leansigma ® fundamentals module 7 – performance measurement & sustainment 1
TRANSCRIPT
LeanSigma® Fundamentals
Module 7 – Performance Measurement & Sustainment
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Lean Sigma has six steps to optimize processes.
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Why do we need to measure process performance?
• Assess / validate the impact of changes to the process:– Process improvement efforts– Organizational changes– Changes to upstream or downstream
processes– Changes to supporting systems
• Ensure that expected process performance levels are sustained over time
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Cycle time is commonly used to measure process improvement.• Cycle time is the time devoted to performing process
tasks without delays or wait time
• A reduction in process cycle time due to process improvements is often used to increase capacity for work performed in other processes.
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KPIs are critical in sustaining process performance over time
• Examples of KPIs include:– Production and delivery timeliness– Query responsiveness– Defect rates – Productivity
• Thresholds distinguish “good” process results from results indicating the need for improvement
• The process owner is accountable for taking action when results fall below corresponding thresholds
• KPI results may reflect process improvements, if available before and after process changes are incorporated
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We can assess whether we can expect the process to yield consistently acceptable results.• A process capability assessment measures the inherent ability of a
process to meet established thresholds or “specifications”
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• LSL = Lower Spec Limit• USL = Upper Spec Limit• Target is usually the midpoint between the specs
The process owner is key to sustaining process improvements over time.
Single point end-to-end process
ownership
More effective and efficient
cross-functional decision-making
Improved sustainment of efficient, well-
defined processes
On-going process improvement
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Program metrics help us monitor the health and benefits of the LeanSigma
program.• Are we achieving our mission to deliver more value to our
customers and stakeholders by identifying and implementing measureable process improvements?
• Regular Lean governance meetings help us: – Align on priorities and targets– Validate results meet expectations– Ensure support– Mitigate risks
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Costs• Lean facilitator & SME
time• Travel $• Implementation costs
Benefits• Enable IMS to deliver
on strategic priorities• Transform the culture
Lean program reporting summarizes results across all Lean events.• Cadence
– Pace of events by month, department & geography• Benefits
– Net EBIDTA savings– Annualized hours saved (capacity redeployed, FTE s)– % improvement cycle / lead time, delays, etc.– Highlights of exceptional events, case studies
• Implementation Progress– Percent of identified savings removed from budget– Percent of kaizen action items completed
• Cultural entrenchment– Number of employees trained / certified– Number of employees participating in kaizens– Communications
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95% of reporting is enabled by web queries against the Lean PMO
Sample DashboardU.S. Events by Month
n= 110completed
events
Process Focus to Date
Annualized Labor Hours Saved= 31,086
IMS FTE Re-duction 8,040
hrs; 26%
Outsourced FTE Reduction
7,236 hrs; 23%
Capacity re-de-
ployed15,810 hrs; 51%
2012 U.S. EBIDTA Contribution: $817K*100% of savings realized
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Production & Data Coll.
26%
Del ivery & Support
29%
PD / Stat Svcs3%
US BU6%
HR26%
Finance6%
GPS2%
Legal1%
Feb
AorJun
AugOct Dec Fe
bApr
JunAug
Oct0123456789
pla
nn
ed
2011 2012
Training grants23%
Delivery & support
46%
Producton & Data Coll
31%
80.23% of all U.S. kaizen action items completed
Case Study: U.S. Market Research Client Support
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Sponsor: Manny TriggianoProcess Owner: Brenda CapobiancoLean Process Lead: Carissa WaltenbaughTeam: Kevin Downing, Chris Davies, Cathy Pileggi-Jefferson, Katrina Kulp, Kyle Burke, Michele Agnoli, Joy Cross, Gerard Avillo, Lisa Cooney, Jeff Northern
Key Kaizen Findings Issues Noted Process Changes
Some CSAs less able to handle complex questions.
CSAs sometimes call multiple times to refine the client question.
CSAs sometimes do unnecessary research.
Triage client questions and assign CSA resources to a Level 1 pool (simple) or Level 2 pool (complex).
Create a checklist to guide CSAs when refining details of a client’s question.
Create a decision tree to identify what research is required for a particular question. Improve how info is organized on ARC.
90 Days After the Kaizen
Clients are assigned a CSA even if they call only a few times a year.
Pool CSA resources so questions are answered by the first available CSA.
A pilot was completed to test the central support pool for smaller clients.
The centralized model went live June 13, 2011.
QMS was enforced as a central information system.
Tier 1 (simple) and 2 (complex) resource pools were created.
Checklists and decision trees were created to clarify info needs.
Case Study: U.S. Market Research SupportFindings 15 months after implementation
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Results:• The central service center remains in place successfully.• Clients talk to CSAs directly more often.• Very few clients have questioned the change.• Three positions were eliminated.• In addition, the team took on additional work without adding headcount. (SMART
roll-out). • Cycle time savings were estimated at 65% initially. The savings observed are about
50%.
Critical factors made the change possible: Pilot to test client feedback Excellent communication to the team and clients about changes Extreme organization and focus
Process Priorities – Sample from Operations
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Gather / enter customer-specific order requirements
Collect dataPerform
statistical data transformation
Manage offering
production
Plan / QC the order
Perform delivery supportStandardize / cleanse data
Schedule / run customer-specific
production
Create output / deliver order
Track and update order
Define & communicate order
management procedures
Perform customer-specific
QC on requirements
Perform quality control on final
output
Build / Deliver the order
Test & certify supplier
Receive, cleanse & bridge/code
transaction inputs
Create / maintain statistical
methodology
Define & communicate
product creation procedures /
methodologies
Add new supplier to database
Perform transaction quality
assurance
Define / perform global quality management
Schedule production
Establish ongoing data collection
process
Build transaction database
Project / impute transaction data
Execute production jobs
Maintain reference database
Validate projected data
Manage rerun / rework
Perform change management
Maintain product related data
Maintain historical data
Perform in-process
production quality control
Provide customer training
Define & communicate
customer service & support procedures
Close loop to Marketing & Sales
Receive / escalate customer inquiry Service Center
Receive / escalate customer inquiry
Call Center
Analyze & resolve inquiries / complaints
Provide field services and
support
Manage credits & invoices
Process changes & maintain customer order information
Maintain customer support systems
and data
Measure & report customer delivery
performance
Manage customer delivery vendors /
subcontractors
Manage customer delivery information
systems
Data Collection Production Delivery
High Priority Process