Modularity for Standard Work Procedures
- 1. December 2013 Kinetik Solutions Ltd Registered in England & Wales, No 6067771 Registered Office 86-90 Paul Street London EC4A 2NE VAT GB 839 9186 67 www.kinetik.uk.com bebetter@kinetik.uk.com 020 3397 0686 Standard Work in Services Focus on Modularity & Flexibility Author: Toby Edwards V1.1
- 2. - 2 -Confidential not to be used without consent Index Executive summary Background Definitions Challenges in service processes Analysis of service processes Improving the 2 types of process characteristic Modularity in Standard Work – theory Modularity in Standard Work – practical example Advantages & disadvantages Continuous improvement Summary Close
- 3. - 3 -Confidential not to be used without consent This presentation focuses on how to use modularity in Standard Work in order for services to achieve flexibility, a better understanding of the processes, and a roadmap of how to improve.
- 4. - 4 -Confidential not to be used without consent “If you think of standardisation as the best that you know today, but which is to be improved tomorrow; you get somewhere.” Henry Ford
- 5. - 5 -Confidential not to be used without consent Problems with lack of standards An organisation without clear operating standards is likely to have: • Significant rework/repeated activities. • High levels of backlog - to hide problems. • Process imbalance (waiting). • Wasted motion (excessive walking/movement). • Repeat problems. • Low morale. • Constant management fire fighting. • Repetition of the same problems. • Reliance on a key worker.
- 6. - 6 -Confidential not to be used without consent Why Standard Work? • Standard Work in manufacturing is widely known and discussed, but the use of Standard Work in services is not as widespread. • Standard Work is composed of three key elements which work within the drumbeat of demand (takt), and also demonstrate how a particular task should be done. • In service industries, takt time for ad-hoc processes and case management is not as clear cut when demand is irregular. However this does not mean that service industries cannot benefit from the remaining key aspects of standard work. • Furthermore, the use of Standard Work encourages analysis of core business processes.
- 7. - 7 -Confidential not to be used without consent Service Processes have their unique challenges • The following are often cited as key challenges in service processes:- – High variety of work tasks. – High flexibility of workers required. – Demand is not always easy to control. – Services are often consumed immediately, so delivery times may be very short.
- 8. - 8 -Confidential not to be used without consent A method to improve service processes Map Improve Create SOPs Pilot Improve Continuously • Overall process flows (top-level) • Type of process – decision/transactional/transformational • Commonalities in inputs & outputs • Common process “elements” shared between different outputs • Analyse using value analysis • Analyse using Kaizen workshops/events • Test for Commonalities • Check Outcomes are as expected • Separate common elements from shared ones • Create modular top level process • Create content elements for unique aspects • Draft combined new modular/common process
- 9. - 9 -Confidential not to be used without consent Improving the 2 types of service processes When improving processes it is important to focus on the following: • Decision making processes – improve decision criteria and analysis of outcomes vs. inputs and analysis of policies. • Transactional processes – improve “flow”, analyse value-add, non-value add, and process visibility The third type of process – transformational processes are less common in the service industry – and more common in manufacturing.
- 10. - 10 -Confidential not to be used without consent Process objectives Every process has 3 key process objectives: Be confident that incoming work is free from errors. Verify his/her own work to ensure it is error free. Ensure error output is never knowingly passed on. 1 2 3
- 11. - 11 -Confidential not to be used without consent Modularity in Standard Work - theory • Modularity in Standard Work can be done at the top or sub-process level. • Treating the process steps as “content” allows sub-processes to be “plugged in” and adapt to the variety common in service processes. Content 1 Content 2 Top-level process Sub-process level Sub-process level
- 12. - 12 -Confidential not to be used without consent Modularity in Standard Work - theory • This diagram on the right shows how top-level variety could work. E.g. when creating Standard Work for quotation processes for any product/service. Top-level process Service Process flow 1 Service Process flow 2 Step 1 - common Step 1 – common Step 2 – sub-process different Step 2’ sub-process different Step 3 - common Step 3 – common Step 4 – unique
- 13. - 13 -Confidential not to be used without consent Modularity in Standard Work – practical example • A practical example is a quotation process. • Treating the sub-process as “content” allows us to have separate checklists, for example quoting a PC compared to quoting a server installation in order to accommodate variety for an IT vendor. Content 1 Content 2 Top-level process Sub-process level Sub-process level
- 14. - 14 -Confidential not to be used without consent Advantages & disadvantages of modularity Advantages • Creates flexible processes that map better to the real world business tasks. • Easier to implement top process level policy changes − E.g new policy means that changing at sub process level will update all top-level process. • Avoids “one size fits all” excessive standardisation. • Creates focus on re-usable components and commonalities. • Easier to update sub-process documentation without having to change all high processes impacted Disadvantages • Requires looking at multiple procedures whilst doing the tasks – but IT navigation tools can help. • Requires mental agility from task workers – but this can be seen as a good thing. • Extreme product/service variety may require additional analysis – which can ensure that inputs and outcomes remain consistent.
- 15. - 15 -Confidential not to be used without consent Standardised Work documentation Standardised Work documentation should provide all the detail necessary to enable the user to learn and complete the process: • In the most efficient manner. • To the correct level of quality. • In the required time.
- 16. - 16 -Confidential not to be used without consent The benefits of Standardised Work • Aids training and up skilling of workforce. • Allows movement of staff from task to task and between areas. • Allows process control and aids problem solving. • Identifies and encourages the elimination of waste. • Gives people a benchmark to identify how well they are performing. • Used as way to identify improvements.
- 17. - 17 -Confidential not to be used without consent In Summary By using a modular approach for service processes, flexibility can be achieved in standard work to accommodate the variety often present. Standard Work then acts as a springboard for continuous improvement
- 18. An introduction to kinetik solutions September 2013 Kinetik Solutions Ltd Registered in England & Wales, No 6067771 Registered Office 86-90 Paul Street London EC4A 2NE VAT GB 839 9186 67 www.kinetik.uk.com bebetter@kinetik.uk.com 020 3397 0686
- 19. Consultancy profile • Established in 2007, kinetik solutions delivers complex change for large organisations in the public and private sectors • Our team consists of highly experienced consultants each with over 10 years change management experience in blue-chip organisations or a ‘big 4’ management consultancy • We continually invest in learning to offer the latest thinking in transformational change to our clients. We run regular public events on Lean learning for our NHS clients and are members of: - Lean Enterprise Group - Deming Alliance - Operational Excellence Group - Enterprise Thinking Group
- 20. The kinetik team Ketan Varia Rob Worth David Thomson Alan Clark Maria Gilgeous Operational Strategy, Transformative Change Process Excellence, Lean, Six Sigma Process Improvement, Lean, Technology Change Management, Organisation Learning Process Innovation, TRIZ, Six Sigma Process Improvement, Systems Thinking, Training Lean, Six Sigma, Training and Coaching Operations Design, Supply Chain, Lean Ian Robertson Herald Voorneveld Paul Frobisher
- 21. Our solution areas • Complex Transformation Programmes We make change happen in a sustainable way • Operational Design and Improvement Strategic design for complex processes and their implementation • Systems Implementation Integrating process and IT change to achieve operational effectiveness • Facilitated Workshops Fast, informed decision making, from strategy to continuous improvement • High Performance Teams Creating shared purpose and commitment for superior outcomes
- 22. We work with a range of clients
- 23. www.kinetik.uk.com bebetter@kinetik.uk.com 020 3397 0686 kinetik solutions agility to sustain change Kinetik Solutions Ltd Registered in England & Wales, No 6067771 Registered Office 86-90 Paul Street London EC4A 2NE VAT GB 839 9186 67
- 24. - 24 -Confidential not to be used without consent Definitions • “Standard work” can be defined as a philosophy of achieving business outcomes (deliverables) using a standardised operating procedure (process) that forms the basis of continuous improvement efforts to create customer value • For clarity, the 3 types of process characteristics have been defined: – Decision processes a process that takes key criteria as its inputs, evaluates the options during the process and whose output is a decision. E.g. deciding who to hire from a selection of interview candidates, or deciding on which territories to promote a new product/service. – Transactional processes a process whose inputs are parameters, where the output/outcome is achieved through a series of mechanical steps. E.g. configuring a piece of IT equipment, or processing a time sheet – Transformational processes a process whose inputs are physical items which undergo a series of process steps to create a new physical item. E.g. making a door from sheet steel, glass etc. • However for long complicated value streams or a lengthy process, any of the three process characteristics above may be combined. • The key aspect to remember is that optimisation and analysis of processes should bear these distinctions in mind.
- 25. - 25 -Confidential not to be used without consent It is important to distinguish SOP into Guidelines, Operating Instructions, and Mandatory Instructions Developed by the employees performing the work. Describes the most effective and efficient process for the employee. Needs to be continuously improved. Cannot perform the job without doing the mandatory process. Example - element of process which impacts a safety or a critical quality step. The instructions force the operator to work in a specific way (poka – yoke, i.e. the process becomes error free). 1. Guidelines 2. Mandatory Instructions 3. Operating Instructions Sets out ways to achieve an outcome, but any route can be taken based on the local team and employee preference. Illustrates certain steps that can be interchanged, or a set up that isn’t critical.
- 26. - 26 -Confidential not to be used without consent Continuous improvement • Continuous improvement is the key benefit of standard work – standard work builds a platform to act upon. • When creating a procedure, a simple Excel grid with the process steps on the left is best used. Then on the right-hand side 3 key analysis columns can be added to promote continuous improvements. These columns focus on: 1. internal/external 2. Value add – the typical VA, NVA and BNVA analysis 3. Kaizen ideas • We recommend that a process “diary” is kept to record why the changes were made, and reflect on the outcomes.
- 27. - 27 -Confidential not to be used without consent Standardised Work is part continuous improvement 2 7 Stage 1: Map the Process Stage 2: Create the future state Stage 3: Document and implement standard Stage 4: Work to standard – drive CI Stage 5: Share via model office Data & VSM Master Schedule Improved Processes Stabilised Processes & Capability To Sustain Standardised work becomes the basis for the Kaizen culture. Future state map
- 28. - 28 -Confidential not to be used without consent They are two main causes of SOP failures/successes The success or failure of SOP is due to the following factors: Human Factor The way in which a SOP is interpreted. It is prone to be misinterpreted or even ignored! Quality Factor Does it represent the most effective or useful process? Is it too simplified or too complicated to explain the best possible method?