MEASURE

PROCESS CHARACTERISTICS

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Process Characteristics Session Overview and Objectives

By the end of this session, you will be able to

Define SIPOC.
Explain Cause and Effect Matrix.
Identify the Different Process Flow Metrics.
Describe the Different Process Analysis Tools.

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MEASURE
PROCESS CHARACTERISTICS

INPUT AND OUTPUT MEASURES

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Input and Output Variables

Measurements of process inputs and outputs can be used to optimize the process being measured. Process inputs may be:
Human
resources

Input

Output

Measures

Process

Controls

Process

Process

Input Measures

Upstream
Process

Services

Downstream Process

Output Measures

Raw materials

Process Database of the Organization

Process Model (Generalized)

Feedback from downstream process measurements can be used to improve an upstream process.
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Input and Output Variables

A key concept in six sigma methodology is the SIPOC high level process map in which SIPOC stands for suppliers, inputs, process, outputs, and
customers.

The advantages of using a SIPOC model include

A display of cross functional activities in a
single, simple diagram

A big picture perspective to which additional

detail can be added

Inputs

A framework applicable to both large and small

organizations

Outputs

Suppliers

Customers

Feedback

Knowledge Repository
SIPOC Model (Expanded)

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Feedback

SIPOC

The SIPOC process map is designed to be a high level process view with 4 7 displayed steps.
This is a owchart viewed at the 50,000 foot level.

Supplier

Input

Process

Output

Customer

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SIPOC

The following steps can be used for developing a SIPOC diagram

Have the team create the process map.
The process may have 4 or 5 key steps.
List the outputs of the process.
List the customers of the output of the process.
List the inputs of the process.
List the suppliers of the process.

As an optional step, identify some preliminary requirements of the customers.

Involve the team leader, champion, and other stakeholders for verification.

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Cause and Effect Matrix

Cause and Effect Matrix include:
Before a process can be improved, it must rst be measured.

Key process variables should be measured, using metrics like percent defective, operation
costs, elapsed time, backlog quantity, and documentation errors.
Cause and effect can be described as a tool that can aid with the prioritization of key
process input variables.

The matrix lists key process output variables horizontally and key process input variables
vertically.
The process input variables results are compared to determine which input variables have
the greatest effect on the output variables.

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Cause and Effect Matrix

Cause and Effect Matrix Example

Process Output Variables

Prioritization number

10

Results

84

35

63

27

25

11

22

42

18

236

100

1
2
Process Input
Variables

3
4
5

3
5

4
2

3
Totals

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MEASURE
PROCESS CHARACTERISTICS

PROCESS FLOW METRICS

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Process Flow Metrics Lean Glossary

In order to introduce process flow metrics, the following definitions are useful:

Andon Board

Continuous Flow
Manufacturing

Cycle Time

Inventory Turns

Just In Time

Level Loading

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Muda

Non-value added

Perfection

Point of use
Inventory

Poka-Yoke

Process Flowchart

Process Flow Metrics Lean Glossary

In order to introduce process flow metrics, the following definitions are useful:

Pull

Takt Time

Value Stream

Queue Time

Standard Work

Visual Control

Single-Minute
Exchange of Dies
(SMED)

Small Lot Principle

Waste

Single Piece Flow

Skills Matrix

Work cell

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Work center

Process Flow Metrics Lean Thinking

Womack (1990) introduced the term lean production to the Western World in 1990 with the publication of The Machine
that Changed the World.
Specify
value by
product

Pursue
perfection

Customer
pull value
from the
producer

Womack
offers five
guiding
principles

Identify the
value
stream for
each
product

Make value
ow

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Process Flow Metrics Value

Value is defined by the customer.

Let us look at the perception of this term Value from two major countries who are contributors to Quality education:

What is Value (from country: Germany)

Mind set is more

product feature and
process oriented.

Technical people are

in control of the
businesses.

Germans are Very

strong technically.

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Features and
enhancements are
of utmost
importance.

Mind set is that the

customer is not
sophisticated
enough.

Process Flow Metrics Value

What is Value (from country: Japan)

Define value in the context of where value is created

Customers, in general, do not define value based on where

it is made

Customers want their needs satised quickly

As the yen strengthened, the previous advantages of

Japanese companies using Japanese suppliers disappeared

This has resulted in a weakening of many Japanese

companies

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Process Flow Metrics Value

Value must be defined by the customer.
The customer wants:
Specific products
With specific capabilities
At specific prices

In lean thinking, the target cost is the mixture of the current selling prices by competitors and the examination of and the
elimination of muda (waste) through lean methods.
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Process Flow Metrics Value Stream

Each firm in the value stream is reluctant to disclose too much information to the other firms, for fear the of price

concession requests.
Key components of a generic value chain
Human
Resources

Service

Technology

Sales

Procurement

Inbound
Logistics

Marketing

Outbound
Logistics

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Operations

Process Flow Metrics Value Stream

A value stream map is created to identify all of the activities involved in the product.

It adds value, as perceived by the customer.

It adds no value, but is required by the process.

It adds no value and can be eliminated.

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Process Flow Metrics Value Stream

Conner (2001) identifies the steps for documenting the value stream mapping as:

Planning

Product
Development

Process
Design

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Record
Current Status

Process Flow Metrics Value Flow

Traditional mass production is often accomplished by the batch technique.

The objective is to produce many units of a specific part at a given time, in order to maintain the production efficiency of the
machines and the overall efficiency of the departments.

Some of the obstacles to overcome include

The plant has

always done
it in batches
or lots.

The plant has

a multitude
of
departments
and
functions.

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The plant
cant afford
quick
changeover
tooling.

The plant has

high
momentum,
inflexible
machinery.

The plant
machinery
would be
expensive to
move.

Process Flow Metrics Value Flow

Straight Line

U-Shaped

Cellular Sequence

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Process Flow Metrics Pull Value

Instead of creating product in response to an estimated sales forecast, the plant manufactures product as the customer
requires it.
This is the pull system in action.
This results in many positive things for the organization:

Cycle times decrease (concept to launch, sales to delivery, etc.)

Finished inventories are reduced
Work-in-process (WIP) is reduced
The customer stabilizes their ordering
Pricing is stabilized
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Process Flow Metrics Pull Value

Womack (1996) suggests that reductions in cycle times which are due to lean thinking methods can equal those
shown in Table

Throughput Reductions

Process

Percent Reduction

Product development

50%

Order processing

75%

Physical production

90%

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Process Flow Metrics Perfection

The customer is searching for a value-added product.
The pursuit of the first four principles of lean thinking allows the firm to move towards perfection.

Perfection is accomplished via:

Product teams working with the customer to find better ways to specify
value, enhance flow, and achieve pull.
Using collaboration between the value stream partners (suppliers,
distributors, customers, employees) to uncover more value.
Using technologies to eliminate muda.

Developing new products.

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Process Flow Metrics Perfection

Lean thinking principles are the cornerstones to higher performance and economic growth.

Labour productivity - 100% increase.

Throughput times - 90% reduction.

Inventories - 90% reduction.

Improvement Area vs.
Reduction / Improvement

In-house scrap - 50% reduction.

Safety injuries - 50% reduction.
Product development time - 50% reduction.
Capital investment Modest.

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Process Flow Metrics Takt Time

Takt time is the available production time divided by the rate of customer demand.
In order to understand the measurement of takt time and how it can be improved a discussion of a hypothetical process is presented below.
Consider a sequential operation with five operators or stations.
The times allocated for each station are shown below.

Station

Time (seconds)

45

40

60

70

50

Total

265

Work Time Example

A thorough study may reveal that a significant portion of time can be eliminated, leading to a reduction of 1 operator and possibly a reduction in floor space.

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Process Flow Metrics Takt Time

Illustration of Batch vs. One-piece flow
The following three cases assume a series of three operations, with each processing one unit per minute.

Case 1

Orders are
manufactured in
batches of 100 units.

Case 2

Case 3

Orders are
manufactured in
batches of 10 units.

Orders are
manufactured in
batches of 10 units.

The necessary quality, machine, personnel, materials, and supplier resources must be coordinated and made available as needed.
The layout of the line or cell is a starting point.
The line should be examined as necessary to:

Improve cycle times.

Reduce product
defects.

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Correct long
changeover times.

Address equipment
reliability issues.

Process Flow Metrics Lean Metrics

The TPM metrics include availability, operating speed rate (OSR), net operating rate (NOR), performance efficiency (PE),
and overall equipment effectiveness (OEE).
Some additional lean measurements that can prove beneficial:

Littles Law named after John D. C. Little (in 1961) states:

Since the throughput rate is equal to 1/(cycle time), Littles Law can be written as:

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Process Flow Metrics Lean Metrics

George (2005) further customizes Littles Law as:

Note in this version of Little's Law that:

Total Lead Time = Flow Time
Items in Process = WIP inventory
Average Completion Rate = Throughput Rate

George (2005) also defines process cycle efficiency as:

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MEASURE
PROCESS CHARACTERISTICS

PROCESS ANALYSIS TOOLS

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Process Analysis Tools Value Stream Mapping

Lean techniques such as value stream mapping and spaghetti diagrams are also often used.
VALUE STREAM MAPPING
A value stream map is created to identify all of the activities involved in product manufacturing from start to finish.

Benefits of a value stream map include

Seeing the complete process flow.
Identifying sources and locations of waste.
Providing common terminology for process discussions.
Helping to make decisions about the flow.
Tying multiple lean concepts and techniques together.

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Value Stream Mapping -Benefits

Benefits of a value stream map include

Providing a blueprint for

lean ideas.

Showing the linkage

between information and
material flows.

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Describing how the

process can change.

Determining effects on
various metrics.

Process Analysis Tools Value Stream Mapping

The value stream mapping process :

Define the Product Family

Use a product equipment matrix

Draw current state map

Do this personally

Create future state map

Use creative concepts

Implementation planning

Can take months or years

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Process Analysis Tools Value Stream Mapping

Define Product Family
The recommended value stream approach is to map one product family.
Product Family: A product family is defined as a group of products that pass through similar processing steps and over common
equipment.
A product and equipment matrix can be used to indicate common features.
The matrix shows products that go through a series of
common processes.
A work cell could be formed to handle a particular flow.
Another method is to create a Pareto chart of the various
products.
The product with the highest volume should be used for the
model line.

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Product
A
B
C
D
E

Process 1

Equipment
Process 2 Process 3

Example of Product Family Matrix

Process 4

Process Analysis Tools Value Stream Mapping

Value Stream Manager

The value stream for a product family may cross department boundaries in the company.

This creates the potential for difficulties in coordinating an effective value stream project.

Such problems call for the creation of a new position for a value stream manager.

This manager must have the authority to make things happen and should report to the
plant manager.

This manager would monitor all aspects of the project.

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Process Analysis Tools Value Stream Mapping

Current State Map
A current state map of the process is developed to facilitate a process analysis.
Basic tips on drawing a current state map include:

Start with a
quick
orientation of
process routes

Personally
follow the
material and
information
flows

Map the
process with a
backward flow,
from shipping
dock to the
beginning

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Collect the
data
personally, do
not trust the
engineering
standard times

Map the whole

stream

Create a pencil
drawing of the
value stream

Process Analysis Tools Value Stream Mapping

Value stream mapping definitions worth noting include:

Value - added
time (VAT)

Value Stream
Mapping

Lead time (L/T)

Cycle time (C/T)

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Value Stream Mapping - Future State Map

A future value stream map is an attempt to make the process lean.
Questions to ask when developing a future state map are:

What is the required takt time?

Do manufactured items move directly to shipping?
Are items sent to a finished goods supermarket for customer pull?
Is continuous flow processing applicable?

Where is the pacemaker process? (This process controls the tempo of the value stream.)
Can the process be levelled?
What is the increment of work to be released for kanban use?
What process improvements can be used: changeover, machine uptime, kaizen events, SMED, etc..?

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Value Stream Mapping - Implementation Planning

The final step in the value stream mapping process is to develop an implementation plan for establishing the future state.
This includes:

A step-by-step
plan

Measurable goals

A Gantt chart may be used to illustrate the implementation plan.

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Checkpoints to
measure progress

Process Analysis Tools Value Stream Mapping Icons

The following icons may be used with value stream mapping, kanban and other lean manufacturing areas.

FIFO

Kaizen Burst

Kanban Withdrawal

Kanban Production

Electronic Flow

Kanban Signal

Safety Buffer Stock

Supermarket

Production Control

Source

Source

Sequenced Pull Ball

Inventory

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Shipment Arrow

Shipment Truck

Process Analysis Tools Flow Chart/Process Mapping

A flow chart, or process map, is useful to people familiar with a process, as well as those that have a need to understand
a process.
Flow charts can be used to identify improvement opportunities as illustrated by the following sequence:

Organize a team for

the purpose of
examining the process

Construct a flow chart

to represent each
process step

Discuss and analyse

each step in detail

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Ask the key question,

Why do we do it this
way?

Compare the actual

process to an
imagined perfect
process

Process Analysis Tools Flow Chart/Process Mapping

Flow charts can be used to identify improvement opportunities as illustrated by the following sequence:

Is there unnecessary complexity?

Does duplication or redundancy exist?
Are there control or rejects? Should there be?
Is this process being run the way it should?

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Process Analysis Tools Flow Chart/Process Mapping

There are advantages to depict a process in a schematic format.
The major advantage is the ability to visualize the process being described.
Some common flow chart or process mapping symbols are shown below:

Process

Decision

Data

Document

Sub-Process/
Pre-defined Process

Start/End

Database

External
Data

Decision or
Preparation

Connector

Off-page
Connector

Manual
Input

Extract

Merge

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Process Analysis Tools Procedures

IS0 9001:2000 states that internal procedures shall control nonconforming product so that it is prevented from
inadvertent use or installation.

As an example, suppose the results of the interviews revealed the following process to control nonconforming
material:

The non-conformance is
discovered.

The nonconforming
material is segregated
from conforming
material.

The non-conformance is
documented.

The actual disposition is

made.

The product is returned

to normal flow.

The paperwork is
cleared.

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A material review board

reviews the nonconformance to
determine disposition.

Process Analysis Tools Work Instructions

Procedures describe the process at a general level, while work instructions

provide details and a step-by-step sequence of activities.
Flow charts may also be used with work instructions to show relationships of
process steps.
Controlled copies of work instructions are kept in the area where the activities
are performed.
The wording and terminology should also match that used by the personnel
performing the tasks.

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Process Analysis Tools Spaghetti Diagrams

Area D
Area A

Spaghetti diagrams can be useful in describing the ow of

people, information or material in almost any type of
process.

Area F

Work Table
Area C

They are not as diagnostic or definitive as VSM in

traditional manufacturing operations, but certainly have a
utility for a number of service, administrative and light
production situations.

Area B

Door

The spaghetti chart shows individual movements (for a

representative shift interval). Included in this schematic
are social activities, trips to the breakout area, visits to the
break area, etc.

Important Papers

Pantry
Library / Breakout
Zone
Door

Spaghetti Diagram Example

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Process Analysis Tools Use of Venn (Circle) Diagrams

A circle diagram can help conceptualize the relationship between work elements in order to optimize work activities.
A Venn (circle) diagram illustrates relationships between events.
In this case, there is an overlap between packing and data entry, as well as packing and pulling stock.
Venn diagrams are normally used to explain the probability theory.

Shipping
Data Entry
0.20

Packing
0.30

Pulling Stock
0.25

0.04
0.06

Making
Mobile
Phones
0.10

Venn Diagram Example

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Process Characteristics - Summary

In this session, you have learnt about:

SIPOC.
Cause and Effect Matrix.
Different Process Flow Metrics.
Different Process Analysis Tools.

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