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					             New Employee Orientation to QI Awareness
DEFINITION         EXAMPLES   MEASUREMENT   IMPROVEMENT   SUMMARY




                 EFFICIENT PROCESSES




                                                                    2-1
             Quality Improvement Pyramid
DEFINITION    EXAMPLES               MEASUREMENT                 IMPROVEMENT     SUMMARY




                                        Vision

                                 Efficient Delighted
                                Processes Customers



                                 Strategic Plans

                        Leaders                          Staff
                       Trustworthy                   Trustworthy
                    Trusting of Others            Trusting of Others
                   Approachable, Inspiring    Collaborative, Committed

                        Quality Improvement System
              Trained Staff            Recognition            Data Analysis
             Customer Focus          Empowered Staff         Problem Solving
               Teamwork              Quality Processes     Measurement Systems

                                                                                           4-2
                               Agenda
DEFINITION        EXAMPLES     MEASUREMENT    IMPROVEMENT   SUMMARY




              DEFINITION
                             What is a process?

              EXAMPLES
                             Processes

             MEASUREMENT
                             Why and how we measure

             IMPROVEMENT
                             Methodology for process improvement

              SUMMARY
                             QI culture / environment




                                                                      4-3
                          What is a Process?
DEFINITION
 DEFINITION          EXAMPLES        MEASUREMENT            IMPROVEMENT          SUMMARY




          INPUT                         Value                        OUTPUT
                                     Added Tasks
    A resource that you            TRANSFORMING                    An input after you
    will add value to:          input to a desired output          have added value




        • Materials                   • Manufacturing                 • End product
        • Goods                       • Service                       • Service
        • Supplies                    • Physical                      • Performance
        • Resources                   • Non-Physical                  • Physical
        • Physical                                                    • Non-Physical
        • Non-physical
        • Data
        • Event
                                                                                           4-4
                       Defining Value Added
DEFINITION
 DEFINITION       EXAMPLES          MEASUREMENT         IMPROVEMENT      SUMMARY




          INPUT                       Value                        OUTPUT
                                   Added Tasks




                  1) The customer is willing to pay for this activity.

                  2) It must be done right the first time.

                  3) The action must somehow change the product
                     or service in some manner.



                                                                                   4-5
                       Example of Value Added
DEFINITION
 DEFINITION           EXAMPLES          MEASUREMENT          IMPROVEMENT           SUMMARY




              Cost for a barrel of crude oil          $ 82
                                                                        Value-added activates
              42 gallons in a barrel                  42               (eg: refinery, shipping,
                                                                       service station)
              Estimated cost of gasoline        $1.95 / gallon
                                                                        Speculative purchases
              Actual cost of gasoline           $3.00 / gallon         by investors
                                                                        Exorbitant collusion
                                 Differential   $1.05 / gallon
                                                                       profits among producers




              INPUT                        Value                       OUTPUT
                                        Added Tasks




                                                                                             4-6
                    Examples of Value Added
DEFINITION
 DEFINITION        EXAMPLES         MEASUREMENT      IMPROVEMENT             SUMMARY




   Scenario:                                                       Value Added?

   Purchasing vegetables at your local market versus growing
                                                                       Yes
   vegetables in your backyard

   Buying take-out versus preparing food yourself                      Yes


   Watching Ichiro Suzuki play baseball                                Yes


   Watching Vincent Lau play baseball                                  No


   Having you as a member of FM & SM                                   Yes




                                                                                       4-7
                Efficient & Effective Process
DEFINITION
 DEFINITION       EXAMPLES         MEASUREMENT    IMPROVEMENT   SUMMARY




     Efficient is working without waste
     > Minimum time
     > Minimum effort
     > Minimum expense




                         Effective means achieving the desired result
                         > Hitting the target
                         > Meeting customers’ needs



                                                                          4-8
                 Efficient & Effective Process
DEFINITION
 DEFINITION       EXAMPLES        MEASUREMENT      IMPROVEMENT         SUMMARY




   Without             Without waste                Without waste
    Waste        Not achieving desired result   Achieving desired result
  (Efficient)




                         With waste                   With waste
                 Not achieving desired result   Achieving desired result




 With waste
 (Inefficient)

                 Not achieving                                 Achieving
                 desired result                              desired result
                  (Ineffective)                               (Effective)
                                                                                 4-9
                        Processes are dependent
DEFINITION
 DEFINITION          EXAMPLES        MEASUREMENT       IMPROVEMENT         SUMMARY




                INPUT                    Value                 OUTPUT
                                      Added Tasks


              Your process OUTPUT is often an INPUT for another process!
                                 Process Partners




                                                                 Final / Collective
                                                                     Product



                         Increasing incremental value

                                                                                      4-10
                      Example:   Grant Process
DEFINITION     EXAMPLES
                EXAMPLES          MEASUREMENT         IMPROVEMENT          SUMMARY


                                                   How GCA Adds Value

              NEW                                      Setup New Budgets
             BUDGET
                                                         Apply Cash
                                                  Monitor Cost Share / FEC
                                           Process Request to Transfer Expenditure
      GRANT IS ACTIVE                                Generate Invoices
                                                  Collect Aged Receivables
                                                 Negotiate Recharge Center

                                                    Create Annual Reports
         ACCOUNTING                             Reconcile Awards & Expenditures



                                                Create Fiscal Reporting Statements
                                                          Close Budgets
     CLOSING BUDGET                                 Reconcile DHHS Records

                                                                                     4-11
                            Other Processes
DEFINITION          EXAMPLES
                     EXAMPLES       MEASUREMENT        IMPROVEMENT          SUMMARY



                 Contracts for Goods & Services      (Purchasing)
                            Bill & Collect Tuition   (SFS)
         Develop Financial Management Staff          (FM)
     Develop & Negotiate Indirect Cost Rates         (MAA)
  Create & Market Communication Products             (Publications)
     Manage Financial Information Reporting          (Financial Accounting)
                                 Manage Grants       (GCA)
                                        Pay Bills    (Financial Services)
                                     Pay People      (Payroll)
  Asset Management & Real Estate Services            (Real Estate)
                                    Disburse Aid     (SFS)
             Preservation/destruction of Records     (Records)
                            Project Management       (SM)
                                                                                  4-12
                              Exercise
DEFINITION     EXAMPLES       MEASUREMENT    IMPROVEMENT   SUMMARY




 INPUT               Value                  OUTPUT
                  Added Tasks


   1. Share among your table the processes that you are
      responsible for.

   2. Identify your value-added tasks.

   3. Discuss how your processes impact others at your
      table.

   4. Share with the class.

                                                                 4-13
                                       Why Measure?
  DEFINITION              EXAMPLES           MEASUREMENT
                                              MEASUREMENT        IMPROVEMENT             SUMMARY



                Why Measure?                           FM, Treasury, Strategy Mgmt

            Management System                                  Management by facts
        Internal & external management system
                                                       Championed at executive level
Accountability for university resources
               Decreasing state funding
               Strained economic climate                             QI Initiative
                                                           Dedicated QI Leader / Coordinators
                                                           QI training for all staff
       Higher customer expectations
                                                                     QI resources
Communicates to staff and campus our                       Employee development plan
   customer service level and how we                       Staff & leadership qualities
             provide value                                 Process improvement & problem solving
                                                            training
                                                           Newsletters
 Must measure in order to benchmark                        Recognition programs
  (i.e. a point of reference, process improvement)
                                                               Balanced Score Card
                                                                   (Dashboard)
                                                                                                 4-14
       Similarities to an Automotive Dashboard
DEFINITION   EXAMPLES   MEASUREMENT
                         MEASUREMENT    IMPROVEMENT   SUMMARY




              What is the purpose of a dashboard?




                                                            4-15
                                        Dashboard
DEFINITION           EXAMPLES            MEASUREMENT
                                          MEASUREMENT           IMPROVEMENT   SUMMARY




   Long-term competitiveness is best gauged via a BALANCED perspective.
        For example, financial statements will not display intangible assets:
         cycle-time, knowledge management, customer satisfaction, etc.


                                          DASHBOARD
                                      (BALANCED SCORE CARD)


                      Customer                                Financial
               (esp. important for Non-Profit)
                      FM’s dedication to
                      delight customers




                 Internal Process                     Learning & Growth



                                                                                    4-16
 Dashboard is Managing by Facts                                     (Example Financial Management)


DEFINITION            EXAMPLES         MEASUREMENT
                                        MEASUREMENT            IMPROVEMENT               SUMMARY




                                  Department Dashboard

                       Customer                                 Financial

                Internal Business Process                   Learning & Growth




             Unit Balanced                  Unit Balanced            Unit Balanced
              Scorecard                      Scorecard                Scorecard




                          Unit Balanced                Unit Balanced
                           Scorecard                    Scorecard



                                                                                                     4-17
             Utilizing Operational Dashboards
DEFINITION      EXAMPLES   MEASUREMENT
                            MEASUREMENT    IMPROVEMENT   SUMMARY




              Communicate   with campus & ourselves
              Better understand processes & improve
              Work with process partners
              Make changes

                                                               4-18
               QI Principles that Reduce Variability
  DEFINITION           EXAMPLES          MEASUREMENT       IMPROVEMENT
                                                             IMPROVEMENT            SUMMARY



TQM
A management style that promotes an organization’s culture and attitude to continuously satisfy
the needs of their customers.


LEAN
A philosophy and practice to focus on eliminating all forms of waste in a process.
http://f2.washington.edu/lean
Question: LEAN & QI ? LEAN is QI on steroids (just do it, 30-60-90 day check-ins, waste
focus from customer view, wing to wing)


VARIANCE ANALYSIS
A philosophy, practice, and measurement system to reduce variance (eg. six sigma, statistical
process control charts)


DEMING CYCLE- PDCA
A methodology to continuously improve a process by understanding the needs of the customer.
                                                                                            4-19
                 PDCA Cycle for Process Improvement
    DEFINITION         EXAMPLES          MEASUREMENT             IMPROVEMENT
                                                                   IMPROVEMENT    SUMMARY



W. Edwards Deming propose:
    Analyze and measure for variations that cause deviation from customer requirements
    Built around a continuous feedback loop to improve the process


                                             Plan
                                     Design or revise business
                                      process components to
                                          improve results



                             Act                                  Do
                       Decide on changes
                                                     Implement the plan and
                     needed to improve the
                                                     measure its performance
                            process


                                           Check
                                          Assess the
                                   measurements and report
                                    the results to decision
                                           makers                                         4-20
                              Coin Exercise
DEFINITION         EXAMPLES      MEASUREMENT   IMPROVEMENT       SUMMARY




                                                         Plan

INPUT             Value        OUTPUT              Act           Do
               Added Tasks

                                                         Check



             1. Ground rules provided by instructor.

             2. Three rounds with equal allotted time.

             3. Debrief after each round.



                                                                       4-21
             PDCA Case Study: New Budget Setup
DEFINITION           EXAMPLES             MEASUREMENT      IMPROVEMENT
                                                             IMPROVEMENT   SUMMARY



                           FIRST ATTEMPT

               • July 2003 retreat
               • Identified New Budget Setup as critical
PLAN           customer concern
               • Brainstormed alternatives



               • New Accounts reprioritized workload
DO             • Measure volume of workload




               • Monitored progress via dashboard
CHECK          • Early success only




               • Inconsistent performance suggest we
ACT            need further improvements

                                                                                 4-22
                                     PDCA Case Study: New Budget Setup
DEFINITION                                             EXAMPLES                     MEASUREMENT                      IMPROVEMENT
                                                                                                                       IMPROVEMENT                          SUMMARY



                                                       Number of Days to Setup New Budgets in GCS & GCA
                                             Receipt of Award at GCS to P.I. Notification by GCA, 12 month Rolling Average = 14.2 Days
                                 Good
                           25                     21                                                                                                             21
 Number of Calendar Days




                                                                                                19                   20
                           20           17             16              16                                  16
                                                            15    14         14                       15        14               14   14                    14
                           15                                                           13                                                        12   12
                                                                                                                            11
                                              8                                                                                             7
                           10    6                                                 6
                            5
                            0
                                Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-          Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-      Jul-
                                 02   02   02   02   02   03   03   03   03   03   03            03   03   03   03   03   03   04   04   04   04   04   04       04

                                                                       GCS Days               GCA Days          Target = 12 Days



                                                        Number of Days to Setup New Budgets in GCA only
                                 Good
                           12
                                        10             10
 Number of Calendar Days




                           10                                      9
                                                                                               Plan
                            8                                           7
                                                   6                          6                       6
                            6                 5              5                                   5
                                                                                       Act4           Do   4         4
                            4    3                                                 3                                             3
                                                                                                                 2          2
                            2                                                                 Check                                    1    1
                                                                                                                                                  0    0    0     0
                            0
                                Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-          Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-      Jul-
                                 02   02   02   02   02   03   03   03   03   03   03            03   03   03   03   03   03   04   04   04   04   04   04       04

                                                            GCA Days (Receipt of NEA* from GCS to PI Notification by GCA)        Target = 1 Day


                                                                                                                                                                        4-23
             PDCA Case Study: New Budget Setup
DEFINITION           EXAMPLES            MEASUREMENT          IMPROVEMENT
                                                                IMPROVEMENT                 SUMMARY



                         FIRST ATTEMPT                            SECOND ATTEMPT

                                                       • December 2003
               • July 2003 retreat
                                                       • Reviewed why “First-Attempt” not
               • Identified New Budget Setup as
PLAN           critical customer concern
                                                       successful
                                                       • Identified inconsistent interpretation of
               • Brainstormed alternatives
                                                       “priorities”

                                                       • Inventory new account processes and
               • New Accounts reprioritized workload   workload
DO             • Measure volume of workload            • Defined setting up new budget as
                                                       number one priority above all else


                                                       • Monitored progress via dashboard
               • Monitored progress via dashboard
CHECK          • Early success only
                                                       • Success evident in February 2004
                                                       • Also implemented email notification


                                                       • New process now widely adopted
               • Inconsistent performance suggest we   • New Accounts now consistently
ACT            need further improvements               exceeds ambitious 1 day turn-around
                                                       (i.e. same-day turn around).
                                                                                                     4-24
                                     PDCA Case Study: New Budget Setup
DEFINITION                                             EXAMPLES                     MEASUREMENT                      IMPROVEMENT
                                                                                                                       IMPROVEMENT                            SUMMARY



                                                       Number of Days to Setup New Budgets in GCS & GCA
                                             Receipt of Award at GCS to P.I. Notification by GCA, 12 month Rolling Average = 14.2 Days
                                 Good
                           25                     21                                                                                                               21
 Number of Calendar Days




                                                                                                19                   20
                           20           17             16              16                                  16
                                                            15    14         14                       15        14                 14    14                   14
                           15                                                           13                                                          12   12
                                                                                                                            11
                                              8                                                                                               7
                           10    6                                                 6
                            5
                            0
                                Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-          Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-        Jul-
                                 02   02   02   02   02   03   03   03   03   03   03            03   03   03   03   03   03   04   04   04   04   04   04         04

                                                                       GCS Days               GCA Days          Target = 12 Days



                                                        Number of Days to Setup New Budgets in GCA only
                                 Good
                           12
                                        10             10
 Number of Calendar Days




                           10                                      9
                                                                                               Plan                         Plan
                            8                                           7
                                                   6                          6                       6
                            6                 5              5                                   5
                                                                                       Act4           Do   4          4
                                                                                                                     Act            Do
                            4    3                                                 3                                               3
                                                                                                                 2          2
                            2                                                                 Check                        Check         1    1
                                                                                                                                                    0    0    0     0
                            0
                                Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-          Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-        Jul-
                                 02   02   02   02   02   03   03   03   03   03   03            03   03   03   03   03   03   04   04   04   04   04   04         04

                                                            GCA Days (Receipt of NEA* from GCS to PI Notification by GCA)          Target = 1 Day


                                                                                                                                                                          4-25
                    Segmenting Data
DEFINITION   EXAMPLES   MEASUREMENT   IMPROVEMENT
                                        IMPROVEMENT   SUMMARY




                                                            4-26
                                  Data Variability
DEFINITION             EXAMPLES            MEASUREMENT              IMPROVEMENT
                                                                      IMPROVEMENT           SUMMARY




                        GCA New Budget Setup Time Oct06 - Dec06

          25



          20



          15
   Days




          10



           5



           0
               0   5     10       15       20        25        30       35     40      45     50
                                                 Data Sample

                        Team 1    Team 2        Team 3    Team 4     Team 5   Team 6
                                                                                                   4-27
         Complex (Judgment) Process Measure
DEFINITION    EXAMPLES   MEASUREMENT   IMPROVEMENT
                                         IMPROVEMENT   SUMMARY




                                                             4-28
                    Industry Benchmark
DEFINITION   EXAMPLES          MEASUREMENT                   IMPROVEMENT
                                                               IMPROVEMENT              SUMMARY




                Washington           $1.00
                                                                              Good
               Santa Barbara             $1.29

                      Irvine                 $1.54

                 Los Angeles                  $1.58

                       Davis                     $1.68

                  San Diego                       $1.77

               San Francisco                                  $2.56

                  Santa Cruz                                          $3.01

                   Riverside                                            $3.15

                   Berkeley                                                     $3.63

                                                   Target = 2.25
                                      Average cost per paycheck for displayed
                                                California schools




                               Payroll Customer Satisfaction rating

                                                              99%
                                  85%




                                  2006                        2008
                                                                                              4-29
                        Dashboard
DEFINITION   EXAMPLES    MEASUREMENT   IMPROVEMENT
                                         IMPROVEMENT   SUMMARY




                                                             4-30
                                  Questions
 DEFINITION         EXAMPLES         MEASUREMENT   IMPROVEMENT
                                                     IMPROVEMENT   SUMMARY



How to apply quality improvement to everyday process?
• Are Targets met? What is the problem?
• Why not? Baseline/benchmark/trend.
• Root cause analysis.
• Pareto analysis. PDCA
• Check your data (manage by facts)

What happens when a process goes away? Do you still
  measure?
• Has the process evolved to something else (e.g. manual
  transactions converting to eCommerce)
• When do you measure a process?
    • dashboard = core processes
    • scorecard = strategy/change
    • measure if you want to process improve)
                                                                         4-31
                                Setting Targets
DEFINITION           EXAMPLES       MEASUREMENT     IMPROVEMENT
                                                      IMPROVEMENT   SUMMARY




                          Four ways to set targets:




                 Customer                           Compliance
                Expectations                      Law requirement




             Industry Benchmark                        Stretch
                Best Practices
                                                                          4-32
                        Applying PDCA
DEFINITION   EXAMPLES      MEASUREMENT     IMPROVEMENT   SUMMARY
                                                          SUMMARY




               INPUT         Value    OUTPUT
                          Added Tasks

                    How does your department
                    and your process add value
                     to FM and the customer?




                                                               4-33

				
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