Recorded webinar: http://slidesha.re/KRisHj
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Metrics-Based Process Mapping (MBPM) is a powerful tactical-level tool for identifying waste in office, service, and knowledge work environments, building consensus for change, standardizing work, and quantifying improvement.
In this webinar, you'll learn how MBPMs differ from value stream maps and learn the step-by-step approach for creating current and future state maps.
You'll also be introduced to Karen Martin & Mike Osterling's new edition of Metrics-Based Process Mapping, which features an extensive Excel tool for measuring, sharing, and archiving improved processes.
4. The Work We Do:
Degrees of Granularity
Macro View
(Strategic;
heavy
Value Value Stream
Map
leadership
involvement)
Stream
Process Process Process
Micro View Metrics-Based
(Tactical; Step Step Step Process Map
heavy frontline
involvement)
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5. Value Stream Maps Serve as Visual “Storyboards”
Makes the disconnects Shows the linkage
and obstacles to flow between material and
visible at a macro level information flow
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6. Repair & Maintenance
Value Stream Map
Current State Source Refrigeration & HVAC, Inc.
Current State Value Stream Map
Serv ice Deliv ery
Created February 11, 2009
CONFIDENTIAL
Customer
Great
Plains
Verisae Excel
(Customer) Spreadsheet
Special Order (Customer)
Part
Supplier
Tech
Upload time Close call in Process Time
Pick up Part Process A/P
card Verisae Cards
at Parts Store
?% Account
A/P Admin
Tech Manager Payroll Admin
Tech
(West)
PT = 15 mins.
PT = 75 mins. PT = 0 mins. PT = 1 mins. PT = 10 mins.
%C&A = 85%
40% %C&A = 95% %C&A = 70% %C&A = 90% %C&A = 90%
Batch: 1x/day
Batch: 1x/day Batch: 1x/day Batch: 1x/day
Review Enter Invoices
Select & Assess Make Repair; Review Receive
Receive Get Part from Complete Call Review Open Review & Invoices; into Verisae &
Dispatch Tech Problem ?% Call to raise Service Call Cash; Post
customer call Truck in GP Ticket Report Post Invoices Close in Excel; Mail
the NTE Data Payment
Dispatcher & Verisae (Pac) Invoices
Call Center Service Tech Dispatcher Service Billing Admin Posting Admin
Tech Tech Account Collections
Manager Manager Billing Admin
5 m. 120 m. 90 m. 75 m. 120 m. 240 m. 640 m. 6 days 240 mins. 640 m. Manager 120 m. 60 days
PT = 2 mins. PT = 5 mins. PT = 90 mins. PT = 0 mins. PT = 5 mins. PT = 25 mins. PT = 3 mins.
PT = 120 mins. PT = 10 mins.
%C&A = 60% %C&A = 60% %C&A = 90% %C&A = 80% %C&A = 75% %C&A = 98% PT = 10 mins. PT = 4 mins.
%C&A = 40% %C&A = 50%
Batch: 1x/day %C&A = 85% %C&A = 95%
Batch: 2x/day
Batch: 3-5x per wk Batch: 1x/week
0.0833 1.5 10.7 48 10.7 480
hours 2 hours hours 1.25 hours 2 hours 4 hours hours hours 4 hours hours 2 hours hours Lead Time = 572 hours
2 minutes 5 minutes 90 minutes 75 minutes 120 minutes 5 minutes 10 minutes 25 minutes 3 minutes 10 minutes 4 minutes Process Time = 349 minutes
Acronym Key
%C&A %Complete and Accurate Lead Time to invoice = 86.2 hrs
AR Activity Ratio Process Time =5.9 hrs.
FTE Full Time Equivalent NOTE: Business hours
LT Lead Time Activity Ratio = 6.8%
RFPY = 1.1%
PT Process Time
Lead time to cash = ? days
RFPY Rolled First Pass Yield
7. Current State Value Stream Map
Outpatient Imaging Services
Customer Demand:
15 patients per Day
(Takt Time 1920 seconds)
Pre-register Schedule 8 hours per day
Patient Appointment
Referring
Hospital
Physician
4 1
Lead Time = 24 days 5 3 Lead Time = 990 mins. 6 2 Lead Time = 12 mins.
Cycle Time = 30 mins. Cycle Time = 11 mins. % C&A = 65 %
Lead Time = 990 mins. Lead Time = 12 mins.
% C&A = 100 % % C&A = 98 %
CT=Cycle Time
LT=Lead Time
%C&A=% Complete & Accurate
Symposium E Pay Excel ADS Meditech Internet Fax Order PACS
Waiting Room Auto Fax 50%
Solutions
Management Us Mail 25%
System
MD Mailbox 25%
Rework Loop
via Fax 25% of
the time
Prep Complete Transmit Read/Dictate Transcribe Review Print Send
Check-in Check-in
Patient Exam Images Exam Report Draft/Sign Reports Reports
Patient Patient
(Tech) (Tech) (Tech) (Radiologist) (MDI) (Radiologist) (Imaging) (Imaging)
(Admitting) (Imaging)
5 mins.
5
5 5 mins.
3
6 45 mins. 2 7 30 mins.
2 8 5 mins.
2 9 248 mins.
2 10 365 mins.
6 11 960 mins.
2 12 110 mins.
2 13 120 mins.
6 14
Cycle Time = 2 mins. Cycle Time = 1 mins. Cycle Time = 10 mins. Cycle Time = 15 mins. Cycle Time = 3 mins. Cycle Time = 15 mins. Cycle Time = 5 mins. Cycle Time = 1 mins. Cycle Time = 1 mins. Cycle Time = 3 mins.
% C&A = 90 % % C&A = 98 % % C&A = 100 % % C&A = 90 % % C&A = 100 % % C&A = 95 % % C&A = 75 % % C&A = 95 % % C&A = 99 % % C&A = 90 %
5 minutes 45 minutes 30 minutes 5 minutes 248 minutes 365 minutes 960 minutes 110 minutes 120 minutes L/T = 13464 minutes
2 minutes 11520 1 minutes 10 minutes 15 minutes 3 minutes 15 minutes 5 minutes 1 minutes 1 minutes 3 minutes VA/T = 11576 minutes
minutes
Rolled First Pass
yield = 29%
13. What is a Metrics-Based Process Map?
A visual process analysis tool, which integrates:
Functional orientation of traditional swim lane
process maps
Key Lean time and quality metrics
Highlights the disconnects / wastes / delays in a
process.
Keeps the improvement focus properly directed
Serves as standard work for workforce training
and process monitoring.
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16. Mapping Preparation
Select a skilled, objective facilitator.
Scope the process being mapped
Opt for narrow current state focus so you can explore deeply and minimize variation.
No decision trees in MBPM (interferes w/ timeline); loopbacks are “linearized.”
Select a cross-functional team of no more than 10.
Process workers (30-50% of the team)
Upstream suppliers
Downstream customers
Subject matter experts (e.g. I.T., legal, etc.)
Outside eyes
Draw 6” wide swim lanes on the 36” paper.
Pre-drawn lines – template available:
http://www.scribd.com/doc/114904601/Metrics-Based-Process-
Mapping
Chalk line
Manually draw
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17. Metrics-Based Process Mapping:
Four Stages
Document the current state (the P in PDSA)
Analyze the current state
Design, test, refine and implement the future
state
Document the improved process
Continuously monitor and improve the
process
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18. Creating the Current State Metrics-
Based Process Map:
10 Steps
1. Label the map.
2. List functions.
3. Document all activities/steps.
4. Number the activities.
5. Add step-specific metrics & other relevant info.
6. Define timeline critical path.
7. Create the timeline.
8. Calculate summary metrics.
9. Identify value-adding and necessary non-value-adding
steps.
10. Circle high priority improvement needs.
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19. Step 1: Label the map
Process Name
Included/Excluded Conditions
Current State MBPM
Date
Facilitator and/or Team Names
20. Step 2: List functions involved in process.
Process Name
Function A
Included/Excluded Conditions
Current State MBPM
Date
Function B
Facilitator and/or Team Names
Function C
Function D
Function E
Function F
Include external functions, if appropriate (e.g. customers, suppliers/contractors, etc.)
21. Step 3: Document all activities (steps) on
3 x 6” post-its; place sequentially.
Step Step Parallel Steps
1 2 (concurrent
activities)
Ticking clock
22. Step 3: Document all
activities/steps on 3 x 6” Post-its
Use verb/noun format; clear and concise.
Include function.
Separate tasks that have different quality outputs
or timeframes; combine tasks otherwise.
Place post-its in appropriate swim lane,
sequentially (according to the ticking clock).
Be “the thing.”
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23. Step 3: Document task & function
Activity
(Verb / Noun)
Function that
performs the
task
24. Step 4: Number the Activities
Step #
Note: For parallel
activities, use
alpha modifiers --
e.g. 8A, 8B, etc.
25. Step 5: Add step-specific information
Barriers to Flow
(if relevant)
# Staff • Batching
(if relevant)
• Shared
resources
• System
downtime
• Etc.
PT (Process Time)
% Complete &
Accurate LT (Lead Time)
26. Key Lean Metrics: Time
Process time (PT)
The time it takes to actually perform the work, if one is
able to work on it uninterrupted
Includes task-specific doing, talking, and thinking
aka “touch time,” work time, cycle time
Lead time (LT)
The elapsed time from the time work is made available
until it’s completed and passed on to the next person or
department in the chain
aka throughput time, turnaround time, elapsed time
Includes Process Time
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27. Step-Specific Lead Time vs. Process Time
Lead Time
Process Time
Work Work passed
Received to next step
LT = PT + Waiting / Delays
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28. Key Lean Metrics: Quality
%Complete and Accurate (%C&A)
% time downstream customer can perform task without
having to “CAC” the incoming work:
Correct information or material that was supplied
Add information that should have been supplied
Clarify information that should or could have been clear
This output metric is measured by the immediate
downstream customer and all subsequent downstream
customers.
If workers further downstream deem the output from a
particular step to be less than 100%, multiply their
assessment of quality with the previous assessments.
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29. Dealing with high variation metrics
Map the rule (80%), not the exceptions
(20%).
For metrics with ranges, use the median.
Continue to add conditions to your scope if
you need to.
To minimize “it depends” answers.
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30. Step 6: Define the “Timeline Critical Path”
For parallel activities: Chose the longest LT unless a
“dead-end” activity
33. Step 8 – Calculate Summary Metrics
Timeline PT Sum
Timeline LT Sum
% Activity
(PT Sum/Total LT Sum) x 100
Rolled %C&A
%C&A x %C&A x %C&A…
Include ALL post-its, not just critical path
Labor requirements (next slide)
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34. Summary Metrics: Labor Effort
Total PT
Sum of all activities, not just timeline
Labor Requirements
Total PT (in hrs) X # occurrences/year
# FTEs* =
Available work hrs/year/employee**
* FTE = Full-Time Equivalent (2 half-time employees = 1 FTE)
**Available work hrs/yr/employee = # full-time hrs – paid holidays, vacation & sick time.
Full time is typically 2,080 hrs per year.
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35. Metrics-Based Process Mapping
Current State Summary Metrics
Projected Projected %
Metric Current State
Future State Improvement
Timeline PT 110 mins
Timeline LT 7 days
% Activity 3.3%
Rolled %C&A 9.2%
Total Process
170 mins
Time
Labor Effort 1/7 FTEs
36. Step 9: Label the value-adding (VA) and
necessary non-value adding (N) activities
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37. Customer-Defined Value
Value-Adding (VA) - any operation or activity
your external customers value and are (or
would be) willing to pay for.
Non-Value-Adding (NVA) - any operation or
activity that consumes time and/or resources but
does not add value to the product (good or
service) the customer receives.
Necessary – support processes, regulatory
requirements, etc.
Unnecessary – everything else - WASTE
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38. Step 10: Circle the data that indicates
the greatest need for improvement
39. Typical Current State Findings
Islands of value-adding activities
All other time is “waste.”
Rework
First Step Last Step
Adding Value
Future State Design: How can we progress from one
“VA” or “N” step to the next and eliminate all waste?
39
40. Future State Design Options
Shorten timeline; reduce labor effort
Eliminate unnecessary steps/handoffs
Combine work; move work in parallel
Create continuous (one-piece) flow; use pull
systems when needed
Level demand
Balance work
Improve quality & predictability
Standardize work
Error-proof work
Make problems visual so they can be fixed
immediately
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41. Future State Projected Summary Metrics:
Labor Requirements
Total PT
Sum of all activities, not just timeline
Labor Requirements
Total PT (in hrs) X # occurrences/year
# FTEs =
Available work hrs/year/employee
Freed
= Current State FTEs – Future State FTEs
Capacity
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42. Metrics-Based Process Mapping
Projected Future State Summary Metrics
Projected Projected %
Metric Current State
Future State Improvement
CP PT 110 mins 85 mins 23%
CP LT 7 days 4 days 43%
Activity Ratio 3.3% 4.4% 33%
Rolled %C&A 9.2% 50.4% 448%
Total PT 170 mins 140 mins
Labor effort* 1.7 FTEs 1.4 FTEs 18%
600 hrs =
Freed capacity
0.3 FTEs
*Demand = 1,200 per year
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43. Create an Action Plan: Who, What, When, Where, and How?
Future State Implementation Plan
Value Stream Outpatient Imaging Implementation Plan Review Dates
Executive Sponsor Allen Ward 11/1/2007
Value Stream Champion Sally McKinsey 11/21/2007
Value Stream Mapping Facilitator Dave Parks 12/13/2007
Date Created 10/18/2007 1/10/2008
Block Implementation Schedule (weeks) Date
Goal / Objective Improvement Activity Type Owner
# 1 2 3 4 5 6 7 8 9 10 11 12 Complete
Implement standard work for referral
2 Improve quality of referral KE Sean O'Ryan
process
Reduce lead time beween schedulingand Dianne
3, 4 Cross-train and colocate work teams PROJ
preregistration steps Prichard
Eliminate the need for two patient check- Michael
5, 6 Collect copays in Imaging KE
ins O'Shea
Dianne
6 Eliminate bottleneck in waiting area Balance work / level demand KE
Prichard
Eliminate lead time associated with
9 Implement voice recognition technology PROJ Sam Parks
transcription step
10 Eliminate batched reading Reduce setup required KE Sam Parks
Reduce inventory costs, regulatory risk Michael
7 5S CT supplies area; implement kanban KE
and storage needs O'Shea
12 Reduce delay in report delivery Implement additional fax ports PROJ Martha Allen
Increase percentage of physicians
12 Reduce delay in report delivery receiving electronic delivery (rather than KE Martha Allen
hard copy)
Approvals
Executive Sponsor Value Stream Champion Value Stream Mapping Facilitator
Signature: Signature: Signature:
Date: Date: Date:
44. When Should You Document Electronically?
Archive the team’s work
Distribute the maps to remote locations
Document the new standard work for the process
Training/retraining staff
Monitoring process performance
Communicate the impact of Kaizen Events and
other improvement activities
Excel product demo: www.vimeo.com/27016122
Fast forward to 8:00 to begin tool demo.
44
45. The Improved State Becomes Standard Work
0 Current State Metrics-Based Process Map
PT Units Process Details Mapping Team
1 Seconds Hours Process Name Order Fulfillment Diane O'Shea Ryan Austin
0 Minutes Days Specific Conditions Domestic orders through sales force Sean Michaels Mary Townsend
LT Units Occurrences per Year 37,500 Sam Parks
15 Seconds Hours Hours Worked per Day 8 Sally Dampier Facilitator
6 Minutes Days Date Mapped 25-Jun-08 Michael Prichard Dave Morgan
-1 Step # ► 1 2 3 4 5
0 Function /
Department Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A Activity PT LT %C&A
Fax PO to Sales
1 Customer 0 0 45%
Rep
Review PO;
clarify with Fax PO to
2 Sales Rep 20 2 90% 10 4 90%
customer as warehouse
needed
5 Finance
Check inventory
Warehouse / levels; notify Fax PO to Sales
6 5 4 95% 5 0.33 90%
Shipping Sales Rep re: Rep
status
Critical Path PT 0 20 10 5 5
Critical Path LT 0 2 4 4 0.33
Rolled %C&A 45% 90% 90% 95% 90%
Total PT 0 20 10 5 5
46. Color-Coded Summary Metrics Sheet
The Excel mapping tool auto-calculates:
Summary time and quality metrics for before and after maps
Projected % improvement (color-coded for visual ease)
Staffing requirements
User-defined metrics
47. For Further Questions
Karen Martin, Principal
7770 Regents Road #635
San Diego, CA 92122
858.677.6799
ksm@ksmartin.com
Twitter: @karenmartinopex
Blog & newsletter: www.ksmartin.com/subscribe
Book info: www.ksmartin.com/MBPM
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