The Odd Triplets: Flow Diagram; COPQ; Cost Accountant

We tend to assume that the flow diagram we are studying reflects the actual process that is in place in the work environment.

You are dead wrong! We need an autopsy of sorts!!

The failure to reflect reality has a variety of causes:

• The designers of the original process are drawing the flow diagram to represent the process they designed; not the process that evolved!
• The managers on the team are reluctant to draw parts of the actual process that are obviously illogical. They fear that they might be called to explain why they allowed it to be that way!
• Rework is assumed to be small and inevitable. So the rework loops are either not seen or not documented by the team!
• Team members truly don’t know how the process operates. In many cases, only the workers know!!

Unless you construct a flow diagram “as-is”, you will end up working on the wrong problems and with disappointing results.

The purpose of an “as-is” flow diagram is to help the team to zero-in on the trouble spots in the concerned process. Thereafter, in collaboration with the Cost Accountant the team can pull the COPQ Alarm!

Even if the team has the skills to independently estimate the COPQ, they will lack credibility in the eyes of Top Management. The Top Management only believes COPQ numbers blessed by the Cost Accountant!! That is the reality.