Scorecard using the PEMM Framework Student Name Date Professor Justin Bateh Assess your value stream and your organization using the PEMM Scorecard exhibit Please see the Excel file for the PEMM Scorecard. (Include Excel file with submission) Discuss your findings, and highlight the strengths and opportunities for improvement. Based on the PEMM Scorecard, the succinct description of my findings by Process Enablers and Enterprise Capabilities of the strengths and opportunities for improvement is listed below. Process Enablers • • • • • Design: (insert succinct statement) o Purpose: (insert succinct statement) o Context: (insert succinct statement) o Documentation: (insert succinct statement) Performers: (insert succinct statement) o Knowledge: (insert succinct statement) o Skill: (insert succinct statement) o Behavior: (insert succinct statement) Owner: (insert succinct statement) o Identity: (insert succinct statement) o Activities: (insert succinct statement) o Authority: (insert succinct statement) Infrastructure: (insert succinct statement) o Information Systems: (insert succinct statement) o Human Resource Systems: (insert succinct statement) Metrics: (insert succinct statement) o Definition: (insert succinct statement) o Uses: (insert succinct statement) Enterprise Capabilities • Leadership: (insert succinct statement) o Awareness: (insert succinct statement) o Alignment: (insert succinct statement) o Behavior: (insert succinct statement) • • • o Style: (insert succinct statement) Culture: (insert succinct statement) o Teamwork: (insert succinct statement) o Customer Focus: (insert succinct statement) o Responsibility: (insert succinct statement) o Attitude toward Change: (insert succinct statement) Expertise: (insert succinct statement) o People: (insert succinct statement) o Methodology: (insert succinct statement) Governance: (insert succinct statement) o Process Model: (insert succinct statement) o Accountability: (insert succinct statement) o Integration: (insert succinct statement) Develop actionable recommendations for presentation to senior management. The short-term actionable recommendations are: • • • (insert succinct statement) (insert succinct statement) (insert succinct statement) The long-term actionable recommendations are: • • • (insert succinct statement) (insert succinct statement) (insert succinct statement) References Hammer, Michael, "Process Audit”. https://hbr.org/2007/04/the-process-audit How Mature Is Your ENTERPRISE? To determine if your organization is ready to support a process-based transformation, evaluate the statements in this table. They show the strength levels, E-1 to E-4, of the capabilities that enterprises need in order to develop their business processes. If a statement is largely true (at least 80% correct), mark the box with a "G" to indicate the color green; if it is somewhat true (between 20% and 80% correct), mark the box with a "Y" to indicate the color yellow; and if it is largely untrue (less than 20% correct), mark the box with an "R" to indicate the color red. G Y GREEN: YELLOW: largely true somewhat true E-1 Leadership Culture Expertise Awareness The enterprise's senior executive team recognizes the need to improve operational performance but has only a limited understanding of the power of business processes. Alignment E-2 At least one senior executive deeply understands the business process concept, how the enterprise can use it to improve performance, and what is involved in implementing it. E-3 E-4 The senior executive team views the enterprise in process terms and has developed a vision of the enterprise and its processes. The senior executive team sees its own work in process terms and perceives process management not as a project but as a way of managing the business. The leadership of the process program lies in A senior executive has taken leadership of, the middle management ranks. and responsibility for, the process program There is strong alignment in the senior executive team regarding the process program. There is also a network of people throughout the enterprise helping to promote process efforts. People throughout the enterprise exhibit enthusiasm for process management and play leadership roles in process efforts. Behavior A senor executive endorses and invests in operational improvement. Senior executives operate as a team, manage The members of the senior executive team the enterprise through its processes, and are perform their own work as processes, center actively engaged in the process program. strategic planning on processes, and develop new business opportunities based on highperformance processes. Style The senior executive team has started shifting The senior executive team leading the The senior executive team has delegated from a top-down, hierarchical style to an open, process program is passionate about the need control and authority to process owners and collaborative style. to change and about process as the key tool process performers. for change. The senior executive team exercises leadership through vision and influence rather than command and control. Teamwork Teamwork is project focused, occasional, and The enterprise commonly uses crossatypical. functional project teams for improvement efforts. Teamwork is the norm among process performers and is commonplace among managers. Teamwork with customers and suppliers is commonplace. Customer focus There is a widespread belief that customer focus is important, but there is limited appreciation of what that means. There is also uncertainty and conflict about how to meet customer needs. Employees understand that customers demand uniform excellence and a seamless experience. Employees focus on collaborating with trading partners to meet the needs of final customers. Responsibility Accountability for results rests with managers. Frontline personnel begin to take ownership of Employees feel accountable for enterprise results. results. Employees feel a sense of mission in serving customers and achieving ever-better performance. Attitude toward change There is growing acceptance in the enterprise Employees are prepared for significant about the need to make modest change. change in how work is performed. Employees are ready for major multidimensional change. Employees recognize change as inevitable and embrace it as a regular phenomenon. People A small group of people has a deep appreciation for the power of processes. A cadre of experts has skills in large-scale change management and enterprise transformation. Substantial numbers of people with skills in process redesign and implementation, project management, program management, and change management are present across the enterprise. A formal process for developing and maintaining that skill base is also in place. Methodology The enterprise uses one or more Process redesign teams have access to a methodologies for solving execution programs basic methodology for process redesign. and making incremental process improvements. The enterprise has developed and standardized a formal process for process redesign and has integrated it with a standard process for process improvement. Process management and redesign have become core competencies and are embedded in a formal system that includes environment scanning, change planning, implementation, and process-centered innovation. The enterprise has identified some business processes. The enterprise has developed a complete enterprise process model, and the senior executive team has accepted it. The enterprise process model has been communicated throughout the enterprise, is used to drive project prioritization, and is linked to enterprise-level technologies and data architectures. The enterprise has extended its process model to connect with those of customers and suppliers. It also uses the model in strategy development. Accountability Functional managers are responsible for performance, project managers for improvement projects. The process owners have accountability for individual processes, and a steering committee is responsible for the enterprise's overall progress with processes. The process owners share accountability for the enterprise's performance. A process council operates as the seniormost management body; performers share accountability for enterprise performance and the enterprise has established steering committees with customers and suppliers to drive interenterprise process change. Integration One or more groups advocate and support possibly distinct operational improvement techniques. An informal coordinating body provides needed program management while a steering committee allocates resources for process redesign projects. A formal program management office, headed by a chief process officer, coordinates and integrates all process projects, and a process council manages interprocess integration issues. The enterprise manages and deploys all process improvement techniques and tools in an integrated manner. The process owners work with their counterparts in customer and supplier enterprises to drive interenterprise process integration. Governance Process model A senior executive has publicly set stretch performance goals in customer terms and is prepared to commit resources, make deep changes, and remove roadblocks in order to achieve those goals. Employees realize that the purpose of their work is to deliver extraordinary customer value. A cadre of experts has skills in process redesign and implementation, project management, communications, and change management. E-1 E2 R RED: largely untrue E-3 E-4 How Mature Are Your PROCESSES? You can evaluate the maturity of a business process and determine how to improve its performance by u defining the strength levels, from P-1 to P-4, for each enabler apply to the process that you are assessin correct), mark the box with a "G" to indicate the color green; if it is somewhat true (between 20% and 80 the color yellow; and if it is largely untrue (less than 20% correct), mark the box with an "R" to indicate th P-1 Design Performers Owner P-2 P-3 Purpose The process has not been designed on an end-toend basis. Functional managers use the legacy design primarily as a context for functional performance improvement. The process has been redesigned from end-to-end The process has been designed to fit w enterprise processes and with the ente in order to optimize its performance. systems in order to optimize the enterp performance. Context The process's inputs, outputs, suppliers, and customers have been identified. The needs of the process's customers are known and agreed upon. The process owner and the owners of processes with which the process inter established mutual performance expec Documentation The documentation of the process is primarily functional, but it identifies the interconnections among the organizations involved in executing the process. There is end-to-end documentation of the process design. The process documentation describes interfaces with, and expectations of, ot processes and links to process to the e system and data architecture. Knowledge Performers can name the process they execute and Performers can describe the process's overall flow; how their work affects customers, other employees identify the key metrics of its performance. in the process, and the process's performance; and the required and actual performance levels. Skills Performers are skilled in problem solving and process improvement techniques. Performers are skilled in teamwork and selfmanagement. Behavior Performers have some allegiance to the process, but owe primary allegiance to their functions. Performers try to follow the process design, perform Performers strive to ensure that the pro it correctly, and work in ways that will enable other the results needed to achieve the ente people who execute the process to do their work effectively. Identity The process owner is an individual or a group informally charged with improving the process. Enterprise leadership has created an official process The process comes first for the owner owner role and has filled the position with a senior time allocation, mind share, and perso manager who has clout and credibility. Activities The process owner works with other pr The process owner articulates the process's The process owner identifies and documents the owners to integrate processes to achie process, communicates it to all the performers, and performance goals and a vision of its future; sponsors redesign and improvement efforts; plans enterprise's goals. sponsors small-scale change projects. their implementation; and ensures compliance with the process design. Authority The process owner lobbies for the process but can The process owner can convene a process redesign The process owner controls the IT syst team and implement the new design and has some support the process and any projects t only encourage functional managers to make control over the technology budget for the process. the process and has some influence ov changes. assignments and evaluations as well a process's budget. Infrastructure Information Systems Fragmented legacy IT systems support the process. An IT system constructed from functional components supports the process. Performers are familiar both with funda business concepts and with the drivers performance and can describe how the affects other processes and the enterp performance. Performers are skilled at business dec An integrated IT system, designed with in mind and adhering to enterprise stan supports the process. Hiring, development, reward, and reco The process's design drives role definitions, job Human Resource Functional managers reward the attainment of functional excellence and the resolution of functional descriptions, and competency profiles. Job training systems emphasize the process's need Systems and balance them against the enterpris is based on process documentation. problems in a process context. Metrics Definition The process has some basic cost and quality metrics. The process has end-to-end process metrics derived from customer requirements. The process's metrics as well as cross metrics have been derived from the en strategic goals. Infrastructure Information Systems Fragmented legacy IT systems support the process. An IT system constructed from functional components supports the process. An integrated IT system, designed with in mind and adhering to enterprise stan supports the process. Human Resource Functional managers reward the attainment of The process's design drives role definitions, job Hiring, development, reward, and reco Systems functional excellence and the resolution of functional descriptions, and competency profiles. Job training systems emphasize the process's need problems in a process context. is based on process documentation. and balance them against the enterpris Metrics Definition The process has some basic cost and quality metrics. The process has end-to-end process metrics derived from customer requirements. The process's metrics as well as cross metrics have been derived from the en strategic goals. Uses Managers see the process's metrics to track its performance, identify root causes of faulty performance, and drive functional improvements. Managers use the process's metrics to compare its performance to benchmarks, best-in-class performance, and customer needs and to set performance targets. Managers present the metrics to proce performers for awareness and motivati dashboards based on the metrics for d management of the process. maturity of a business process and determine how to improve its performance by using this table. Decide how the statements vels, from P-1 to P-4, for each enabler apply to the process that you are assessing. If a statement is largely true (at least 80% with a "G" to indicate the color green; if it is somewhat true (between 20% and 80% correct), mark the box with a "Y" to indicate it is largely untrue (less than 20% correct), mark the box with an "R" to indicate the color red. P-2 P-3 P-4 The process has been designed to fit with customer and supplier processes in order to optimize interenterprise performance. signed on an end-togers use the legacy for functional The process has been redesigned from end-to-end The process has been designed to fit with other enterprise processes and with the enterprise's IT in order to optimize its performance. systems in order to optimize the enterprise's performance. s, suppliers, and ed. The needs of the process's customers are known and agreed upon. The process owner and the owners of the other processes with which the process interfaces have established mutual performance expectations. The process owner and the owners of customer and supplier processes with which the process interfaces have established mutual performance expectations. ocess is primarily interconnections olved in executing the There is end-to-end documentation of the process design. The process documentation describes the process's interfaces with, and expectations of, other processes and links to process to the enterprise's system and data architecture. An electronic representation of the process design supports its performance and management and allows analysis of environmental changes and process reconfigurations. ocess they execute and Performers can describe the process's overall flow; how their work affects customers, other employees performance. in the process, and the process's performance; and the required and actual performance levels. Performers are familiar with the enterprise's industry Performers are familiar both with fundamental business concepts and with the drivers of enterprise and its trends and can describe how their work affects interenterprise performance. performance and can describe how their work affects other processes and the enterprise's performance. Performers are skilled at business decision making. Performers are skilled at change management and change implementation. blem solving and ques. Performers are skilled in teamwork and selfmanagement. ance to the process, o their functions. Performers try to follow the process design, perform Performers strive to ensure that the process delivers Performers look for signs that the process should it correctly, and work in ways that will enable other the results needed to achieve the enterprise's goals. change, and they propose improvements to the process. people who execute the process to do their work effectively. vidual or a group oving the process. Enterprise leadership has created an official process The process comes first for the owner in terms of owner role and has filled the position with a senior time allocation, mind share, and personal goals. manager who has clout and credibility. The process owner works with other process The process owner articulates the process's and documents the owners to integrate processes to achieve the all the performers, and performance goals and a vision of its future; sponsors redesign and improvement efforts; plans enterprise's goals. projects. their implementation; and ensures compliance with the process design. The process owner is a member of the enterprise's senior-most decision-making body. The process owner develops a rolling strategic plan for the process, participates in enterprise-level strategic planning, and collaborates with his or her counterparts working for customers and suppliers to sponsor interenterprise process redesign initiatives. The process controls the process's budget and or the process but can The process owner can convene a process redesign The process owner controls the IT systems that team and implement the new design and has some support the process and any projects that change exerts strong influence over personnel assignments anagers to make control over the technology budget for the process. the process and has some influence over personnel and evaluations. assignments and evaluations as well as the process's budget. ms support the process. An IT system constructed from functional components supports the process. An integrated IT system, designed with the process An IT system with a modular architecture that adheres to industry standards for interenterprise in mind and adhering to enterprise standards, communication supports the process. supports the process. Hiring, development, reward, and recognition Hiring, development, reward, and recognition The process's design drives role definitions, job the attainment of resolution of functional descriptions, and competency profiles. Job training systems emphasize the process's needs and results systems reinforce the importance of intra- and and balance them against the enterprise's needs. interenterprise collaboration, personal learning, and is based on process documentation. xt. organizational change. cost and quality The process has end-to-end process metrics derived from customer requirements. The process's metrics as well as cross-process metrics have been derived from the enterprise's strategic goals. The process's metrics have been derived from interenterprise goals. ms support the process. An IT system constructed from functional components supports the process. An integrated IT system, designed with the process An IT system with a modular architecture that in mind and adhering to enterprise standards, adheres to industry standards for interenterprise supports the process. communication supports the process. the attainment of The process's design drives role definitions, job Hiring, development, reward, and recognition Hiring, development, reward, and recognition resolution of functional descriptions, and competency profiles. Job training systems emphasize the process's needs and results systems reinforce the importance of intra- and xt. is based on process documentation. and balance them against the enterprise's needs. interenterprise collaboration, personal learning, and organizational change. cost and quality The process has end-to-end process metrics derived from customer requirements. The process's metrics as well as cross-process metrics have been derived from the enterprise's strategic goals. metrics to track its uses of faulty onal improvements. Managers use the process's metrics to compare its performance to benchmarks, best-in-class performance, and customer needs and to set performance targets. Managers present the metrics to process Managers regularly review and refresh the process's performers for awareness and motivation. They use metrics and targets and use them in strategic dashboards based on the metrics for day-to-day planning. management of the process. The process's metrics have been derived from interenterprise goals. it with customer ptimize of customer and rocess performance process design gement and anges and erprise's industry w their work anagement and ocess should ments to the he enterprise's ng strategic plan prise-level with his or her and suppliers to esign initiatives. budget and nel assignments cture that erenterprise s. cognition intra- and al learning, and erived from G Y GREEN: YELLOW: largely true somewhat true P-1 P-2 R RED: largely untrue P-3 P-4 cture that erenterprise s. cognition intra- and al learning, and erived from esh the process's strategic Introduction As Michael Hammer shares in his Harvard Business Review Tool Kit – The Process Audit, process management has become a “way of life” for businesses. Using the PEMM tool and through evaluation of the maturity of an organizations processes and enterprise, we can gage the organizations ability to deliver high performance over time. As you will see in my deeper dive into Acme, Inc’s HR process optimization project, called myHR, we have our fair share of opportunities in both areas of process enablers and enterprise maturity. Findings Process Enablers Design. We have many gaps in this section. Our HR processes were designed around the triple carbon copy pads of paper. Historically, each function has focused on their section of the processes and if their part of the process was functioning properly, they left it alone. The customer (employees) in this case had more influence on the process, even if their influence made no sense. In the initial stages of HR process optimization, we’ve identified the core processes, inputs, outputs, customers, and this is modeled by my submission of Project A – the Value Stream Map for the Voluntary Termination of Employees. As the process owner, I have clear direction on the expectations of the process. There are no documented processes at this time. Performers. We have come out better than I expected in this section with an even amount of fits and gaps. In 2014, HR recognized that they couldn’t ask the business to improve, if they were not reflecting on where they can improve as a function. In 2015, the HRIS function was made official and now there are three employees dedicated to process optimizations. This group is led by me, and I bring over ten years of experience in process improvement and change management. While the team is not as versed, they are committed to delivering results that better the function and the organization. Owner. We have come out better than I expected in this section with an even amount of fits and gaps. The HR Process Improvement, myHR, project is headed by me and this is my first priority through completion. The myHR implementation is also on my objectives for the year, showing leadership’s strong alignment to, and authority granted to me for a successful rollout. myHR is powered by Workday and HRIS holds all controls over this HRIS Software. Infrastructure. We have many gaps in this section. Acme, Inc. grew quickly and the IT systems that support the business took a back seat, causing us to be behind in that functional area. Our systems are fragmented and at times do not work together. The external experience of the IT team is minimal and our systems continue to lag. There are no reward and recognition programs in place for the HR Process improvement project. Metrics. We have many gaps in this section. As project owner, I know what metrics we need to be tracking, but there are currently no metrics actively tracked, outside of system cost. Our middle management has many years of service and have never really reviewed, or been responsible for reviewing, process metrics. Enterprise Capabilities Leadership. To my surprise, we are well ahead of the game in this section. The executive and non-executive leadership team recognize and understand how the implementation of myHR, will improve the HR function and allow HR to focus on strategic initiatives. The VP of HR and VP of IT are both on the project team to ensure roadblocks are removed and progress continues. Culture. We have many gaps in this section. HR is functioning in silos and it causes issues when we try to improve processes that are cross functional. We are also challenged by accountability and with our length of tenure, there is a constant fear of being blamed for something. As an organization, employees don’t speak highly of change, and in HR, we follow suit. Often times the HR team becomes protective of their work, causing the silos and negating the progress made or planned. Expertise. We have some gaps and mostly fits in this area. As the process, project owner, I bring the expertise needed to implement myHR, and optimize the processes like Voluntary Terminations. There are no others that have the same skills, and as an organization we have no methodology for tracking or monitoring a project like this. Governance. We have many of gaps this section. We think know what processes we need to optimize, but we really are not sure – since we have never identified all of the processes HR performs before. We currently do not have an accountability system in place to ensure leaders are following the proper steps for the HR processes, and very few support the change to myHR as they do not see it as an improvement in HR’s processes. Recommendations Design. As an HR Function, I recommend we focus significant efforts on the design of our processes. We need to identify all of the processes we perform, system and non-system. Additionally, as indicated in my Project Charter and Kaizen Event Agenda for the Involuntary Terminations, documentation is currently non-existent and will need to be a key focus of this project. With customer input, we can design a well-rounded, customer centric process that also allows HR to become a strategic partner with the business. Culture. HR leadership needs to enlist the organizations leadership team in driving the culture of change. The organizations leadership brings solid awareness, alignment and displays behaviors and styles that support and recognize the need to change, and I recommend we tap into that. This will help the HR function be more responsive to change, become customer centric, holds themselves accountable and build a strong team by building a team to redesign the HR processes. Governance and Metrics. I recommend we deploy process governance and couple that with the implementation of supporting metrics to closely follow the progress of the project. This will also provide insight to the project team and leadership as to how well the project is performing. I also recommend we teach our middle level leadership how to interpret and use the metrics provided; including the full HR function. Conclusion Acme, Inc. HR has their work cut out for them, but with strong support from the organization leaders, and HR’s leadership, we can begin to recognize some of the benefits I mention in my Project Charter, Project C, as we create processes that live up to the organizational expectations. As we see significant improvement in our HRIS processes with the implementation of myHR, this can motivate other sub-functions in HR to review and improve their processes; creating a snowball effect of process improvement in HR. Value Stream Mapping and Analysis: Part A Daymon Jackson Florida State College at Jacksonville Professor Justin Bateh Operational Decision Making 1/14/2020 Title: JAX Shipping HUB 15 Takt time: Demand Rate: 250,200 average orders monthly Current State Value Stream Map Weekly Order Monthly Order Production Control Supplier Custome r Production Flow Product Received 2 people Inspection 2 People Unload/ Transfer 3 People Sort 3 People Load 5 People Order Final Inspection/pick up 2 People 0 days 0 days 1 days 1 days 1 days 1 days 2 min 90 5 minutes 75 60 min 60 45 min 60 120 min 75 20 min 90 1 days 120 min 1 days 20 min 0 days 2 min 0 days 5 min 1 days 60 min 1 days 45 min Summary Metrics Calculations Process Number Lead Time (LT) Process Time (PT) % Complete & Accurate Product Received 1 0 2 90 Inspection 2 0 5 75 Unload/Transfer 3 1 60 60 Sort 4 1 45 60 Hard lines filled 5 1 120 75 Order Final Inspection 6 1 20 90 Process Activity Ratio = 0.04375= = TOTAL 6 4 (5,760 min) 252 16.4 * Total LT and PT are calculated by summing the LT and PT values for all processes. ** Total %C&A is the Rolled %C&A, which is calculated by multiplying the %C&A for all processes. Total Process Time Total Lead Time 4.37% 252 5,760 Value Stream Current State Overview This value stream map geared toward the handling of product within the distribution warehouse. From shipping delivery truck to the customers hands. Level 1 of the process, the order is received. Here it is unloaded off the shipping truck. %C&A at level 1 is at 90. Level 2 is where the inspection of the product is completed. The process time for the inspection is 5 minutes which might explain such why the %C&A is at 75. Level 3 is where the where the product is unloaded. The process time for this level is 60 minutes, which isn’t bad but not good. Level 4 is where the product that has been unloaded off the truck is sorted. The process time for this level is at 45 minutes, which is terrible. The product should be sorted and sent on its way to its destination in under 10 minutes. Level 5 is where the product has reached its destination within the hub and is loaded onto another shipping truck to be delivered to the customer. The process time for this level is at 120 minutes which is highly unacceptable, this process with 5 people should be completed in under 40 minutes. Level 6 is the final inspection, which is to ensure all product has been loaded onto the truck. To start, the total time lead is at 4 days and the activity ratio is at 4.37. This could use huge improvement being is that we are an 7 days a week open factory. We should have product unloaded, inspected, sorted, and reloaded for delivery to customer in one days worth work. Our home office is aware of the delayed process and is taking appropriate matters to ensure that this is corrected at once. Last challenge is that the rolled percent complete and accurate (%C&A) is at 16.4. Quality of or products isn’t an issue. During processes 3 and 4 there seems to be a ton of slack. There seems to be an issue where product get misplaced, lost and/or damaged during these processes. Find a way to push product's through the line with less lead time. The problem could be we lack enough employees to get this job done in a timely manner. The inspection of the products received should be conducted after the unload process, this will ensure that all product is being accounted for more accurately. Detailed Agenda(s) for Kaizen or Work-Outs Part B Student Name: Daymon Jackson Date: 1/21/2020 Professor: Justin Bateh 1) List the potential Kaizen events, select the one to be deployed and justify your selection. Then, define the Kaizen objective and scope for the selected event. Change the order between processes #2 and #3: The inspection of the products should be done right after the unload process finishes. The waiting time between processes should decrease and Product Receiving, Inspection, and Unload should occur in the same day. Improve the %C&A in process #3: Unload/Transfer has a %C/A of 60% which is unacceptable. Process Time is not the best, but it is acceptable. Improve the %C&A in process #4 and reduce the Time Process: Sort has a %C&A of 60%, and a Process time of 45 minutes. This is the first bottleneck in the process. The Lead Time should be 0. Reduce Process Time in process #5: The second bottleneck of the logistic operation looks related to the precedent process. To reduce the Hard Lines Filled Process Time the Sort process should improve. Increase the total %C&A: The increment in the %C&A in process #3 and #4 will result in an increment of the total %C&A. Processes #2 and #5 should also improve the %C&A. Reduce the total Lead Time to 0: Processing an order should finish in the same day. From Product Receiving to the Order Final Inspection the Lead Time should be equal to the Process Time. The chosen Kaizen event is Improve the %C&A in process #4 and reduce the Time Process. The justification for selecting this Kaizen event The Sorting process in the warehouse creates the first bottleneck in the logistics operation. It needs to improve in order to increase the %C&A of the process and the total %C&A. An improved sorting process will also reduce the time needed to sort the orders. The Kaizen objective Reduce the Muda in process #4. A 5S Kaizen workshop will increase the efficiency of the process, because of the reduction of misplaced products, the reduction of walking distance, and improvement of the %C&A. Besides, an improved Sorting process will facilitate the reduction of the Process Time of the Hard Lines Filled process. 5S describes how to organize and lay out a space for maximum efficiency and effectiveness by identifying, sorting and storing the products, and maintaining the area and items to help sustain the newly organized areas. 5S events are a great way to get work spaces organized and decluttered. The results are immediate, which builds excitement from the team to take on future improvements. At the end of the event, the team will be through the Sweep and will have some standardization in place, along with a draft of the sustainment plan. (Coimbra, 2013; Planning and running Kaizen Events, n.d.) The Kaizen event’s scope This event should be directed to the whole team of the warehouse, but focused on the Sort team firstly, secondly to the Unload/Transfer and Hard Lines Filled teams, and finally to the Product Receiving team and both Inspection teams. It will also involve the management of the warehouse and the cleaning service. (Planning and running Kaizen Events, n.d., p. 5; Tools for 5s Lean Manufacturing | Process, checklists and more | Graphic Products, n.d.) 2) Develop a detailed agenda for each Kaizen event. Day 1 Time Session Topic/Objective 30 Kickoff: Welcome minutes and Explanation of the objectives of the workshop Lean Tools 2 hours Waste Walkthrough Explanation of the problems found in the Sorting Process 30 Brainstorming minutes possible solutions. VSM List of problems’ priorities Root-Cause analysis List of possible solutions 1 hour Key Performance Indicators List of solutions in descendent order, from the best solution to the worst. Mistake Proofing SMART objectives Improved design of the warehouse layout and the sorting process 3 hours Day 2 Discussion of the proposed solutions Lunch Designing an improved layout to sort the products Output/Deliverables Rationale The 5 Whys The participants need to know what is expected from them after completing the workshop The participants should understand the problems presented in the process. The team must engage the change participating in the planning of the solution. The team will assess the pros and cons of the proposed solutions. The list of solutions and the inputs from the team should provide the best design for the layout of the warehouse. Time Session Topic/Objective 30 Explain the minutes necessity of keeping the workspace tidy Lean Tools Output/Deliverables Rationale Root-Cause Analysis Sorting ideas Labelling systems 30 Engage the minutes cleaning crew in the improvement process Visual Management Cleaning plan 3 hours Right First Time Standardized work Yamazumi Boards Lead Time Reduction 2 hours 1 hour Training exercise testing the new layout design Lunch Assessment of the test Set up the goals for the first follow up 30 Closing of the minutes workshop Visual Management Evaluation Report Improvement plan Prepare Report Out Presentation DMAIC SMART goals List of goals for the first follow-up A tidy workspace means less errors and the improvement of the %C&A. Cleaning crew is a substantial part of the 5S event. They have the responsibility of keeping the place clean and in order. The team should learn how to use the new design, measuring the time used to perform the task and the %C&A. The team should be able to evaluate the best methods to perform the tasks and produce an improvement plan The team should know the goals and the ways to measure the accomplishment Workshop Quality Survey 3a) Explain your choice for number of days, sequence for session topics, and justify the Lean tools to be used and outputs from each session. Number of days: Most 5S Kaizen workshops can have great outcomes with 2 days of training. However, 5S means a substantial change in the worker’s routine, so a close supervision and follow-ups should be performed. Sequence for Session Topics: First Session: Explanation of the reason of the workshop and the objectives. Discussion of the problems found in the sorting process Brainstorming possible solutions. Discussion of the proposed solutions. Designing an improved layout to sort the products Second Session: Explain the necessity of keeping the workspace tidy. Engage the cleaning crew in the improvement process Training exercise testing the new layout design Assessment of the test Set up the goals for the first follow up Lean Tools: The Five Whys Mistake proofing Visual management Root-Cause analysis VSM Right first time Key Performance Indicators SMART objectives Standardized work Yamazumi Boards Lead Time Reduction DMAIC (32 Lean Essentials—A List of Lean Tools | Graphic Products, n.d.; Tools for 5s Lean Manufacturing | Process, checklists and more | Graphic Products, n.d.; Coimbra, 2013) Session Outputs: First Session: List of problems’ priorities List of possible solutions List of solutions in descendent order, from the best solution to the worst. Improved design of the warehouse layout and the sorting process Second Session: Sorting ideas Labelling systems Cleaning plan Evaluation Report Improvement plan List of goals for the first follow-up Prepare Report Out Presentation Workshop Quality Survey 3b) Show how your Kaizen agenda supports the Kaizen objective and scope for the event. This discussion should be specific to your value stream and organization. How Session Supports Kaizen Agenda and Scope: The overall objective of the Kaizen Workshop is to improve the performance of the Sort Team and fix the bottleneck the untidy process is causing to the rest of the processes. Hence, the 5S event is recommended. It means that the warehouse team has to design methods to keep the workspace neat and clean, using an intelligent design of the layout and organizing the availability of the tools and devices needed for the work. All the teams working in the warehouse will benefit from the outcomes of the 5S event. Besides, the involvement of the whole crew will guarantee the accomplishment of the objectives. Sorting process not only takes a lot more time than needed, but also complicates the performance of the rest of the teams, generating a long process time in the Hard Lines Filled process and hindering the quality of the work. The redesign of the process using the 5S workshop will ensure the reduction of the defects and process time. It will also improve total quality of the logistics process and reduce the Lead Time to less than one day incrementing the activity ratio from 4.37% to 17.50%. (Coimbra, 2013; The 5-S System, n.d.) References 32 Lean Essentials—A List of Lean Tools | Graphic Products. (n.d.). Retrieved January 26, 2020, from https://www.graphicproducts.com/infographics/32-lean-essentials/ Coimbra, E. (2013). Kaizen in Logistics and Supply Chains. McGraw-Hill Professional. http://www.myilibrary.com?id=513814 Planning and running Kaizen Events. (n.d.). Lean Manufacturing Tools. Retrieved January 26, 2020, from https://leanmanufacturingtools.org/625/planning-and-running-kaizenevents/ The 5-S System: A “How to” Guide. (n.d.). Retrieved January 26, 2020, from /Read/10383/effective-5s-program Tools for 5s Lean Manufacturing | Process, checklists and more | Graphic Products. (n.d.). Retrieved January 26, 2020, from https://www.graphicproducts.com/articles/tools-for5s-lean-manufacturing/ Running head: SIX SIGMA PROJECT CHARTER 1 Six Sigma Project Charter Daymon Jackson Florida State College at Jacksonville Justin Bateh 2/5/2020 SIX SIGMA PROJECT CHARTER 2 Project Charter Project name: JAX Shipping HUB 15 Problem statement: Time management in JAX Shipping HUB 15 is terrible. Product unloading takes 60 minutes, which is not good; product sorting takes 45 minutes, loading products to another truck that delivers o customers takes 120 minutes, which is not acceptable. The whole process takes 4 days, which is a big delay. Goal statement: Carrying out the unloading, inspecting, sorting using the least time possible, allowing for delivery in one day. Project scope: In-scope: delays during an inspection, products getting lost or misplaced, product damages, lack of enough employees. Out-of-scope: Order delays, slow delivery from company to customers. CTQs of processes within project scope: Conduct inspection of products to ensure products are accounted for. Increase efficiency in level 3 and 4, which is unloading and sorting, reducing delay and damages of products. SIX SIGMA PROJECT CHARTER 3 Increase the number of employees to avoid delays of processes. KEY METRIC Reduce the lead time to less than one day incrementing the activity ratio from 4.37% to 17.50%. Increase % C&A in unloading level to increase total C&A. Improving sort process (4) to reduce the hardline filled process. Expected benefits: Operational: Reduce the time used from receiving the order to delivering products to customers. Increasing accountability of every product. Reducing product wastage, damages, and losses. Increasing overall process performance. Financial: Saving the cost of damaged goods. Increase the number of products delivered in a day, therefore increasing the number of orders taken in a day; more products sold, more profits made. Milestones These are the project milestones while using the DMAIC (Define-Measure-Analyze-ImproveControl) method. Action Step Due date SIX SIGMA PROJECT CHARTER Presentation of the project Weekly meeting to explain charter. project scope and problem 4 5th January, 2020. identified. Value stream mapping Hold weekly meetings on Discussing current state. Monday mornings for one 27th January. and a half hours to analyze the current processes. Five Whys Hold weekly meetings on 3rd February. Monday mornings for one and a half hours to analyze the problem at hand. Smart Hold weekly meetings on objectives/VSM/planning Monday mornings for 3 hours 24th February to create and implement a plan that would improve the current state. Mistake proofing and testing Hold weekly meetings on 9th March Monday mornings for one and half hours to discuss the mistakes discovered during testing and seeking solutions. Six sigma Hold weekly meetings on Monday mornings for one 16th march SIX SIGMA PROJECT CHARTER 5 hour to verify the success of the six sigma. Key performance indicators/ Hold weekly meetings on validate /Project closure Monday mornings for 3 hours 6th April to discuss the performance of the new processes, validate and close the project. PROJECT CHAMPION: C.E.O, Operations Manager, H.R. Project leader: Operations Manager. Project team members: Receiving team, loading and unloading team, sorting team, and inspecting teams. Ad-hoc members: Quality inspectors, transport team, engineers (for repairing machines), the HR. Approved by & date: CEO, Operations Manager, HR. 07/02/2020
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