To ensure that the appropriate project scope has been defined, a high-level process map of the area in need of improvement is developed (see Figure 1.5). While a very detailed process map will be constructed during the Measure phase, in the Define phase, the only key
considerations are the major milestones in the process, service, or product that needs improvement.
Figure 1.5 Define Phase Step 3
The main benefits of a high-level process map are that it:
• Outlines the overall flow of information and material, starting with the supplier and ending with the customer.
• Provides a graphical display of the steps, events, and operations and the relationship of resources.
• Helps everyone involved in the project understand how the disparate parts of the company combine to provide a service or product.
There are two tools that you can use in completing this step:
1. SIPOC. This is a Six Sigma tool; the acronym stands for Supplier, Input, Process, Output, Customer (see Figure 1.6).
Figure 1.6 SIPOC Overview
2. Product synchronization. This is a Lean tool that helps define the major process milestones and the critical path.
SIPOC Map
The SIPOC serves two purposes:
1. It provides a macro overview of the process or service flow and the interrelationships within a business.
2. It defines the process boundaries—the start and end points of the process in need of improvement.
How to Develop a SIPOC
Since the objective is to define a high-level view of the process in its “as-is” state, we must have the core cross-functional team involved in the development of a SIPOC.
1. As the first step, the team must agree on the start and end points of the process. The business case can help guide this discussion.
2. Working backward, list the Customers. Identify each customer’s CTQ (accurate, timely, simple, and so on) and the primary Output (loans, calls, x-rays, or something else) that the customer receives from the process.
3. With the C and O of the SIPOC defined, using brainstorming techniques, the team should outline the five to seven high-level Process steps that result in the outputs.
Process steps typically start with a verb.
4. Once the team has agreed on the process steps, the critical Inputs that affect the quality of the process can be identified.
5. The last step is to list all the Suppliers that provide inputs to the process.
6. The SIPOC should then be validated by walking the actual process.
Figure 1.7 is an example of the SIPOC for the business case outlined in Step 2 (focused on reducing loan approval cycle time).
Figure 1.7 Example of SIPOC
Product Synchronization Map
Product synchronization is a Lean tool that is typically used to better understand the P in the SIPOC map (see Figure 1.8). Like all Lean tools, product synchronization should be used when the project is focused on either standardizing a process or reducing its cycle time.
Figure 1.8 Product Synchronization (Lean Tool)
Product synchronization shows the relationships among various process steps (flow and applied labor) that need to come together in order to build a service or product.
How to Develop a Product Synchronization Map
The best way to develop a product synchronization map (PSM) is by involving the core team.
However, instead of brainstorming to identify the five to seven major steps, the process should be documented by “walking” the product or service through its life cycle. Here are some guidelines for developing this map:
1. Always stick to the major steps.
2. Select several examples to follow. The selected samples should be good representatives of your product or service.
3. Determine whether you need one or several PSMs. If the process in need of
improvement produces or works on different types of products (such as securities, x-ray machines, or customer calls), you may need to map the processes separately. If:
• The time to perform tasks or process steps is statistically different or
• The process steps that the product or service goes through are different, then separate PSMs will be needed.
4. Process options and variations should be documented. An example of an option is data entry inspection (QA) in Figure 1.8. Of all new applications, only 21 percent are audited for data entry errors. As for variations in the process, after underwriting, the process splits, with 17 percent of the applications being declined and the rest being issued.
5. Any rework loops or fall-out points in the process should be included.
• Any rework point or reject rate greater than 1 percent should be included in the map.
The product synchronization map, like the SIPOC, presents only the high-level view of a process or service that is in need of improvement. Product synchronization provides more detail concerning the P of SIPOC. Its main objectives are to collect information that is critical to reducing process cycle time and increasing standardization. Using the PSM, you can now better identify flow issues caused by:
1. Redundancies
2. Implicit or unclear requirements 3. Tricky handoffs
4. Conflicting objectives
5. Common problem areas or high rework rates
Summary of Step 3: Develop a High-Level Process Map
Once the business case has been completed, a high-level “as-is” process map of the area being focused on should be developed. This graphical representation of the process will ensure that all constituents are in agreement regarding the scope of the project and the process, product, or services involved. Clearly defining the Customer, the existing process Outputs, major
Process steps, the Inputs to the process, and the individuals or entities that Supply the inputs will eliminate all assumptions and ambiguities.