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1 VIEW AS Fit Page! PRESS PgDn to advance slides! UNDERSTAND REALIZE
2 CHANGE WHY??? CHANGE THE PROCESSES OF YOUR BUSINESS CONNECTING the DOTS Customer Focus (W s) Customer Focused Metrics Customer Focused Process Change Culture Change not JUST Process Change Learn by Doing not Just Viewing 70% of your time will be spent Doing Ship workshops to understand your business s processes and the process s customer s needs (W s) and metrics. Then process change and most importantly Culture Change. Sales Confirming Marketing Ordering Processing
3 UNDERSTANDING THE PROCESSES OF YOUR BUSINESS Connecting the Dots Customer Focus (W s) Customer Focused Metrics Customer Focused Process Change Culture Change not JUST Process Change Learn by Doing not Just Viewing 70% of your time will be spent Doing workshops to understand your business s processes and the process s customer s needs (W s) and metrics. Then process change and most importantly Culture Change. Sales Confirming Marketing Ordering Processing Ship
4 Eliminate Waste to Increase Customer Value Waste Elimination Waiting Walking Wondering We both do the same thing PROCESS CHANGE Mistake Proof CULTURE CHANGE Eliminate Customer Issues for Customer Satisfaction Process Change Data Data Data Information Software Environment Wanting Root Cause Material Tools
5 CUSTOMER FOCUSED PROCESS CHANGE CUSTOMERS Internal External Indirect WANTS Who What When how Where Way OBJECTIVES METRICS Customer Focused Process Change Culture Change not JUST Process Change
6 INTRODUCTION We identified the customer s W s We identified which W s are important to the customer We identified which W is most important We established a metric to measure performance to the W Once you have established which process needs attention to satisfy your customer s most important W you need to make changes.
7 INTRODUCTION What is a process? A step or series of steps transforming something into what the next process (your customer) needs. Order TO Invoice Rough Material TO Shipped Product Purchase Request TO Received material How do you visually understand the process?
8 MAPPING Visually understanding processes starts with Process Mapping Mapping should be simple and appropriate for the level of analysis you are at. The map should FOCUS on the process your customer needs improved First. Brown paper maps. NO (100 of map What needs improvement?)
9 MAPPING A process of mapping the entire Cash to Cash process is called Value Stream maps. Value stream maps are meant to show what needs to be transformed by Lean concepts. Here we are discussing Mapping processes to collect data to determine What to work on. We are going to FOCUS on maps to change a process we have already identified needs improvement.
10 MAPPING What is a map? Visual depiction of a process Shows the flow of materials, information, people, time, distance traveled and inventory.
11 MAPPING A map should show incoming material and information. A map should show regular alternative processes A map should show all results, not just product A map should show What happens to the product of each process step Sits Still in queue Waits for decision Handled immediately Again you include the amount of detail for the level of analysis You do not map the process steps of support processes. They need to map their own.
12 MAPPING The map should summarize metrics important to the process. Leading Indicators of the customer s metric What - Type, Quantity, Quality When - On Time, Days in Process Where - Correct location how - Packaging, Ready for use Way - Order information accuracy, Invoicing
13 MAPPING Quality 87% 25 Days 10 Days Quality 96% 1 Day 5 Days Quality 99% 1 Day 7 Days Quality 80% 5 Days 1 Day Quality 80% Rough Material Step 1 Step 2 Step 3 Output to Customer Queue Sits Still Queue Sits Still Queue Sits Still Queue Sits Still Step 2.1 Step 2.2 Queue Waiting Normal Process 51 Days 80% Quality 65% On Time
14 MAPPING In the example - Rough material takes 25 days to obtain Then Sits for 10 days before use. 5 times the material Sits or Waits in Queue for 23 days. The normal quality is only 80% to customer specification. On Time to Customer required date is 65%. Situations to work on - 35 days from ordering rough till using the rough 23 days sitting or waiting in queue Step 3 has lowest quality and takes longest time.
15 MAPPING What to work on - The total process needs to be Kanbaned or pulled to reduce the total number of days in the process. Step 3 needs to be evaluated from a Quality and Days at Process Step condition.
16 KANBAN Kanban is a technique of only making What you need When your customer needs it. Many consultants can help you with developing Kanban. We will focus on how to improve Step 3 s process.
17 WHICH PROCESS STEP Make a process map of step 3. Involve the key employees and suppliers of Step 3 Place the map at each employee s location who performs Step 3. Have employees place a red dot on the process map every time something Slows them down or Stops them from completing their process.
18 WHICH PROCESS STEP Rough Material Step 1 Step 2 Step 3 Output to Customer Step 2.1 Step 2.2 Step 2 has the most red dots and therefore is the process we will focus on.
19 PROCESS CHARACTERISTIC Each process or step has characteristics - Incoming material Supplies Information Queue s - Sits Still or Waits Support Products produced Feedback to others Environmental and Safety (Recyclables)
20 PROCESS CHARACTERISTIC A lot of supplies and support means the process is expensive Feedback that makes you Wait to proceed is a Waste and usually the customer doesn't care about that feedback Garbage is great opportunities for recycling Recyclables are good, ultimately eliminate the use of that material so you do not even have to recycle
21 PROCESS CHARACTERISTIC The key issue is - Do you receive products to the specification of the process characteristics? AND Does your process create a product that meets the "W's" of your customer as defined by the specifications of their process characteristics? (Internal, External, Indirect) You need to understand these characteristics, before evaluating Wastes.
22 PROCESS CHARACTERISTIC The form PROCESS CHARACTERISTICS EXAMPLE shows examples of characteristics by type.
23 PROCESS CHARACTERISTIC PROCESS CHARACTERISTICS EXAMPLE Supplies Information Support Tools What Advice Paper When Quality Liquids Instructions Direction Previous Product Product Processes Process Step 2 Queue Product Quality Quality Feedback Recyclables Garbage Completion Paper Health Time Spent Carboard Issue What Used Liquids Food
24 PROCESS CHARACTERISTIC Take out the form PROCESS CHARACTERISTICS
25 PROCESS CHARACTERISTIC PROCESS CHARACTERISTICS Product Received Supplies Information Support Product Produced Previous Product Product Processes Process : Product Quality Quality Quality Expected Quality they Want Feedback Recyclables Garbage Highlight the entries that were "So So" or "Difficult" to answer and the entries that were "Guesses" Add the highlighted items to the "Task List" Write down Process Step and Characteristic in the "Action Needed" column and Process Characteric in the "Which Category" column
26 PROCESS CHARACTERISTIC Select a process step you think needs improvement Next to "Process" write down the title of the process step Under "Product Received" list what you receive Under "Quality Expected" write down Quality characteristics Under "Supplies, Information Support" list what you receive Under "Feedback, Recyclables and Garbage" list what you send to Indirect customers
27 PROCESS CHARACTERISTIC Now lets look at output characteristics of the process step. In the "Product Produced" block write down what you send to your customer (next step in process or external customer) In the "Quality they Want" list Quality characteristics your customers want Discuss amongst your group and be ready to present to the whole session any significant issues or new information.
28 PROCESS CHARACTERISTIC Presentations
29 PROCESS CHARACTERISTIC Highlight the entries that were "So So" or "Difficult" to answer and the entries that were "Guesses Add the highlighted items to the "Task List Write down Process Step and Characteristic in the "Action Needed" column and 'Process Characteristic in the "Which Category" column.
30 WASTES Next we need to identify and eliminate Wastes in the process. Wastes are many times the exact things that Slow us down or Stop us from completing the process. Wastes can have their own W s - Waiting Walking Wondering We both do the same thing Wanting
31 WASTES Waiting is When you Wait for - Information Decisions Supplies Parts Walking is When you have to go get something Paperwork Tools Information Decisions Supplies Parts
32 WASTES Wondering is not knowing - What to do how to do it When to do it We both do the same thing Duplicate process steps or actions I asked for that as well I already put in a request for that I need that every time as well Wanting is - I need X but it is not available
33 WASTES 1. Identify the Wastes 2. Document the Present situation of the Waste 3. Use Root Cause and Mistake Proofing to eliminate 4. Document the situation after elimination to receive Credit for your efforts 5. Share with others Now we need to identify What is left that Slows us down or Stops the process from completion.
34 EVALUATION Has Waste elimination removed the possibility of occurrences of Why you placed Red Dots on that process? If so go back and work on the next highest process step. Has Waste elimination removed the issue that Caused the customer's lack of satisfaction of that process? If so go back and work on the customer's next highest ranked W that the customer says needs improvement. If NOT we need to change the process
35 EVALUATION If Waste elimination has changed the process map then re-map the process. Next we need to evaluate opportunities for process change - Processes allow errors People do not intend to make errors Training does not insure error free execution
36 EVALUATION The next step in evaluation is identifying What category of occurrence Slows you down or Stops you. Brainstorm to determine the categories - Include all Who use the process Ask each participant for ideas - NO IDEA IS A BAD IDEA Do not discuss the ideas yet (allow unloading) Establish definitions for each category Identify What one word describes the idea for a category Combine the ideas that relate to the same one word
37 EVALUATION We can t solve all the problems all at once. The direction of the brainstorming session is to - identify categories of negative issues so we can find out which category has the most occurrences or highest impact and work on it. Think of this as management of process change - Identify, Define, Prioritize, Change; then do the same to the next highest category.
38 EVALUATION Examples categories are - Material Information Tools Software Environment
39 EVALUATION Place the form CATEGORY WORKSHOP in front of you.
40 EVALUATION CATEGORY WORKSHOP Situations that slow you down or stops you from completing the process Material Information Tools Software Environment
41 EVALUATION Identify 5 to 10 situations that Slow you Down or Stop you. Place the number of the situation in the appropriate category (See CATEGORY WORKSHOP EXAMPLE ).
42 EVALUATION CATEGORY WORKSHOP EXAMPLE Situations that slow you down or stops you from completing the process 1 Wait to execute program 6 Missing ship instructions 2 Missing specification 7 Wrong code 3 Incorrect material 8 Wrong quantity 4 Machine down 9 PC locks up 5 Dull cutter 10 Glare on screen Material Information Tools Software Environment 3, 8 6, 2, 7 4, 5 9, 1 10
43 EVALUATION If you have something that fits into multiple categories you may be guessing at a cause not an occurrence. Place the situation into the category that affects you If the material is wrong, then place it in the material category Do not place it in other categories as well because you think it is caused by other categories as well Your material slowed you down or stopped you. Why it did will be handled with root cause analysis Pre-conceiving causes before collecting data on the situation yields band aid solutions that will reoccur
44 EVALUATION Discuss with your group and be ready to present to the rest of the session - Difficulties Significant findings Other categories than What I supplied Presentations
45 EVALUATION Create a simple data collection sheet of the categories - If your situation does not change by day or week of month, 5 days is probably adequate. If the last week of the month is more hectic than the first, you should collect data for both weeks. Distribute a matrix to each location of the process step Have the people place a simple tick ( ' ) mark down for each occurrence the Slows you down or Stops completion See form DATA COLLECTION
46 Process : DATA COLLECTION Location : Material Day 1 Day 2 Day 3 Day 4 Day 5 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Information ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Tools ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' Software ' ' ' ' ' ' ' ' ' ' ' ' Environment ' DEFINITIONS Material Missing, Wrong, Quantity Information Tools Software Missing, Wrong, Quantity Missing, Wrong, Quantity, Dull, Broken, Down Lockups, Errors Allowed Environment Cleanliness, Visibility, Access
47 EVALUATION Total the tick marks by category Make a PARETO chart by category Material Tools Information Software Environment
48 EVALUATION In our example Material has the most occurrences Now brainstorm types of material conditions that Cause occurrences - Use the same concepts you used to brainstorm categories All ideas are Good ideas Do not discuss ideas until you are ready to develop definitions Create a one word description Once you agree on the conditions develop a definition for each condition that you all understand
49 EVALUATION Example Categories - Missing Wrong Quantity Create a data collection form for each condition over a 5 to 10 day period
50 EVALUATION Process : DATA COLLECTION Location : Condition : Material issues that Slow us down or Stop us Missing Day 1 Day 2 Day 3 Day 4 Day 5 ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Wrong ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Quantity ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '' DEFINITIONS Missing Went to get material and it wasn't there Wrong Quantity Material in kit was wrong type Too few or too many
51 EVALUATION Total the tick marks by category Make a PARETO chart by category Missing Quantity Wrong
52 EVALUATION Now we know What needs to be changed - Missing Material Our FOCUS is on Missing Material and NOTHING else Now we need to Change the process of supplying material.
53 PROCESS CHANGE Process change is Focused on Causes that create situations that Slows you down or Stops you from completing your process. We need to know the cause and what causes that cause and what causes that cause and on and on. If we solve just the first cause we find we will probably create a band-aid solution and the condition will reappear. How many times have we made changes only to have the same situation reappear later? If you truly apply root cause and mistake proofing the solution, you have a far far better chance to never see that situation again.
54 ROOT CAUSE ANALYSIS Root Cause analysis is identifying Why situations occur that Drive other situations. Why did the condition occur Why did that Why occur Why did that Why occur Why did that Why occur Why did that Why occur
55 ROOT CAUSE ANALYSIS You need to continue asking Why until you get to a design characteristic that CAUSED the condition. The design characteristic can be product design or process design.
56 ROOT CAUSE ANALYSIS Before you identified the characteristics of the process. This will help you identify Why we need to change a process or design. The characteristics are all the information collected prior to Root Cause. What happens most often.
57 ROOT CAUSE ANALYSIS Next you get the right people together In the example Wrong Material, you need to have not just the users of the process but the people 'most knowledgeable about how the material is supplied. The process of supplying material is the process we need to change. So we need their help to change the process.
58 ROOT CAUSE ANALYSIS Some roles will develop. The users of the process that receives the wrong material become requestors for help. However the users do not leave and expect the suppliers to resolve the situation. The users stay involved. The normal "Go Solve this for me" rarely leads to timely or accurate results.
59 ROOT CAUSE ANALYSIS The users receive the material and know what they need. The suppliers know how the supply process works. The two groups need to work together and come up with an understanding of the cause and the next steps where we analyze the Cause of the Cause
60 ROOT CAUSE ANALYSIS Then list potential causes Why the condition occurred Identify Which reason is most likely You may need to collect data to determine which cause is most likely if a cause is not obvious to all Use the same format as you used to collect data on which condition occurred most often.
61 ROOT CAUSE ANALYSIS Then list potential causes of the most likely cause of the original condition. Identify Which reason is most likely. Repeat listing potential causes and identifying most likely cause. Repeat "Which most likely" "Why most likely" until you get to a product or process design characteristic
62 ROOT CAUSE ANALYSIS Place the form ROOT CAUSE ANALYSIS in front of you.
63 ROOT CAUSE ANALYSIS Condition : Reasons Why did that condition occur? Most Likely = Cause A Reasons Why "Cause A" occured Most Likely = Cause B Reasons Why "Cause B" occured Most Likely = Cause C Reasons Why "Cause C" occured Most Likely = Cause D
64 ROOT CAUSE ANALYSIS List a condition you think causes the process to Slow down or Stop most often List potential reasons Why that condition occurred Identify Which reason is most likely Identify Why did the most likely reason occur Repeat "Which most likely" "Why most likely" until you get to a product or process design characteristic Identify the process or product change needed
65 ROOT CAUSE ANALYSIS Discuss with your team. Identify issues in accomplishing workshop. Identify Why's best for others to see. Prepare to share with attendees. Presentations
66 ROOT CAUSE ANALYSIS Once you have identified a Root Cause you need to define the characteristics of the condition of the Root Cause. What When Where how Way What happens When does it happen Where does it happen how does it happen In what Way does it happen
67 ROOT CAUSE ANALYSIS Now that you have identified a change in design of process or product, you need to investigate whether the design can be changed. If no, then you need to investigate alternatives to minimizing the condition that CAUSED the situation. The best alternative is the one that meets the Mistake Proofing test.
68 ROOT CAUSE ANALYSIS SUMMARY Conditions are caused by other Driving conditions which are caused by other Driving conditions. However each condition may have numerous "REASONS" to cause the condition. The key is to eliminate reasons and find WHAT caused the original condition that created the change of events to create the condition that slowed you down or stopped you from completing your process.
69 ROOT CAUSE ANALYSIS You need to ask Why until you get to a cause that can be eliminated - By changing the design of the product OR By changing the design of a process If the design change doesn t eliminate the re-occurrence Then you need to Mistake Proof the change.
70 MISTAKE PROOFING Mistake Proofing is analyzing the change to find if errors or workarounds could occur and create the condition that CAUSED the original situation. Ultimate Mistake Proofing is changing the design of the product or process so the condition cannot occur again. If the design can't be changed then we need methods to prevent the condition getting to the next process step. The methods are to install alerts and inspections in the process to identify that the Root Cause has occurred.
71 MISTAKE PROOFING Alerts are devices that the condition has occurred and needs attention Alerts can be physical or software Physical alerts can be - shut down of a process lights barriers Software alerts can be - Check for all information required Check if information supplied is one of the acceptable answers Both of the above
72 MISTAKE PROOFING Example Filling out applications on line If all needed information is not filled out or if what is entered is not an acceptable answer then you are Re-Directed back to the original form to change the information.
73 MISTAKE PROOFING Inspections can be visual or physical or electronic Visual inspection can be comparison to graphics of what is correct and complies to the specification. Physical inspection can be measuring the physical product. Electronic inspections are the same as software alerts. The form is inspected for all necessary information and conformance to acceptable answers.
74 MISTAKE PROOFING CHANGING A PROCESS OR PRODUCT DESIGN You have established your Root Cause that caused the chain of events that lead to the condition that occurred most often. If you can change the design - You need to determine how a change in design of process or product can eliminate the occurrence of the Root Cause Again you First need the right group of people The users The suppliers The designers
75 MISTAKE PROOFING Review your Root Cause Analysis. Develop a new process or product design. Now you need to test your new design to see if it really eliminates the condition that caused the Root Cause. This is Mistake Proofing the new design. You are testing the new design tomake sure you don t need Alerts or Inspections.
76 MISTAKE PROOFING Go out and use the new design - Sitting in a room evaluating a new design or Mistake Proof will never be an acid test. You need to make the change and monitor if the condition happens again.
77 MISTAKE PROOFING First make sure your change follows all safety, environmental, regulatory and company policy requirements. Then make the change and monitor for results. Your monitoring is to insure that if the Root Cause occurs again, you identify characteristics of what happened. Make adjustments and monitor some more. If the Cause still can occur apply Alerts and Inspections.
78 MISTAKE PROOFING Place the form MISTAKE PROOF EXAMPLE in front of you.
79 MISTAKE PROOF EXAMPLES Root Cause : Design Change Needed : Alerts and Inspections
80 MISTAKE PROOFING Write down Cause D from the Root Cause workshop in the "Cause" area Write down the design change needed in the "Design Change Needed" area For our example the design change needed does not eliminate potential occurrence of the condition again. List potential Mistake Proofs - Alerts and Inspections.
81 MISTAKE PROOFING Discuss with your group and be ready to present to the session any interesting findings or difficulties. Presentations
82 MISTAKE PROOFING MISTAKE PROOFING is - Elimination of a condition that created (DrIves) the next condition. Changing the design of product or process to eliminate existence of the condition that drove the customer's lack of satisfaction. When you change something other than the design you also need to Change the Culture to minimize re-occurrence of the condition.
83 REALIZATION You made the change. Monitored the change to make sure the condition does not get to the next operation. You made adjustments. Now you need to identify what needs to be accomplished to make the change part of the process's day to day activity
84 REALIZATION Three actions need to be accomplished 1. Physically or electronically make the change When you made the change for Mistake Proofing review, you probably made a cobbled up change. 2. Change the work instructions or software
85 REALIZATION 3. CHANGE THE CULTURE The change must be part of every action The change must be monitored The change's result must be part of the metrics The metric must be held responsible to the process's participants and management See workshop Culture Change not just process Change
86 TEAM MEMBERS Understand and comfortable with change Champions who can sell change to others not on team No Bad apples or Naysayers Not necessarily extroverts, but you would be surprised how many, good presenters or leaders you have.
87 SUMMARY From Customer Focus" we identified the customer W s. From "Customer Focused Metrics" we identified which metric Drives the performance of the W the customer is most concerned with.
88 SUMMARY In "Customer Focused Process Change" - We mapped the process that Drives that metric. Identified which process step had the most occurences. Mapped that process step. Eliminated Wastes in the process step. Established Categories of Conditions which Slow you down or Stop you from completing that process step.
89 SUMMARY Collected data. Pareto Categories to identify which occurred most often. Root Cause the condition that Causes it to occur. Mistake Proof the change. Realize the change and monitor while working on the next W the customer need improved.
90 Eliminate Waste to Increase Customer Value Waste Elimination Waiting Walking Wondering We both do the same thing PROCESS CHANGE Mistake Proof CULTURE CHANGE Eliminate Customer Issues for Customer Satisfaction Process Change Data Data Data Information Software Environment Wanting Root Cause Material Tools
91 Use previous button when finished. THANK YOU UNDERSTAND REALIZE CONTACT
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