Measure Phase

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Measure Phase
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D
Define the problem to be solved.
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Measure the current performance.
A
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DMAIC/A3 cycle
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• Measure

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Begin by thinking about your problem
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A3
Where do we stand?
How does this process run?
Should I consider time, cost, survey scores or
something else?
What are some ways to measure this?
2. Current Situation
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Then by thinking about your ideal
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A3
Where do we need to be?
How far would I like to get?
What are some measurable targets?
When would I like to get there?
3. Target Goals
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Measure Phase
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Measure

• Steps

• Tools

1. Visualize and illustrate the current process
2. Collect objective data that quantify the process
3. Formulate appropriate goals

• Current State Map
• Graphs and Charts

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Tool Current State Map
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• Current State Map

• Purpose Visualizes and illustrates the current
  flow of the entire process, from start to finish,
  providing a high-level view.
• It helps you identify redundancies and
  inefficiencies in your process.

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About Current State Maps
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Current State Map

• Current State Map

• A CSM is like a flow chart it tracks the steps
  in the process.
• The CSM adds time to the steps how long each
  step takes and the delay between steps.

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Avoid Scope Creep
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Current State Map

• Current State Map

• The start and end of your CSM must match to the
  boundaries of your process as established in your
  Project Charter.
• Verify the scope and stick with it!

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Drafting a Current State Map
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Current State Map

• Current State Map

• Begin by interviewing the people involved in your
  process the stakeholders.
• Take time to watch your process, to observe the
  steps that the stakeholders overlook.
• Draft a map using Visio or Excel.

Verify the maps accuracy by sharing it with the
stakeholders.
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Current State Map Symbols
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Current State Map

• Current State Map

Start/End

• This marks the two ends of the process.
• Be sure this aligns with your defined scope!

• This marks any step in the process. Record the
  time it takes in the bottom box.

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Current State Map Symbols
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Current State Map

• Current State Map

Decision

• This marks a decision point, a yes/no or
  true/false question.

• This marks delay. Record the wait time in the
  bottom box.

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Example (Generic)
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• Current State Map

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CSM Initial Analysis
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Current State Map

• Current State Map

• Once you have your map drafted and verified, you
  are ready to analyze it for waste and
  inefficiencies that are obstacles to your goal.
• Some examples of obstacles
• bottleneck too much work for the number of
  workers
• redundancy work passing through the same step
  without adding value
• batching work is only processed on a certain day
  leading to delay

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Example (Specific/Analyzed)
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• Current State Map

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Measure Phase
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Measure

• Steps

• Tools

1. ?Visualize and illustrate the current process
2. Collect objective data that quantify the process
3. Formulate appropriate goals

• ?Current State Map
• Graphs and Charts

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Improvement categories
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Objective Data
Quality Satisfaction Accuracy

• To improve your process, you need to define what
  category you want to improve quality, cost,
  time, or output.

Cost Savings Waste avoidance
Time Cycle time Waiting
Output Backlog Work in process
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Vital few
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Objective Data

• For every problem, there are usually many
  causes. Identify the main contributors.

• Lean calls these the vital few. They are more
  important than the trivial many.

Rule of Thumb 80 of a problem is the result of
20 of the causes
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Ways to Quantify
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Objective Data

• Count

• Measure

• How many vendors were paid on time?
• How many vendors were paid late?

• How many days early were vendors paid?
• How many days late were vendors paid?
• How long did it take for a bill to move through
  the process?

Better
Good
Best
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Tool Options
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Objective Data

• Choices

• Check sheet
• Histogram
• Run chart

• Check sheets gather data on various effects and
  how often they occur.
• This helps you separate the significant from the
  trivial.

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Tool Options
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Objective Data

• Choices

• Example

• Check sheet
• Histogram
• Run chart

Causes of late payment Causes of late payment Causes of late payment Causes of late payment
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X X
X X X
X X X X
Lost bill Waiting for approval Late arrival Waiting for check to be cut
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Tool Options
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Objective Data

• Choices

• Example

• Check sheet
• Histogram
• Run chart

Timeliness of vendor payment Timeliness of vendor payment Timeliness of vendor payment Timeliness of vendor payment Timeliness of vendor payment
X
X X
X X X
X X X X
Paid 4-5 days early Paid 2-3 days early Paid 1-0 days early Paid 1-2 days late Paid 3-4 days late
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Tool Options
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Objective Data

• Choices

• Check sheet
• Histogram
• Run chart

• Histograms are bar charts that show the frequency
  of an event.
• They are easily created from check sheets.
• They help formulate hypotheses regarding root
  causes of problems.

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Tool Options
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Objective Data

• Choices

• Example

• Check sheet
• Histogram
• Run chart

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Tool Options
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Objective Data

• Choices

• Example

• Check sheet
• Histogram
• Run chart

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Tool Options
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Objective Data

• Choices

• Check sheet
• Histogram
• Run chart

• Run Charts are line graphs that show variation in
  the process over time.
• They help identify when problems are happening
  and allow us to focus on the particular
  circumstances in which the problem occurs.

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Tool Options
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Objective Data

• Choices

• Example

• Check sheet
• Histogram
• Run chart

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Now revise the A3 Current Situation
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A3

• Name your metric and record data from the current
  process.

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Current Situation Example
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A3
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Measure Phase
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Measure

• Steps

• Tools

1. ?Visualize and illustrate the current process
2. ? Collect objective data that quantify the
   process
3. Formulate appropriate goals

• ?Current State Map
• ? Graphs and Charts

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Do you have the right benchmarks?
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Benchmarking

• Benchmarking -- Revisited

• Now that you understand your process thoroughly,
  identify which elements and indicators are key to
  process success? These are your Key Performance
  Indicators.
• Gather new information as necessary to compare
  your indicators with best practices.
• Which of these is the biggest problem for your
  process?

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Progress Check
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Benchmarking

• Benchmarking -- Revisited

• By now you have
• measured your current status
• identified industry norm
• identified performance gaps, and
• gathered the information necessary to establish
  meaningful goals and targets in the next phase.

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Lean Rule of Thumb
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Target Goals

• Target Goals

• 60/40 Rule
• Do not try to do it all at once!
• Make your goal realistic and achievable.
• When in doubt, aim for about 60 of the ideal.
• Remember that Lean is an iterative process.

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Direction iterations
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Target Goals

• Target Goals

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Revise the A3 Target Goals
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A3

• Use the data collected in the current state in
  combination with the benchmarks to establish
  goals.

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Target Goal Example
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A3
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Measure Phase
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Measure

• Steps

• Tools

1. ?Visualize and illustrate the current process
2. ?Collect objective data that quantify the process
3. ?Formulate appropriate goals

• ?Current State Map
• ?Graphs and Charts

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Revisit, Verify, Update
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Update

• Revisit and Verify

• Update

• At the end of every phase, review your
• Project Charter
• Stakeholder Analysis Tool
• Communication Plan
• Check that you are on track!

• Every quarter you will receive an email from the
  Lean Office asking for your updated Project
  Charter to be submitted to the Board of Trustees
• Modify your plans as circumstances and
  developments require

Remember to communicate and engage
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Major Take Aways
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Measure

• Key Lessons

• Map your current process flow.
• Collect objective measurements that quantify the
  process.
• Use benchmarking to formulate target goals.