Implementing Continuous Process Improvement in Our Schools Kaizen Event Training Education’s Challenge • • • • Compete for funding. Compete for talent. Compete for students. Compete for community growth and quality of life. • Compete for the “hearts and minds” of the general public. • Do more with less…. – Expand Services – Improve Student Performance – Meet Increasing Public Goals – Keep Students in School – Meet Workplace Requirements CRCSD’s Response • Established Strategic Plan focused on Customer Satisfaction and Continuous Improvement. • Vision, mission, values, goals and guiding philosophy of each department are aligned. Business Transformation Growth Opportunities • Increased responsiveness • Provides flexibility to meet changing customer needs without backlog • Improves satisfaction of delivery of services • Improves quality & reliability • Builds customer trust & loyalty • Gives a competitive advantage that is hard to match quickly What is Lean? • Lean as a business philosophy refers to a way of thinking that focuses on waste elimination. • “Waste” describes the elements of a process that add no value to the service or product required by the customer. • Lean thinking demands an organizational culture that is intolerant of waste in all forms. All steps in a process can be categorized as waste or value added. Principles of Lean Thinking • Precisely define value from the customer's perspective • Identify the value stream for each process • Allow value to flow without interruptions • Let the customer pull value from the process • Continuously pursue perfection Lean Thinking • Lean Thinking is based on – Simple but powerful tools – Engages the creativity of the people doing the work – Rapid process improvement – Teaches people to see waste Lean Culture • • • • Continuous improvement focus Bias for action Creativity before capital Total employee / stakeholder involvement What Is Lean Education Transformation? • Focusing on lead-time reduction to improve responsiveness • Achieving simultaneous improvements in quality, cost, and delivery • Leveraging improvements for competitive advantage • Building a continuous improvement culture to sustain the gains • Deploying Kaizen Methodology for rapid transformation Western Union Video Exercise: What did you see? • • • • • • • • • • • • • • • • • • Business Process Kaizen (Change – Better) Kaizen Breakthrough Methodology Kaizen Team Ground Rules • Keep an open mind to change • Maintain a positive attitude • Never leave in a silent disagreement • There is no rank or position • Create a blameless environment • Practice mutual respect every day • Treat others as you want to be treated • One person, one voice—no position or rank • There’s no such thing as a dumb question • Understand the process and Just Do It! Kaizen Breakthrough Methodology Principles • • • • • • Clear objectives Team process Tight focus on time Quick & simple Necessary resources immediately available Immediate results (new process functioning by end of week) • 5S “mindset”, use the steps to support the event activities Pre-work Define Obtain Current Data • Provide information for the sponsor and guidance team members to evaluate scope and objectives • Provide information and data as a starting point for the team Event Roles • Facilitator – Guides the kaizen process • Team Leader – Understands the kaizen process and guides the team • Sub-team Leader – Understands the business process under study and assists team leader • Team Participants – Make the improvements Kaizen Methodology • Is focused on lead-time and variation reduction • Is measurement focused • Is data driven, and fact based • Provides a baseline for future improvements (Kaizen) • Drives cultural change Time-Based Impacts on Processes and Delivery of Services Quality & Time Cost & Time Delivery & Time Safety & Time Steps to Implementing Business Transformation • Create a business process map to identify areas of opportunity What is a Business Process Map? A tool used to: • Display the current process and information flow from the customer request through the delivery of the service to the customer • Identify opportunities and establish project priority • Identify and set the vision for the future state Business Process Map. Process Flow Map Observe the Detail 4 Ag e n t 2 Sta rt Ag e n t En ro l l m e n t Pro c e s s 14 AVP RVP 13 Ge t Gre e n L i g h t fro m RVP 31 BDM 29 Gre e n L i g h t Re c e i v e d 35 ROM 12 Re c e i v e re q u e s t fo r Au d i te d F i n . Sta t e m e n t s a n d L in c e n s e 30 Co m p l e te NA In i ti a l Pro f i l e 4 Pro v i d e Au d i t e d Fin a n c ia l Sta t e m e n t s a n d L ic e n s e 15 Re q u e s t Au d i t e d 16 Fin a n c ia l Re c e i v e Au d i te d Sta t e m e n t s a n d F S a n d L i c e n s e L in c e n s e 32 34 Re c e i v e NA In i ti a Re l c e i v e Au d i te d Pro f i l e a n d FS a n d L ic e n s e F o rwa rd to a n d fo rwa rd t o F u n c ti o n s Cre d i t a n d L e g a l , 34 Re c e i v e Se tl e m e n t Cu rre n c y 5 Pro v i d e Gu a ra n te e 18 17 Re c e i v e In i ti a t e Cre d i t p re Co n tra c t Ne g o c i a t i o n s Ap p ro v a l Sta t u s 35 36 Re c e i v e F i n a n c i a l 36 Re c e i v e Pre Da ta , P/L Re c e i v e Ap p ro v a l An a l y s i s , Pri c e Cre d i t T a b l e s , Sp re a d s No ti fi c a to n Ap p ro v a l re s p e c ti v e l y 54 Fin a n c e 61 F X / T re a s u ry 68 Cre d i t 68 1 1 -Re c e i v e NA In i ti a l Pro f i l e 78 Legal 70 1 2 -Re c e i v e NA In i ti a l Pro f i l e 37 Re c e i v e 47 Co u n t ry Re q u e s t Re s tri c ti o n s Gu a ra n te e a n d L ic e n s e / Au th o ri z a t i o n OK 52 F o re i g n Cu rre n c y Ap p ro v a l 62 In i ti a t e Cre d i t Re v i e w a n d re q u e s t Cre d i t Re p o rt 53 Ne w Co u n t ry o r Cu rre n c y ? 60 Pre -Ap p ro v e Ag e n t ? 69 Re v i e w Co u n t ry 71 Re s tri c ti o n s a n d Re c e i v e L i c e n s e / h i re l o c a l c o u n s e l Au th o ri z a t i o n i f n e w c o u n try 57 Se n d F X Ra te , Sp re a d s , Ri s k Co m p o n e n t to Fin a n c e 54 Se tt l e m e n t Cu rre n c y OK 63 64 Re c e i v e F i n a n c i a l Cre d i t Sta t e m e n t s a n d d e c is io n ? Cre d i t Re p o rt 75 Re v i e w L i c e n s e / Au th o ri z a t i o n 65 Re q u e s t Gu a ra n te e 76 Co m m u n i c a te Re s tri c ti o n s a n d lic e n s e / a u th o ri z a t i o n OK 109 Sy s te m s Im p l e m e n ta ti o n 112 In f o rm a ti o n 46 Re c e i v e Gu a ra n te e a n d s e n d to Cre d i t 14 Co m p l e x Ne g o c i a t i o n ? 45 Co m m u n i c a te Co m p l e ti o n o f Co n tra c t Ne g o c i a i to n s 23 Co m m u n i c a te Co m p l e ti o n o f Co n tra c t Ne g o c i a i to n s 38 Sta rt Sc h e d u l i n g Ag e n t In s t a l l a ti o n 21 Re c e i v e F i n a l Co n tra c t a n d Se n d to Ag e n t 39 Re c e i v e Co n tra c t a n d s e n d to BDM Ke e p s . 2 o f A.En ro l l m e n t F o rm 68 1 1 -Re c e i v e NA In i ti a l Pro f i l e 22 Att a c h En ro l l m e n t F o rm s a n d W e l c o m e L e t te r 45 Co m p l e te 25 NA Pro f i l e Re c e i v e a n d Se n d t o Si g n e d En ro l l m e n t Co n tra c t 26 Re c e i v e d Co m p l e te d En ro l l m e n t F o rm 41 Re c e i v e En ro l l m e n t F o rm s a n d Se n d to NE, Cre d i t a n d Co m p l i a n c e 42 Co n fi rm d a t e o f In s t a l l a n d s e n d Ag e n d a t o Ag e n t 24 Re c e i v e s i g n e d c o n tra c t 43 Re c e i v e M T So ft wa re , Vo y a g e r, Bi n g o Ca rd 1 Re c e i v e s i g n e d c o n tra c t fro m W e s te rn Un i o n 44 T e s t s o ft wa re a n d Ch e c k An n o u n c e m e nt Co n fi rm wi th Ag e n t b e fo re fl y i n g t o Ag e n t Si t e 10 Ag e n t Ag re e s o n Sta rti n g Da t e 11 Ag e n t Go e s L i v e 28 Co m m u n i c a te to ROM t h a t s i g n e d c o n tra c t s e n t t o Ag e n t 27 Se n d s i g n e d c o n tra c t to Ag e n t 43 Re c e i v e Re s tri c ti o n s a n d F o rwa rd to NE 9 Ag e n t T ra i n e d 48 In s t a l l So ft wa re 49 T ra i n Ag e n t 31 Re c e i v e c o m m u n i c a ti o n fro m BDM o f Si g n e d c o n tra c t 33 Co n fi rm An n o u n c e m e n t a n d Sta rt Da te 55 Re c e i v e Ba n k i n g F o rm a n d Sp re a d s 66 Re c e i v e Gu a ra n te e 92 Re c e i v e s Co u n t ry Re s tri c ti o n s 61 Ch e c k In p u t o f Sh a ri n g Arra n g e m e n ts i n AS 59 Re c e i v e En ro l l m e n t F o rm 67 Ap ro v e Ag e n t a n d c o m m u n i c a te to ROM a n d L e g a l 72 In v o l v e L e g a l wi th L e g a l Co u n s e l o f Ag e n t 74 Pre p a re F i n a l Co n tra c t a n d s . 2 o f En ro l l . F o rm . Se n d to ROM 80 Re c e i v e Co m p l e te NA In i ti a l Pro f i l e IROC 108 NCC T e l e c o m 20 Re c e i v e Co u n t ry Re s tri c ti o n s / L ic e n s e Au th o ri z a t i o n OK 8 Ag e n t Re c e i v e s Sta rte r Ki t 58 Se t u p Ne w Ba n k Ac c o u n t i f Ne e d e d 87 En ro l l m e n t 106 Co m p l i a n c e 19 Re q u e s t Gu a ra n te e f ro m Ag e n t 7 Ag e n t Re c e i v e s Ag e n d a 51 Pe rf o rm P&L An a l y s i s a n d Se t u p p ri c e ta b l e s a n d s p re a d s 50 Re c e i v e NA In i ti a l Pro f i l e 56 1 0 -Re c e i v e NA In i ti a l Pro f i l e 18 Re c e i v e Cre d i t Ap p ro v a l 3 6 Ag e n t Co m p l e t e s Ag e n t Se n d s Si g n e d Co n tra c t En ro l l m e n t F o rm s 6 Ag e n t Si g n s Co n tra c t 77 Re c e i v e Ag e n t Si g n e d Co n tra c t fro m BDM 81 En ro l l m e n t Se t u p a n d So ftwa re Pri o ri t y L i s t En try 78 W e s te rn Un i o n Si g n s Co n tra c t 84 Re c e i v e En ro l l m e n t F o rm s 73 Se n d s i g n e d c o n tra c t (i f c re d i t a p p ro v a l re c e i v e d ) 86 In p u t Sp re a d s , 85 L i m i ts , e tc , a n d Pro c e s s Se n d Sp re a d s a n d En ro l l m e n t F o rm s Ba n k i n g I n fo t o FX > 1 0 0l o c a t i o n s EDS 93 Re c e i v e En ro l l m e n t F o rm s 94 Re v i e w a n d T ra n s l a te Re s tri c ti o n s 82 Se n d Bi n g o , Pri c e Ta b le , a n n o u n c e m e n t to ROM Cre a te VDN a n d c o m m u n i c a te to Ag e n t 95 Co m m u n i c a te re s t ri c t i o n s 97 Se t u p te l e c o m ro u t e s 99 So ft wa re Co n fi g u ra t i o n 98 Sh i p So ft wa re t o ROM 100 Re c e i v e Sta rt e r Ki t Re q u e s t 91 Up d a t e F 2 Z o o m In f o rm a ti o n i n a l l la n g u a g e s 101 Sh i p St a rte r Ki t to Ag e n t 102 Ob ta i n Ag e n t Da ta fro m AS4 0 0 a n d in p u t o n Sp re a d s h e e t 83 Re c e i v e Co n fi rm a ti o n o f An n o u n c e m e n t fro m ROM 87 L a u n c h Ag e n t Sta rt Ag e n t Su p p o rt 88 Se n d An n o u n c e m e n t to W o rl d 89 Re v e n u e En d o f Pro c e s s Steps to Implementing Business Transformation • Create a business process map to identify areas of opportunity • Identify value adding and non-value adding activities and set new performance targets Value-Add vs. Non-Value-Add Definitions Value-Adding Activities… ...transform materials and information into products & services which the customer wants. Non-Value-Adding Activities... …consume resources, but don't directly contribute to the product or service…waste! Categories of Waste • Production of Defects • Overproduction ahead of demand • Unnecessary Transport of materials • Waiting for the next process step • Inventories (Excess material/information) • Unnecessary Movement by employees • Over Processing due to poor tools and product design Lead time reduction is achieved by identifying and eliminating waste. Causes of Waste • • • • • • • Functional Organization Technology Gaps Excessive Controls Dated Process Design No Back-up/Cross Training Unbalanced Workload Batching of Forms / Applications • 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 w/ Ambiguous Interpretation Value-Add vs. Non-Value-Add Definitions Value-Adding Activities… ...transform materials and information into products & services which the customer wants. – “Customer” must be willing to “pay” for it. – Must transform the product or service in some way. – Must be done correctly the first time. Value-Add vs. Non-Value-Add Definitions Non-Value-Adding Activities... …consume resources, but don't directly contribute to the product or service…waste (muda) ! Type 1 – Business necessary – does not add value but we do not know how to eliminate it right now. Type 2 – Unnecessary. Improvement Objectives • ELIMINATE Type 2 Non-Value Added steps • REDUCE Type 1 Non-Value Added steps • OPTIMIZE Value Added Waste and its two cousins! • Muda – Waste – divided into seven types. • Mura – Unevenness – consists of all resources that are wasted when quality cannot be predicted (testing, inspection, rework, returns, unscheduled travel, etc). • Muri – Overburden/overdoing – unnecessary or unreasonable overburdening of people, equipment or systems. Categories of Waste • Production of Defects • Overproduction ahead of demand • Unnecessary Transport of materials • Waiting for the next process step • Inventories (Excess material/information) • Unnecessary Movement by employees • Over Processing due to poor tools and product design Lead time reduction is achieved by identifying and eliminating waste. Defects • • • Internal or external suppliers providing incomplete or incorrect information or material. Evidence: CAC: Correcting information that has been supplied. Adding missing information that should have been supplied. Clarifying information that should have been clear when supplied. Material that does not work. Handling customer complaints. Risks: Errors become defects that require rework. Produces dissatisfied customers, frustrated workers, lost productivity, and extended lead times. Make decisions based on incorrect or incomplete data. Overproduction • Producing too much, too fast or too soon. • Evidence: Build up of work-in-progress (WIP) • between process steps. Build up of queues, people waiting, filled in-boxes or email queues, etc. Risks: Excessive lead times. Unnecessary complexity and confusion due to reprioritization of tasks and the development of multiple tracking systems. Transportation • Movement of “things” – paperwork, electronic • • information, material, drawings, equipment, and supplies. Evidence: Hand carrying. Traveling to shared equipment. Searching for information; seeking information clarification. Searching for material. Risks: Damage or loss during transport. Delay in work being available. Waiting • People waiting for people. Information, • • product, or equipment waiting for people. People waiting for information. Product, or equipment. Idle time created when Evidence: “The Thing” passing through the system stops. Idle people. Idle bottleneck equipment. Waiting for meetings to begin. Waiting for information, input, decisions, approvals or authorization to proceed. Risks: Extended lead times, long work days, and paid overtime. Unnecessary capital expenditures for equipment. Inventories/WIP • Excess paperwork, supplies, materials, • • equipment, etc. Work waiting in que. Work partially completed. Work completed but not utilized. Evidence: Stockpiles of supplies, forms, materials, etc. Disorganized storage areas. Risks: Reduced cash flow. Lost productivity due to searching. Excess space. Damage. Obsolescence. Movement • Movement of people. • Evidence: Hand carrying work product. • Functional layout. Traveling to shared equipment. Searching for information; seeking information clarification. Excess reaching, repositioning, stacking. Not carpooling. Meeting face-to-face instead of teleconferencing. Risks: Reduced capacity to perform valueadding work, which results in increased staffing requirements. Injury. Over Processing • Doing more to anything than the customer is • • willing to pay for. Effort that adds no value from the customers point of view. Evidence: Inspections, audits, and reviews.. Redundant task. Duplicate data entry. rewriting, etc. Too many handoffs. Multiple approvals/signatures. Unnecessary meetings. Risks: Excessive lead times. Low productivity. Frustrated workforce. Value Adding by Process: Submittal of Application Open mail Date stamp mail Review packet for completeness Submittal Complete? Y N Prepare file Call applicant Is the project Y required? N Assign R&C number R&C log into data base Assign previous number & pull file Request update info. & set file aside 5 hrs. 3.0 hrs. 5 mins. Lead time = 8 hrs. Value Add time = 5.5 minutes 5.5 min. Value Add % = = 1.1% 8 hrs. x 60 min. 30 sec. Steps to Implementing Business Transformation • Create a business process map to identify areas of opportunity • Identify value adding and non-value adding activities and set new performance targets • Create process flow Enhanced Spaghetti Map • Shows information flow • Shows staff flow • Aids in identifying wasteful activities by viewing it from the basis of physical layout • Shows what is actually happening versus what people think happens • Familiarizes everyone with the process • Identifies variations in information handling/storage Example Spaghetti Map Start Desk Table Desk Table 4a 4c Table 3 4b 11 10 6, 7, 8, 9 6, 7, 8, 9 Table Desk Table 6, 7, 8, 9 6, 7, 8, 9 Desk 6, 7, 8, 9 6, 7, 8, 9 Desk DeskDesk cart Desk Table Desk Table 1 2 Table Desk Table Desk Staging Area 12 Performance Excellence Batch Mode Continuous Improvement Open Mail Voucher Batch Invoices Stack & Hold File Batch Calculate Batch Total Enter Batch One Piece Flow Performance Excellence Continuous Improvement Open Mail Enter File Steps to Implementing Business Transformation • Create a business process map to identify areas of opportunity • Identify value adding and non-value adding activities and set new performance targets • Create process flow • Reduce variation and improve quality Process Must Be Repetitive • Customer must always receive the same level of service (or get the same answer) no matter who they ask • Customer must get the same level of service (or answers) no matter what time of the day, or day of the week they ask • Customer must always get on-time, complete service (or on-time, complete and accurate information) Reduce Variation • Sources and causes of variation make standard business processes appear to be random, non-standard work • • • • Missing information Wrong work sequence Non-standard training processes Non-standard decision aids Assuring First-Time Quality Means... • Build system with appropriate information • Build poke-yoke (mistake-proofing) devices for common problems • Never passing a defect on to the next process; • Detecting abnormalities • Responding immediately • Eliminating root causes • Establishing clear decision rules 5 Why’s Tool 5 Why’s Example PROBLEM Jefferson Memorial is deteriorating WHY? Too much washing WHY? Excess bird droppings WHY? Lots of spiders to eat WHY? Lots of gnats to eat WHY? Lights are on all the time Steps to Implementing Business Transformation • Create a business process map to identify areas of opportunity • Identify value adding and non-value adding activities and set new performance targets • Create process flow • Reduce variation and improve quality • Intense focus on daily performance management and visual control Visual Management Alert Problem! Data Display S Q Gage name: Date of study: Reported by: Tolerance: Misc: C 10" Digital Caliper (Herman Mill 1/31/01 John Chapdelaine .001 D MN Shot Saw Timeline CA Shot Saw Record 0.9 By Part number 250 0.9 50 40 30 20 10 0 Index 10 20 30 40 50 60 70 80 90 0.8 % Big Grit Percent 50 0.5 0.4 200 120.05 150 ShrinkLines %Contribution %Study Var %Tolerance 0.6 Amount Small Grit 0.7 120.00 100 0.3 0.2 50 119.95 0.1 0 0 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 Repeat Reprod Part-to-Part % Big Small Part number 1 2 3 Sample Range 0.015 UCL=0.01480 7 8 9 10 R=0.00575 0.000 LCL=0 Prevent 119.95 operator Betty Betty 120.05 Jenny 2nd Shift Jenny 2nd Shif t Papo operator*Part number Interaction Papo operator 120.05 120.00 UCL=120.0 Mean=120.0 LCL=120.0 119.95 Betty Jenny 2nd Shif t Papo 120.00 119.95 119.90 Sales Order Entry Order Picking Obtain & write up order from customer 0 Deliver order slip to order entry Log, sort & prioritize orders Inform customer of delay Slips wait for pick-up Get slips from order entry Shoes Available? Send shoes to packing Alert stock & sales Order more Shoes from factory Stock Packing Pack & send to shipping Shipping Ship shoes 0.4 100 0.3 0.2 50 0.1 0 0 Part number 5 7 9 11 13 21 23 1 2 3 4 5 6 7 8 9 10 39 Time 120.00 0.005 Average Sample Mean Action Steps 6 120.05 0.010 Xbar Chart by operator Function 5 Papo 0 React 4 By operator Jenny 2nd Shift 150 0.5 % good grit R Chart by operator Betty 200 0.6 3 Time Gage R&R 250 0.8 0.7 % Good Grit Components of Variation 100 bad grit 45 47 49 69 71 73 Amount Small Grit in Grams Gage R&R, Length, 1/31/01 Visual Management: Hour By Hour Chart Response to Demand Hour Actual Input Actual Output Target Output Cum. Backlog 8-9 30 25 30 5 9-10 30 31 30 4 10-11 30 28 30 6 Computer down time 11-12 50 28 30 28 Rework – incomplete info. 12:30-1:30 50 32 30 46 1:30-2:30 40 29 30 57 2:30-3:30 30 30 30 57 3:30-4:30 20 30 30 47 Comments Training new staff Printer paper out Visual Management: Monitoring Backlogs Iowa Department of Natural Resources Wastewater Construction – CWSRF 60 Overall Backlog Moving to Completion 50 16 Total Project Left to Complete 12 14 40 Facility Plan - Approved and Loan - Not Approved 12 30 12 12 Facility Plan - Not Approved and Loan - Not Approved 13 10 41 20 9 39 33 26 8 23 10 23 19 9 18 17 10 12 9 6 10 3 0 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Calendar Date Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 Western Union Video (After) “Quick and simple is better than slow and elegant” First, try it with the knowledge available Improve upon the results Base analysis on the facts (data) This leads to quick and elegant solutions The germ of the next action (kaizen) will sprout from it Take no action and nothing will happen (not seeing is not knowing) Kaizen Newspaper Item # Problem 1 Req. Design 2 SHPO Buy-in 3 Create shared folders 4 5 6 7 8 Action Create new form Agreement by SHPO Get affected cities to buy-in When Results (Expected) Dan 3:00 pm Form Complete Sarah Thurs. Complete John 30 days Reduce Leadtime Who Management Team Must • Establish a clear vision of continuous improvement • Communicate, communicate …… • Vision • Implementation Plan • Passion and commitment • “Walk the Talk” • Active participation – know the principles • Constant reinforcement – daily, weekly, monthly Summary • Kaizen activity is tied to overall operational improvement • Execution of Kaizen activity requires significant planning and preparation • Developing continuous improvement culture is a long-term process • Sustaining Kaizen gains requires daily leadership throughout the organization Questions Tool Module Process Flow Mapping Business Process Flow Map Used to: • Capture current & new process information • Identify flow of transaction • Identify responsibility of different agencies and stakeholders • Clearly show hand-off between functions • Identify VA & NVA activities • Train staff in new process Business Process Flow Map Steps Create macro level flow of process Determine functional areas Detail the steps Connect with arrows 1.Create Macro Level Flow of Process Mail Courier delivers mail Sorter sorts mail (thins/smalls & thicks) and opens thins/smalls Mail Extractor removes claims from envelopes & sorts Lead checks & sorts claims & delivers to input prep 2. Determine Functional Areas Lead Mail Extractor Sorter Mail Courier Mail Room Process 3. Detail the Steps Lead Mail Extractor Sorter Mail Courier Mail Room Process Start Bring cages into mailroom Unload bins from cages Sort the thicks from the thins & the smalls Slice thin & small envelopes in machine Put envelopes in trays & pull out label sheets w/ machine count Count thick envelopes, then label sheets & stack in trays put envelopes on shelf Pick up tray from shelf, return to desk Thick envelopes are opened manually & then claims are extracted & sorted by claim type Thin envelopes have claims extracted from them & sorted by claim type Put claims in trays by claim type Pick up trays & place on cart QC each tray take trays to input prep End 66 4. Connect With Arrows Lead Mail Extractor Sorter Mail Courier Mail Room Process Start Bring cages into mailroom Unload bins from cages Sort the thicks from the thins & the smalls Slice thin & small envelopes in machine Put envelopes in trays & pull out label sheets w/ machine count Count thick envelopes, then label sheets & stack in trays put envelopes on shelf Pick up tray from shelf, return to desk Thick envelopes are opened manually & then claims are extracted & sorted by claim type Thin envelopes have claims extracted from them & sorted by claim type Put claims in trays by claim type Pick up trays & place on cart QC each tray take trays to input prep End Flow Map Shapes Function Beginning & End Points Task Inspect & Decision Different functions of the process Use 3”x3” orange construction paper. . Beginning and end points of the process Use 3”x3” green post-its. Any task / activity where work is performed. Use 3”x5” yellow post-its. Places where information is checked against established criteria (standards) & decision made on what to do next. Use 3”x3” blue post-its. Orient post-it as shown. Delay Any time information is waiting before the next process or decision (i.e. in-baskets, out-baskets, waiting to be batched). Use 3”x3” pink post-its. Store When information / product is placed in inventory (i.e. a file cabinet, directory). It may be used at some point in time. Use 3”x3” purple post-its Flow Map Arrows Single straight arrow – used between tasks performed by same person or area, but no physical movement has occurred. Box arrow – indicates physical movement of information / product from one person / function to another. Jagged arrow – indicates electronic movement of information from one person / function to another. 80/20 Rule 20% of the activities in a process cause 80% of the delay. Impact / Difficulty Rating Used To: • Capture waste information and potential solutions • Rate / rank the solutions in regards to resolution of the issues and ease of implementation Waste Barrier Prioritization Matrix Waste Barrier Prioritization Worksheet Process: 1 Communications Tech Support Call Process Barrier / Waste Root Cause Solution / Impact Difficulty Impact Call Processing Computer System Training One on one training 1 7 In-House Trainer 4 7 Batesville visit to work with tech support 4 7 No quick reference materials Develop quick reference templates 1 7 No access to Impromptu Give tech's access to Impomptu 1 10 No Standard of Work Develop a Standard of Work 4 7 Too many Queues Change from 5 Queues to 3 Queues 1 7 4 10 1 7 2 3 4 5 6 7 8 9 10 No way to monitor and manage Queues Field personnel contacting T/S for nonservice issues Install an ACD monitor for better management of Queues Educate field personnel on the departments they should contact for non- Impact / Difficulty Matrix Impact/Difficulty Matrix 10 8 I 1,4,7,9 III 2,3,6 Impact 7 5 4 II IV 1 0 1 4 7 Difficulty 10 Business Process Kaizen Standard Operations A Standard Operation Is... The best combination of people and resources balanced to customer demand… ...using the minimum amount of people, space, materials, and equipment. Standard Operations • Why Implement Standard Operations? • To make it possible to identify and eliminate variations in staff work • To sustain the gains achieved from past kaizen activities • To provide a baseline for future kaizen activities • How Do You Use Standard Operations? • Document each standard process. • Display the documentation. • Ensure that all staff are trained. A Standard Operation Is... Pacing to takt time Takt Time Net Operating Time / Period Takt Time Customer Requiremen ts / Period * * Time periods must be consistent (shift, day, week …) Takt Time Example Net Operating Time Per Day: Day: 480 minutes Breaks: 2 @ 15 minutes = Prep time: 1 @ 5 minutes = Net operating time per day = Customer Requirements: Permits # working days/month Permits / day = 480 -30 -5 9,600 20 Net Operating Time/Perio d Takt Time Customer Requiremen ts/Period * For 1 day: Takt Time = * Time periods are equal Lead Time vs. Cycle Time Lead Time Dept Service Worker Cycle Time Takt Time vs. Cycle Time Bar Chart S Cycle Times # of Staff = Takt Time 60 Takt Time = 5 hours 50 Time 40 30 S Cycle Times = 15 hours 20 10 1 2 3 4 5 Staff 6 7 8 9 10 11 12 Approaches to Staffing Fixed Customer Demand 60 Takt Time = 50 sec 60 50 Time 50 Time Flexible Customer Demand 40 40 30 30 20 20 10 10 1 2 3 Staff 4 5 6 Staff A Standard Operation Is... Pacing to takt time Establishing work sequences Step 1 Step 2 Step 3 A Work Sequence Is... • A prescribed sequence of steps • Assigned to a single staff person • Which is balanced to the takt time if appropriate A Standard Operation Is... Pacing to takt time Establishing work sequences Step 1 WIP WIP Step 2 PC WIP Step 3 “Where there is no standard, there can be no Kaizen.” – Taiichi Ohno Tool Module 5S What Is 5S Methodology? • A process and method for creating and maintaining an organized, clean, highperformance workplace • A conditioning discipline for kaizen Why is Workplace Organization Important? • Safe, clean and neat • Place for everything, everything in its place (Go APE – “A Place for Everything”) • Only what is needed to support the employee Why Do 5S? • Enables Perfect Quality • Enables Waste Identification • Promotes Employee Satisfaction • Enables Standard Operations • Enables Visual Control Definition of 5S • Step 1: Sort - Remove unnecessary items; keep only what is needed. • Step 2: Set - Assign and label for ease of use; designate a home for everything; (a.k.a. Straighten/Store). • Step 3: Shine – Keep area clean on a continual basis. • Step 4: Standardize – Create a process that is easy to follow and maintain. • Step 5: Sustain – Training and discipline; stick to the rules and maintain motivation. 5S Applies to Everyone 1. Sorting: Decide What is Needed • Definition – Sort out necessary and unnecessary items – Dispose of items that are not needed • Why: – – – – Removes waste Safer work area Gains space Easier to visualize process The Mess 1. Sorting (Cont): Decide What is Needed • Things to remember – Start in one area, then sort through everything – Discuss removal of items with all persons involved – Use environmental/safety procedures – Items that cannot be removed immediately should be tagged (“redtagged”) Is This Item Needed? 2. Set: Arranging the Workplace Definition • Arrange all necessary items Why: • Have a designated place for everything • Visually shows what is required or is out of place • More efficient to find items/documents/files • Saves time by not searching for items • Shorter travel distances (motion) 3. Shine: Sweep and Cleanliness • Definition – Keeping areas clean on a continual basis • Why – A clean workplace (office) is indicative of a quality process, product or service New Labels are Now On File Cabinets! – Helps to identify abnormal conditions ‘Everything in its place’ 4. Standardize • Definition – Create a new process that is easy to follow and maintain • Why – Maintain the workplace/office at a level which uncovers and makes problems obvious – Need to sustain the improvements – Sustain sorting, storage and shining activities every day 5. Sustain: Trained & Disciplined Culture • Definition – We need to practice and repeat until it becomes a habit • Why – To build 5S’s into our every day process • Things to Remember – Develop schedules, check lists – Good habits are hard to break – Commitment and discipline toward housekeeping is essential in taking the first step to world class performance Before & After A Place for Everything! So, Why Don’t We Just Do It? • It is a habit issue – sounds easy, difficult to implement and sustain • Discipline exists only if there is commitment on all levels A well organized 5S program delivers significant results with minimum investment