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Metrics: The Good, The Bad, and The Ugly. Metrics: The Good, The Bad, and The Ugly. Can (John) Saygin, Ph.D. Assistant Vice President for Sponsored Project Administration Office of the Vice President for Research Professor, College of Engineering
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Metrics: The Good, The Bad, and The Ugly Metrics: The Good, The Bad, and The Ugly Can (John) Saygin, Ph.D. Assistant Vice President for Sponsored Project Administration Office of the Vice President for Research Professor, College of Engineering Center for Advanced Manufacturing and Lean Systems Phone: 210.458.5194 can.saygin@utsa.edu
Outline • Lean: What does it mean? • IOM 2013 Report • From Data to Metrics • Success Stories of Lean • We want to hear from you
LEAN: SEE WASTE and ELIMINATE IT Waste (Non-Value Added): Anything that adds cost, time, effort without adding value Transport Inventory Under-Utilization of Human Talent Over- Processing DEFINE VALUE!!! Wastes Motion Waiting Over- Production Defects
HOW DO YOU MEASURE WASTE? • Metric: a standard of measurement • Performance Metric: Standards of measurement by which efficiency, performance, progress, or quality of a plan, process, or product can be assessed. • Deviation |Actual| - |Target|
LEAN METRICS Lean Metrics – the appropriate measurements and goals for the Lean Improvement activities Commonly used Time-based Lean Metrics • Individual Cycle Time • Total Cycle Time • Queue Time • Total • non-time based metrics, such as: cost, customer satisfaction, on-time delivery, and quality. And many more…
PROCESS… FLOW • "If you can't describe what you are doing as a process, you don't know what you are doing." - W. Edwards Deming
DEFINE-MEASURE-ANALYZE-IMPROVE-CONTROL DMAIC must be a “continuous process” • Define the system, the voice of the customer and their requirements, and the project goals, specifically. • Measure key aspects of the current process and collect relevant data, including controllable and uncontrollable factors. • Analyze the data to investigate and verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation. • Improvethe current process based upon data analysis using techniques: Future process • Controlthe future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems and continuously monitor the process. METRICS
Success with Lean Metrics • To successfully use lean metrics: • Standardize measurements • Make sure the results are accurate and consistent • Metrics should be easy to collect • Gather data where it is most useful • Make the Lean Metric Visual • Make information accessible • Goal: Predictable Output • Stable Outputis more important than spikes of outstanding performance
WHAT Continuous Improvement: A Mindset Operational Performance Metrics Process Flow Validation Process Design & Improvement Process Flow Automation HOW Do the Right Thing Do it Better Do it Right Programmatic Performance Metrics EFFECTIVENESS (Performance directly linked to Desired Outcomes) EFFICIENCY (Rate of Desired Outcomes)
Eliminate Whenever Possible Laws , Regulations, Rules at various levels Policies Functions Processes 5 Why’s… Do not target the symptoms Get to the Root-Cause
“Learning Health Care System” Continuous Improvement CTSA 2.0 Additional Complexity: Network (12 sites in 2006 to 61 sites in 2013)
Programmatic Performance Metrics Operational Performance Metrics
“In God we trust… All others, bring data.” W. Edwards Deming
Reference: "Data, Information, Knowledge, and Wisdom" by Gene Bellinger, Durval Castro, Anthony Mills A) It is raining. B) The temperature dropped 15 degrees and then it started raining. C) If the humidity is very high and the temperature drops substantially the atmospheres is often unlikely to be able to hold the moisture so it rains. Data represents a fact or statement of event without relation to other things. Information embodies the understanding of a relationship of some sort, possibly cause and effect. Knowledge represents a pattern that connects and generally provides a high level of predictability as to what is described or what will happen next.
The Big Picture Reference: "Data, Information, Knowledge, and Wisdom" by Gene Bellinger, Durval Castro, Anthony Mills
Source: Source -- http://www.juiceanalytics.com/writing/choosing-right-metric/
SUCCESS STORIES OF LEANAn Example from UTSA Human Resources…
HR at UTSA Background • Human Resource (HR) managing “On-Boarding Process” of new hires • Orientation, tax and insurance paperwork, computer and email accounts, requests for keys, telephone line, parking, etc. • Problems: • New hires often take 2 weeks to be truly “on-board” • HR team spends hours on missing data & error corrections everyday • Lots of “waiting” among offices You are hired!
HR at UTSA The Improvement Project Objectives: • Shorten new hire time • Improve work readiness • Increase compliance Methodology: • Lean training for entire office • Value stream mappingand implementation planning
HR at UTSA The Findings Root Causes • Disconnected operations • Isolated resources • Ineffective (error prone) paperwork process Solutions • Redesigned workflow (new “value stream map”) • Partners with OIT, ID Card Office, Parking, etc. • Standardized web forms
HR at UTSA The Results • New process provides integrated resources at the Orientation for New Employees • New hires are ready on Day 2 versus 2 Weeks • 100% accuracy of I-9’s • $231,319 net savings in 1st year
Think of processes or functions that you perform… Write on a piece of paper: • The Good: You are comfortable with it. You do it well. • The Bad: You are not comfortable with it. However, you work so hard and you get it done. • The Ugly: You are not comfortable with it. Your performance varies when doing it. Do it yourself
