Phase

Session 1

Problem Solving FrameworkWorld of ThoughtRealityImmerse into your user domain => Go where the action is

As the process unfolds, you need to iterate between the user domain and your office

COP Overview

CostEfficiencyMeasured by: - cost per unit - utilizationTimeResponsiveness to demandMeasured by: - customer lead time - flow timeQualityProduct quality (how good?) => PriceProcess quality (as good as promised?) => Defect rateFour Dimensions of Performance: Trade-offsVarietyCustomer heterogeneityMeasured by: - number of options - flexibility / set-ups - make-to-order

ResponsivenessCustomer choiceQuality[you pick]LowHighEliminate inefficienciesCurrent frontierIn the industryLabor Productivity(e.g. $/call)Low laborproductivityHigh laborproductivityCompetitor ACompetitor CCompetitor BEfficient FrontierNarrative for process improvement what would success look like?

Milestone 1: Check List and SubmissionCheck ListI know on which dimension I want to focus

I have thought about the key trade-offs/ the efficient frontier

I have access to the operations that are associated with this dimension

SubmitA short description (five sentences) about your business; name is optional (Slide 1)

The dimension you want to focus on (Slide 2)

One or several performance measures that capture this dimension for YOUR operation (Slide 2)

The key trade-offs associated with this dimension (Slide 2)

A vision for an improvement / narrative (What would success look like)? (Slide 3)

PhaseSession 2

Problem framing: WHY-HOW LadderHow might wePick a problem formulationMake it broader (by asking WHY) and making it narrower (by asking HOW)Choose one formulation

The Customers PerspectiveDriving Parking Check-in Vitals Waiting PCP Appt. Check out Labs Drive home 20 minutesHow much time does a patient spend on a primary care encounter?Interview a recent customer

Mystery shopper / try it yourself (dont rely on the corporate data)

Process Flow DiagramApplications

Completed applicationsPreparation

Analysis 1

Analysis 2

Underwriting

Start with a high level process flow diagram

Describe some activities going on in each box

What happens before your starting point/ after the end-point

Where is the constraint on the system (bottleneck, demand constrained)?

KPI TreeProfitPriceVolumeCostDemand CapacityAvailable timeTime spent productivelyReworkIdle timeFixed costsVariable costsMap out the basic drivers of financial performanceCome up with a narrative for improvement: top line increase, cost reduction,?Link the problem definition / outcome metrics to the KPI tree

Milestone 2: Check List and SubmissionCheck ListI have considered multiple problem definitions and chosen one

I have mapped out a KPI tree and understand which variables in the tree are related to my problem

I have drawn a process flow diagram and understand the main constraint

I have talked to a recent customer / been a customer myself and took the customers perspective

SubmitProblem statement / definition (Slide 1); include alternatives

KPI tree (Slide 2)

Process flow diagram (Slide 3)

Customers perspective (Slide 4)

PhaseSession 3

The Principles of Scientific Management

We can see and feel the waste of material things. Awkward, inefficient, or ill-directed movements of men, however, leave nothing visible or tangible behind

Employers derive their knowledge of how much of a given class of work can be done in a day from either their own experience, which has frequently grown hazy with age, from casual and unsystematic observation of their men, or at best from records [..]

=> Observe at the front-line (do not rely on corporate data / your memory)

Here is What You Are Looking For:The Three Enemies of OperationsUse of resources beyond what is needed to meet customer requirements7 different types of wasteOEE frameworkLean: do more with lessWasteWorkValue-addingWasteWorkValue-addingWasteSource: Reinecke / McKinsey

Start with the very left end of the chart

Subtract the time the resource is not even active/present

Then, look for wasteAn Example for a Value-Add Analysis

Time and Motion Study for 21st CenturyObservation of a Resource (myObserver)

Recording arrivals

Recording losses

Benefit of fast moving process

Forms of Variability to Look ForVariability in demand Variability vs SeasonalityCan be any time frame

Variability in productivityQuartile analysisAcross workersAcross time

Forecasting skillsHow good on average?How big of a variance (scatter plot)

Forms of Inflexibility to Look forVolume flexibilityAdjusting capacity to demand that varies over time

Flexibility to serve product mix Set-up timesCross training (did you ever see a waiting customer and an idle worker at the same time?)

Milestone 3: Check List and SubmissionCheck ListI have spent an appropriate amount of time observing on the front line

I have collected PRIMARY data (based on observation)

I have mapped out the waste in the process and built an OEE chart (as needed)

I have looked for variability in the process and have done some analysis (as needed)

I have looked for inflexibility in the process (as needed)

SubmitA short description about your subjective experience observing at the front line (Slide 1)

Slides for (as needed): Value-Add` chart, Variability analysis, Description of Inflexibility (as many as needed)

PhaseSession 4

Some Process Improvement SuggestionsTo increase capacity:Line balancingWaste reductionCapacity smoothing Reduce rework

To deal with variabilityPoolingPre-produce / make to stockLook at forecast quality

To deal with inflexibilityOutsourcing some peak capacityOvertime rulesX-trainingSet-up time reductionStandardization

Do a Small Thing Well Rather Than a Large Thing PoorlyWho creates a bigger dent in the asphalt?

Bad: My idea is to retrain the work-force to improve efficiency

Good: My idea is to train Jim and Mary and see if I can reduce their processing time by 10%

Pick a very SPECIFIC outcome variable that you want to move => What can you do tomorrow? (Milestone 5)Acknowledgement: Roy Rosen, PennMedicine

Milestone 4: Check List and SubmissionCheck ListI have generated at least THREE ideas for improvement

These ideas are FOCUSED and actionable

The ideas are grounded on the analysis done for milestone 3

I have thought about the criteria that I will apply to select the best improvement idea

I have discussed the ideas with employees / co-workers

SubmitA description about the top THREE ideas (slide 1)

Empirical support: what do you expect to change (slide 2)

Table comparing the ideas relative to criteria (slide 3)

Phase

Session 5

The Power of Iterative Problem-solvingModelsReality

The Nature of a Good ExperimentFace reality quickly your plans are rarely correctIterative problem solvingInternet development style

Experiments are like crystal balls: they help you answer a questionCheapExperiment can be done with less than $1000FastExperiment can be done within one dayFocusedExperiments targets one specific questionInformativeExperiment will tell you more than it did not work

Milestone 5: Check List and SubmissionCheck ListI have formulated a small experiment to answer a specific question

Based on experiment I have changed something in my operations based on Milestone 4

I have measured the improvement (before and after)

SubmitA description of the question that you want to have answered by the experiment

A short description of how you changed your operations

Improvement in performance (before / after comparison)

Estimated financial value (extra profits per year)

BVA-ZZV-320-20050922-VMS3-v6-Session 2***BVA-ZZV-320-20050922-VMS3-v6-Session 2***BVA-ZZV-320-20050922-VMS3-v6-Session 2*BVA-ZZV-320-20050922-VMS3-v6-Session 2*