For all you Leaners out there, First Time Right is a familiar concept. If your input to a process is 100 and output is equally 100, your First Time Right percentage is 100%. However, if with 100 input, you get process output of 98, your First Time Right percentage would only be 98%. Quite simple, isn’t it?
The First Time Right concept can be applied in process mining as well. With our customers, we have noticed that using First Time Right as a KPI is both beneficial but also makes communicating targets easier. The concept is well known in especially Six Sigma domain, but it is also easy to understand just from the name – we should get things right when trying for the first time.
How to Get Started with a First Time Right KPI?
When you think about your business and business processes, you probably immediately identify several criteria that are - if not critical - at least very important for a case to be successful. Note them down. Then dig out a figure to understand how many of the cases going through your business processes actually match all of the criteria. If you are not sure about how, we can help you with process mining. I believe that, when you find out about the figure, your First Time Right percentage might be depressingly low at this point. The good thing is, now you understand where you are starting from. The bad thing is, the way to success seems endless and full of obstacles.
Do you see the loop in the Picking Done process step? If goods’ picking was done several times, do you think it was First Time Right?
How to Increase Your First Time Right Percentage?
Don’t forget about all the criteria you noted down when identifying your First Time Right KPI. In addition, youo should also create smaller First Time Right KPIs: take only part of the important targets for a case to achieve to be successful. If in the first place, you have five different criteria, take only one or two of them and find out what your First Time Right percentage would be, if you are measuring only this limited target. Most likely the figure is higher than with the full set of criteria. Now, take this limited set and work with it.
- What can you do to increase the percentage of First Time Right?
- When you look at the visualization and analyses of your process, what do you see? Are there loops that indicate rework?
- Is your process not meeting the quantities ordered or requested? Are you delivering too few or too many?
- Are the process steps in order? No POs before PRs?
- Are you invoicing everything you have delivered?
- Are you getting claims for your products or services?
Identify the questions relevant for the limited First Time Right KPI and work through them. Step by step you increase the First Time Right percentage.
To get visible results quickly, find out the First Time Right percentage for all the individual criteria. Pick the lowest one and work with it. This will have the biggest impact on the combined criteria and increase the overall First Time Right percentage. Then pick the second lowest one and work with it to increase the overall First Time Right level, then the third lowest and so forth. Regarding the root causes behind the criteria and why they are what they are, you can find out with QPR ProcessAnalyzer.
I’ve worked with all the criteria, what then?
When getting started with First Time Right KPI, you created a list of criteria important for a successful case. However, this is not supposed to be a static list. As your business and business processes develop and evolve over time, so should your First Time Right criteria. Revisit your criteria every 6 to 12 months. Retire the ones that are not relevant anymore and add new important criteria to the list. Remember to also credit your organization for achievements made. It takes time and effort to work through all aspects of the First Time Right and while it is crucial to keep on developing to beat your competition, it is also important to acknowledge the great work accomplished so far.
How to do this in practice?
To find out how to work with the First Time Right KPI in practice, check out our webinar below.