Medical Presentation[1]

National Association of Health Services ExecutivesEmpowering the Next Generation of Health Care Leaders Today

Lean and Six Sigma PresentationLatoya L. WallThe Bulsard Group, LLCSeptember 2012

Agenda

Who are we? - IntroductionWhy now, Why me? – Business CaseWhat will we accomplish? – Lean and Six

SigmaHow will we accomplish this? – The ProcessWhere and When? – Next Steps

2

3

Who are we? - Introduction

www.bulsardgroup.com

12 Point Approach

4

Value Maturity Model

5

Business Opportunity Identified “ Value Definition”

“Value Creation”

“Value Delivery”

“Value Capture”

“Value Optimization”

6

4 Measures of Organizational Performance

Efficiency Capability

Effectivity Capacity

Proc

ess

Dep

ende

nt

People DependentLow High

Low

Hig

h

Why now? – Business Case

Lean Six Sigma in Healthcare Areas of Innovation Lowering healthcare costs due to inefficiency, inappropriate care,

duplicative care and incomplete information Generating additional savings by reducing waste, decreasing medical

errors and improving quality Improving patient outcomes, and detecting, preventing, and managing

chronic disease Transforming the economy with science and technology

“Each of the nation’s 5,700 hospitals must cut $2.6 million a year on average in costs in the next 10 years to meet the demands of President

Obama’s proposed health care reform, a daunting task when half of those hospitals lose money.” USA Today

7

FROM THE HEADLINESUses of Lean Six Sigma in healthcare are growing exponentially due to

$147 B in American Recovery & Reinvestment Act (ARRA) of 2009 funding for 5 years

Each of USA’s 5,700 hospitals must cut $2.6 M a year in costs in next 10 years

Why me? – NAHSE

National Association of Health Services Executives• Mission is to improve quality, access to and availability of health services for

those who are poor and underserved• Focus is on collaborative thinking as a source of energy to set the bar in

delivering lasting solutions• Provides a powerful vehicle for the design, direction and delivery of quality

health care to all people• At the heart of NAHSE is the powerful forward momentum to constantly

refine, refocus and renew

8

NAHSE Can Be a Leader: Empowering the Next Generation Through Innovation!

Why me? –Individual InvolvementLean and Six Sigma Certification Levels and Salary Benefits

ExecutiveMaster Black

BeltLeadership Training

Global Projects at $5M Savings and above

Black Belt5-6 Weeks In Depth Concept Training Projects at $1M Savings and above

Green Belt3 Week In Depth Concept Training Projects at $500K Savings and above

Yellow Belt2 Day Multi-tool Training

White Belt1 Day Overview Training

9

$87,783*Median Salary

$109,141*Median Salary

$168,138*Median Salary

*Median Salary is based on 2012 rates for Houston, TX

Lean and Six Sigma OverviewWhat will we accomplish?

11 04/10/2023

Premise of Lean…Lean was pioneered by the Toyota Production System

• Sources of waste can be eliminated in every area of production along the value stream

• Focus is on efficient operation by • Reducing cycle time• Improving quality• Aligning production with demand• Reducing inventory• Improving process safety

• Focus areas include customer relations, product design, supplier networks, and factory management

Before After

Toyota Company = World Class Performance!!!

12 04/10/2023

Sources of Waste - DOWNTIMEDefects: Errors which cause rework, repair, and/or replacement.

Overproduction: Producing products outside of targets or services

prematurely.

Waiting: Delays in parts, machine, signatures, etc. which increase

lead time.

Not Using People Well: Poor utilization of work force’s time and

talents.

Transportation: Nonessential transport of products or delivery of

services.

Inventory: Excess components above minimum business target

objectives.

Motion: Movement of resources not value adding to product or

service delivery.

Excess-Processing: Inefficient processing of customer product

features.

13 04/10/2023

Premise of Six Sigma…Six Sigma was pioneered by Motorola and developed by GE

• Sources of variation can be identified, quantified and eliminated or controlled

• Focus is on reducing defects in our strategic or core processes which undermine customer loyalty

• Process improvements are data driven and improve overall process capability

-6 -3 0 +3 +6

LSL USL

T hree Sigma Process Six Sigma ProcessLSL USL

-6 0-3 +6+3

LSL: Lower Specification LimitUSL: Upper Specification Limitσ: measure of variation in a process

Specs are Customer Driven

Sigma Quality Level:

The Higher the Sigma level, the Better the Quality

Goal

GE 5 year savings = $12 B!!!

14 04/10/2023

Industry Sigma Rankings*

*Courtesy of Six Sigma Academy

7

Sigma Scale of Measure

1,000,000

100,000

10,000

1,000

100

101

DPMOPPM

•Restaurant Bills

Doctor Prescription WritingPayroll Processing

Order Write-upJournal Vouchers

Wire TransfersAirline Baggage Handling

Purchased Material Lot Reject Rate

Domestic Airline Flight Fatality Rate (0.43 PPM)

Best-in-ClassAverage Company

3 4 5 621

IRS - Tax Advice (phone-in)

(140,000 PPM)

15 04/10/2023

Change Management

FormalOrganization

InformalOrganization

PeopleWork

To implement any type of change you should first consider the impact to these components of an organization:

Inputs into the organization

Outputs to the organization

Congruence Model

Business Process ImprovementHow will we accomplish this?

17 04/10/2023

Example: Six Sigma in Oil & Gas – Process Mapping

BusinessProcess

Sub-processes

Detailed Sub-Process

Map

Land Imaging Process

Document Preparation

DocumentScanning

QC (Image Review)

Prep Documentsfor storage

Tasks Procedures

18 04/10/2023

Detail Process Map

CHECK TO SEE IF

DOCUMENT IN P8

CHECK TO SEE IF SCANNED DOCUMENT

IS IN TLS

DOC IN P8?

CHECK IMAGE QUALITY

RE-SCAN QC CHECK FAILED?

CHECK NO. OF PAGES

CHECK FOR 2X IMAGES

CHECK FOR CORRECT IMAGE

CATEGORY

CHECK FOR BLANK PAGE

CHECK FOR IMAGE CUT-OFF

CONFIRM PAGE SIZE CORRECT

DELETE DOCUMENTS

SEND DOCUMENTS

FOR FINAL QC

ENTER DOCUMENT NUMBER IN

TOBIN

VERIFY DOCUMENT

NUMBER

VERIFY DOCUMENT BOX

NUMBERVERIFY DATE

VERIFY BAR SHEET IS CORRECT

OPEN DOCUMENT IN

TLS

CHECK IMAGE QUALITY

MATCH DOCUMENT IN

TLS AGAINST P8

DOCUMENTS MISMATCH

?

VERIFY DOCUMENT

TYPE

FIX MISMATCH

RETURN TO BOX TO SEND TO

STORAGE

MISMATCH CAN’T BE

FIXED

CONTACT PROCESS ASST

OR IT

CAN BE FIXED BY IT (E.G., CHANGE

DATE)

RETURN TO BOX SEND TO STORAGE

No

Yes

Yes

Yes Yes

Yes

No

No

- PROCESS ASST- FILENET P8- DOC NO.- MISC.- DATE

- PROCESS ASST- TOBIN- DATE- MISC.- BOX NO- DOC CATEGORY- DOC NO.

10 - 60 MINUTE DELAY TO GET FROM FILENET

TO TLS

CHECK IMAGE QUALITY

CHECK NO. OF PAGES

CHECK FOR 2X IMAGES

CHECK FOR CORRECT IMAGE

CATEGORY

CHECK FOR BLANK PAGE

CHECK FOR IMAGE CUT-OFF

CONFIRM PAGE SIZE CORRECT

30 MINUTE DELAY TO GET FROM FILENET

TO TLS

QC CHECK FAILED? RE-SCAN DELETE

DOCUMENTSYes

No

Stop

Start

- PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST

- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST

- QC ANALYST

- QC ANALYST

- QC ANALYST

- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST

- QC ANALYST - QC ANALYST

- QC ANALYST - QC ANALYST- QC ANALYST

19 04/10/2023

Process Mapping - Classification Value Added–A step in the process that the customer/company is willing to

pay for• Includes those activities that are required by contract or

law• If it were left out, it would impact customer satisfaction

Business-Value Added–Any activity, when left out, that does not directly impact the

customer and may incur no dissatisfaction• These steps may be necessary to support value added steps • Any activity required by the business

Non-Value Added–Any activity, when left out, that does not directly impact the

customer and may incur no dissatisfaction

20 04/10/2023

Analysis of Process Map

CHECK TO SEE IF

DOCUMENT IN P8

CHECK TO SEE IF SCANNED DOCUMENT

IS IN TLS

DOC IN P8?

CHECK IMAGE QUALITY

RE-SCAN QC CHECK FAILED?

CHECK NO. OF PAGES

CHECK FOR 2X IMAGES

CHECK FOR CORRECT IMAGE

CATEGORY

CHECK FOR BLANK PAGE

CHECK FOR IMAGE CUT-OFF

CONFIRM PAGE SIZE CORRECT

DELETE DOCUMENTS

SEND DOCUMENTS

FOR FINAL QC

ENTER DOCUMENT NUMBER IN

TOBIN

VERIFY DOCUMENT

NUMBER

VERIFY DOCUMENT BOX

NUMBERVERIFY DATE

VERIFY BAR SHEET IS CORRECT

OPEN DOCUMENT IN

TLS

CHECK IMAGE QUALITY

MATCH DOCUMENT IN

TLS AGAINST P8

DOCUMENTS MISMATCH

?

VERIFY DOCUMENT

TYPE

FIX MISMATCH

RETURN TO BOX TO SEND TO

STORAGE

MISMATCH CAN’T BE

FIXED

CONTACT PROCESS ASST

OR IT

CAN BE FIXED BY IT (E.G., CHANGE

DATE)

RETURN TO BOX SEND TO STORAGE

No

Yes

Yes

Yes Yes

Yes

No

No

- PROCESS ASST- FILENET P8- DOC NO.- MISC.- DATE

- PROCESS ASST- TOBIN- DATE- MISC.- BOX NO- DOC CATEGORY- DOC NO.

10 - 60 MINUTE DELAY TO GET FROM FILENET

TO TLS

CHECK IMAGE QUALITY

CHECK NO. OF PAGES

CHECK FOR 2X IMAGES

CHECK FOR CORRECT IMAGE

CATEGORY

CHECK FOR BLANK PAGE

CHECK FOR IMAGE CUT-OFF

CONFIRM PAGE SIZE CORRECT

30 MINUTE DELAY TO GET FROM FILENET

TO TLS

QC CHECK FAILED? RE-SCAN DELETE

DOCUMENTSYes

No

Stop

Start

VALUE ADDED BUSINESS VALUE ADDED

NO VALUE ADDED

ORLOW VALUE

- PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST - PROCESS ASST

- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST

- QC ANALYST

- QC ANALYST

- QC ANALYST

- QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST - QC ANALYST

- QC ANALYST - QC ANALYST

- QC ANALYST - QC ANALYST- QC ANALYST

Defects Overproduction Waiting Not Using People Well Transportation InventoryMotion Excess-processing

21 04/10/2023

CT Scan Throughput Project Example Issue: North Shore-Long Island Jewish Health System

Radiology throughput facility struggled to meet the demands of patients, providers

and physicians Solution: A Lean Six Sigma team addressed the problem

through a Kaizen event Outcome: Increase in Capacity

In 30 days, daily number of patients scanned increased Previous average of 45 with a standard deviation (SD) of

7, to 51 patients scanned, with a SD of 4 Procedure improvements

from 30.6 percent to 22.7 percent 200 additional procedures per month 60 outpatient procedures per month

Approximately $375,000 in additional annual revenue!!!

22 04/10/2023

On-Time MRI Scans Project Example Issue: Radia Inc., a large radiology and vascular

surgery practice Wanted to improve efficiencies at one center that was

falling behind Solution: A Lean Six Sigma team addressed the

problem through a Kaizen event

Outcome: 50 percent improvement in the number of on-time MRI

scans Created the potential for more than $1.4 million in

annualized incremental revenue Maintained optimal patient safety and quality of care

More than $1.4 Million in annualized incremental revenue!!!

23

Exercise

Step 1: Answer the following question: What “keeps you up at night” concerning your current operations?

Step 2: Brainstorm all possible process bottlenecks and process design gaps Step 3: Transcribe bottlenecks/gaps to post-its (1 per Post-it) Step 4: Identify as a source of waste using DOWNTIME. Step 5: Affinitize gaps and create a single statement as the “major gap” for each affinitized group

for an outbrief

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

Major Gap 1Major Gap 2

Major Gap 3

xxx

xxx xxx

xxxxxx

xxx

xxx

xxx

xxxxxx

Step 1 Step 2 Step 3

ToolsBrainstormAffinitize

Questions????

24“Empowering the Next Generation of Health Care Leaders Today”

Latoya L. Wall, PresidentBack-up

The Operational Excellence Connection

Through the use of Lean , Six Sigma, and Change Management principles, the 7-6-5 plan provides a clear path to achieve Operational Excellence

Current State

Standardization & SustainmentFocus: Value Drivers

Strategy DeploymentFocus: Strategy

Training & DevelopmentFocus: Vision

Change ManagementFocus: Measures

Strategy DevelopmentFocus: Processes

Capability AssessmentFocus: Governance

Stakeholder IntegrationFocus: Organization

Individual Employee

Future State

Opportunity Statement

(Supply Chain Example)

Implement an integrated, comprehensive Materials

Management System to improve financial compliance, and

optimize material visibility, quality, and availability.

5 Focus Areas Implement standard work

processes Leverage enabling

technology Establish the required

storage infrastructure4. Improve financial

compliance 5. Optimize material visibility,

quality, and availability Represents successes to date

Opportunity Statement

(IT Example)Currently Engineering and Earth Science practitioners

spend 60% of their time looking for and QCing data. Improve

the productivity and effectiveness of these

practitioners by establishing a data management

infrastructure focusing on data access and data quality.

5 Focus Areas Establish core roles and

governance for data management efforts

Implement standard processes for data governance

3. Reduce redundant systems which store data

4. Increase Decision Quality5. Optimize data visibility,

quality, and availability

7-6-5 Plan: Stages 1-3 – “Develop”

27

Stage 1Stakeholder Integration

What1. Stakeholder/Customer Analysis 2. High Level Gap Analysis3. Scope Definition4. Benchmark StudyWhy5. To identify, gather, and analyze

stakeholder/customer data6. To determine the Strategy and the

Value Drivers (critical success factors)

7. To determine the scope of all processes from Supplier to End-user Customer

8. To align with current governance in place

Stage 2Capability

AssessmentWhat1. Value Stream Map2. Input-Process-Output Diagram3. Current State Governance &

Measures4. Spaghetti DiagramWhy5. To determine how value is

delivered from the Supplier to End-user Customer

6. To determine the leading and lagging indicators to the processes

7. To identify the current state governance & measures for E2C2* of all processes

8. To map flow of information/material and identify bottlenecks and areas of waste

*E2C2 = Efficiency, Effectivity, Capacity, Capability

Stage 3Strategy

DevelopmentWhat1. Swimlane Process Flow

(Development) 2. Barriers-Aids-Countermeasures

Tool3. Swimlane Process Flow (Review) 4. Roles and Responsibilities PlanWhy5. To illustrate all steps & behaviors

needed to successfully complete each subprocess

6. To identify process design gaps and select desired alternatives and develop a design gap closure plan

7. To review and update process flows based upon selected alternatives

8. To determine new roles and responsibilities needed to execute processes

Develop: Stages 1-3 (Supply Chain)

MeasureDefineProcess Affinitization Macro Process Flow Map

IPO Diagram Value Stream Map

Develop: Stages 1-3 (Supply Chain)

ImproveAnalyzeCurrent State Analysis Barrier-Aid-Countermeasure Tool

Process Flow Development High Level Process Flow Map

Develop: Stages 1-3 (IT)

MeasureDefineProcess Affinitization Macro Process Flow Map

IPO Diagram Value Stream Map

ProcessData Management Failure

Identification Process (Innerlogix tool used)

Inputs(Leading Indicators)

Outputs(Lagging Indicators)

Improved risk controls/compliance (cost)

Improved data quality (reduction in # of errors) (performance)

Reduction in number of business analyst needed to monitor the

Innerlogix tool (cost)

Data

Business Rules

Data Producers

Data Stewards

System of Record

SupplierData Consumer (DC)/

Data Management System Identifies

Business Rule Failure or Data Error

CustomerData Steward (Help Desk Rep) Receives DQM Failure Ticket

Data Consumers

Data Errors

Data Quality Business Analyst

Reduction in number of incidents and problems discovered with Business Rules (performance)

Reduction in technical research time by end-user (time)

Reduction of ticketing/logging/auditing downtime (performance)

Receive and Process Data Quality Issues

SUPPLIERS

Data Producers: System of RecordData Stewards: Business Rules

Ticketing System (New Scale?)

??-?? Hours ??-?? Hours ??-?? Hours ??-?? Hours

??-?? ??-?? Days ??-?? Days ??-?? Days

??-?? Hours

??-?? DaysScope Process

Totals:

??-?? Hours

Access Data and Rules(Bottom Hole Pressure)

Gulf of Mexico Data Management Value Stream Map

??-?? Days

Subprocesses:

1. Request Load Send MMS2. Single Point Entry Form3. Load Historic Data , Legacy Spreadsheets5a. Export to MBAL PROSPER Gap5. Summary Report and Information for Decision Making6. Request for a Waiver8. Data Quality9. Add, Remove, Modify Users10. Modify MMS 140 Template

· OE Engineer· Tech· AD Engineer· Vendor· DQM Rep· IM Analyst· DQ Analyst

(offshore)· SuperUser

Subprocesses:

DM Failure Identification Process

DM Ticket Response Process

· Data Consumer

· Data Custodian

· Data Steward

· DM Help Desk Team

· Help Desk Ticket Form

· Final Resolution and Ticket Closure Form

Resolve Data Quality Issues

Subprocesses:

Data Management Failure Resolution Process

· Data Consumer· Data Steward· Information Management Champion · Information Management Delegate

# Handoffs:

Review Data Quality Management

Subprocesses:

Gap Assessment and Trending Process

DQ Monthly Review Process

· Data Steward

· Information Management Delegate

· Information Management Champion

· DM Governance Board

# Handoffs:

Train and Develop

Subprocesses:

Data Quality Training Process

Management of Change Process

· Data Steward

· IT Training Group

# Handoffs:

Data Management Maintenance

Subprocesses:

SOR Update Process

Business Rule Update Process

Management of Change Process

· Data Steward

· Functional Rep

· Information Management Delegate

· Management of Change Owner

# Handoffs: # Handoffs:

Stewardship and Operations Governance

· Gap Assessment Report

· DM Monthly Meeting Dashboard Report

· MOC Form· Training and Development Plan Template

??-?? Hours

??-?? Days

· MOC Form

??-?? Hours

??-?? DaysProcess Totals:

RCats (or equivalent)

ILX

· Final Resolution and Ticket Closure Form

· Level 1 Documents

# Handoffs:

Web Access

CUSTOMERS

DM CommunityUpdated SOR

Updated Business Rules

Days

Legend· Electronic Information Flow

· Information/Data Transfer by Webform

· Information/Data Transfer by Email

· Information/Data Transfer by Telephone

· Information/Data Transfer by Computer Interface/Web Access

· Work in Process

· Inventory

· Roles

· Forms Used

Data Errors

Business Rule

Failures

Identified Data

Quality Issues

Data Quality

Resolutions

Improvement Plans

Training Modules

MOC Communications

Database???

· Stop Sheet· MMS Waiver

Form/CC111· Single Point

Entry Form· Next Wells List· Loader

Spreadsheet· Canned Report

Template· Email of QC

Issues· User Request

Form· Standard email

for user request· Standard Email

for user request refusal

· MMS140 Tem

BHP SystemWebform

Web Access

Asset Database???

Webform

Training DatabaseLMS?

DQM Web Access

Gap Assessment /Auditing Process

Data Type 1

DM Failure Identification Process

DM Ticket Response Process

2.1

Resolve Data Errors and

Business Rule Failures 2.2

Data Management Failure Resolution Process

2.3

Data Type 2

3.1

Data Type N

Extraction

Analyze Data Errors and

Business Rule Failures

Standardize and Sustain

DM Governance

SOR Update Process

4.1

Maintain Business Rules Process

4.2

DM Training Process

4.3

Data Extraction Location

1.1.1

Data Extraction Location

1.1.2

Data Extraction Location

1.1.3

Data Extraction Location

1.1.4

Decision Matrix for Data Types

2.1.1

Resolution

Analysis

Standardization

DM Monthly Review Meeting Guidelines

3.2

1.

2.

3.

4.

Data Extraction Location

1.2.1

Data Extraction Location

1.2.2

Data Extraction Location

1.2.3

Data Extraction Location

1.2.4

Data Extraction Location

1.N.1

Data Extraction Location

1.N.2

Data Extraction Location

1.N.3

Data Extraction Location

1.N.4

Output

Data Errors and Business Rule

Failures

Output

Data Management Failure Resolutions

Output

Improvement Opportunities

Output

Updated SORs and Business Rules

Completed Training

Business PlanningYearly Asset Classification and Reconciliation Process

Develop Effective DM Network

• Create a strategic program to solve the data management gaps

• Create communication channels for clear messaging across entire value stream

Ensure Efficient Data Access

•Reduce Cycle Time to find data•Remove constraints to create process efficiency

•Increase Decision Quality

Build Capable Users

•Standardize, and optimize common core petro-technical workflows

•Improve governance and visibility of current and future efforts

•Deliver training and development with a quality data management

Increase User Capacity

•Remove constraints to create productivity in users (decisions)

•Improve the quality and accessibility of this data

•Create single point of contact for the various data management efforts from GU

E2C2

Develop: Stages 1-3 (IT)

ImproveAnalyzeSpaghetti Diagram Roles and Responsibilities

Process Flow Development Barriers-Aids-Countermeasures Tool

Role Name Definition

Information User An individual or entity to which a Data Steward has granted certain rights to access, use, and/or manipulate Chevron Records and Information

Data Content Owner The organization that is responsible for data content. This role typically belongs to a business organization. This includes: maintaining the content and quality of the data values providing input to the data definition owner on information requirements applying retention requirements. For the purposes of IRM, a Data Content Owner is considered to be an Information Steward.

DM Help Desk The Data Management Help Desk is a group responsible for capturing and managing all DM Failure Tickets which are routed through the DM Ticket Response System and then routing to the appropriate Data Custodian.

Data Custodian A Data Custodian is a person or group to which a Data Steward grants rights and responsibilities for technical support of a data. Handles level 1 data tickets.

Data Steward A Data Steward is a person or group to which the Company grants rights and responsibilities for support of an information database. The Company grants these rights as the Information Owner

Information Management Delegate A representative of a Reporting Unit who has significant responsibilities for communicating Information Retention principles within that Reporting Unit

Information Management Champion The Lead of the Data Management Governance Board who has responsibility for ensuring the decisions made by the Board are sustained throughout the organization

Data Management Governance Board The group of Information Management Delegates which meets periodically (monthly or quarterly) to review and select which DM opportunities to leverage for training and sustainable improvements

Data Management System Any IT system which will be used in enabling the Data Management processes, i.e. ILX

Data Management Failure Identification Process

Dat

a S

tew

ard

DM

Sys

tem

(IL

X)

Func

tiona

l R

epD

ata

Cus

todi

anD

M H

elp

Des

kD

ata

Con

sum

er

Identifies Data Error

Creates a ticket for a business rule

failure for a particular project

(metrics and tracking)

Calls X-8765 to enter ticket

Help Desk Ticket Form

Identifies Data Error

Captures information on

data error

Routes to DM System and includes info.

Creates a ticket in DM System

(New Scale?)*

Or

Attaches supporting information

Receives DQM Ticket Failure

From Data Gathering and Usage (i.e. BHP)

and Data Request Processes

To DM Ticket Response Process

Maintenance Mode has more value for the use of a ticketing system than project mode

Need to develop a governance for project mode ticketing

New Scale demo as software for creating a ticket

To Gap Asst and Trending Process

Opportunity Catalog

Facilities/Operations Opportunities not included in the Opp Cat

Not capturing interdependent opportunities in Opp Cat

Opportunities manually entered into multiple systems/processes

1. Use Opp Cat to capture Facilities/Operations opps as “Other”2. W/Os as drills

3. Develop Governance process for Opportunity categorization

No Aid

No Aid

1. Determine DWEP involvement2. Cross functionally re-evaluate

current Opp Cat and modify/replace3. Ensure no duplicates when

entering facilities/drilling costs

1. Modify Opp Cat to Handle interdependent opportunities

2. Or re-evaluate/modify/replace

1. Determine necessary info . For cross-functional stakeholders and map data

2. Modify /build/buy proper system to hold data

3. Ensure the data maps across maps

7-6-5 Plan: Stages 4-6 – “Execute”

32

Stage 4Change

Management

What1. B-A-C Plan (Key Design Closure

Plan)2. Metrics Development3. Competency Model (Development)4. Social Networking Diagram

Why5. To execute key design gap closure

plan6. To create org. performance

measures 7. To identify the Knowledge, Skills,

Attitudes, Behaviors to properly perform new roles

8. To determine the “true organization” and understand interconnections within a team and to the outside organization

Stage 5Training &

DevelopmentWhat1. Training and Development Plan2. Shaping Curve Plan3. Competency Model (Execution)

Why4. To execute T&D plan and train all

users on the new process flows5. To identify and develop a plan for

the next phase of opportunities needed to fully deliver vision

6. To communicate and execute any training needed to develop the Knowledge, Skills, Attitudes, Behaviors to properly perform new roles

Stage 6Strategy

DeploymentWhat1. Process Flow Deployment (Pilot Area)2. Process Flow Analysis3. Interconnectivity Diagram4. Metrics Dashboard

Why5. To pilot new processes in a

designated area 6. To collect and review performance

data at 30, 60, and 90 day intervals7. To determine the interconnections

between the technology needed to execute the strategy for the DM System

8. To display status of org. performance measures to entire organization

7-6-5 Plan: Stage 7 – Standardization & Sustainment“Sustain”

Stage 7Standardization &

SustainmentWhat1. Fishbone Diagram2. 5-Why Tool3. Behaviorally Annotated Swimlane

Process Flow (All Areas)4. Continuous Improvement PlanWhyBased on Process Flow Analysis of

Pilot Area:5. To perform a causal analysis on

problems identified6. To determine the root cause of the

causes identified7. To deploy new process flows in all

areas with look backs at 3 mo, 6 mo, and 9 mo intervals

8. To develop and deploy a CI Plan with quick win "Just Go Do It” opportunities and Full DMAIC projects

Organizational Diagnostic Overview

The Organizational Diagnostic is a 6 step process which will help functional organizations and teams to optimize process efficiency and organizational capability. The goal of the Organizational Diagnostic is to identify the change agents needed to achieve world-class results. At the end of the diagnostic, each organization/team will have the following:

1. Detailed Value Stream Map (including sub-processes and team member allocation)

2. List of which activities along the VSM which are value-added versus non value-added (essential and non-essential)

3. Perceptions, observations, and suggestions for improvement of the work environment from each member of your organization

4. Gap Analysis of Current State Barriers to Success versus Future State Vision of Success

5. Strategic and Actionable Plan for Gap Closure

34

List of Opps

for Im

provemen

t (Org)

Step 1Leadership Interviews

Step 2Value Stream Map Development (CS)

Step 3Organizational Performance

Health Assessment

Current State Value Stream Map

Step 4Value Stream Map Development (FS)

Step 5Opportunity Assessment

WorkshopStep 6

Strategy Development

One hour interviews with LT membersOne hour interviews with select

suppliers/customersStakeholder Form

4 hour facilitated session with select members Snapshot of the current state (CS) of

entire organization & interaction of roles, sub-processes, activities, and systems/tools

Value Stream Map

Current State Asmnt (LT)

Current State Value

Stream Map

Current State Asmnt (Org)

Survey Assessment is endorsed and sent by top level Manager

Focus Group is a 4 hour facilitated session with 10% of org to determine activities

Activity Definition Matrix

Execution Strategy has defined projects endorsed with all LT members with final report out List of all Lean Six Sigma/Quick Win

projects for execution Strategic Planning Matrix

2 day facilitated session with 15% of the organization to “connect the dots” refine all key opportunities for improvement into a detailed action plan

Action Planning Template

4 hour session with select members Snapshot of the future state (FS)

of entire organization & interaction of roles, sub-processes, activities, and systems/tools

Value Stream Map

Preliminary Opps for Improvement (LT)

Future State Value

Stream Map

Future State Value Stream Map

Future State

Action Plan

Future State

Execution

Strategy

Future State Action Plan

Organizational Diagnostic: at-a-Glance

35

Step 1Leadership Interviews

Step 2Value

Stream Map Dev

Step 3Org Perf

Health Asst

Step 4Value

Stream Map Dev

Step 5Opp Asst Workshop

Step 6Strategy

Development

DefinitionTools/

TemplatesDeliverable

One Hour interview with each member of the leadership team and selected members of other organizations which are supplier/customers

Stakeholder FormPreliminary list of key opportunities for improvement

Step 1: Leadership Interviews

Stakeholder Value Interview WorksheetDate: Interviewee:

Use this worksheet to interview and capture the thoughts of key stakeholders in a process to obtain the voice of the customer. You can leverage the information captured here to enhance the value stream and deliver optimal solutions.

What Stakeholders Value Fill in this equation with descriptions of what your stakeholders/customers value. You do not have to use a specific dollar amount in the cost category, but could use percentages and descriptive terms such as high, low, medium costs.

KEY ROLES KEY METRICS - COSTS

X

Look at the above in relationship to the factors below.KEY PROCESSES KEY MEASURES

X

Value SummaryWhat keeps you up at night (current state)?

What are your expectations for the future state?

How can you leverage the above factors to increase the value of your service (or product) to the customer?For example, improve process performance while keeping overhead costs the same.

Current State Value Summary

“What Keeps You Up at Night?”

Future State Value Summary

“Expectations”

How to Leverage Factors for Value

Key Roles and Cost Metrics

Key Processes and Measures

36

Step 1Leadership Interviews

Step 2Value

Stream Map Dev

Step 3Org Perf

Health Asst

Step 4Value

Stream Map Dev

Step 5Opp Asst Workshop

Step 6Strategy

Development

DefinitionTools/

TemplatesDeliverable

Provides a snapshot of the current state of entire organization and how it provides value through the interaction of roles, sub-processes, activities, and systems/tools

Value Stream MapCurrent State Value Stream Map of organization

Step 2: Value Stream Map Development

37

Inspect Incoming Materials

SUPPLIERInspection System

10-15 Min 15-20 Min 10-12 Min 5-7 Min

1-2 5-7 Days 2-6 Days 0-1 Days

28-30 Min

Receive Materials

iPad Production LineParkhurst, Ohio Facility

Current State Value Stream Map

0-1 Days

Subprocesses:

· Unpack· Count· Enter into Materials

Receiving System

Subprocesses:

· Verify Part Record· Verify Quantity· Inspect for Quality· Coordinate “No-Pass”

Materials back to Supplier

· Enter into Inspection

Stock Materials

Subprocesses:

· Verify Quantity· Transfer Material to

Production Line Shelf· Enter into Materials

Management System

Kit Materials for Assembly

Subprocesses:

· Kit parts for production· Coordinate

replenishment of shortages

· Release kit to production

· Enter into Materials Management System

Assemble Product

Subprocesses:

· Milling· Welding· Assembling· Painting· Enter into Production

System

Inspect Final Product

· Subprocesses:· · Verify Part Record· Verify Quantity· Inspect for Quality· Inspect for Safety· Coordinate “No-Pass”

Materials back to Assembly

· Enter into Inspection System

5-10 Min

0-1 Days

73-94 Min

9-19 DaysProcess Totals:

CUSTOMERS

Days

Legend· Electronic Information Flow

· Information/Data Transfer by Webform

· Information/Data Transfer by Email

· Information/Data Transfer by Telephone

· Information/Data Transfer by Computer Interface/Web Access

· Work in Process

· Inventory

· Capacity Utilization

· Forms Used

Incoming Shipment of Materials

Outbound Product

Webform

Product Complaints

Business Planning System

Production Planning System

Production System

Production Control System

Materials Management System

Central Warehouse

Supplier 1 Supplier 2 Supplier 3

Supplier 4

Supplier 5Web

Access

Receiving System

Daily Schedule

Weekly Schedule

Weekly ScheduleDaily Schedule

Daily Schedule

Market Forecast

Annual Production Plan

10 @ 70%

3 @ 90%

5 @ 70%

7 @ 90%

10 @ 90%

5 @ 65%

60 40 40 40 35

5060

ToolVSM

Step 1Leadership Interviews

Step 2Value

Stream Map Dev

Step 3Org Perf

Health Asst

Step 4Value

Stream Map Dev

Step 5Opp Asst Workshop

Step 6Strategy

Development

DefinitionTools/

TemplatesDeliverable

Survey is endorsed and sent by top level Manager. Questions fall into 4 areas of organizational performance: efficiency, effectivity, capacity, and capability. Focus Group is a 4 hour facilitated session with 10% members to identify key opportunities for improvement and define activity value matrix

Survey, Focus Group, Activity Value MatrixComparison of list of key opportunities for improvement from entire organization and LT

Step 3: Organizational Performance Health Assessment

38

Inspect Incoming Materials

SUPPLIERInspection System

10-15 Min 15-20 Min 10-12 Min 5-7 Min

1-2 5-7 Days 2-6 Days 0-1 Days

28-30 Min

Receive Materials

iPad Production LineParkhurst, Ohio Facility

Current State Value Stream Map

0-1 Days

Subprocesses:

· Unpack· Count· Enter into Materials

Receiving System

Subprocesses:

· Verify Part Record· Verify Quantity· Inspect for Quality· Coordinate “No-Pass”

Materials back to Supplier

· Enter into Inspection

Stock Materials

Subprocesses:

· Verify Quantity· Transfer Material to

Production Line Shelf· Enter into Materials

Management System

Kit Materials for Assembly

Subprocesses:

· Kit parts for production· Coordinate

replenishment of shortages

· Release kit to production

· Enter into Materials Management System

Assemble Product

Subprocesses:

· Milling· Welding· Assembling· Painting· Enter into Production

System

Inspect Final Product

· Subprocesses:· · Verify Part Record· Verify Quantity· Inspect for Quality· Inspect for Safety· Coordinate “No-Pass”

Materials back to Assembly

· Enter into Inspection System

5-10 Min

0-1 Days

73-94 Min

9-19 DaysProcess Totals:

CUSTOMERS

Days

Legend· Electronic Information Flow

· Information/Data Transfer by Webform

· Information/Data Transfer by Email

· Information/Data Transfer by Telephone

· Information/Data Transfer by Computer Interface/Web Access

· Work in Process

· Inventory

· Capacity Utilization

· Forms Used

Incoming Shipment of Materials

Outbound Product

Webform

Product Complaints

Business Planning System

Production Planning System

Production System

Production Control System

Materials Management System

Central Warehouse

Supplier 1 Supplier 2 Supplier 3

Supplier 4

Supplier 5Web

Access

Receiving System

Daily Schedule

Weekly Schedule

Weekly ScheduleDaily Schedule

Daily Schedule

Market Forecast

Annual Production Plan

10 @ 70%

3 @ 90%

5 @ 70%

7 @ 90%

10 @ 90%

5 @ 65%

60 40 40 40 35

5060

Safety Inspection of parts

Creating a personal cheat sheet for assembly

Matching correct parts to one another

Assemble Product

Screwing parts together

ToolActivity Value

Matrix

Step 3: Organizational Performance Health Survey (Org pH)

39

1. Inform: We will utilize the results of your assessment to determine the gaps which may create a barrier to implementing and managing your change.

2. Guide: We will mentor and guide you through the process of developing a plan for gap closure.

3. Empower: We will enable you with the necessary tools to manage your change effectively to reach your optimal future state.

Efficiency Capability

Effectivity Capacity

Proc

ess

Dep

ende

nt

People DependentLow High

Low

Hig

h

Approximately 40 questions in the 4 areas above

Step 1Leadership Interviews

Step 2Value

Stream Map Dev

Step 3Org Perf

Health Asst

Step 4Value

Stream Map Dev

Step 5Opp Asst Workshop

Step 6Strategy

Development

DefinitionTools/

TemplatesDeliverable

Provides a snapshot of the desired future state of entire organization and how it provides value through the interaction of roles, sub-processes, activities, and systems/tools

Value Stream MapFuture state value stream map of organization

Step 4: Value Stream Map Development (FS)

40

Inspect Incoming Materials

SUPPLIERInspection System

10-15 Min 15-20 Min 10-12 Min 5-7 Min

1-2 5-7 Days 2-6 Days 0-1 Days

28-30 Min

Receive Materials

iPad Production LineParkhurst, Ohio Facility

Future State Value Stream Map

0-1 Days

Subprocesses:

· Unpack· Count· Enter into Materials

Receiving System

Subprocesses:

· Verify Part Record· Verify Quantity· Inspect for Quality· Coordinate “No-Pass”

Materials back to Supplier

· Enter into Inspection

Stock Materials

Subprocesses:

· Verify Quantity· Transfer Material to

Production Line Shelf· Enter into Materials

Management System

Kit Materials for Assembly

Subprocesses:

· Kit parts for production· Coordinate

replenishment of shortages

· Release kit to production

· Enter into Materials Management System

Assemble Product

Subprocesses:

· Milling· Welding· Assembling· Painting· Enter into Production

System

Inspect Final Product

· Subprocesses:· · Verify Part Record· Verify Quantity· Inspect for Quality· Inspect for Safety· Coordinate “No-Pass”

Materials back to Assembly

· Enter into Inspection System

5-10 Min

1-2 Days

73-94 Min

9-19 DaysProcess Totals:

CUSTOMERS

Days

Legend· Electronic Information Flow

· Information/Data Transfer by Webform

· Information/Data Transfer by Email

· Information/Data Transfer by Telephone

· Information/Data Transfer by Computer Interface/Web Access

· Work in Process

· Inventory

· Capacity Utilization

· Forms Used

Incoming Shipment of Materials

Outbound Product

Webform

Product Complaints

Business Planning System

Production Planning System

Production System

Production Control System

Materials Management System

Central Warehouse

Supplier 1 Supplier 2 Supplier 3

Supplier 4

Supplier 5Web

Access

Receiving System

Daily Schedule

Weekly Schedule

Weekly ScheduleDaily Schedule

Daily Schedule

Market Forecast

Annual Production Plan

10 @ 70%

3 @ 110%

5 @ 70%

7 @ 90%

10 @ 90%

5 @ 65%

60 40 40 40 35

5060

Information in Receiving System is not connected to the Production Control System

Multiple suppliers increases variability in product quality

XX

X

High capacity utilization for employees involved in incoming inspection

Low capacity utilization for employees involved in final inspection

Only 35 iPads produced per day, way below 60/day customer demand

Final Inspection takes two days to create a shipment of 50 per day to customer, still below demand targets

Incoming Inspection is Constraint in Process High cycle time and variation in cycle time to stock materials to production line shelf

Step 1Leadership Interviews

Step 2Value

Stream Map Dev

Step 3Org Perf

Health Asst

Step 4Value

Stream Map Dev

Step 5Opp Asst Workshop

Step 6Strategy

Development

DefinitionTools/

TemplatesDeliverable

1- 2 day facilitated workshop with 15% members of the organization to “connect the dots” with all previous deliverables and refine all key opportunities for improvement

5-Why, Barriers Aids Countermeasures, Strategic Planning Matrix, Action Planning TemplateCompleted strategic planning matrix with list of opportunities for improvement , specific

execution strategies, investment, benefits, and ROI

Step 5: Gap Analysis Workshop

Tool Group Brainstorm

Output Affinitized list of Causes

Exercise 1

Tool5-WhyOutput

List of Root Causes

Exercise 2

Tool Barriers-Aids-Countermeasures

OutputList of Solutions

Exercise 3

Tool Ranking Matrix

Output Ranking of Solutions

Exercise 4

Tool Action Planning TemplateOutput Strategic

Plan

Exercise 5

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

xxx

Major Cause 1

Major Cause 2

Major Cause 3

Why #1New Operators are not fully trained

Why #2Excessive absenteeism is disrupting the training schedule. New

Operators are placed on job before they are fully trained.

Why #3Production demands are given priority over fully training operators.

Why #4The production culture is oriented toward volume .as the measure of

success.

Why #5 – Root CauseKey performance measures tracked include volume , but not quality

of the units, or the time it takes to achieve the volume.

10

Key Opportunity for Improvement

Barrier #1

Barrier #2

Barrier #3

Aid #1

Aid #2

Aid #3

Countermeasure #1

Countermeasure #2

Countermeasure #3

Barriers: Key Design Gaps or Suspected Causes to Process

Bottlenecks

Countermeasures: solutions not in place which we need to develop to be implemented by the end of 2st quarter to help to overcome barriers

Barriers

Countermeasures

Aids: solutions currently in place which we can implement by the end of 1st quarter to help

to overcome barriers

Aids

*Adapted by The Bulsard Group, LLC from The Quality Improvement Pocket Guide, 11th ed.

41

Step 1Leadership Interviews

Step 2Value

Stream Map Dev

Step 3Org Perf

Health Asst

Step 4Value

Stream Map Dev

Step 5Opp Asst Workshop

Step 6Strategy

Development

DefinitionTools/

TemplatesDeliverable

Strategic Planning Matrix has defined projects reviewed and endorsed with all LT members with final report out

Strategic Planning Matrix, Lean Sigma project contractsList of all Lean Sigma /Quick Win projects for execution and completion throughout the year

Step 6: Strategy Development

42

ToolStrategic

Plan Template