4_Processes.ppt

8/11/2019 4_Processes.ppt

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DEFINITION SUMMARYIMPROVEMENTEXAMPLES MEASUREMENT

2-1

New Employee Orientation to QI Awareness

EFFICIENT PROCESSES
http://www.washington.edu/


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Quality Improvement Pyramid

Strategic Plans

LeadersTrustworthyTrusting of Others

Approachable, Inspiring

Quality Improvement System Trained Staff Recognition Data Analysis

Customer Focus Empowered Staff Problem SolvingTeamwork Quality Processes Measurement Systems

Vision

DelightedCustomers

EfficientProcesses

StaffTrustworthyTrusting of Others

Collaborative, Committed


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AgendaDEFINITION SUMMARYIMPROVEMENTEXAMPLES MEASUREMENT

DEFINITION

EXAMPLES

IMPROVEMENT

SUMMARY

MEASUREMENT

What is a process?

Processes

Why and how we measure

Methodology for process improvement

QI culture / environment


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What is a Process?

DEFINITION

INPUT ValueAdded Tasks

OUTPUT

Materials Goods Supplies Resources Physical Non-physical Data

Event

Manufacturing Service Physical Non-Physical

End product Service Performance Physical Non-Physical

A resource that youwill add value to:

TRANSFORMINGinput to a desired output

An input after youhave added value


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Defining Value Added

DEFINITION

1) The customer is willing to pay for this activity.

2) It must be done right the first time.

3) The action must somehow change the productor service in some manner .


OUTPUT


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Example of Value Added

DEFINITION

Cost for a barrel of crude oil $ 82

42 gallons in a barrel 42

Estimated cost of gasoline $1.95 / gallon

Value-added activates(eg: refinery, shipping,service station) Speculative purchases

by investors

Exorbitant collusion profits among producers

INPUT Value

Added Tasks

OUTPUT

Actual cost of gasoline $3.00 / gallon

Differential $1.05 / gallon


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Efficient & Effective ProcessDEFINITION

Efficient is working without waste

> Minimum time

> Minimum effort

> Minimum expense

Effective means achieving the desired result

> Hitting the target

> Meeting customers needs


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Efficient & Effective ProcessDEFINITION

Without wasteNot achieving desired result

Without wasteAchieving desired result

With wasteNot achieving desired result

With wasteAchieving desired result

Achievingdesired result

(Effective)

WithoutWaste

(Efficient)

With waste(Inefficient)

Not achievingdesired result(Ineffective)


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Processes are dependentDEFINITION

Your process OUTPUT is often an INPUT for another process!Process Partners

Increasing incremental value

Final / CollectiveProduct


OUTPUT


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Exercise

1. Share among your table the processes that you areresponsible for.

2. Identify your value-added tasks.

3. Discuss how your processes impact others at yourtable.

4. Share with the class.


OUTPUT


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Why Measure?MEASUREMENT

Why Measure?

Management SystemInternal & external management system

Accountability for university resourcesDecreasing state funding

Strained economic climate

Higher customer expectations

Communicates to staff and campus ourcustomer service level and how we

provide value

Must measure in order to benchmark(i.e. a point of reference, process improvement)

FM, Treasury, Strategy Mgmt

Management by facts

Championed at executive level

QI InitiativeDedicated QI Leader / CoordinatorsQI training for all staff

QI resourcesEmployee development planStaff & leadership qualities

Process improvement & problem solvingtrainingNewslettersRecognition programs

Balanced Score Card(Dashboard)


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Similarities to an Automotive DashboardMEASUREMENT

What is the purpose of a dashboard?


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DashboardMEASUREMENT

Long-term competitiveness is best gauged via a BALANCED perspective.For example, financial statements will not display intangible assets:

cycle-time, knowledge management, customer satisfaction, etc.

FinancialCustomer(esp. important for Non-Profit)

FMs dedication to delight customers

Internal Process Learning & Growth

DASHBOARD(BALANCED SCORE CARD)


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Utilizing Operational DashboardsMEASUREMENT

Communicate with campus & ourselvesBetter understand processes & improveWork with process partnersMake changes


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QI Principles that Reduce VariabilityIMPROVEMENT

TQM A management style that promotes an organizations culture and attitude to continuously satisfythe needs of their customers.

LEAN A philosophy and practice to focus on eliminating all forms of waste in a process.http://f2.washington.edu/lean Question: LEAN & QI ? LEAN is QI on steroids (just do it, 30-60-90 day check-ins, wastefocus from customer view, wing to wing)

VARIANCE ANALYSIS A philosophy, practice, and measurement system to reduce variance (eg. six sigma, statisticalprocess control charts)

DEMING CYCLE- PDCA A methodology to continuously improve a process by understanding the needs of the customer.
http://f2.washington.edu/leanhttp://f2.washington.edu/lean


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Coin Exercise


OUTPUT

1. Ground rules provided by instructor.

2. Three rounds with equal allotted time.

3. Debrief after each round.

Plan

Do

Check

Act


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PDCA Case Study: New Budget SetupIMPROVEMENT

P LAN

DO

CHECK

ACT

July 2003 retreat Identified New Budget Setup as criticalcustomer concern Brainstormed alternatives

New Accounts reprioritized workload Measure volume of workload

Monitored progress via dashboard Early success only

Inconsistent performance suggest weneed further improvements

FIRST ATTEMPT


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S i D


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Segmenting DataIMPROVEMENT

D V i bili


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Data VariabilityIMPROVEMENT

GCA New Budget Setup Time Oct06 - Dec06

0

5

10

15

20

25

0 5 10 15 20 25 30 35 40 45 50

Data Sample

D a y s

Team 1 Team 2 Team 3 Team 4 Team 5 Team 6

C l (J d t) P M


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Complex (Judgment) Process MeasureIMPROVEMENT

I d t B h k


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Industry BenchmarkIMPROVEMENT

$3.63

$3.15

$3.01

$2.56

$1.77

$1.68

$1.58

$1.54

$1.29$1.00

Berkeley

Riverside

Santa Cruz

San Francisco

San Diego

Davis

Los Angeles

Irvine

Santa BarbaraWashington Good

Target = 2.25 Average cost per paycheck for displayed

California schools

85%99%

2006 2008

Payroll Customer Satisfaction rating

D hb d


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IMPROVEMENT

Dashboard

Q ti


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IMPROVEMENT

Questions

How to apply quality improvement to everyday process? Are Targets met? What is the problem? Why not? Baseline/benchmark/trend. Root cause analysis. Pareto analysis. PDCA Check your data (manage by facts)

What happens when a process goes away? Do you stillmeasure?

Has the process evolved to something else (e.g. manualtransactions converting to eCommerce)

When do you measure a process? dashboard = core processes scorecard = strategy/change measure if you want to process improve)

Setting Targets


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IMPROVEMENT

Setting Targets

CustomerExpectations

ComplianceLaw requirement

Industry BenchmarkBest Practices

Stretch

Four ways to set targets:

Applying PDCA


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PlanDesign or revise

business processcomponents to improve

results

DoImplement the plan

and measure itsperformance

CheckAssess the

measurements and

report the results to

ActDecide on changesneeded to improve

the process

Applying PDCASUMMARY


OUTPUT

How does your department

and your process add valueto FM and the customer?

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Documents

4_Processes.ppt