1、PROPRIETARY1998ThomasGroup,Inc.AllRightsReserved.Table of ContentsIntroduction to Thomas Group,Inc.Total Cycle Time at Esquel GroupTCT BasicsCross Functional TeamsProcess MappingMeasurementsBarrier RemovalBarrier Characterization Using Cause&Effect Diagrams Cycles of Learning and Effective Meeting M
2、anagement We are a unique international management services company that helps clients improve their competitiveness and financial performance Founded in 1978;annual compound growth 30%Over 200 senior management executives with broad skills&experience Average operations management experience per Res
3、ultant is 22 years Proprietary Total Cycle Time Methodology to implement change Global Headquarters Locations:Dallas,Detroit,Frankfurt,Singapore and Hong Kong Over 300 successful cycle time reduction programsTo Make Businesses CompetitiveBy UsingTo DriveTotal Cycle TimeImproved Responsiveness andAcc
4、elerated Results usingMinimum Resources Outside objective change agentcommitted to improved results Define business processes critical to Esquels competitiveness Establish aggressive performance targets at which Esquel is entitled to operate.dramatic improvements over baseline Apply Thomas Groups To
5、tal Cycle Time methodology to help Esquel reach entitled performance.within eighteen monthsTotal Cycle Time(TCT)BasicsResponding quickly to customers needs for present and future products&services.Results acceleration,particularly in fast delivery,lower costs and improved quality.Resource effectiven
6、ess,particularly in people costs and cash tied-up.RRRFaster&Better Results than the Competition-But using fewer Resources than the CompetitionAll businesses organizations(whether manufacturing,services,development,software,etc.)are composed of a series of different business processes.These business
7、process steps must be:Documented and analyzed to ensure that each has value Can be executed in the minimum time Have the highest possible accuracy or First Pass Yield.The time it takes in all business processes fromidentification of an unmet market need until that need is satisfied.Cycle Time is:The
8、 time it takes to get something done Manufacture a product Develop a product Deliver a service Install a factory Reduce costs Improve qualityThe time it takes to change the way a company does things.Most difficult to changeTotal Cycle Time is:The combined effect of the cycle times of all business pr
9、ocesses from the time a need exists until it is satisfied.A successful TCT Program successfully reduces the cycle times of all identified business processes and integrates these processes into a seamless total business process with a minimum Total Cycle Time A team representing the various functiona
10、l areas of one or more companies The Mission of the CFT team is to achieve agreed upon,specific objective(s)The objectives are ultimately aimed at:Driving continuous improvement in key business processesRadically improving the organizations global competitivenessInternalizing the TCT processes to en
11、sure continuation of the process improvementProblems and solutions do not completely reside within one departmentAll functional elements involved in a process need to contributeMembers should bring knowledge,objectivity and new view points to problem solving The CFT is the process owner of the key p
12、rocesses identified for improvement.This process improvement is measured by Cycle Time(CT)and First Pass Yield(FPY)results.The CFT is responsible for:The identification of the key processes The periodic collection,analysis,display and reporting of the CT,FPY and other measurements data.Identificatio
13、n of barriers,substitute processes and non value added activities within each process.Maintenance and execution of a continuously updated barrier removal plan to achieve or surpass entitlement in CT and FPY.Ensure that TCT process is followed and that results are achieved quickly Set clear goals and
14、 hold the team accountable Lead team in carrying out its objectives Ensure that team meetings are action oriented(3Ws)Keep team focused without dominating meetings Transfer required CFT skills to new members Responsible for contributing to the teams success by:Representing company(empowered decision
15、 maker)Communication;input from and to their functional organizationAttending and actively participating in all meetings,or providing an empowered substitute to act and make decisions for themWorking with the team to identify barriers and their root causes,ranking and removing themDeveloping Action
16、Plans and driving those Action Plans to completionUsing measurements to track progress and assure specific business process or processes progress toward and reach entitled performance Prepares and distributes the meeting agenda 2-3 days in advance of the meeting.This ensures participants come to the
17、 meeting prepared.Note:Members should submit documentation to be discussed in the next meeting to the Scribe for attachment to the meeting agenda.Prepares and distributes the meeting minutes and W3s within one working day following the meeting date.The Minutes are to include Attendance,Summary of th
18、e topics discussed,Significant decisions made,Next meeting date,time and venue,Old W3s with status and New W3s Requests feedback on minutes from team to ensure that they reflect the consensus of the team Maintains the old and new W3s listing so that W3s(what,who,and when)are always current Highlight
19、s W3 completions and short falls to team for further action Maintains accurate and updated CFT/BRT Charters Publicizes teams successes Serves as team timekeeper if none assignedNO.What Who When Status1234Team Leader:Team Objective:Scribe:Start:End:The CFT Measurement Specialist is responsible for le
20、ading and advising the team on measurements.Functions performed are:Works with BIT measurement owner to coordinate measurement activities for the CFT team Works with team members to collect measurement data to define Baseline&Entitlement Works with team members to assist in them in analyzing measure
21、ment data Monitors improvement of actual cycle times,first pass yield,AIP/WIP,delivery,cost,productivity,etc.Develops reporting formats with help from the team Ensures that all measurement status is published regularly in the form of an approved CFT Cockpit Chart1.Identify the key business process 2
22、.Establish the scope of the process3.Identify and bring together the key players for the CFT4.Validate the scope and determine the process boundaries5.Map the process,including CT and FPY data for each step6.Establish baseline(“as is”)performance in CT and FPY7.Determine value-added and non-value-ad
23、ded process steps and activities8.Remove non-value-added steps and create a“should-be”map(Entitlement process)9.Determine meaningful measurements10.Design the measurement system-drive desired behavior11.Establish initial entitlement goals in CTs and FPYs,other measurements12.Identify the barriers to
24、 process improvement13.Develop cause-and-effect diagram to find the root cause barriers14.Rank-order root cause barriers to determine the best course of action15.Assign and schedule barrier removal actions(BRTs)16.Track progress through the measurement systemIDENTIFY the key processes,process owners
25、 and key players Determine the scope and MAP the processesSet up a MEASUREMENT system,determine baseline and entitlementIdentify and remove BARRIERS to improved process performance and manage improvement with drumbeat feedback process Everything we do in in our company fits within a business process
26、 and Has a Process Flow that can be developed Has History that can be analyzed Has a First Pass Yield Has a Performance Baseline/Entitlement Has activities that are Non-Deterministic(unpredictable)Can be Measured by cost,first pass yield and cycle time In order to start the TCT Process(Step 5 of the
27、“16 Steps”)it is necessary to construct Process Map(s)of the critical business processes Process Maps are a graphical picture of the flow(in time)of a process or activity Process Maps provide an overview of the process and describe the path the process follows from beginning to completion(start to s
28、top as defined in the charter)Show how the processes work across functional and geographic lines Process maps are drawn at various levels of detail to assist in the evaluation of each process stepWe must first define the scope and the purpose of the process.What is the process trying to accomplish?T
29、he scope of any process consists of three parts:Start Point-Identify the event that begins the process(such as receipt of an order)Stop Point-Identify the event or item that concludes the process(such as shipment of a customers order)Process Boundary-determines which transactions and activities are
30、to be addressed in the Process Map.(For example,are we addressing all products that are made by a company,or just one product line?)List the functions/organizations down the left side of the sheet of paper Show the process as a progression from left to right as the process is mapped across the page
31、The symbols which represent each step are placed in the same row or rows as the functions involved in the process.TGIs basic symbol set for cross-functional flow diagrams in a high-level process are shown below.Process stepPrepare ForecastApprove?DecisionRepeat or rework step(s)Go Back toStep 2Inven
32、tory(non first-in/first out)or backlogNondeterministic process stepStockroomDesign NewCodeStarts controlIn addition to the above,elongate a symbol,top to bottom,to show participation in the same process step by more than one function and/or organization.If the participating functions are not listed
33、adjacent to one another,show participation with solid vertical lines and nonparticpation with broken vertical lines.Arrows always go left to right!Show reiteration like this:Show decisions like this:Approved?Repeat previousprocess from X to YYesNoApproved?YesNoorColor 2OrangeRedBlueCross-Functional
34、Mapping Process Define scope.List functions involved down left hand side of paper.Identify sequence of activities.Correlate activities with functions.Map activities from left to right corresponding to the advance of time.EEL SalesQCCustomerSampleRoomSuppliersPPCI/PWashingSewingCuttingMarkerRoomWareh
35、ouseI/EIssue PPOInspectionSampleMakingProduce&DeliverProductionPlanningIssue S/CIssue T/LTrialRunMarker&P/PReworkRejectReworkRejectIssueP/OTrialRunTrialRunTrialRunApproveApproveNoNoYes123StorageYesCT1B/L:18ENT.14Fulfillment FPY B:55.4%,E:85%FPY3B=97%E=100%1.75Unit:DayFulfillment CTEEL SalesQCCustome
36、rSampleRoomSuppliersPPCI/PWashingSewingCuttingMarkerRoomWarehouseI/EExternalAuditingSew&QCCut&QCWashingInspectionReworkIroning&Packing12ReworkInternalAuditingShip toCustomerRe.DocumentsWash?ApproveApproveNoNoYesNoYes3YesFPY4FPY5FPY6FPY7FPY8B=87%E=96%B=92%E=95%B=80%E=95%B=94%E=100%B=95%E=98%Unit:DayB
37、/LENT.5.2566.581.53CT2CT3CT4Design=3 to 4 monthsBrooksBrothersFabricMillSampleRoomSubMaterialsTransitGarmentFactoryEsquelSalesManufacturePresentationsamplesSampleApprovalsFabricproductionGarmentProduction 30 Days EGM 30 Days WY7DaysTrialWeavePV showTech Pack30Days120 Days30 days Plain weave45 days d
38、obbyTransit8 DaysOrderThreads&Interlining4 DaysEsquelMerchandise.supportEsquelAccessoriesDvlpment90-120 days71 days49 daysTotal CT=255 to 285 DaysBrooks Brothers&Esquel Enterprises Process Map(Level 1)-Normal OrderFabric(t/w)&PriceApprovals7 DaysApprovalsThread&InterliningTransit8 Days3 DaysClarifyT
39、ech Pack8 DaysProcessingtime5 Days45 daysProcessingtime4 DaysTransit3 Days3 DaysProduction=5 to 6 monthsBaseline CTsTransitWYAT=5 DaysEGM =15 Days Measurements are necessary to“keep score”e.g.how can we determine if we are making improvements unless we have well defined and meaningful measurements M
40、easurements must be simple,easy to understand and an accurate measure of the process Measurements should not be“corruptible”Time and First Pass Yield are the best measurements Cycle Times have specific start and stop times.Cycle Time is a basic measure of process effectiveness and a good indicator o
41、f the discipline and order within a process.One must differentiate between Static and Dynamic cycle time:Static Cycle Time(sCT)is a summary of past actions(history).It is a lagging indicator and is usually applied to processes that change slowly.Dynamic Cycle Time(dCT)is the present“pulse rate”of a
42、process and,thus,a leading(predictive)indicator.Static cycle time is the historical measure of cycle time based on analysis of individual outputs of a process.Static cycle time is a lagging indicator because it reports results after completion.Frequency of OccurrenceWhat is happening here?Use high/l
43、ow diagnostic analysisand especiallyhere?Population of OneA fabric manufacturing process which starts on June 12 and concludes on July 19 has a static cycle time of 37 days.StartJune 12StopJuly 19Static Cycle Time=37 Days One can average the cycle times of work actions completed.For example:30 shirt
44、s completed during a specific time period had the following distribution:4 completed in 2 days3 completed in 7 days8 completed in 3 days2 completed in 8 days7 completed in 4 days6 completed in 9 dayssCT=Static cycle time=(4X2)+(8X3)+(7X4)+(3X7)+(2X8)+(6X9)30 sCT=5.03 days for that specific time peri
45、odDynamic cycle time is the current processing time for a relatively high volume of activities where In Process inventory exists at both the beginning and end of the period.Dynamic Cycle Time =Actions in Process(AIP)Average Processing SpeedNOTE:The period of time may be one day,one week,one month-th
46、e shorter the time period the more instantaneous the cycle time measurementIs a leading indicatordCT=AIPs/Process SpeedAIPs and process speed can vary through measurement periodNeed parameter estimatesDynamic Cycle Time Example (All data is for a one month time period)Beginning garment inventory4600
47、Ending garment inventory3600Garments out to stock31500An average garment requires 3.9 days to progress through thewaiting queues and processes and to exit from the line.Average Work in Process Process Speed=Beg.Inv.+End.Inv.)/2 OUTSCT=(4600+3600)410031500Month231500=.13(30 days/month)3.9 daysYou are
48、 operating a purchasing organization with the following characteristics:Work-in-process inventory beginning of month=1,800 ordersWork-in-process inventory end of month=2,200 ordersThe average daily placement rate is=125 per dayWhat is the cycle time of the operation in work days?Static Cycle Time Dy
49、namic Cycle Time1.Lagging indicator 1.Leading indicator2.Formula involves only cycle 2.Formula involves AIPs times of completed actions and processing speeds,not just completions3.Good for low transaction 3.Good for high process steps transaction process steps-develop new products-big amount product
50、ion-=Completed CT1+CTn =Average AIPs n Average Processing SpdSub Process#1(Marker Making)Sub Process#2(Cutting)Sub Process#3(Sewing)Sub Process#4(Washing)Sub Process#5(Press/Pack)CT1+CT2+CT3+CT4+CT5=Total Cycle TimeProcesses are often comprised of several Sub Processes.First pass yield(FPY)is measur
