T U E S D A Y , S E P T E M B E R 1 7 , 2 0 1 3

IALEP Conference Process Mapping Training Session

Agenda

Welcome

Overview / Background

Introductions

SIPOC

Process Mapping

TIM U. WOOD

Brainstorming

Clean Sheet Redesign

Review

Columbus Trivia

Columbus-born Jerrie Mock is the 1st woman to fly solo around the world in 1964. How long did it take her?

1 2 3 4

17%

0%

17%

67%1. 30 days

2. 45 days

3. 60 days

4. 65 days

Harvey Wickliffe (Wick) opened the first one of these in Columbus in 1912.

1 2 3 4

33%

0%

67%

0%

1. Ice cream parlor

2. Shoe shine business

3. Gas station

4. Barbershop

Columbus was named after the explorer, Christopher Columbus?

1 2

0%

100%1. True

2. False

Participant Scores

3 Participant 3A1C22

3 Participant 3A1CFC

2 Participant 3A1B83

2 Participant 3A1C36

1 Participant 3A1C19

What % of the U.S. population lives within a 500 mile radius of Columbus?

1 2 3 4

0% 0%

83%

17%

1. 15%

2. 25%

3. 50%

4. 60%

What was the name of the Columbus minor league baseball affiliate in 1955?

1 2 3 4

33% 33%

17%17%

1. Senators

2. Red Birds

3. Clippers

4. Jets

This fast food chain first opened in Columbus Ohio in November, 1969.

1 2 3 4

17%

0%0%

83%1. White Castle

2. Wendys

3. Rax

4. Sisters Chicken and Bisuits

What is the name of the mascot for the Columbus Blue Jackets?

1 2 3 4

0%

100%

0%0%

1. Mr. Blue Jacket

2. Buzz Lightyear

3. Bee-atrice

4. Stinger

Participant Scores

7 Participant 3A1C22

6 Participant 3A1CFC

5 Participant 3A1B83

5 Participant 3A1C36

4 Participant 3A1CD7

Jim Grote founded this pizza restaurant in Columbus in 1963.

1 2 3 4

0% 0%

17%

83%1. Adriatico‟s

2. Donatos

3. Hound Dogs

4. Rubino‟s

What is the tallest building in Columbus?

1 2 3 4

83%

0%0%

17%

1. Rhodes Tower

2. LeVeque Tower

3. Huntington Center

4. AEP Building

According to the 2012 Fortune 500 listing what Columbus-based business is most profitable?

1 2 3 4

83%

0%

17%

0%

1. Nationwide

2. AEP

3. Limited Brands

4. Cardinal Health

Participant Scores

9 Participant 3A1C22

7 Participant 3A1B83

7 Participant 3A1CFC

6 Participant 3A1C36

6 Participant 3A1CD7

What is Lean?

Foundations of Lean

Lean is defined as a systematic approach to identifying and eliminating waste through:

Continuous improvement

Sequencing the service or product at the pull of the customer

Lean focuses on speed without sacrificing quality for the customer

Lean Basics

Lean Government refers to the application of Lean production principles and methods to identify and implement the most efficient and value added way to provide government services. Government agencies have found that Lean methods enable them to better understand how their processes work, to quickly identify and implement improvements, and to build a culture of continuous improvement.

A key characteristic of a Lean organization is its ability to improve itself constantly by bringing problems to the surface and resolving them.

Seven Key Principals of Lean

Define value in the eyes of the customer

Identify the process for a service or product

Create continuous flow without interruptions

Reduce defects in services or products

Let customer pull what they want

Pursue perfection (Six Sigma)

Eliminate or reduce variation

Lean Example

Henry Ford - $ wasted on wood in manufacturing Model A cars

Turn waste into profit?

Made charcoal briquettes to sell to steel mills

People started using the briquettes for heating and cooking

The charcoal grill was invented

What is Six Sigma?

What is Six Sigma?

Six Sigma is a business management strategy originally developed by Motorola, USA in 1986

Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in business processes

A six sigma process is one in which 99.99966% of the outputs produced are statistically expected to be free of defects (3.4 defects per million)

Is 99% Good Enough?

NOT 99% good

But 99.99966% good

What’s the difference?

No electricity for seven hours each month

One hour without electricity every 34 years

99 % Good 99.99966% Six Sigma

200,000 wrong prescriptions given to patients each year

68 wrong prescriptions given to patients each year

99% Good

99.99966% Six Sigma

Two bad landings at most airports every day

One bad landing at most airports every 5 years

99% Good 99.99966% Six Sigma

T H E “ F I R S T ” P I C T U R E O F Y O U R P R O C E S S

SIPOC

SIPOC – Why and What?

SIPOC diagram is a type of process map to identify the primary elements of a process.

It provides a macro view that brings together Suppliers, Inputs, Process, Outputs, and Customers.

SIPOC Purpose:

The purpose of a SIPOC Diagram is to define and document:

Suppliers

Inputs/Requirements

Key Process Steps

Outputs/Requirements

Customers

SIPOC Purpose:

Additional Benefits of SIPOC:

Documents process name

Process Owner

Start/stop “triggers”

Assumptions about the process

Operational definitions of key terms

Gets everyone on same page

SIPOC Time

Time: Plan at least one hour to complete a SIPOC.

Time can vary depending on complexity of process, knowledge of participants and previous experience creating SIPOCs.

SIPOC Where to Start

S: Supplier

I: Inputs

P: Process

O: Outputs

C: Customer

Where to start???

Always start with the Process!

Process

SIPOC is a high level view of the process

SIPOC •50,000 Feet View

Business Process Map

•10,000 Feet View

Standard Work

•1,000 Feet View

List the 5-7 key steps in the process being mapped

List the outputs of each step of the process

List the inputs into each step of the process

List the suppliers of each input of the process

Suppliers Inputs Process Outputs Customer

1 2 3 4 5

Process

Keep it High Level: Only 5-7 steps for the process

This activity also gives you the scope of your process

Here is the tricky part: Make sure the team reaches consensus that you have created an accurate representation of the process before moving on.

Outputs

Outputs of the process are not only the product or service you are delivering

Not all Outputs are desirable

Outputs can include:

Paperwork,

Approvals

Scrap

And anything else that results from your process.

Customers

Identify the Customers.

In most cases, the customer isn't the person who will eventually receive the product or service, but the recipients of each output of your process.

Think about where each output goes and you know who the customer is for your process.

Inputs

Identify Inputs.

Review each step of the process map to determine what is necessary to complete the step.

Inputs can include:

Materials

People

Machines

IT systems

Information

Or anything else that is necessary for the process to run.

Suppliers

Identify the Suppliers.

List all of the suppliers who provide your inputs.

These might include:

The company that supplies your widgets

The team that performed previous steps

Or the IT Department

Don't forget your customers; they are often suppliers to a process as well.

Other things of Note

Document any Parking Lot Activities

Document Operational Definitions of Key terms

Document any IT systems

Reach consensus before moving on to the next steps

SIPOC can be the beginning for many different projects

Great for management that does not have time for a full process mapping event

Makes the Invisible - visible

SIPOC

The Process of filing your tax return

1) Collect tax return

info

2) Hire accountant and review

info

3) File return

4) Pay accountant

Suppliers Inputs Process Outputs Customers

1) Collect tax return

info

2) Hire accountant and review

info

3) File return

4) Pay accountant

Suppliers Inputs Outputs Customers Process

1) Collect tax return

info

2) Hire accountant and review

info

3) File return

4) Pay accountant

Suppliers Inputs Process Outputs Customers

•Government •Employer •Charities •Church •Investment Firms

•Forms •Wage statements

•Donation records

•Donation receipts

•Interest statements

•Completed tax return

•Copy for accountant

•Copy for yourself

•Payment to accountant

•Government tax agency

•Accountant

Group Exercise

Complete a SIPOC for another process

Grocery shopping

Getting your oil changed

Ordering a pizza

Getting a driver‟s license

Taking the dog to the vet

Getting fast food for lunch

SIPOC

Columbus Division of Police Trivia

What year was the Columbus Police Canine unit established?

1 2 3 4

0% 0%

50%50%1. 1998

2. 1992

3. 1982

4. 1989

How many sworn personnel are in the Columbus Division of Police?

1 2 3 4

100%

0%0%0%

1. 1,827

2. 1,027

3. 2,108

4. 2,807

Participant Scores

10 Participant 3A1C22

9 Participant 3A1B83

9 Participant 3A1CFC

7 Participant 3A1C19

7 Participant 3A1CD7

What is the average response time of the Columbus Police Helicopter Unit for first on the scene of dispatched runs?

1 2 3 4

17%

33%33%

17%

1. 2.3 minutes

2. 1.5 minutes

3. 2.1 minutes

4. 1.3 minutes

About how much time does the Columbus Division of Police SWAT spend on training?

1 2 3 4

0%

17%17%

67%1. 10 – 15%

2. 25 – 30%

3. 45 – 50%

4. 20 – 25%

Per the most recent census data what is the ratio of police officers to civilians in the city of Columbus?

1 2 3 4

0%

83%

0%

17%

1. 1 officer for every 342 civilians

2. 1 officer for every 3000 civilians

3. 1 officer for every 10 civilians

4. 1 officer for every 512 civilians

Participant Scores

11 Participant 3A1CFC

10 Participant 3A1C22

10 Participant 3A1B83

7 Participant 3A1C36

7 Participant 3A1C19

L O O K I N G F O R V A L U E , S T E P - B Y - S T E P

Process Mapping

What is Process Mapping?

A process map is a visual tool

Illustrates functional areas, tasks, decisions, and delay in a process

Makes the invisible visible

Always map with the employees who conduct the tasks that need to be detailed in the process

Why Should You Process Map?

Clear and detailed visual of what is occurring in the process

Identify the flow of the process

Detail all stakeholders involved in the process

Identify process handoffs and loop backs

Can help in the identification of waste (TIM U WOOD)

Process Mapping Materials

Flip chart paper or butcher block paper

Masking tape

Washable markers

Fine point Sharpie markers

Pink, Yellow, Blue, Green, and Purple 4”x5” Post-it notes

Process Map Key

Different functions of the process

Beginning and end points of the process

Any task / activity where work is performed

Places where information is checked against established criteria (standards) & decision made on what to do next

Any time information is waiting before the next process or decision (i.e. in-baskets, out-baskets, waiting to be batched)

Task

Inspect & Decision

Delay

Beginning

& End Points

Function

Process Map Arrows

Used between tasks performed by the same person or area, but no physical movement has occurred

Indicates physical movement of information/product from one function to another

Demonstrates electronic movement of information from one person/function to another

Process Mapping Fundamentals

Use your agreed upon scope or SIPOC

Develop and maintain the appropriate level while mapping

Start by identifying the functional area that starts the process

Detail the tasks, decisions, and delay in each functional area

Follow a swim lane model

Connect your steps with appropriate arrows

Draw in your swim lane lines

Process Mapping

Process Mapping

Process Mapping

Process Mapping Tips

Title and date your map

Use your SIPOC or scope as the beginning and ending steps on the map

Refer to the SIPOC often to keep the group on track

Avoid getting into the weeds

Create a mapping key and go over before mapping

Hang flip chart paper near the map for Parking Lot issues or Ah-Ha Moments

Process Mapping Tips

Create group ground rules before mapping

Assign roles to the team-involve them!

Take the happy path first

Focus on the process owners during the appropriate times

Repeat tasks back to the group

Never judge the group

Do not let the group jump to solutions while mapping

Only map what is currently happening

Process Mapping Tips

Use the 80/20 Rule

Read the group-watch for body language

Draw lines in with a pencil first before using the marker

Take breaks!

Count the functional areas, tasks, decisions, delays, handoffs, and loop backs

Be patient and stay engaged

Process Mapping Questions

Who starts this process?

How does the process start?

And then what…?

What happens next…?

Are we in the weeds?

If I am the customer I do…?

Processing Mapping Activity

T H E B A D G U Y

TIM U. WOOD

Value Added (VA)

Value Added Activities (VA)-Transforms information into services and products the customer is willing to accept

VA Activities Must Meet Three Requirements:

Done right the first time

Transformational

Customer is willing to pay for

Typically 1% of a process is Value Added

Add Value

Does the task add form, feature, or function to the product or service?

Does the task enable a competitive advantage (reduced price, faster delivery, fewer defects)?

Would the customer be willing to pay extra or prefer us over the competition if he or she knew we were doing this task?

Non Value Added (NVA)

Non-Value Added Activities (NVA)

Consumes resources

Does not directly contribute to service

Customer does not care

Non-Value Added

We do this within the process

Not really sure why

Somebody said “we have to”

Is it a “Band-aid”

Is it “really” required

We have always done it this way

Non Value Added but Necessary (NVAN)

Non-Value Added but Necessary (NVAN)

Customer does not care

Required to perform the step by current statute or law

Meet TIM U WOOD

Transportation

Information/Inventory

Motion Waiting

Over Processing

Over Production

Defect

Underutilization

Transportation

Transport from office to office

Transport from floor to floor

Transport from building to building

Trucking

Inventory

Finished product

Storage

Printed in advance

Work in Process

In the warehouse

Motion

Inter-office movement

Office to office

Cubicle to cubicle

Going to the copier/scanner

Going to the FAX

Going to the storeroom

Reaching

Bending

Underutilization

Employees

Office Space

Technology

Equipment

Waiting

Non productive time

Waiting for:

Copier

Scanner

Delivery

Catch up

The person upstream

Mail/UPS

Computer

Over Production

Making too many

Making in advance of requests

Throwing excess away

Things get outdated

“We have to be ready”

Not cautious, but wasteful

Over Processing

Adding things that nobody wants

Report that nobody reads

“Gold Plating”

The best

Better than good enough

Beyond meeting customer expectations

Defects

Mistakes

Broken

Inaccurate

Can‟t read

Can‟t understand

Wasted materials

Returned

Causes of Waste

Functional Organization

Technology Gaps

Excessive Controls

Dated Process Design

No Back-up/Cross Training

Unbalanced Workload

Batching of Forms

Data Entry Batching

Changing Government Practices and Policies

No Decision Rules Poor Visual Control Disorganized Workplace Lack of Training Obsolete Forms or Form

Design Poor Layout Government Regulations

Customer complaints Customer calls Calls to legislators Waiting Defects

Transportation Inventory Motion Over production Over processing Misplaced skills Bad materials Slow machines Re-work Waste Storage Paperwork Approvals

Team Identifying TIM U WOOD

TIM WOOD

Clean Sheet Redesign

Concepts to Remember During Re-design

Design processes around value-adding activities

Work performed where it makes the most sense

Ensure a continuous flow

Reduce waiting, moving, and rework time

Reduce or eliminate batching

Reduce checks and reviews

Build quality in to reduce inspection and rework (Poka-yoke)

Taxation – Tax Appeal Process

Current State = 143 steps, 4 entry points

Future State = 96 steps, 1 entry point

Lead time reduced from 32 months to as few as 7 - 20 days

ODOT Real Estate Document Process

Current State = 61 steps, 22 handoffs

Future State = 11 steps, 8 handoffs

Cost to process each records box fell from $705 to $1 by processing electronically

Public Safety – Trooper Recruitment

Current State = 235 steps, 28 decisions, 76 handoffs, 50 delays

Future State = 34 steps, 8 decisions, 11 handoffs, 15 delays

Lead time reduced from a range of 191 days to more than a year, down to 61 days

LeanOhio Trivia

What does the „M‟ stand for in TIM U. WOOD?

1 2 3 4

0% 0%

100%

0%

1. Matador

2. Mapping

3. Motion

4. Mechanics

What is a SIPOC used for?

1 2 3 4

0% 0%

100%

0%

1. High-level brainstorming

2. Time travel

3. High-level process mapping

4. Standardization

Participant Scores

13 Participant 3A1CFC

12 Participant 3A1B83

12 Participant 3A1C22

9 Participant 3A1C36

9 Participant 3A1C19

A SIPOC is typically conducted at what level?

1 2 3 4

0% 0%

33%

67%1. 10,000 ft

2. 50,000 ft

3. 100,000 ft

4. Any level

A ________ matrix is used for organizing ideas and categorizing them.

1 2 3 4

0% 0%0%

100%1. Cost Control

2. Impact Control

3. Impact Reaction

4. Cost Reaction

Participant Scores

15 Participant 3A1CFC

14 Participant 3A1B83

14 Participant 3A1C22

11 Participant 3A1C19

10 Participant 3A1C36

A Six Sigma process contains how many defects per million?

1. 2. 3. 4.

0%

100%

0%0%

1. 2.4

2. 4.3

3. 4.2

4. 3.4

_____ is defined as a systematic approach to identifying and eliminating waste.

1 2 3 4

0% 0%0%

100%1. Six Sigma

2. Lean

3. Customer Service

4. Kaizen

Participant Scores

17 Participant 3A1CFC

16 Participant 3A1B83

16 Participant 3A1C22

13 Participant 3A1C19

12 Participant 3A1C36

How many rooms on currently in “this” Hilton?

1 2 3 4

17% 17%17%

50%1. 410

2. 285

3. 313

4. 433

On average, how many post-it notes does LeanOhio use in a Kaizen event?

1 2 3 4

17%

50%

33%

0%

1. 750

2. 1,500

3. 1,100

4. 2,400

And the winner is…

Participant Scores

18 Participant 3A1CFC

17 Participant 3A1B83

16 Participant 3A1C22

13 Participant 3A1C36

13 Participant 3A1C19

Additional Information

http://lean.ohio.gov/