Work Standardization & Metrics-Based Process Mapping

Work Standardization &
Metrics-Based Process Mapping

Company

LOGO

Learning Objectives
The benefits of work standardization.
The step-by-step process for work standardization.
How to standardize “high variation work.”
Characteristics of job aids.
Current state documentation techniques.
How to create Metrics-Based Process Maps.

© 2011 Karen Martin & Associates

2

Building a Lean Enterprise

Process
Stabilization
Tools

Standardized Work Defined

The current single best way to
complete an activity with the highest
degrees of safety and efficiency,
which produces consistent and
high quality outcomes.


5

Standardized Work

A tool for maintaining quality, safety,
productivity, and employee morale
at the highest possible levels.


6

Standardized Processes Yield
Consistent Quality Results
R1

Inconsistent
Processes

R2

People

R3

Inconsistent
Results

R4

TRADITIONAL = People doing what they can to get results
Standardization

People

Desired
Results

LEAN = People using standard processes to get results

7

Benefits of Standardized Work
Consistent quality
Improved productivity
Easier, more effective training
Predictability; better decisions
Foundation for making improvement


8

Standardized Work

Standardized work nips common
problems in the bud so that staff
can focus instead on solving
uncommon problems.

― Bill Marriott, CEO, Marriott Hotels


9

The Improvement Process

Plan

Act

Do

Check

10

Process for Creating
Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.

Define scope – “fence posts” and conditions.
Form improvement team.
Study the current state to gain a deep understanding.
Design the improved state.
Document the improved state.
Test and gain consensus.
Finalize and implement new standardized process.
Measure results; adjust if needed.
Monitor ongoing performance.


11

Key Success Factor – Plan & Communicate via Charter
Improvement Charter
Improvement Scope

Leadership

Due Dates

Value Stream /
Process

Executive
Sponsor

Current State
Analysis

Specific
Conditions

Value Stream
Champion

Root Cause
Analysis

Process Owner

Future State
Design

Facilitator

Testing
Complete

Customer Demand
Trigger
First Step
Last Step
Boundaries &
Limitations
Implementation
Timeframe

Required
Interim Briefing
Attendees

Event Drivers / Current State Issues

Implementation
Complete
Results
Validated

Core Improvement Team
Function

1
2
3

Contact Information

2

4

Name

1
3

5

4

Event Goals & Measurable Objectives

5

1

6

2

7

3

8

4

9

5

10

Benefit(s) to Customers, Company, Staff

Additional Support
Function

1
2
3

Contact Information

2

4

Name

1
3

5

4

Results Validation - Planned Method & Frequency

5
6
7
8
9

To download:
www.ksmartin.com/files/templates/improvement_charter.xls
12

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



13

Standardizing Work – Step 1
Define Scope


Select the first and last steps (fence posts) between
which you’ll standardize the process.
1

2

3

4

5

6

7

8

Area of Focus



Limit the conditions initially to reduce variation as you
seek to deeply understand the current state. Aim to
apply the future state to as broad a set of conditions
as possible.


14

Narrowing the Scope:
Select Specific Conditions
CT / MRI
Inpatient

X-Ray
Imaging
Outpatient

CT / MRI

X-Ray


15

Narrowing the Scope:
Example
Units
Domestic

Consumables
Warranty
Service Parts

Order
Fulfillment
Process

NonWarranty

Units
International

Consumables
Warranty
Service Parts


NonWarranty

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



17

Improvement Team
No more than 10.
Composition:










Process workers (approx 50% of the team)
Upstream suppliers (internal and/or external)
Downstream customers (internal and/or external)
Outside eyes – people who have no “skin in the
game”; 100% objective
Support services
Subject matter experts


18

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



19

Studying the Current State
Steps: observe, measure, document, analyze



Go to gemba (genchi genbutsu)
Document the current state – Options:
 Spaghetti diagrams, photos, drawings, etc.
 Metrics-based process map (MBPM)






Identify variation in terms of inputs, data, people,
equipment & supplies, environment, etc.
Study root cause(s) of variation
What are the best practices?


20

The Work We Do:
Degrees of Granularity
Rooftop View
Strategic WHAT?

Value
Stream

Primarily
Leadership

Process

Value Stream
Map

Process

Process

Step

Metrics-Based
Process Map

In the Weeds
Tactical HOW?

Step

Step

Primarily
Workers

21

Traditional Mapping Method:
Process Flow Chart
Look up Customer
in Eclipse
SALES

New
Customer?

Yes

Enter Order
SALES

Product in
Stock?

Yes

Print Ship Ticket
SALES

Load Trucks
SHIPPING

No
No

Enter Customer
Information
ADMIN

Yes

Perform Credit
Check
FINANCE

Okay?

Notify Sales COD
Only; Notify Admin
No
to update
Customer Profile
FINANCE

Order Material
PURCHASING

Receive Material
RECEIVING

Where’s the quality? Where’s the time?
22

What is a Metrics-Based Process Map?
A visual process analysis tool, which integrates:




Functional orientation of traditional swim lane
process maps
Key Lean time and quality metrics

Tool which highlights the disconnects / wastes /
delays in a process.


Keeps the improvement focus properly directed

Means for documenting standardized work for
workforce training and process monitoring.


23

Lean Facilitator
Range of Necessary Traits
 Skills / Knowledge







Defining value; identifying waste
Improvement tools (root cause analysis, flow-enhancing tools, etc.)
Project & time management
Team building / facilitation
Mediation; consensus building
People effectiveness – from front line workers to execs

 Authority / Respect




Designated change agent / influence leader
Trustworthy
Comfortable removing obstacles & reaching out to senior leadership

 Personality / Energy






Naturally curious
Challenging, yet supportive
Positive, upbeat, energetic
Pushy without irritating

 Objectivity / Fairness


No attachment to the work being improved


24

(MBPM)

Document the Current State
Step 1 – Label the map in the upper right
hand corner.


Include process name, conditions mapped,
date, and facilitator name and/or team
members.


26

Step 1: Label the map
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names

Use 36” wide white paper with 6” swim lanes (hand drawn, chalk
lines, or pre-printed). Pre-printed 8’ template is available at:
www.ksmartin.com/files/templates/MBPM_swimlanes.pdf

Step 2 – Label the swim lanes with the
functions involved.


Include external functions, if appropriate (e.g.
customers, suppliers/contractors, etc.)


28

Step 2: List functions
Function A

Function B

Function C

Function D

Function E

Function F

Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names

Step 3 – Document all activities/steps
on 3 x 6” post-its.







Use verb/noun format; clear and concise.
Include function.
Separate tasks that have different quality
outputs or timeframes; combine tasks
otherwise.
Place post-its in appropriate swim lane,
sequentially.


30

Step 3: Document the Activities
Activity
(Verb / Noun)

Function that
performs the
task

Step Step
1
2

Ticking clock

Parallel Steps
(concurrent
activities)

Map the rule (80%), not the exceptions
(20%).


For metrics with ranges, use the median.

Continue to add conditions to your
scope if you need to.


To minimize “it depends” answers.


33

Step 4 – Number the activities.




Number the activities sequentially from left to
right.
For parallel activities, add “A,” “B,” etc.
 Example: Step 8A, Step 8B, etc.



Don’t number the post-its until the map is
“final.”


34

Step 4: Number the Activities
Step #

Note: For parallel
activities, use
alpha modifiers -e.g. 8A, 8B, etc.

Step 5 – Add task-level information:



Number of staff involved (if relevant)
Barriers to flow
 Batches
 Shared resources
 Equipment downtime
 Etc.



Key metrics (include units of measure)
 Process Time (PT)
 Lead Time (LT)
 Percent Complete & Accurate (%C&A)


36

Step 5: Add Step-specific information

Barriers to Flow
(if relevant)

# Staff
(if relevant)

• Batching
• Shared
resources
• System
downtime
• Etc.

% Complete &
Accurate

PT (Process Time)
LT (Lead Time)

Key Metrics: Time
Process time (PT)






The time it takes to actually perform the work, if one is
able to work on it uninterrupted
Includes task-specific doing, talking, and thinking
aka “touch time,” work time, cycle time

Lead time (LT)





The elapsed time from the time work is made available
until it’s completed and passed on to the next person or
department in the chain
aka throughput time, turnaround time, elapsed time
Includes Process Time, not merely waiting time.


38

Lead Time vs. Process Time
Scenario 1
Lead Time

Process Time

Work
Received

Work passed
to next step

LT = PT + Waiting / Delays

39

Lead Time vs. Process Time
Scenario 2

Lead Time

Process Time
Work passed
to next step

Work
Received

LT = PT + Waiting / Delays

40

Key Lean Metric: Quality
%Complete and Accurate (%C&A)


% time downstream customer can perform task without
having to “CAC” the incoming work:
 Correct information or material that was supplied
 Add information that should have been supplied
 Clarify information that should or could have been clear





This output metric is measured by the immediate
downstream customer and all subsequent downstream
customers.
If workers further downstream deem the output from a
particular step to be less than 100%, multiply their
assessment of quality with the previous assessments.


41

Metrics Reminders
 Typically obtained via interview; questions must be high
quality
 PT & LT




You can “chunk” these metrics for a series of post-its when
necessary
When wide variation, do one of three things:
 Narrow your scope (pick a specific circumstance)
 Use the median
 Indicate the variation, but use the median for the timeline

 %C&A


Determined by immediate downstream customer and all
subsequent downstream customers
 %C&A for a post-it is the product of all downstream responses




Response is placed on the post-it for the output step
0% at a particular step is not rare


42

Documenting the Current State
Step 6 – Define the “Timeline Critical Path”


Longest LT unless “dead-end” step
 If longest LT is a dead end step, then bring the
next longest LT to the timeline



Use colored marker


43

Step 6: Define the “Timeline Critical Path”

For parallel activities: Chose the longest LT unless a
“dead-end” activity

Documenting the Current State
Step 7 – Create the timeline


Bring down the PT & LT from the timeline
critical path steps.


45

Step 8 – Calculate the summary metrics





Time - Percent Activity
Quality - Rolled First Pass Yield (RFPY)
Labor Effort

Complete metrics grid


47

Summary Metrics: Time
Percent Activity (%Act) (also referred to as
Activity Ratio)








The percentage of time anything is being done
to the work passing through the system (whether
value-adding or non-value-adding)
%Act = (∑PT ÷ ∑LT) × 100
100 – %Act = % Time Work is Idle
Common finding = 1-10%
Could also calculate %VA to show much activity
is value-adding – is typically lower than % Act.


48

Summary Metrics: Quality
Rolled First Pass Yield (RFPY)







The percent of value stream output that passes
through the process “clean,” with no “hiccups,”
no rework required.
RFPY = %C&A x %C&A x %C&A…
Common finding = 0-15%
Multiply ALL %C&A’s, even if parallel processes


49

Summary Metrics: Labor Effort
Total PT


Sum of all activities, not just timeline

Labor Effort
# FTEs

=

Total PT (in hrs) X # occurrences/year
Available work hrs/year/employee

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


50

Summary Metrics
Metric
Timeline PT
Timeline LT
% Activity
Rolled First
Pass Yield

Total Process
Time
Labor effort
Freed capacity

Current State

Projected
Future State

Projected %
Improvement

Step 9 – Identify the value-adding (VA)
and necessary non-value-adding (N)
activities





Use small colored post-its labeled with “VA” or
“N”.
All unlabelled post-its represent waste.
NOTE – this is the first of two “bridge steps”
between current state documentation and
future state design.


52

Step 9: Label the value-adding (VA) and
necessary non-value adding (N) activities


53

Customer-Defined Value
Value-Adding (VA) - any operation or
activity your external customers value
and are (or would be) willing to pay for.
Non-Value-Adding (NVA) - any operation
or activity that consumes time and/or
resources but does not add value to the
product (good or service) the customer
receives.




Necessary – support processes, regulatory
requirements, etc.
Unnecessary – everything else - WASTE


54

Eight Wastes (Muda)

Overproduction
Inventory
Waiting
Over-Processing
Errors


Motion (people)
Transportation
(material/data)

Underutilized
people

55

Typical Current State Findings

Unnecessary
NVA

Available
to work on

Necessary
NVA

Value Add

“N”
Post-it

Available to
next step

“VA”
Post-it

Future State Design: How can we advance from one “VA”
or “N” step to the next and eliminate all waste?

56

Step 10 – Circle the step-specific metrics
that indicate the greatest opportunity for
improvement.





Low step-specific %activity, low %C&A, etc.
This is the second of the two steps that
provide the bridge between current state
documentation and future state design.
Use a brightly colored marker


57

Step 10: Circle the data that indicates
the greatest need for improvement

 Study the current state to gain a deep understanding
(observe, measure, document)



Go to the Gemba
Document the current state – Options:
 Spaghetti diagram
 Metrics-based process map (MBPM)
 Photos/drawings





Identify variation in terms of inputs, data, people, equipment &
supplies, environment, etc.
Study root cause(s) of variation
 Five why’s
 Cause-and-effect diagram (fishbone)
 Pareto



What are the best practices?


59

Current State Facilitator Tips
 Keep the team focused on current state.


Quickly flip chart future state ideas to capture them, then return
to current state.

 If the LT is 8 hrs for a block, it doesn’t matter if the PT is
5 or 8 mins.


Limit debates over things that don’t matter.

 If three people perform the work three different ways,
select one way for the current state map.
 Create a safe environment for “telling the truth.”



“It is what is it. No blame. No worries.”
“People aren’t the problem. The process is the problem.”

 Help them “digest” how “bad” the process is.


“It’ll be easy to be a rock star!”


60

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



61

Design the improved state.




Assure it’s an improvement, not merely
change.
Avoid “process tampering.”
Plan

Act

Do

Check


62

Avoid “Process Tampering”
Process tampering is making changes without:



a complete understanding of the process.
the basis (measurement) to predict how the process
will perform with the improvement in place.

Process tampering is often a result of firefighting
– dousing the flames without the basic
understanding of what caused them and root
cause corrective action.
Process tampering typically doesn’t lead to
improvement and often worsens the process.

63

Avoid “Process Tampering”
Process Improvement

Process Tampering

Simplifies

Complicates

Fire Prevention

Fire Fighting

Measurable

Subjective

Fact Driven

Opinion Driven

Improves Morale

Erodes Morale

Prediction

Detection

Customer Focus Mandatory

Customer Focus Optional

Processes are Improved

Blame is Established

Saves Money

Costs Money


Future State Design
Standardize work, resulting in:


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



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



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




Increased safety
Less stress; increased morale


65

Future State Design Considerations
 Eliminate steps / handoffs
 Combine steps
 Create parallel paths
 Alter task sequencing
and/or timing
 Implement pull
 Reduce / eliminate batches
 Improve quality
 Create an organized, visual
workplace
 Reduce changeover
 Eliminate motion &
transportation

 Standardize work
 Eliminate unnecessary
approvals /
authorizations
 Stop performing nonvalue adding (NVA)
tasks
 Co-locate functions
based on flow; create
cells (teams of crossfunctional staff)
 Balance work to meet
takt time requirements

66

Standardizing Work While
Allowing for Variation
Create a “process spine”





Standard work at key milestone points
Controlled variation between the standard
work points
Accommodates the “art” of knowledge work

x

x

x

Standardized Work

x

x

PACE Improvement Prioritization Grid
Easy

5

4
13

23

8

22

17
3

10

21

1

16
15
20
19

14

6
7

11
2

18
12

Difficult

Ease of Implementation

9

High

Anticipated Benefit

Low

Create an Action Plan: Who, What, When, Where, and How?
Future State Implementation Plan
Value Stream Outpatient Imaging

Implementation Plan Review Dates

Executive Sponsor Allen Ward

11/1/2007

Value Stream Champion Sally McKinsey

11/21/2007

Value Stream Mapping Facilitator Dave Parks

12/13/2007

Date Created 10/18/2007
Block
#
2

Goal / Objective
Improve quality of referral

Improvement Activity

Type
KE

Implement standard work for referral
process

Owner
Sean O'Ryan

PROJ

1/10/2008
Implementation Schedule (weeks)
2 3 4 5 6 7 8 9 10 11 12

Dianne
Prichard

3, 4

Reduce lead time beween schedulingand
Cross-train and colocate work teams
preregistration steps

5, 6

Eliminate the need for two patient checkins

Collect copays in Imaging

KE

Michael
O'Shea

6

Eliminate bottleneck in waiting area

Balance work / level demand

KE

Dianne
Prichard

9

Eliminate lead time associated with
transcription step

Implement voice recognition technology

PROJ

Sam Parks

10

Eliminate batched reading

Reduce setup required

KE

Sam Parks

7

Reduce inventory costs, regulatory risk
and storage needs

5S CT supplies area; implement kanban

KE

Michael
O'Shea

12

Reduce delay in report delivery

Implement additional fax ports

PROJ

Martha Allen

12

Reduce delay in report delivery

Increase percentage of physicians
receiving electronic delivery (rather than
hard copy)

KE

1

Martha Allen

Approvals
Executive Sponsor

Value Stream Champion

Value Stream Mapping Facilitator

Signature:

Signature:

Signature:

Date:

Date:

Date:

Date
Complete

Document Projected
Future State Results
Metric

Current State

Projected
Future State

Projected %
Improvement

Timeline PT

Timeline LT
% Activity
RFPY
Total PT
Labor Effort
Freed capacity

70

Summary Metrics: Labor Effort
Total PT


Sum of all activities, not just timeline

Labor Effort
# FTEs

=

Total PT (in hrs) X # occurrences/year
Available work hrs/year/employee

Freed
= Current State FTEs – Future State FTEs
Capacity
* FTE = Full-time Equivalent (2 half time employees = 1 FTE)
NOTE: Can convert into labor expense if want to show financial
impact of waste. Or report in hours if less than 1 FTE
difference.

71

Calculating % Improvement

Current State – Improved State
Current State


x 100

Future State Facilitator Tips
 Reduce resistance by pointing out how “boring” waste is
and how energizing it is to provide customer value.
 Spark innovation by using examples outside your own
company / industry.
 Guarantee the team that they will not lose a paycheck
and that they’ll be properly trained for any new role they
take on.
 Guarantee the team that if the process is more difficult
(after a learning period), you’ll revisit the improvement.
 Guarantee the team that you’ll only make a process
change if it’s indeed an improvement.


73

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



74

Document the improved state






Reduce reliance on traditional standard
operating procedures (SOPs)
Increase reliance on the metrics-based process
map itself and “job aids.”
Include the expected process performance
metrics.


75

The Improved State Becomes Standard Work
Current State Metrics-Based Process Map

0

PT Units
1
0

Seconds

Hours

Minutes

Days

LT Units
15
6
-1
0

Seconds

Hours

Minutes

Days

Process Details
Specific Conditions Domestic orders through sales force
Occurrences per Year 37,500
Hours Worked per Day 8
Date Mapped 25-Jun-08

Step # ►
Function /
Department

1 Customer

Mapping Team
Diane O'Shea
Sean Michaels
Sam Parks
Sally Dampier
Michael Prichard

Process Name Order Fulfillment

1

2

Activity

PT

LT

%C&A

Fax PO to Sales
Rep

0

0

Ryan Austin
Mary Townsend

Facilitator
Dave Morgan
3

4

45%

PT

LT

%C&A

Activity

PT

LT

%C&A

Review PO;
clarify with
customer as
needed

20

2

90%

Fax PO to
warehouse

10

4

Activity

PT

LT

%C&A

Activity

PT

LT

%C&A

Check inventory
levels; notify
Sales Rep re:
status

2 Sales Rep

Activity

5

90%

5

4

95%

Fax PO to Sales
Rep

5

0.33

90%

5 Finance

6

Warehouse /
Shipping

Critical Path PT
Critical Path LT
Rolled %C&A
Total PT

0

20
0

0

10
2

45%
20

5
4

90%
10

5
4

90%

0.33
95%

5

90%
5

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

Color-Coded Summary Metrics Sheet



Auto-Calculates:





Summary time and quality metrics for before and after maps
Projected % improvement (color-coded for visual ease)
Staffing requirements
User-defined metrics

Standardized Work Job Aids
• Simple

• Visual
• Physical

• Posted at
point of use
• Created by
people who
do the work
and tested
by others

Job Aid Criteria
 Serves as memory jogger
 Simple



Just the facts
Strong emphasis on
reducing variation to
improve safety, quality &
efficiency

 Visual - Strong use of:




Color
Photos
Drawings


 Physical




Posted where the work is
done (and/or carried by
process worker)
Not hidden in a computer

 Created by the people
who do the work





With strong involvement by
the customer
Test thoroughly!
Gain consensus!

79

“Rings of Knowledge” (ROKs) &
“Memory Jogger” Job Aids


Standardized Work for Electronic
Data Entry


81

Assembly Visual Aid

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OP#:
CELL:

2
25

DESC.:
Threading Operation
Authorized By: Joe Blow

MODEL(S):
DOC. NO. :

Inspect work done at previous station
Step 1

1Take part from cart
2 Inspect for cracks, burrs and poor plating (see
sample boards)

Step 4

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

Value add operations
Step 2

1. Place body in machine fixture.
2. Make sure part is seated in fixture as shown in photo

Step 5

1. Once part is threaded, take out of fixture and load
next part
2. Review that part is threaded properly

All model “A”s
V25-2A

DATE:

03 / 03 / 97

Self inspection
Step 3

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

Step 6

1. Place piece on mounting rail for next operation.

Checklists
assure all
critical tasks
are done
within defined
timeframes

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



85

Improvement Testing
Purpose: Work out the bugs and gain
consensus (to enable sustainability)



Run on “real time” processes.
Have others review, comment, etc.
 As broad a sample as is “reasonable.”



Adjust as needed.
Plan

Act

Do

Check

86

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



87


Plan

Act

Do

Check

88

Finalize & Implement
Implementation = relevant and effective
training.
Consider non-traditional means.
Never communicate changes by email
alone.
Plan

Act

Do

Check

89

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



90

Measure Results
Use the same metrics so you compare
apples to apples.
Adjust if needed.
Communicate results!
Post the results in a high traffic location.


91


Plan

Act

Do

Check

92

Standardized Work
1.
2.
3.
4.
5.
6.
7.
8.
9.



93

Monitor ongoing performance –
continuously improve as needed.


Who?
 Establish a “process owner” – supervisor or below






How often?
How are results communicated?
Who coordinates ongoing improvement?
“You get what you expect and you
deserve what you tolerate.”


94


Plan

Act

Do

Check

95

Work Standardization: Summary
Must be created by the people who actually do the
work.
Remove all obstacles to worker success.
Beware of over-standardization re: process and
environment – it’s the results that matter.
Must be clearly and easily communicated; MBPM
and job aids are indispensible tools.
Must be monitored and modified frequently.
Frequent retraining may be necessary.


96

Resources

Chapter 12 – Manual method

Additional Resources

Chapter 12

Chapter 9

Chapter 5

98

Learning Objectives
The benefits of work standardization.
The step-by-step process for work standardization.
How to standardize “high variation work.”
Characteristics of job aids.
Current state documentation techniques.
How to create Metrics-Based Process Maps.


99

For Further Questions

7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Free monthly newsletter:
www.ksmartin.com/subscribe
Learn / Connect :

100

Work Standardization & Metrics-Based Process Mapping

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