Name
Department
Title
Process
Lean Applied to Business Processes SA&D Guide
Opportunity
/ Target #3
Charter
MissionSWOT
Analysis SIPOCVision
SIPOC
(Prep)
Mission
/ Vision
(Prep)
High Level
Process
Map
Metric Gap/
Constraint
Analysis
Opportunities/
Targets
Opportunity
/ Target #1
Charter
Opportunity
/ Target #2
Charter
Opportunity/
Target #4
Charter
SWOT
Analysis
Root
Cause
Analysis
Action
Plan
Report
Out
Future
State
ProjectsProcess
Metrics
High Level
Process
Map (Prep)
Value Stream
Mapping/
Analysis
Rapid
Improvement
Events
Strategic
Alignment Repeat Quarterly
Just Do
Its
Lean
Counter-
measures
2All slides originally developed and supported by William Peterson, LeanBP.com
Constraint/
Gap FocusFocus on a Few
w/a High Impact
Process
ImprovementFind the Proper
Level & the Right
Process
Implementation
Action & Follow-
up to Strategy
Processes Improvement Guide
Seeing the Process Lean Countermeasures
Root Cause Analysis Implementation
• Strategic Alignment & VOC
• SIPOC/High Level Map
• Constraint/Gap Analysis
• Value Stream Mapping
• Value Added/ NVA Discussion
• Walk the Process
• Handoffs
• Percent complete and accurate
• Touch time/cycle time
• Work in Process (WIP)
• Spaghetti Diagram
• Ideal State/BPR
• Information at Point of Use
• 5S-Sort, Set in Order, See, Standardize, Sustain
• Visual Management
• Situational Awareness
• Method Sheets/WIP Boards
• Standard Work/Error Proofing
• Template/Checklists
• Optimize WIP
• Email Protocol
• Cell-No Multitasking
• Battle Rhythm Meetings
• Single Text Negotiation
• Brainstorming Eight Wastes
• Cause & Effect Diagram
• 5 Whys
• Check Sheets/ Pareto Analysis
• Future State (7Ws)
• Action plan/ Implementation
• Feedback Loop
3All slides originally developed and supported by William Peterson, LeanBP.com
Mission
Vision
(Name of Process) (verb) to (what the process does) in order to (why the process exists)
while (balancing metric).
A (percent)% reduction in (cycle time/touch time/rework) by (date)
4
CharterMission – Copied from the previous mission statement
Burning platform – the why that creates a sense of urgency to look at this process
Process Description – high level scope of the process (from beginning handoff to the ending handoff)
Problem Statement – a negative statement of what’s wrong, not why it’s wrong.
Sponsor – person creating the sense of urgency
Process Owner – person accountable for process
Team Lead – person with the authority in the event
Facilitator – person who is leading the process improvement project
Team – members of the VSM event
5
SIPOC
Suppliers Inputs Policies Outputs Customers
• Who provides
inputs to you?
• What inputs
are needed to
create
outputs?
• What triggers
you to act?
• What policies,
rules, or
regulations
are in place?
• What do your
customers
need from
you?
• To whom do
you provide
products,
info, or
services?
• Who are the
internal and
external
customers?
6
High-Level Process Map (60,000 foot view)
First step or trigger for
action
Categorize and
Prioritize
Gather Information
AnalyzeCoordinate
DraftFinal Step or
handoff
Volume = How many over what
period of time?
WIP = How many are in the system
now?
Lead Time =How long does it take
to get through the system from
request?
Cycle Time = How long does it take to get through the
system once started?
Rework = What % of the time does it go back a step?
Constraint = Where is the kink in the hose/system?
7
SWOT AnalysisIn
tern
al
Ex
tern
al
Strengths
Opportunities
Weaknesses
Threats
• What you count on to achieve the
mission
8
• Attributes of our job or department
that could hinder your mission
• External resources or events that could
leverage to achieve your mission
• External events that may hinder your
mission
Gap Analysis Problem Statement
We need to reduce the amount of time spent (constraint) in
order to (potential uses of time).
9
Current State- Seeing the Process
• Create a Value Stream Map (yellow Post-its)
• Hand-offs Orange Post-its (% Complete & Accurate at each hand-off)
• Perform a Value-Add vs. Non-Value-Add Assessment
• Determine Cycle Time & Touch Time (for each and total overall)
• Determine Takt Time, if applicable
• Determine number of Steps (VA vs. NVA)
• Compute Rolled Throughput Yield (multiply % Complete and Accurate)
• Estimate Work In Process (WIP= lead time x throughput yield)
• Identify the Constraints
10
Root Cause Analysis
• Brainstorming 8 Wastes
• Create a Spaghetti Diagram
• Cause and Effect Diagram
• 5 Whys
• Check Sheets
• Pareto Analysis
11
12
Lean Applied to Business Processes Reference GuideTypes of Wastes Recommended Countermeasure
1. Lack of Organization Focus or Situational Awareness; Unarticulated, unwritten, or under communicated mission,
vision, norms; too many or incorrect metrics; inability to delegate
and micromanagement
Situational Awareness through Visual Management, articulating,
documenting and communicating Strategic Alignment and
Deployment (SA&D) – Working within Circle of Influence, Leading
Change by Example and Communication
2. Inventory- excessive Work in Process (WIP); projects and
tasks started, not finished, prioritizing/reprioritizing, tracking and
reporting, batching, multitask, etc.
SA&D to Keep WIP Optimal and Visual (WIP Boards) Limit
Multitasking (Personal and Organizational), focus on finish vs. start
too early, determine optimal batch
3. Transportation-inefficient movement of information; handoffs, expediting, facilitating, multiple approvals
Pull Systems using WIP Boards, Reconciling Handoffs, Single Text
Negotiation, and Standard Work
4. Motion; Time wasted searching (even mental) 5S, Information Organization Methodology, Visual Mgt.
5. Waiting; Waiting for the person working before us batching,
starting another task just to fill time
Create Battle Rhythms with Optimal WIP
Use Small Pockets of time to ‘Sharpen the Saw’
6. Defects; Not handing off 100% complete and accurate,
hidden factory
Single Text Negotiation, Standard Work, Service Level Agreements,
and Checklists
7. Over-Processing; Excessive effort in delivering results with
reinvention, variation, scheduling, micro-managing, inspections,
ad-hoc meetings, and excess precision
Common problem solving methodology, understanding the
difference between special and common cause variation, Standard
Work, and Checklists
8. Over-Production; Delivering activities that weren’t asked for
or required; overproduction of initiatives, tasking, emails, reports,
metrics, and distribution lists
Theory of Constraints, SA&D (asking customers), 5S applied to
reports, metrics, and files, and Email Reduction techniques – daily
standups in front of WIP Board, common email protocolAll slides originally developed and supported by William Peterson, LeanBP.com
Cause and Effect Diagram
Lack of Org. Focus Inventory Transportation Motion
Waiting DefectsOver-Processing Overproduction
Undesirable
Effect
Insert Here Insert Here Insert Here Insert Here
Insert Here Insert Here Insert Here Insert Here
13
Insert Here
Circle of Influence-based on the work of Stephen Covey
14
Consider your:Circle of Control• What are the things you can control?
• What processes belong to you alone?
• Start with this concept
Circle of Influence• Who/What can you currently
influence?
• Who/What should you influence?
Circle of Concern• Who/What concerns you?
• Who/What should concern you?
The Seven W Questions of Process Design based on the work of Dr. Michael Hammer
• Who should complete this process?
• When should we complete the process?
• Where should the process work take place? On-site vs. Off-site?
• Whether this process should take place at all?
• What are the interconnections? How many handoffs are really needed?
• What inputs (data) and information is needed?
• What degree is acceptable for success?
15
Plan-Do-Check-Act
16
PDCAPlan• Clarify the problem
• Break down the problem
• Set improvement targets
• Determine root causes
• Develop counter measures
Do• See counter measures through
Check• Confirm results and process changes
Act• Standardize successful processes
Future State- Plan
• Create a Value Stream Map (yellow Post-its)
• Hand-offs Orange Post-its (% Complete & Accurate at each hand-off)
• Perform a Value-Add vs. Non-Value-Add Assessment
• Create a Spaghetti Diagram
• Determine Cycle Time & Touch Time (for each and total overall)
• Determine Takt Time, if applicable
• Determine number of Steps (VA vs. NVA)
• Compute Rolled Throughput Yield (multiply % Complete and Accurate)
• Estimate Work In Process (WIP= lead time x throughput yield)
• Identify the Constraints
17
Action Plan- PlanAction items to improve process
18
Examples of Lean Countermeasures Used- Do
• 5S
• Visual Mgt.
• Standard Work
• Check Sheets
• Templates
• Error Proofing
• Cells (Everything at point of use in quantity needed)
• Single Text Negotiations
• Cutting Batches
• Kanban
• Pareto Analysis
19
Results- Check• How the metrics improved?
• How has the balancing metric changed?
• How has this event affected the original problem statement/mission?
• How will the change be institutionalized?
• Next steps
20
Anecdotes- CheckDescribe the implementation: obstacles, decisive moments, leadership support or lack of leadership support, funny stories, etc.
21
Future Steps- ActNext steps
22
Savings and Dates
• Date Project Started -
• Date Project Completed –
• Total Time Savings –
• Total Monetary Savings –
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