Match,” Six Sigma Forum Magazine, August 2009.
Kidney Transplant HistogramImproved Process
107
0
5
10
15
20
25
30
35
40
Number observations
Days for completion
Total Processing Time
Based on: Matthew Franchetti & Kyle Bedal. “Perfect Match,” Six Sigma Forum Magazine, August 2009.
47Copyright © 2011 SOS Consulting, LLC. All rights reserved.
Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Histogram Procedure Collect at least 30 data points. Calculate the range (R).
Choose the number of bars (k) for the histogram• # of data points number of bars
– 30 - 50 7 - 10– 51 - 100 10 - 15– 101 - 200 15 - 20– Over 200 20 - 25
Calculate the width (w) of the bar intervals: w = R/k. Round to a convenient number.
Set up the intervals for each bar starting at (or just below) the smallest data value.
Set the boundaries for each bar using w. Count the number of points falling into each interval. Draw bar graph of counts for each interval.
108
Paint Batch Cycle Time Histogram
109
2001601208040
14
12
10
8
6
4
2
0
Time
Freq
uenc
y
Histogram of Time
The addition of requirements to the Histogram allows one to see how the process performance compares to the requirements.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Variation and Customer Satisfaction
110
LSL USL
$
$
$
$
$$
$
$
$
$$
$
$
$
$
$
$
$
$$
$
$
$
$$
$
$
$
$
$
$
$
$$
$
$
$
$$
$
$
$
Histogram and Requirements The addition of specifications or requirements to the
histogram allows one to see how the process performance compares to the requirements but tell nothing about when out of specification observations occurred. Target
When did these occur?
111
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Run Chart An XY plot of data where
the X-axis is always time. A Run Chart can be used to:
– “See” the overall process performance.
– “See” the variation or spread in the performance data.
– Compare the process performance against specifications or targets.
– “See” shifts, trends, intermittent and cyclic patterns that occur over time.
112
Patterns in Run Charts
40.000
45.000
50.000
55.000
60.000
65.000
70.000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Intermittent Variation
40.000
45.000
50.000
55.000
60.000
65.000
70.000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Shift
40.000
45.000
50.000
55.000
60.000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Trend
35.000
40.000
45.000
50.000
55.000
60.000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Cycle
35.000
40.000
45.000
50.000
55.000
60.000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
Rapid Swings in Variation
113
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Sales by Region
115
1996
_Q4
1996
_Q2
1995
_Q4
1995
_Q2
1994
_Q4
1994
_Q2
1993
_Q4
1993
_Q2
1992
_Q4
1992
_Q2
1300
1200
1100
1000
900
800
700
Time
Nort
heas
t
Northeast Sales
1996
_Q4
1996
_Q2
1995
_Q4
1995
_Q2
1994
_Q4
1994
_Q2
1993
_Q4
1993
_Q2
1992
_Q4
1992
_Q2
1500
1400
1300
1200
1100
1000
Time
Sout
hwes
t
Southwest Sales
1996
_Q4
1996
_Q2
1995
_Q4
1995
_Q2
1994
_Q4
1994
_Q2
1993
_Q4
1993
_Q2
1992
_Q4
1992
_Q2
1500
1400
1300
1200
1100
1000
900
800
700
600
Time
Nort
hwes
t
Northwest Sales
Sales by Region
116
1996_Q41996_Q21995_Q41995_Q21994_Q41994_Q21993_Q41993_Q21992_Q41992_Q2
750
700
650
600
550
500
450
400
350
Time
N. C
entr
al
N. Central Sales
1996_Q41996_Q21995_Q41995_Q21994_Q41994_Q21993_Q41993_Q21992_Q41992_Q2
800
750
700
650
600
550
500
Time
Mid
-Atl
anti
c
Mid-Atlantic Sales
1996_Q41996_Q21995_Q41995_Q21994_Q41994_Q21993_Q41993_Q21992_Q41992_Q2
475
450
425
400
375
350
Time
S. C
entr
al
S. Central Sales
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Run Chart of Paint Batch Cycle Time
117
50454035302520151051
225
200
175
150
125
100
75
50
Index
Tim
e
Batch Cycle Time
The addition of requirements to the Run Chart allows one to see how the process performance compares to the requirements.
118
Run Chart: Lack of Standard Work
90817263544536271891
140
130
120
110
100
90
80
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
180160140120100806040201
40000
30000
20000
10000
0
Production Run
Ove
rage
(lin
ear
feet
)
Overage by Production Run
Run Chart: Visualize Improvement
119
Work Instructionsimplemented Weekly audits
implemented
Run Chart Procedure
Measure process performance over time in sequence.
Draw a graph with a vertical line and a horizontal line.– The vertical line should cover the full range of
measurements.– The horizontal line should cover the time period over
which the data was collected.
Plot the data on the graph. Connect the points to form a line.
120
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Are the 4 Processes the Same?
Statistic Process A Process B Process C Process DAverage 70.0 70.0 70.0 70.0
121
Statistic Process A Process B Process C Process DAverage 70.0 70.0 70.0 70.0
Standard Deviation 10.0 10.0 10.0 32.4
Are the 4 Processes the Same?
Statistic Process A Process B Process C Process DAverage 70.0 70.0 70.0 70.0
Standard Deviation 10.0 10.0 10.0 32.4
Median 70.0 65.7 73.8 74.2
122
Statistic Process A Process B Process C Process DAverage 70.0 70.0 70.0 70.0
Standard Deviation 10.0 10.1 10.0 32.4
Median 70.0 65.7 73.8 74.2
Minimum 29.8 62.9 1.87 11.78
Maximum 103.3 130.4 77.1 132.8
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
123
A
Freq
uenc
y
10090807060504030
70
60
50
40
30
20
10
0
Histogram of A
B
Freq
uenc
y
130120110100908070
140
120
100
80
60
40
20
0
Histogram of B
C
Freq
uenc
y
7260483624120
250
200
150
100
50
0
Histogram of C
Histograms of the 4 Processes
12010080604020
60
50
40
30
20
10
0
E
Freq
uenc
y
Histogram of E
124
Run Charts of the 4 Processes
500450400350300250200150100501
140
120
100
80
60
40
20
0
Index
E
Run Chart of E
500450400350300250200150100501
130
120
110
100
90
80
70
60
Index
B
Run Chart of B
500450400350300250200150100501
110
100
90
80
70
60
50
40
30
Index
A
Run Chart of A
500450400350300250200150100501
80
70
60
50
40
30
20
10
0
Index
C
Run Chart of C
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Pareto Chart
Bar chart of the frequency of categories associated with a specific situation.
Helps “see” those categories that are having the greatest impact.– 80-20 Rule
Helps focus change/ improvement efforts.
125
Pareto Chart ExampleInjuries by Year
InjuryTotal for
Year% Cum
%
Eye 242 40.3 40.3
Hand 130 21.7 62.0
Back 117 19.5 79.5
Arm 64 10.7 91.2
Other 47 7.8 100.0
Total 600 100.0
126
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Pareto Chart of Invoice Errors
0
10
20
30
40
50
60
Goods ReceivedMismatch
PO # Missing Goods Not Received PO # Misquoted Price Mismatch Customer InfoMismatch
Count
Error Type
Number of Invoice Errors by Type ‐ August 2008
127
Pizza Delivery Pareto
0%
20%
40%
60%
80%
100%
120%
0
10
20
30
40
50
60
70
80
Count
Defect
Pizza Delivery Service Defects ‐Frequency
0%
20%
40%
60%
80%
100%
120%
0
50
100
150
200
250
impact
Defect
Pizza Delivery Service Defects ‐Customer Satisfaction Impact
128
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Using Pareto Chart for Focus Use multiple levels to help narrow focus and identify root
causes:
129
Pareto Chart Procedure Make a list of categories to compare. Select standard unit(s) of measurement (count,
time, cost) and time period. Gather the data. Determine the total count, time, cost, etc for
each category. Put in decreasing order. Draw bars representing the magnitude of the
unit of measurement for each category. Review and act on the information!
133
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Key Tools for Communicating Change
Communication is key throughout all change and improvement efforts.
Key tools for communication include:– Stakeholder Analysis– Communication Plan– Visual Communication
134
Stakeholder Analysis A stakeholder is anyone who will be affected by a
project or change in the process.– Stakeholders may include suppliers, customers,
employees, management, other departments, competitors, etc.
Stakeholder analysis identifies all the key stakeholders who will be affected, their current level of commitment and their desired level of commitment and actions to move them from current level to desired level.– Communication plan– Relationship to / member of team
135
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Stakeholder Analysis Matrix
136
Stakeholders Current Commitment
Desired Commitment
Project Impact
Level of Influence
Key Concerns/ Needs/Issues
Action Steps (To move from Current
to Desired Commitment level?)
Relationship Owner
Include all levels that will
be affected and list out
specific names of key leadership/
management
Awareness= Has heard of the effort but hasn’t been affected yet Understanding= Know how will be affected by the effort and has started to tell other people Buy-in= Believe the new way of doing things will work for customers, company and self Ownership= Convinced this is the right way to go and trying to get others on the bandwagon
High= Significant change… Medium= Some change… Low=Minor change… to processes, roles & responsibilities or behavior/ skills
High=If this person/group supports this effort, everyone else will get on board Medium=If this person/group supports this effort, some others will be more likely to get on board Low=If this person/group supports this effort, it won’t
Identify the key issues of this stakeholder
that need to be addressed to move
from current to desired level of
commitment
List any key ideas to feed into key messages for
communication plan
Team member names who
will stay connected with
stakeholder
Levels of Commitment
“I feel personally accountable for the success of the effort, and I will lead the charge! ”
Complexity(depth of
information,interactivity,
etc.)
Time
Awareness
Understanding
Buy-in
Ownership
I have heard about the effort”
“I understand the business case and direction of the effort, and I will not stand in the way.”
“I agree with the business case and direction of the effort, and will participate moving forward.”
137
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Stakeholder Analysis ExampleStakeholders
Current Commitment
Desired Commitment
Project Impact
Level of Influence
Key Concerns/ Needs/Issues
Action StepsRelationship
Owner
AR Analysts Aware Buy-in High High
Accurate, timely cash allocation; no
additional tasks; job security
Weekly updates; involve in
brainstorming sessions
Andrea
AR Supervisor & Team Leaders
Understanding Ownership High High
Accurate, timely cash allocation; no
additional tasks or controls
Weekly updates; supron project team
Suzanna
Audit Dept Aware Understanding Low MediumAppropriate controls used; pass internal &
external audits
Monthly updates; involve in sol’ns
involving controlsAndrea
General Ledger Dept
Aware Understanding Low LowNo change to
systemsMonthly updates Peter
Banks Aware Buy-in Medium High No additional costs
Identify key contact major banks to serve as ext’l resource to
team; engage in select team activities
John
Business Unit Aware Ownership High High
Accurate, timely cash allocation; no
additional costs; no additional tasks or
controls
Weekly updates to all; add
representative to team
Andrea
Business Center
ManagementBuy-in Ownership Low High
Accurate, timely cash allocation, no
additional costs or resources
Weekly updates Andrea
138
Communication Plan
A tool to define key communication activities to address stakeholder communication needs.
StakeholderStakeholderConcern /
Need
Communication Description
(What)
Mechanism (How)
Sender (Who)
Frequency (HowOften)
139Roadmap
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Communication Plan Example
140
StakeholderStakeholderConcern /
Need
Communication Description
(What)
Mechanism (How)
Sender (Who)
Frequency (HowOften)
Country Key Users
Impact on their work load/changes to their daily work
Plans and audit results Teleconference Jason
Beginning & end of pilot
Country Financial Directors
Impact on vendors& cash flow
System monthly performance metrics KPI meeting Peter
Monthly during pilot
ApproversVolume, number
of banksDaily performance
metrics Team meeting Elaine Weekly during pilot
Cash & BankingWork load, frequency
Daily performance metrics Team meeting Jason
Weekly during pilot
AuditSecurity & policy
compliancePlans and audit
results F2F meeting PeterBeginning & end of pilot
Accounts Payable
Volume, workloadDaily performance
metrics Team meeting JasonWeekly
during pilot
TreasuryImpact on vendors
& cash flowSystem monthly
performance metrics KPI meeting PeterMonthly
during pilot
eInvoicing Communication Plan
141
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Building a Communication PlanAnswer the following questions: Who do you need to communicate with? What are their main concerns/needs? What is their current knowledge, commitment? What is the best medium?
– Newsletter, email, voicemail– Town hall or all hands, small groups– Memo/letter, video, intranet/internet– One-on-ones– Visual displays, visual controls
How often should they be communicated with?143
Visual Communication
Techniques that help us understand and make visible what’s happening in our workplace so that we can act on fact to achieve better results.
When anyone can walk into a workplace and visually understand the current situation.
Two forms:– Visual Displays– Visual Controls
Problems Have No Place To Hide !
144
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Visual Communication Where in your daily life do you come across
visual communication?
145
Visual Displays
Used to visually describe the performance of the process.– Includes all relevant metrics for the process.
• Example: Safety, Quality, Cost, Throughput, Service
– Includes the performance goal.– Graphical and colorful.– Readable from a distance.
Do not control what people or equipment do. Help drive change/improvement of the process.
– Need to be kept current!
147
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Scorecard Example
148
Scoreboard Example
149
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Visual Controls
Communicate information so that activities are performed according to standards.– Indicators for regulating the process– Labels– Signals
Help individuals control the performance of the process by indicating when to take action/when not to take action and/or type of action to take.
151
Visual Controls
152
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Key Action Planning Tools
Once the need for change/improvement is “seen” and understood, action planning is required to identify the tasks, responsibilities and timing for the change/improvement.
Two useful action planning tools are:– Action Register– RACI
153
Action Register Identifies actions to be taken, who is responsible
for each action, and timing. Reviewed at beginning and end of each
change/improvement team meeting.– Celebrate completed actions and capture lessons
learned.– Identify assistance needed to complete overdue
actions.
154
Date Who When StatusWhat
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Action Register Example
155
Process: Order Entry
Date: 3/3/2005Project Began: 2/14/2005 Indicator
Champion: Mike Smith Green
Team Leader: Greg Thompson Yellow
Team Members:Mark Long, Cheryl Martin, Ken Short, Chris Bower
Red
Coach: Sarah Cohen
Date Who When Status2/14/2005 Greg 2/21/2005 Complete2/14/2005 Greg 2/21/2005 Complete2/14/2005 Cheryl 2/16/2005 Complete2/14/2005 Ken 2/17/2005 Complete2/28/2005 Mark 4/1/2005 In-process
Set up Team Meeting ScheduleSet up Department Reviews with SponsorObtain training for CSRs on electronic credit checksProvide CSRs access to electronic credit checksDefine look-up structure
Status
Task In-Process or Needs Follow-up
Alert! Task Behind Schedule
Task Complete
Action Register
What
RACI
Defines who is Responsible, Accountable, Consulted, and Informed for each task.
156
R- Responsible-Individual(s) who perform a task; the doer; responsible for action/ implementation (may be shared)A - Accountable- Individual who is ultimately accountable, includes yes/no power of veto (only one person can be accountable)C - Consulted-Individual(s) to be consulted prior to a final decision or action (two way communication)I- Informed-Individual(s) who need to be informed after a decision or action taken (one-way communication)
Trai
ning
Adj
unct
AB
ET P
rofe
ssio
nal S
ervi
ces
Dir
ecto
r
AB
ET A
ccre
dita
tion
Serv
ices
Dir
ecto
r
AB
ET A
ccre
dita
tion
Adm
in
AB
ET In
tern
atio
nal A
ccre
dita
tion
Spe
cial
ist
Mee
ting
Serv
ices
Man
ager
M
embe
r Se
rvic
es M
anag
er
Mee
ting
& M
embe
r Ser
vice
Adm
in
Pro
fess
iona
l Ser
vice
s A
dmin
Com
m
# Task / Activity TimingConduct PEV Training for New PEVs
1 Serve as Lead Facilitator for PEV Training Mar-June A,R2 Serve as Lead Facilitator Coach / Mentor Mar-June A,R3 Register PEVCs for training Jan-May A
4 Request nominations for Training Mentors from Societies Dec-Jan A R
5 Nominate Training Mentors Dec-Jan C I6 Authorize PEV Training Mentors Dec-Jan A,R I7 Assign Training Mentor to PEVC Jan-May I I
8 Follow-up with PEVC re:Pre-work Mar-June C
9 Assemble/prepare PEV training materials; ship Mar-June A,C r r R
10 Support Facilitation Team (setup conf calls, team logistics) Mar-June A,R R
11 Make hotel reservations for PEVCs and Facilitators Mar-June C A,R R12 Process travel expenses for PEVCs and Facilitators Mar-June A R13 Provide back of the training room support Mar-June A,R R R r14 Provide feedback to Facilitators Mar-June A,R15 Gather feedback from Facilitators Mar-June A,R R R r
16 Assemble PEV Training metrics and other feedback Mar-June A,R R
17 Analyze PEV Training metrics and other feedback Jun-Jul A,R
18Select Facilitators (Lead and Support) for F2F training sessions
Nov R C C
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
157
RACI Definitions
Responsible – Individual(s) who perform a task; the doer, responsible for action/implementation. Responsibility can be shared.
Accountable – Individual who is ultimately accountable; includes yes/no and power of veto. (Buck stops here.) Only one person can be accountable.
Consulted – Individual(s) to be consulted prior to a final decision or action. 2-way communication
Informed – Individual(s) who need to be informed after a decision or action is taken.
RACI ExampleActivity Employee Admin Supervisor Regional
AccountingCorp
Accounting
Document Expenses A,R
Complete Expense Form A,R C
Forward to Supervisor A R
Review Expense Form C A,R
Approve Expense Form I A,R
Forward to Regional Accounting R A
Classify Expenses C A,R
Audit A,R
Determine Payment Type A,R
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RACI 4-Step Process
1. Determine the tasks/activities to be performed.2. Prepare a list of individuals or roles.3. Create a matrix where tasks form the rows and
individuals/roles form the columns.4. Fill in the cells, as appropriate, with R, A, C,
and I.5. Get feedback and buy-in from all involved.
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RACI Guidelines
Place accountability and responsibility at the lowest feasible level.
There can be only one accountability per activity. Authority must accompany accountability. Minimize the number of consults and informs. All roles and responsibilities must be
documented and communicated. Encourage teamwork.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Key Hold the Gains Tools
Once change/improvement is made, efforts should be made to “anchor” the changes/ improvements into daily work.
Two CI common methods:– Work Instructions– Control Plan
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Work Instructions Written documents that describe the process and
the work practices in step-by-step detail. Describe standard work practices all agree to use to
run the process. Specify critical steps, methods, materials, forms,
equipment/instrumentation, and data. Provide a baseline of performance, allowing
personnel to evaluate effect of changes and/or improvements.
Allow employees to “get good at it.” Serves as organizational memory.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Work Instruction
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How Much Detail?
What’s and how’s critical to achieving minimal variation and waste.– Only essential information.
Dependent on knowledge and skill-level of individuals using work instruction.– Inexperienced: Detailed step-by-step instructions.– Expert: Checklist or simple flowchart.
Dependent on frequency of use.– Infrequent: Detailed step-by-step instructions.– Frequent: Checklist or simple flowchart.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Text Work Instruction Format
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Step Action Detailed Actions
1 Open pricing template Click on File>>Open
Double click on file to be opened Click on Enable Macros button
2 Apply pricing rules as determined by Supply Manager
Refer to Price Maintenance document, 9.0 below, for guidelines for using the functions listed in the **pricing** menu
3 Run Error Check report Select **pricing**>> error check from the toolbar
Select Yes from dialog box that asks if you’d like to proceed
Select OK when the “error check completed” dialog box appears (if errors detected then dialog box will show number of errors and open up the error worksheet tab when OK is selected)
Visual Work Instruction Format
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
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Control Plan
One-page document that identifies the control methods for critical process inputs and outputs.
Provides protection against deviations to the new process through one or more control methods.
Includes a reaction plan to correct “out-of-control” situations.
Aid for process training and audit activities.
Elements of a Control Plan Critical inputs and outputs by process step,
including:– Desired conditions / tolerances / normal operating
range– Measurement technique– Measurement frequency– Control method– Reaction plan that describes what to do if problems
are encountered
References to applicable documentation and procedures.
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Possible Control Methods• Inspection• Audits (second or third
party)• Standardization
– Checklists– Run Rules– Procedures/Instructions– RACI– Training
• SPC• Mistake-proofing • Automated Process
Control170
Bet
ter
Employee Recognition Payment Control Plan Example
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SampleSize
Sample Frequency
Criteria
20 random Monthly ≥ 0 error
20 random Monthly <5 days
All transactions
on report are
reviewed
Monthly ≥ 0 error
Reaction Plan
Review controls for automatic process
and correct with HRIT
Review payments to determine cause of
any delay in processing payment
Correct any issues with the general
ledger account to charge payment
Input/Output to be Controlled
Nomination Form
Cycle Time
General Ledger Reject Report
Control Method
Payroll processor collects and reviews 20 random sample
from workflow database to verify
approval, employee eligibility, and amount
to be paid
Payroll processor collects from
workflow database, information to
determine cycle time (time from when
request received to being processed)
Payroll accountant reviews general ledger report to
payment request
Responsible for Sustaining Control
Payroll Processor
Payroll Processor
Payroll AccountantVerify payment was charged to correct
account
Process Requirement
Correct form received for processing with
no errors
Payment processed to employee without
errors
Payment charged to correct account
Process Step
Review nomination form for appropriate approval, cost center
and employee eligibility
Process payment in next available payroll
cycle
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Packaging Control Plan Example
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Process Step
Input Output Process SpecificationMeasurment
techniqueSample Freq Control Method Reaction Plan Responsible person
Bag Building
AdjustmentsBag with even
sides Bag with even side height and no spills on the line
visual inspection and downtime analysis
The downtime analysis should be done each
production week to explain the OEE results.
Weekly pm: This pm is for preparing the line before production. It includes the adjustments to be verified
and it ask to produce bags and boxes. At this step the final product (bag in a box) is controled
The weekly pm also include specs of adjsutments . The mechanic
should verify and do all adjustments until the bags sides
are even
Mechanic assigned to do the pm
Bag Building
Compression cam assembly
Bag with good side
sealThe seal should be on all bag height
visual inspection and downtime analysis
The downtime analysis should be done each
production week to explain the OEE results.
Weekly pm: This pm is for preparing the line before production. It includes the adjustments to be verified
and it ask to produce bags and boxes. At this step the final product (bag in a box) is controled
The weekly pm also include specs of adjsutments . The mechanic
should verify and do all adjustments until the bags sides
are even
Mechanic assigned to do the pm
Bag Building
Stretching fingers assembly
Bag with good side
sealThe seal should be on all bag height
visual inspection and downtime analysis
The downtime analysis should be done each
production week to explain the OEE results.
Weekly pm: This pm is for preparing the line before production. It includes the adjustments to be verified
and it ask to produce bags and boxes. At this step the final product (bag in a box) is controled
The weekly pm also include specs of adjsutments . The mechanic
should verify and do all adjustments until the bags sides
are even
Mechanic assigned to do the pm
Bag Building
Lubrication
Bag with good seal, machine
parts with no unusual wear
Lub should present in every bearing, bushing and mecanism.
visual inspectionBefore each
production runPlanning the pms to be done right after sanitation. Emphase on pm completion Technical supervisor
Bag and box
Building
Weekly mechanical inspection
Mechanical breakdowns at beginning of production or Starch and
parrafine accumulation
Boxformer should produce good quality at the beginning of the
production day. The inside of the machine should be clear of any
substance accumulation.
Produce bags and boxes before production
and visual inspection inside the machine
Before each production run
Weekly pm: This pm is for preparing the line before production. It includes the adjustments to be verified
and it ask to produce bags and boxes. At this step the final product (bag in a box) is controled
Emphase on pm completion Technical supervisor
Bag and boxes
BuildingTiming
Bag well formed, good
seals, box well formed.
Timing should be exact, as described in the machine reference
manual available at the planner place
Produce bags and boxes before production
Before each production run
Weekly pm: This pm is for preparing the line before production. It includes the adjustments to be verified
and it ask to produce bags and boxes. At this step the final product (bag in a box) is controled
Emphase on pm completion Technical supervisor
Bag and boxes
BuildingPaper quality
Not enough starch (do not accumulate
on your finger when
touching) or paper layers
stuck together
Paper should have starch between every layer. The starch should be visible and accumulate on fingers
visual inspectionEach time a new roll is installed
It is obvious on the line when it happens. The layers are very difficult to separate, they seem like laminated
together.
Call the supplier and discuss the origin of the problem
Technical supervisor
Bag and boxes
Building
Training of mechanics
Minimum amount of
time to adjust the former
Mechanics should know all adjustments, timing etc …
Training documents should be filled, the mechanic should be
able to explain the way the machine works
Each time a new mechanic comes
to the dept.
Be sure all documents have been discussed with the new mechanic. Be sure the new mechanic have been
matched with an experienced one to explain the machine mecanisms.
Go through the training process again.
Technical supervisor and line mecanic
Workshop Summary CI is a never-ending approach to improving
organizational performance. Change is the act or process of altering or
modifying; transforming from one state to another. Common themes to organizational change models
include:– Strategic focus– Helping employees “see” the need for change– Communication– Action planning– Hold the gains
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Creating Successful Change Using CI MethodsSWaMFest VII, September 15, 2011
Key CI Tools for Managing Change
Strategic Focus– Shared Vision, Mission &
Core Values– Voice of Customer– Key Measures– Prioritization Matrix– Charter
Helping Employees “See”– Process Map / Flow Chart– Histogram– Run Chart– Pareto Chart
Communication– Stakeholder Analysis– Communication Plan– Visual Communication
Action Planning– Action Register– RACI
Hold the Gains– Work Instructions– Control Plan
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Questions?