prepare improvements & project for full€¦ · 07/05/2020 · prepare improvements &...

Prepare improvements & project for full scale implementation

Finalize Cost of Poor Quality

Prepare sustainability & distribute project plan

Prepare Hand-off to Process Owner

Develop Control Plan

Complete final team leader project documents

Celebrate with the Team!

3

Control Plan Checklist

Control Plan Dashboard

QI Macros◦ Run and Control Charts

Cost of Poor Quality

Project Presentation

Close Out Report

4

Phase Objectives Key Activities Possible Tools and Techniques Key Deliverables Document the problem statement and establish the charter. Demonstrate alignment with the Business metrics and strategies. Determine Customer requirements and performance standards.

▪ Select Team with Champion

▪ Develop problem statement

▪ Develop Charter ▪ Create SIPOC ▪ Address gap between VOC

and process ▪ Estimate financial benefits

▪ Problem Statements ▪ Project Charter ▪ SIPOC map ▪ COPQ or CODND ▪ Communication Plan

Develop a reliable and valid measurement system of the business process to effectively evaluate the success of meeting customer requirements.

▪ Obtain Customer requirements

▪ Create overall project plan ▪ Develop measurement

plan & compile project metrics

▪ Determine defect tracking requirements

▪ Assess baseline performance-estimate process capability

▪ Measurement Systems Analysis

▪ Process Description ▪ Project Plan & Timeline ▪ Metrics and collection plan ▪ Baseline Performance results ▪ Process capability analysis ▪ Lean Tools Assessment ▪ Measurement Systems

Analysis ▪ Process model – ‘as is’

Utilization of data techniques to gain insight into process. Divide data into groups based on key characteristics and assess the root causes of errors and poor performance. Determine where to focus efforts for improvement.

▪ Statistical tests / tools ▪ FMEA ▪ Pareto chart ▪ Correlation/Regression ▪ Fishbone Diagram ▪ Box plot ▪ Hypothesis Testing

▪ Describe findings – identify potential root causes RCA

▪ Validate findings

▪ Data relationships ▪ Validated Key Input Variables

(KPIVs) & Key Output Variables (KPOVs)

▪ Prioritize sources of variation ▪ root causes

▪ Identify & communicate potential improvements

▪ Summarize benefits & annualized financial benefits

Identify key change opportunities and proactively test for optimization. Develop implementation and communication plan including a change management approach to assist the organization in adaptation of the improvements.

▪ Design of Experiments – describe purpose & build test/ analysis strategy

▪ Evaluate and Confirm results

▪ Analyze KPIVs ▪ Create action plan for

implementation including change management and communication needs

▪ Buy-in assessment

▪ Quantified relationship between key

input and key output variables ▪ Defined process improvements

including impacts and benefits ▪ Implementation Plan ▪ Process model – ‘Should be’ ▪ Impacted Employees are Trained

Definition of optimal process settings and conditions with specified metrics. Implementation of improvements with a control plan to assess & maintain gains.

▪ Implement improvements ▪ Evaluate results ▪ Integrate & manage

improvements in work processes

▪ Complete closure activities

▪ Document process change ▪ Control plan ▪ Determine new process capability ▪ Leverage opportunities for replication ▪ Communicate results ▪ Financial audit ▪ Hand-off to process owner

1.0 Define

Opportunity

2.0 Measure

performance

3.0 Analyze

Opportunity

4.0 Improve

Performance

5.0 Control

Performance

5

Six Sigma Process Improvement Road Map

1

Migration e-Pro Process ImprovementProject Charter

Project Description Error corrections and clarification of benefits are generatingrework throughout the migration and case installationprocesses, accounting for 20% of the total number of e-Prochange transactions. It is estimated that the volume of errorand rework will grow proportionally as the number ofaccounts migrating by 1/1/2004 increases, driving aproportionate increase in cost and potentially dissatisfyingcustomers.

Start Date April 1, 2003

Completion DateScheduled to be completed by September 5, 2003

Baseline Metrics For 1/1/03 migrated accounts:National Accounts- Average number of change transactions: 14.3, of which

2.9 are due to error and rework- Average hours of rework: 309 hoursRegional Accounts- Average number of change transactions: 8.0, of which

1.6 are due to error and rework- Average hours of rework: 137 hours

Primary Metrics 1. Total e-Pro change transactions2. Percentage of change transactions due to error and

benefits clarification3. Average rework hours per error and benefits clarification

Secondary Metrics none

Goal Reduce error and rework in the migration process by 50%starting with 1/1/04 migrating accounts

Customer Customer migration survey results

Financial CODND (Cost of Doing Nothing Differently)4

th Qtr 2003: $500K

Year 2004: $2.5M

Ben

efits

Internal Productivity Estimated cycle time reduction of 18,868 hours (assuming195 accounts migrating 1/1/04).

Define April 1 – April 21, 2003

Plan Projects & Metrics April 14 – April 18, 2003

Baseline Project April 21 – May 2

Consider Lean Tools May12 – May 16, 2003

MSA May 19 – June 2, 2003

Wisdom of the Org. June 2 – June 6, 2003

Passive Analysis June 9 – June 20, 2003

Proactive Testing June 23 – August 4, 2003

Ph

as

e M

ilesto

nes

Control August 4 – September 5, 2003

SUPPLIER INPUT PROCESS OUTPUT CUSTOMER

Sales

Client / Policy HolderHR BenefitsCoordinator

Client Consultant

Third Party BenefitsVendor

Member

GO Decision

Policy Renewal Date

Summary of Benefits

AdministrativeRequirements

AccountOrganizational

Structure

Detail Benefits

Account DataLoaded in System

Member andDependentEligibilityInformationLoaded in System

Member ID Card

Client / PolicyHolder

Third Party BenefitsVendor

Member andDependent

Providers

Claim

Call

1. Conduct migration analysis

2. Complete account profile

3. Load account structure in system

4. Set up and validate account benefits in system

5. Produce account eligibility record

6. Load account data in product claim engines

0Subgroup 10 20 30 40

0

10

20

30

Ind

ivid

ua

l V

alu

e

Mean=10.98

UCL=26.81

LCL=-4.854

0

10

20

Mo

vin

g R

an

ge

1

R=5.952

UCL=19.45

LCL=0

Total e-Pro Change Transactions by Account from Sep 2002 thru Mar 2003Conduct

Analysis

Create Implementation

Guide

Expert Team

Meeting

Draft

EPRO

Draft

e-

PRO

Release e-PRO

Record

e-

PRO

Impl.

Guid

e

Update

EPRO

OK For

Release

to Vendor

Track

Systems

Loads

IMPLEMENTATION

ERW

From

Eligibilit

y

GO

Decisio

n

SALE

S

Set Up Client ID in

End State

Structure

Request

Codes

STRUCTURE

Complete

Structure

Inspection/Verify

with e-PRO

Get

Underwriting

Approval

Yes

No OK? Yes

No

Go back to

Rates

Structur

e in

CDB

No

Yes

Release

ATC

To Vendor

OK?

Review

Draft e-

PRORequest/Receive

Codes

Enrollmen

t File

CLIENT /CUSTOMERClient

Input

To Sales

Run Legislative

Tool

Check vs. e-

PRO

e-PRO

Redo?

Yes

No

YesOK?

Review

Draft

e-PROCreate

Codes

Legislative Tool

Review

BPC &

Class

Codes

To

Structure

BENEFITS

TS

ID Claim

Scenarios

Load Data into

Downstream

Systems

OK?Yes

No

Data

Engines

Loaded

(e.g ATC,

DocGen,

etc)

Test Scenarios

Check vs. e-

PRO

OK?No

Yes

Fix Claim

Errors

No

No

VOB

Yes

EPRO

Rework

CDB

From

Vendor

Member

cancelle

d

in

Legacy

Reformat

Client

Eligibility DataReview

Draft

EPRO

ELIGIBILITY

Receive Enrollment

Data

Match &

Merge

Load data in

CEO

Are

errors

resolve

d?

Fix Errors

YesNo Cancel

Member in

Legacy

Create

ERW

ERW

Eligibility

In CED

VENDO

R(ID

CARDS)

ID

Card

s

From

Benefit

s

Get

Underwriting

Approval

ERW To

Implementatio

n

ERW To

Implementatio

n

Create Client IDClient

ID

To

Structure,

Benefits,

and

Eligibility

Migration

Structure

Mapping Job

Aid

GO

Decision

To

Structure,

Benefits,

and

Eligibility

e-PRO

Rework

EPRO

Rework?

SMT linking

legacy

structure to

end state

To

Eligibility

CAIP

Processes shaded in green are specific to

migration

Processes out of scope, but critical to

Employer Services

Employer Services functional areas

OUT OF SCOPE

PROCESS STEPS

Production

Migration

Support

Cancel

Legacy

Structure

Elig.

Rework

e-Pro

Rework

Rework Loops highlighted in Red

10

100

50

0

Contracting

T4

-T1

PMHS

Overpayment

Process Data / Materials

PeopleTechnology

Ÿ Auth / Referral Info missing/incomplete/incorrect

Ÿ OI Info missing/incomplete/incorrect

Ÿ Member Eligibility Info missing/incomplete/

incorrect

Ÿ Benefit Info missing/incomplete/incorrect

Ÿ Provider Fee Schedule Info missing/incomplete/

incorrect

Ÿ Provider/Vendor TIN/SSN Info missing/

incomplete/incorrect

Ÿ Additional Information Necessary to Process

Claim

Ÿ Transaction/Codeset data excluded at gateway

Ÿ Standard Operating Procedures (SOPs)

Ÿ Claim Audit Process >$5K

Ÿ Second/Third Party Internal Review

(Medical Management, Claim Benefit

Build)

Ÿ iTrack - drives usage of paper reports to

sort older claims

Ÿ Skill Level of Processor

Ÿ Accessiblity of Site Coach/Training Staff

Ÿ Aggressive Productivity goals conflict with low

quality requirements

Ÿ Rushed Training Schedule

Ÿ Lack of up-training / reinforcement training

Ÿ Best Practice / Skill Training not conducted

Ÿ OJT training on SOP usage

Ÿ System Error During Processing

Ÿ Data Fallout

Ÿ Aurhorization Mis-Match

Ÿ System Restrictions - LPI Manual Calc

Ÿ Data Set Up Issues (eligibility, provider, benefits)

Ÿ Timeliness of Batch Processing

Ÿ Bank Acct Set-Up Delays

Ÿ Customer Touchpoints Delays

Ÿ Inappropriate assignment or missing hold codes

Ÿ Provider Mis-Match

Ÿ Transaction Limitations on data collected at

gateway

Manual Adjudication &

PMHS Provider Selection

- Manual

End

Manually check

provider/ vendor

on claim system

Check provider

data and claim

data against iView

image

Mismatch?Manually try to find

correct data

Found data

Correct data &

verify COB

Service request to

appropriate area

YES

NO

YES

iTrack

Verify in claim

screen and follow

COB Checklist

Attempt to

adjudicate claim

NO

Claim processed

Hold codes that

require further

research

NO

Re-open the claim

YES

Process will

depend on Hold

Code & SOP/ Job

Aid

CIRF

Attempt to resolve

all Hold Codes at a

line level

Resolve service

requests

Adjudicate claim

(manual or

systematic)

End

ID Task Name

1 DEFINE PHASE

12 MEASURE PHASE

13 Plan Project and Metrics

22 Baseline the Project

23 Select KPOV metric to track process output

24 Estimate process capability/performance at the 30,000-foot-level

25 Categorical failures

26 Create pareto chart

27 Rescope project to a large Pareto category

28 Repeat Baseline the Project steps 23 through 27

29 Non categorical failures

30 Revise estimate for COPQ/CODND

31 Project status update w ith executive sponsor

32 Consider Lean Tools

39 Conduct Measurement Systems Analysis (MSA)

40 Ensure data integrity

41 Perform Gauge R&R

42 Improve gauge


44 Wisdom of the Organization

55 ANALYZE PHASE

56 Use visualization of data techniques to gain insight to processes

57 Conduct inferential statistical tests and confidence interval calculations on individual KPOVs

58 Conduct appropriate sample size calculations

59 Conduct hypothesis tests

60 Describe statistical f indings to others using visualization of data techniques

61 Implement agreed-to process improvement findings


63 IMPROVE PHASE

65 d13 d

18 d

18 d

18 d

20 d

20 d

20 d

23 d

23 d

23 d

27 d

76 d33 d

69 d38 d

38 d

40 d

43 d

69 d48 d

61 d48 d

53 d

60 d53 d

60 d53 d

60 d53 d

60 d53 d

53 d

58 d

62 d

63 d

02 09 16 23 30 06 13 20 27 04 11 18 25 01 08 15 22 29 06 13 20 27 03 10 17 24 31 07 14 21 28 05

March April May June July August September Octob

PMHS

# of Audits

7,321

04/05/2003

# $'s

Under 300 4% Under 1,030,680$

Over 676 9% Over 2,303,562$

No $ Error 914 12% No $ Error -$

No Error 5,431 74% No Error -$

7,321 3,334,243$

A)SEVERITY B)OCCURRENCE

Probability

C)DETECTION

Probability

RISK

PRIORITY

NUMBER ACTION TO IMPROVE

Rate 1-10 Rate 1-10 Rate 1-10 RPN

10=Most

Severe

10=Highest

Probability

10=Lowest

Probability AxBxC A B C

Provider Mis-Match 10 8 9 720

Provider Data Incorrect/Incomplete 9 8 9 648

Data Fallout 9 6 10 540

Data Set Up Issues 9 6 10 540

Provider Fee Schedule Unclear 9 6 9 486

OI Information Needed 9 6 6 324

System Restrictions 6 6 9 324

Hold Codes 9 3 10 270

FAILURE MODE

Process Name: PMHS Claim Processing

Date: 6/30/2003 Revision Level: 3

REVISED VALUES

0Subgroup 10 20 30 40

0

10

20

30

In

div

idu

al

Valu

e

Mean=10.98

UCL=26.81

LCL=-4.854

0

10

20

Mo

vin

g R

an

ge

1

R=5.952

UCL=19.45

LCL=0

Total e-Pro Change Transactions by Account from Sep 2002 thru Mar 2003

Gage R&R http://www.aiag.org/ Part Number http://www.qimacros.com/free-lean-six-sigma-tips/aiag-msa-gage-r&r.html

Average & Range Method 1 2 3 4 5 6 7 8 9 10 Sum

Appraiser 1 Trial 1 0.65 1 3.250

Enter your data here-> Trial2 0.6 1

Trial3

Trial4

Trial 5

Total 1.25 2

Average-Appraiser 10.625 1 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

Range1 0.05 0 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

Appraiser 2 Trial 1 0.55 1.05 3.100

Enter your data here-> Trial2 0.55 0.95

Trial3

Trial4

Trial 5

Total 1.1 2

Average-Appraiser 20.55 1 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

Range2 0 0.1 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

Appraiser Trial 1

Enter your data here-> Trial2

Trial3

Trial4

Trial 5

Total

Average-Appraiser 3#N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

Range3 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A

EV (Equipment Variation)0.0332 Equipment Variation (EV)

%EV 11.3% 39.9% # Parts #Trials #Ops % of Total Variation (TV)

AV: (Appraiser Variation)0.02066 2 2 2 Appraiser Variation(AV)

%AV 7.0% 24.8% % of Total Variation (TV)

R&R (Gage Capability) 0.0391 Repeatability and Reproducibility (R&R)

%R&R 13.3% 47.0% NDC 11 % of Total Variation (TV)

PV (Part Variation) 0.2917 Part Variation (PV)

%PV 99.1% 350% % of Total Variation (TV)

Skewness0.41Stdev1.670.20Max6.20

Eliminate the error condition◦ The best approach◦ Usually a form of Corrective Action (5-Whys)

Detect the error when it happensInspection

◦ Keep the defect from reaching the customer◦ The problem – you made an error!

SPC (Statistical Process Control)◦ Requires monitoring and training to be effective◦ Rules have to be enforced to be effective

SOPs (Standard Operating Procedures)◦ Must be followed to be effective◦ Requires constant updating

Warning Signals◦ Almost worthless – they will be ignored after a time

Pg 6

Mitigation◦ Reduce the effect of the error

Detection◦ The error has already occurred but it is discovered before it gets

to the next step (or customer!)

Replacement◦ Substituting a more reliable process

Visual Methods◦ Making the process easier to “see”◦ Example – color codes labels designating the age of the material◦ Example – Markers on the legs of the shelving to keep the material

from being stacked too high

POKA-YOKE◦ The BEST concept◦ Elimination of the possibility of an error

Pg 7

As part of an improvement project, you should error proof the process as much as possible!

Poka-Yoke◦ Changing the process so that the error in question

cannot occur

Examples:◦ The bar above the entrance to the parking garage (not

foolproof!)◦ Automatic door locks◦ Flash drive cannot be inserted upside down◦ Tether on the gas cap to keep you from leaving it◦ The hole near the top of the sink to keep water from

running over◦ The automatic golf ball trap on the last hole of the putt-

putt course to keep you from walking away with the ball after the round

Pg 8

A run chart with Control Limits added which are based on the variation of the data◦ Similar to a run chart in that they display data in

“time” order

◦ Control Limits (+/- 3s) contain 99+% of all the data contained in a normally distributed distribution

Control Limits ARE NOT Specification Limits◦ Specification limits are set by the customer

◦ Control Limits are determine by the process

Establishing a measurement baseline◦ Measure phase!

Detecting special causes of variation in the process◦ Items requiring corrective action (quality assurance)

Ensuring process stability◦ Tracking a process over a period of time

Monitoring a process over time◦ Maintaining our improvements until they are ingrained in

the culture

Confirming the impact of process improvement activities◦ If we make an improvement, we would WANT the chart

to show the change

VariableData?

RationalSubgroups?

X & MR chart

%Defective or

Defects?

SubgroupSize >8?

Easy to Compute

sigma?

X-bar & R chart X-bar & S chart

ConstantSampleSize?

ConstantSampleSize?

p-chart

np- or p-chart

u-chart

c- or u-chart

Yes

Yes

Yes YesYes

Yes

No

NoNo

No

Defects

% Defective

No No

You are monitoring your drive time in the file Drive Time and want to see if you are in control◦ Highlight column A

◦ Control Charts (SPC) > XmR Individuals

◦ Click “OK” on the titles

You are interested in the proportion of speeders on your way to work; you collect data on the first 100 cars that you pass or pass you◦ Highlight columns C and D

◦ Control Charts (SPC) > np

◦ Click “OK” on the titles

Drive Time

UCL 36.7364

CL 32.0584

LCL 27.3803

25.820

27.820

29.820

31.820

33.820

35.820

37.820

39.820

1 4 7

10

13

16

19

22

25

28

31

34

37

40

43

46

49

52

55

58

61

64

67

70

73

76

79

82

85

88

91

94

97

100

Dri

ve T

ime

Period

X Drive Time

Observations?

UCL 20.1482

CL 14.0000

LCL 7.8518

0.000

5.000

10.000

15.000

20.000

25.000

100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Defe

cti

ve

Trials

Defective np Chart

Observations?

What is a Process Control Strategy?◦ Real-time monitoring of

output metrics following implementation (SPC)

Why?◦ Quantify the impact of process improvements

◦ Provide real-time notification if protocol compliance drifts below targets

◦ Identify additional opportunities for process improvement

15

What is a Control Plan?

‘Keep Score’ - Establish process measures that enable:

◦ Real Time, Immediate Feedback

◦ Pilot: Daily/Shift Feedback

◦ Long Term: Daily/Weekly Feedback

Establish regular meetings (daily/weekly) to review pilot process performance

16

17

Insert Control Plan

Terms defined on next slide…

Terms defined on next slide…

Control 1 – Control Plan Template

19

Control Plan Template

Project Title: Printing & Binder Preparation

Process Owner: Jim Smith

Metric Target

Value

Control Limits Data Source/

Location

Collected

By:

Sample Size/ Frequency Collection Method Review Frequency

Process Defect Reduction 15% 20% Project Docs Jim Per Project

Audit Project within 3 business

days of completion Per Project

Customer Satisfaction 95% 75% Customer Survey Maggie Per Project

Live Survey within 10 business

days of project completion Per Project

Compliance to Team Prep Role 100% <93% Project Docs Lou Per Project



Printing Partner Process Compliance 100% 99% Print Order Docs Maggie Per Project



Printing Partner Defect Free Yield 100% 99% Print Order Docs Maggie Per Project



Binder Restocking Process Defect Free

Yield 95% <95% Binder Prep Room Paul Daily Inspections Walk through Inspection Daily

20

Insert Control Plan

Note that all Metrics impacted by the implementation should be monitored as part of the control plan.

Out of Spec Product◦ Contain and/or quarantine the product

◦ Investigate and correct using Root Cause analysis

◦ Confirm fixes with additional SPC

Out of Control Conditions◦ Note point on the chart

◦ Investigate special cause and take corrective action

◦ Confirm fixes with additional SPC

If fixes do not work – escalate to leadership

In Spec (customer specs) Out of Spec (customer specs)

In Control (SPC) OK Contain or Quarantine Output

Out of Control (SPC) ProblemShut down and review

Capabilities, FMEA, Controls, etc.

Champion Control Phase Checklist

24

Control 2 – Tollgate and Approval

Control Phase Comment

What are your deliverables for this phase? Summarize the findings.

Deadlines and responsibilities have been determined?

Training has been initiated/completed with the staff and workforce?

What error-proofing opportunities did you find?

What process controls are being implemented to ensure we "sustain the gains"?

Have you finished your Control Plans?

Has your FMEA been finalized?

Who should take responsibility for maintaining the process after your team has completed the project? Are these people

fully aware of this and have they agreed?

Is there a plan to revisit this process in the future to ensure the new capability level is maintained? What new

measurements are in place?

What is the expected improvement in terms of cost reduction? Has finance been communicated with?

Have you met with the Process Owner and Champion to ensure the turnover of the project goes smoothly?

What new tools have you used in this phase and where they helpful?

When do you plan to have your final presentation completed?

What lessons have been learned on this project and what opportunities exist for leveraging the improvements?

Do you have any ideas for follow-up projects?

Are you satisfied with the level of cooperation and support you received on this project? What could be done different in

the future to better support the next project?

Have you obtained the signatures from leadership to close out the project?

Project Team Control Phase Checklist

25

Control Tollgate Approval

Champion Approval Signature/Date:

Tollgate review approved unconditionally:

Tollgate review approved with the following contingencies:

Tollgate review dis-approved, list issues for resolution:

prepare improvements & project for full€¦ · 07/05/2020 · prepare improvements &...

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