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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Internal Resultant Training,(July 30 - August 10, 2001),Hong Kong,PROPRIETARY 1998 Thomas Group, Inc.,All Rights Reserved.,Table of Contents,Introduction to Thomas Group, Inc.,Total Cycle Time at Esquel Group,TCT Basics,Cross Functional Teams,Process Mapping,Measurements,Barrier Removal,Barrier Characterization Using Cause & Effect Diagrams,Cycles of Learning and Effective Meeting Management,What is the Thomas Group,?,We are a unique international management services company that helps clients improve their competitiveness and financial performance,Founded in 1978; annual compound growth 30%,Over 200 senior management executives with broad skills & experience,Average operations management experience per Resultant is 22 years,Proprietary Total Cycle Time Methodology to implement change,Global Headquarters Locations: Dallas, Detroit, Frankfurt, Singapore and Hong Kong,Over 300 successful cycle time reduction programs,TGI Mission,To Make Businesses Competitive,By Using,To Drive,Total Cycle Time,Improved,Responsiveness,and,Accelerated,Results,using,Minimum,Resources,3 Rs,What Was Thomas Groups Role,At Esquel?,Outside objective change agentcommitted to improved results,Define business processes critical to Esquels competitiveness,Establish aggressive performance targets at which Esquel is entitled to operate.dramatic improvements over baseline,Apply Thomas Groups Total Cycle Time methodology to help Esquel reach entitled performance. within eighteen months,Total Cycle Time (TCT) Basics,Corporate Competitiveness is Driven by the 3 Rs,R,esponding quickly to customers needs for,present and future products & services.,R,esults acceleration, particularly in fast delivery,lower costs and improved quality.,R,esource effectiveness, particularly in people,costs and cash tied-up.,R,R,R,Faster & Better Results than the Competition -,But using fewer Resources than the Competition,Business as a series of Processes,All businesses organizations,(whether manufacturing, services, development, software, etc.),are composed of a series of different business processes,.,These business,process steps,must be:,Documented and analyzed to ensure that each has,value,Can be executed in the,minimum time,Have the highest possible accuracy or,First Pass Yield,.,The time it takes in,all,business processes,from,identification of an unmet market need,until,that need is satisfied.,Cycle Time is:,The time it takes to get something done,Manufacture a product,Develop a product,Deliver a service,Install a factory,Reduce costs,Improve quality,The time it takes to change the way a company does things.,Most difficult to change,Total Cycle Time is:,The combined effect of the cycle times of,all business processes,from the time a need exists,until it is satisfied.,Total Cycle Time (TCT) drives Improvement,Total Cycle Time (TCT) drives Improvement,.,A successful TCT Program successfully reduces,the cycle times of all identified business processes,and integrates these processes into a seamless total,business process with a minimum Total Cycle,Time,Cross Functional Team (CFT),What is a Cross-Functional Team?,A team representing the various functional areas of one or more companies,The Mission of the CFT team is to achieve agreed upon, specific objective(s),The objectives are ultimately aimed at:,Driving continuous improvement in key business processes,Radically improving the organizations global competitiveness,Internalizing the TCT processes to ensure continuation of the process improvement,Why are Cross-Functional Teams Needed?,Problems and solutions do not completely reside within one department,All functional elements involved in a process need to contribute,Members should bring knowledge, objectivity and new view points to problem solving,The Role of the CFT,The CFT is the process owner of the key processes identified for improvement. This process improvement is measured by Cycle Time (CT) and First Pass Yield (FPY) results.,The CFT is responsible for:,The identification of the key processes,The periodic collection, analysis, display and reporting of the CT, FPY and other measurements data.,Identification of barriers, substitute processes and non value added activities within each process.,Maintenance and execution of a continuously updated barrier removal plan to achieve or surpass entitlement in CT and FPY.,Role and Responsibility of CFT Leaders,Ensure that TCT process is followed and that results are achieved quickly,Set clear goals and hold the team accountable,Lead team in carrying out its objectives,Ensure that team meetings are action oriented (3Ws),Keep team focused without dominating meetings,Transfer required CFT skills to new members,Role of Team Members,Responsible for contributing to the teams success by:,Representing company (empowered decision maker),Communication; input from and to their functional organization,Attending and actively participating in all meetings, or providing an empowered substitute to act and make decisions for them,Working with the team to identify barriers and their root causes, ranking and removing them,Developing Action Plans and driving those Action Plans to completion,Using measurements to track progress and assure specific business process or processes progress toward and reach entitled performance,Role of The Scribe,Prepares and distributes the meeting agenda 2-3 days in advance of the meeting. This ensures participants come to the meeting prepared. Note: Members should submit documentation to be discussed in the next meeting to the Scribe for attachment to the meeting agenda.,Prepares and distributes the meeting minutes and W3s within one working day following the meeting date. The Minutes are to include Attendance, Summary of the topics discussed, Significant decisions made, Next meeting date, time and venue, Old W3s with status and New W3s,Requests feedback on minutes from team to ensure that they reflect the consensus of the team,Maintains the old and new W3s listing so that W3s (what, who, and when) are always current,Highlights W3 completions and short falls to team for further action,Maintains accurate and updated CFT/BRT Charters,Publicizes teams successes,Serves as team timekeeper if none assigned,NO.,What,Who,When,Status,1,2,3,4,W3s,Team Leader:,Team Objective:,Scribe:,Start:,End:,Role of The Measurement Specialist,The CFT Measurement Specialist is responsible for leading and advising the team on measurements. Functions performed are:,Works with BIT measurement owner to coordinate measurement activities for the CFT team,Works with team members to collect measurement data to define Baseline & Entitlement,Works with team members to assist in them in analyzing measurement data,Monitors improvement of actual cycle times, first pass yield, AIP/WIP, delivery, cost, productivity, etc.,Develops reporting formats with help from the team,Ensures that all measurement status is published regularly in the form of an approved CFT Cockpit Chart,The TCT Process - The Methodology Sequence 16 STEPS,1.Identify the key business process,2.Establish the scope of the process,3.Identify and bring together the key players for the CFT,4.Validate the scope and determine the process boundaries,5.Map the process, including CT and FPY data for each step,6.Establish baseline (“as is”) performance in CT and FPY,7.Determine value-added and non-value-added process steps and activities,8.Remove non-value-added steps and create a “should-be” map,(Entitlement process),9.Determine meaningful measurements,10.Design the measurement system - drive desired behavior,11.Establish initial entitlement goals in CTs and FPYs, other measurements,12.Identify the barriers to process improvement,13.Develop cause-and-effect diagram to find the root cause barriers,14.Rank-order root cause barriers to determine the best course of action,15.Assign and schedule barrier removal actions (BRTs),16.Track progress through the measurement system,THE 16 STEP PROCESS CAN BE BROKEN DOWN INTO 4 GROUPS OF ACTIVITIES,IDENTIFY,the key processes, process owners and key players,Determine the scope and,MAP,the processes,Set up a,MEASUREMENT,system, determine baseline and entitlement,Identify and remove,BARRIERS,to improved process performance and manage improvement with drumbeat feedback process,Process Mapping,Business Process Management,Everything we do in in our company fits within a business process and,Has a Process Flow that can be developed,Has History that can be analyzed,Has a First Pass Yield,Has a Performance Baseline/Entitlement,Has activities that are Non-Deterministic (unpredictable),Can be Measured by cost, first pass yield and cycle time,Business Process Maps,In order to start the TCT Process (Step 5 of the “16 Steps”) it is necessary to construct Process Map(s) of the critical business processes,Process Maps are a graphical picture of the flow (in time) of a process or activity,Process Maps provide an overview of the process and describe the path the process follows from beginning to completion (start to stop as defined in the charter),Show how the processes work across functional and geographic lines,Process maps are drawn at various levels of detail to assist in the evaluation of each process step,Mapping.Scope of the Process,We must first,define the scope,and the purpose of the process.,W,hat is the process trying to accomplish?,The scope of any process consists of three parts:,Start Point,- Identify the event that begins the process (such as receipt of an order),Stop Point,- Identify the event or item that concludes the process (such as shipment of a customers order),Process Boundary,- determines which transactions and activities are to be addressed in the Process Map. (For example, are we addressing all products that are made by a company, or just one product line?),MapsCross-Functional Diagrams,List the functions/organizations down the left side of the sheet of paper,Show the process as a progression from left to right as the process is mapped across the page,The symbols which represent each step are placed in the same row or rows as the functions involved in the process.,TGIs basic symbol set for cross-functional flow diagrams in a high-level process are shown below.,Process step,Prepare Forecast,Approve?,Decision,Repeat or rework step(s),Go Back to,Step 2,Inventory (non first-in/first out) or backlog,Nondeterministic process step,Stockroom,Design New,Code,Starts control,Business Process Management,In addition to the above,elongate a symbol, top to bottom, to show participation in the same process step by more than one function and/or organization.,If the participating functions are not listed adjacent to one another, show participation with solid vertical lines and nonparticpation with broken vertical lines.,Arrows always go left to right !,Show reiteration like this:,Show decisions like this:,Approved?,Repeat previous,process from,X to Y,Yes,No,Approved?,Yes,No,or,Color 2,Orange,Red,Blue,Cross-Functional Mapping Process,Define scope.,List functions involved down left hand side of paper.,Identify sequence of activities.,Correlate activities with functions.,Map activities from left to right corresponding to the advance of time.,Changzhou Process Map,(Page 1),CT1,B/L: 18,ENT. 14,Fulfillment FPY,B: 55.4%,E: 85%,FPY3,B= 97%,E=100%,1,.75,Unit: Day,Fulfillment CT,Changzhou Process Map,(Page 2),FPY4,FPY5,FPY6,FPY7,FPY8,B=87%,E=96%,B=92%,E=95%,B=80%,E=95%,B= 94%,E=100%,B=95%,E=98%,Unit: Day,B/L,ENT.,5.25,6,6.5,8,1.5,3,CT2,CT3,CT4,Measurements,Measurements,Measurements are necessary to “keep score”,e.g. how can we determine if we are making improvements unless we have well defined and meaningful measurements,Measurements must be simple, easy to understand and an accurate measure of the process,Measurements should not be “corruptible”,Time and First Pass Yield are the best measurements,Static and Dynamic Cycle Times,Cycle Times have specific start and stop times.,Cycle Time is a basic measure of process effectiveness and a good indicator of the discipline and order within a process.,One must differentiate between,Static,and,Dynamic,cycle time:,Static Cycle Time,(sCT) is a summary of past actions (history). It is a lagging indicator and is usually applied to processes that change slowly.,Dynamic Cycle Time,(dCT) is the present “pulse rate” of a process and, thus, a leading (predictive) indicator.,Static Cycle Time Measurement,Static cycle time is the,historical measure of cycle time,based on analysis of individual outputs of a process.,Static cycle time is a lagging indicator because it reports results after completion.,Collect Data, Use Collected Data to Identify Where to Look,Frequency of Occurrence,What is happening here?,Use high/low,diagnostic analysis,and especially,here?,Static Cycle Time,Population of One,A fabric manufacturing process which starts on June 12 and concludes on July 19 has a static cycle time of 37 days.,Start,June 12,Stop,July 19,Static Cycle Time = 37 Days,Static Cycle Time,(For populations of more than one),One can average the cycle times of work actions completed. For example: 30 shirts completed during a specific time period had the following distribution:,4 completed in 2 days3 completed in 7 days,8 completed in 3 days2 completed in 8 days,7 completed in 4 days6 completed in 9 days,sCT= Static cycle time =,(4X2)+(8X3)+(7X4)+(3X7)+(2X8)+(6X9),30,sCT = 5.03 days for that specific time period,Dynamic Cycle Time (normal),Dynamic cycle time is the current processing time for a relatively high volume of activities where In Process inventory exists at both the beginning and end of the period.,Dynamic Cycle Time =,Actions in Process (AIP),Average Processing Speed,NOTE: The period of time may be one day, one week, one month - the shorter the time period the more instantaneous the cycle time measurement,Dynamic Cycle Time,Is a leading indicator,dCT = AIPs / Process Speed,AIPs and process speed can vary through measurement period,Need parameter estimates,Dynamic Cycle Time Example,(All data is for a one month time period),Beginning garment inventory4600,Ending garment inventory3600,Garments out to stock31500,An average garment requires 3.9 days to progress through the,waiting queues and processes and to exit from the line.,Average Work in Process,Process Speed,=,Beg. Inv. + End. Inv.)/2,OUTS,CT,=,=,=,(4600 + 3600),4100,31500,Month,2,31500,=,=,.13 (30 days/month),3.9 days,Non-Manufacturing Cycle Time Example,You are operating a purchasing organization with the following characteristics:,Work-in-process inventory beginning of month=1,800 orders,Work-in-process inventory end of month=2,200 orders,The average daily placement rate is=125 per day,What is the cycle time of the operation in work days?,Dynamic and Static Cycle Time Comparison,Static Cycle Time,Dynamic Cycle Time,1.Lagging indicator 1. Leading indicator,2. Formula involves only cycle 2. Formula involves AIPs,times of completed actions and processing speeds,not just completions,3. Good for low transaction 3. Good for high,process steps transaction process steps,-develop new products- -big amount production-,=,Completed CT1 +CTn,=,Average AIPs,n Average Processing Spd,Process Total Cycle Time,Sub Process #1 (Marker Making),Sub Process #2 (Cutting),Sub Process #3 (Sewing),Sub Process #4 (Washing),Sub Process #5 (Press / Pack),CT1,+ CT2,+ CT3,+ CT4,+ CT5,= Total Cycle Time,Processes are often comprised of several Sub Processes.,First Pass Yield,First pass yield (FPY) is measure of the,Quality of a Process,.,No. AIPs Completed To Spec, without rework, first pass,FPY= X 100,Total Number AIPs Processed,First Pass Yield is less than or equal to,process yield,(actual),because Process Yield typically includes rework.,The denominator includes any AIP which leaves the process being measured. This includes successful completions, cancellations, scrap, etc.,FPY Defined as.,The percentage of activities completing a process the first time,correctly, without rework.,First Pass Yield MeasurementsExamples,Engineering,Percent drawings to manufacturing which do not change,Percent projects that go through manufacturing with no,unscheduled,engineering help,Manufacturing,Percent incoming parts neither reworked nor returned,Percent assembly kits complete when delivered,Percent garments complete without rework,Percent subassemblies into final assembly with no rework,Test,Percent each test passing first time with no waits/no rework,Purchasing,Percent purchase requests okay to order with no change,Percent incoming goods able to be received immediately,Generic First Pass Yield Model,SCOPE,Queue,Work,OK?,Rework,OK?,Yes,No,Process Yield,This boundary is determined by what data is available,First Pass Yield,Cancel,Scrap,Process Boundary,Generic First Pass Yield Model,SCOPE,Queue,Work,OK?,Rework,OK?,Process Yield,This boundary is determined by what data is available,First Pass Yield,Cancel,Scrap,Process Boundary,Yes 90%,No 10%,No 20%,Yes,80%,What are the,FPY,and,Process Yield,here?,Yield Calculations,total outs - rework - hold,FPY %=total outs + scrap + cancellations,total outs,Process Yield %=total outs + scrap + cancellations,Per given time period,X 100,X 100,How to calculate FPY?,Baseline and Entitlement,Baseline,: An historical or “as is” level of performance, verified by measurement (historical data - 3 months minimum),Applied to any measure,Sometimes good, sometimes not up to expectations,Entitlement,: An improved level of performance resulting from a measurable, documented cycle time reduction program,Generally equal to or better than industry standards,An objective rather than an arbitrary performance level,Requires no new resources to reach Entitlement,Baseline, Theoretical and Entitlement,Perfect World,Lot size of 1,No Queue,No set-ups,No down time,Dedicated Resources,Historical best (expedited or hand carried lot),Comparison to competitions best,Comparison to best of similar process in other industries,Historically based,measurement of the everyday performance level of a business process that has,been mapped.,Factor applied to theoretical to estimate entitlement,Generally 2 to 3x for a production or linear process,Generally 2 to 10x for a non-production or non-linear process,Multiplier provides transition from unobtainable perfect world to account for real world inefficiencies,Multiplier,3,Theoretical,2,4,Entitlement,Baseline,1,Cycle,Time,Typical Performance Distributions,Frequency of Occurrence,Shorter,Longer,Theoretical,Strategic Best,Often Requires Increased Investment,Entitlement,Realizable Performance Using Existing Resources,Baseline,Existing Performance,Measurements Reporting,The Cockpit Chart,Customer Satisfaction,Claims ($) & Returns,Customer Survey Results,Market Share,% of Addressable Market,US & Non US,Cycle Time (CT),Quotations,Samples,Revenue Volume & Operating Margin,HK, Gaoming & Penang,Measured in $ and in Quantity (dozens),Operating income as percentage,CT & FPY Order Entry,Sales Discounting,Factory Loading,% of Capacity,Dozens (actual),Sales Expe
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