Business Process Improvement - SIPOC and Toolkit
- 1. Business Improvement Toolkit (Improved) Free Content for your business from TomTurner.BIZ
- 2. How to use this model This is a straight forward method for bettering businesses that I have used for many years and recommend it to all who are seeking business improvement. The roots of this tool are found in the CMMI model: Capability Maturity Model Integration (CMMI) is a process improvement approach. CMMI can be used to guide process improvement across a project, a division, or an entire organization. Processes are rated according to their maturity levels, which are defined as: Initial, Repeatable, Defined, Quantitatively Managed, Optimizing. Currently supported is CMMI Version 1.3. CMMI is registered in the U.S. Patent and Trademark Office by Carnegie Mellon University. I have taken the CMMI model and reduced and improved it based on real world experience. Use this by going down the list validating each question. When you get to the first question where the answer is “no” then you know where to start. You can modify this and use it in any department or business you like. It really lends itself to Ongoing Improvement.
- 3. DIY Business Improvement Pan Do your people know what they need to be doing? Does each project have a plan? Are we prepared and do we measure to the plan? Do we own and control outside goal expectations? Do we measure and analyze our groups performance? Do we know the quality of our work? Are we organized in the best way for our work? Do we own the Requirements Development long-term? Do we have the technology to do our work? Can we grow our role in the company? Publish Verification we are meeting our goals? Are we conducting internal reviews? Are our Processes optimized? Are we training to the Process? Are we Program Managing our individual process? Have we identified failure points? Are we looking at our Decision Processes? Organizational Process Performance Are we Program Managing our group’s process? Ongoing Innovation? Examining company wide issues that affect us?
- 4. DIY Business Improvement Plan The Detail ? Do your people know what they need to be doing? This analysis comes down to three distinct sub-questions: 1) Is the expectation of what is needed clear? 2) Is the expectation definition the same between your employees and the customer or end user of your product. 3) Is everyone doing it the same way? Does each project have a plan? In this question you are looking for three key elements. 1) Where is each project’s status relative to timing? 2) Is the plan written? 3) are all project plans written and conducted the same way? Are we prepared and do we measure to the plan? This is all about starting to self-measure. 1) Is each program plan documented and measurable. 2) Are you measuring? (Who is doing the measuring?) Do we own and control outside goal expectations? This is where you have to do a bit of work. You will need to find all people who use your services and make sure what you are providing is what is being requested. Look for ways people are measuring you. Do we measure and analyze our groups performance? Talk to the team about measurable data. The key to this is something that can quickly be updated and quickly reviewed. Many companies use red/yellow/green charts. I suggest using the team to define what/when/how reporting is done. Do we know the quality of our work? Keep in mind that quality is perceived from outside your group, reflects how you measure yourself, and is where you can start bundling things to expand your groups horizons. Examples of this are cost reduction efforts, going green,…..this is a subtle place where you push the envelope. Are we organized in the best way for our work? This is about workflow. The most efficient and sometimes most impractical model is the assembly line. Mapping the flow of work is key but the real tell tale sign will be the mapping of interactions.
- 5. DIY Business Improvement Plan The Detail ? Do we own the Requirement Development for our group long-term? This simply means that you need to take hold of the outside expectations for your group and how those requirements are generated. Do we have the technology to do our work? Two things here that can be done quickly tom make your efficiency increase. 1) Benchmark how other people do what your company/group does. 2) observe your employees doing their tasks. Are they waiting for a computer program to boot? Waiting for a printer? Borrowing tools from coworkers? Especially look for workarounds. Can we grow our role in the company? I have two reasons for doing this. 1) Grow or die! 2) It changes the focus to better harmonize with the company as a whole. Publish Verification we are meeting our goals? Show it to the world! Publication is where we gain outside street credibility. Are we conducting internal reviews? This is an opportunity to have some fun with the group/company. Make this a public but light hearted event where we can show how we are getting better or asking for help. Are our Processes optimized? Diagram the processes and brainstorm for new opportunities. Six Sigma SIPOC - Supplier (who) - Input (things to be changed) - Process (what is being done) – Customer (Who is the customer) Are we training to the Process? What training is in place? Is it measured?
- 6. DIY Business Improvement Plan The Detail ? Are we Program Managing our individual process? This is the tracking sheet that holds daily issues and activities. Have we identified failure points? We want to be highly sensitive here. If failures are measured in days we want to define the problems in minutes or seconds here. Are we looking at our Decision Processes? This is where we review our progress in front of our customers. Organizational Process Performance This is worked on from the feedback we get out of our Decision Process review. Are we Program Managing our group’s process? This is where we discuss daily issues with our processes that need to be worked on. Ongoing Innovation? Now that we have a handle on our business now we can look to improve ourselves and the company as a whole. Examining company wide issues that affect us? What can we do to drive the company forward at lower costs and with better customer satisfaction.
- 7. User Guide Now available through Kindle You become your own Consultant . Easily defined steps. Examples for each step so you can see how its done. Method for contacting the author with questions or comments. Best bang for the buck you will ever get in Process Improvement.
- 8. Users Guide Now Available Business Process Improvement (Step by Step guide) Now available through Kindle- Chapter 2. Do the workers know what they need to be doing? The answer to this can be quite surprising sometimes. Even in small companies people have a tendency to assume that everyone knows what to do. In my experience, ten to thirty percent of workers do not know completely what they need to be doing . So let’s make sure of three things relative to this topic. One, do the workers have clear direction as to what is expected from them, when its expected, and all the little details that go into the finished product. If direction has not been given verbally, in writing and with examples of what it looks like when done wrong then you have failed this step. Two, is the direction clearly given to all workers equally? Have you taken the time with each one or as group to make sure everyone knows what to do? Three, are all the workers responding to the direction in the same way. Example Success Story- Bob wants his widget makers to produce six widgets, have them inspected, and shipped to Company B. He supplies the team leaders written direction, a verbal lineup, explains what failure looks like, and posts the direction on the wall outside his office. Bob goes to the leader of the widget production team and asks to sit in on the morning meeting where the job assignment will be handed to the workers. In the meeting, he watches the leader go over an assignment sheet that calls out what, where, who, and why will be doing the widget builds. He goes over the previous modes of failure so the team knows what not to do and what to look for in their inspection. At the end of the meeting the leader reiterates what is to be done, posts the line-up sheet so everyone can see it and releases the team to go about their business. As Bob leaves the area he sees the leader going around making sure the work area is clean and giving his workers time to ask questions. Bob then goes to the inspection area to make sure they have their assignment well in hand. He finds the Inspection leader and asks her if the team will be ready to inspect the widgets as they are completed. The leader shows him his lineup sheet that is posted on the wall, takes him to the inspector who is gathering his equipment and inspection data. The inspector indicates he knows what is coming, how many, how to inspect them and how to get them to shipping. Bob then goes to shipping. He finds the shipping leader in her morning team meeting. Bob is pleased to see the written lineup sheet in her hand, hearing the verbal directions, and the reminder of what went wrong previously. Bob went back to his office knowing all was well.
- 9. Business Process Improvement SIPOC •Purpose •SIPOC •Measures •Success Story T and T LLC.
- 10. Purpose The intent of this presentation is to guide the implementation of improvements with the aid of a consultant. The goal is to help you gain improvements quickly, obtain mentorship from the consultant, and be able to conduct improvements in the future with little or no outside help.
- 11. SIPOC - Cost Reduction SUPPLIER INPUT PROCESS OUTPUT CUSTOMER MANAGEMENT HIGH LEVEL CONCERNS 1 ON 1 MEETING WITH LIST OF GROUPS OR CONSULTANT WITH THE BUSINESS - CONSULTANT PROCESSES THAT VERIFY VALUE AND VALUE REQUIRE ATTENTION STREAM CONSULTANT OJT ANALYSIS PARETO OPPORTUNITIES HIT LIST CONSULTANT AND METHODOLOGY BY "RISK" AND MANAGEMENT "RESOLUTION TIME" CONSULTANT OJT ANALYSIS MEET WITH TEAMS TO TIMELINE WITH WEEKLY MANAGEMENT AND TEAMS METHODOLOGY ESTABLISH VALUE MEASURES AND OPEN STREAM, EXPECTATIONS, ISSUES LIST MEASURES, AND MEETING CADENCE MANAGEMENT OJT ANALYSIS WEEKLY REVIEW OF SUPPORT AND THE COMPANY METHODOLOGY PROGRESS MANPOWER REALLOCATION CONSULTANT MUDA, MURA, MURI TOOLS HIGH LEVEL REVIEW OF LIST OF OPPORTUNITIES MANAGEMENT AND TEAMS THE SYSTEMS CONSULTANT MUDA, MURA, MURI TOOLS DEFINE GOALS, LEAD WEEKLY REPORT MANAGEMENT AND TEAMS TEAMS, AND REPORT SUCCESS CONSULTANT OJT ANALYSIS MEETING TO ESTABLISH LIST OF CANDIDATES MANAGEMENT AND TEAMS & METHODOLOGY HANDOFF OF CONSULTANT DUTIES TO MANAGEMENT INTERNAL EMPLOYEES
- 12. MEASURES SUPPLIER INPUT PROCESS OUTPUT CUSTOMER LIST OF VOLUME OF PROBLEM “PROBLEM” PROCESSES IN PROCESSES PROCESS OF MANHOUR OR DOLLAR SAVINGS BY OPTIMIZED OPTIMIZATION INCREASED PRODUCTIVITY VOLUME OF WASTE LIST OF WASTE REDCUTION REDUCTION OPPORUTIES IN MANHOUR OR DOLLAR SAVINGS BY OPPORTUNITIES PROCESS DECREASED WASTE MANHOURS AND LIST OF CONSULTANT IMPROVEMENTS IN COST FOR PROCESS OR IMPROVEMENTS COMPLETED RETURN ON INVESTMENT
- 13. Measure Data Raw Volume Resolution Time 50 40 30 Running Cost <1 Week Earnings <2 Week 20 < 3week Warranty Other 10 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Return On Investment 60000000 50000000 40000000 Investment 30000000 Return 20000000 10000000 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
- 14. Success Story A large corporation engaged my service to try and identify areas for Profit Improvement. Five areas and processes were identified for evaluation. The following results were rendered in a six week period. 10% head count reduction 200K was recovered in overspend Warranty was reduced Three processes were defined clearly Weekly business measurables were established for company guidance.
- 15. Questions? Feel Free to contact me with any questions via my email at TomTurner@TomTurner.biz .