Principles of Process Improvement Primary focus areas Productivity Cost Quality 1 Flexibility and Cycle Time Reduction Flexibility the ability to adapt quickly and effectively to changing requirements Cycle time the time it takes to accomplish one cycle of a process Reductions in cycle time speed up work processes so that customer response is improved but can be accomplished only by streamlining and simplifying processes to eliminate non value added steps such as rework 2 Breakthrough Improvement Breakthrough improvement refers to discontinuous change as opposed to the philosophy of gradual continuous improvement Often motivated by stretch goals or breakthrough objectives 3 Reengineering Reengineering the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed 4 Systematic Improvement Methodologies 1 Redefining and Analyzing the Problem Collect and organize information analyze the data and underlying assumptions and reexamine the problem for new perspectives with the goal of achieving a workable problem definition 2 Generating Ideas Brainstorm to develop potential solutions 5 Systematic Improvement Methodologies 3 Evaluating and Selecting Ideas Determine whether the ideas have merit and will achieve the problem solver s goal Implementing Ideas Sell the solution and gain acceptance by those who must use them 4 6 The Deming Cycle 7 Plan 1 of 2 1 Define the process its start end and what it does 2 Describe the process list the key tasks performed and sequence of steps people involved equipment used environmental conditions work methods and materials used 3 Describe the players external and internal customers and suppliers and process operators 4 Define customer expectations what the customer wants when and where for both external and internal customers 5 Determine what historical data are available on process performance or what data need to be collected to better understand the process 8 Plan 2 of 2 6 Describe the perceived problems associated with the process for instance failure to meet customer expectations excessive variation long cycle times and so on Identify the primary causes of the problems and their impacts on process performance 7 8 Develop potential changes or solutions to the process and evaluate how these changes or solutions will address the primary causes Select the most promising solution s 9 9 Do 1 Conduct a pilot study or experiment to test the impact of the potential solution s Identify measures to understand how any changes or solutions are successful in addressing the perceived problems 2 10 Study 1 Examine the results of the pilot study or experiment 2 Determine whether process performance has improved Identify further experimentation that may be necessary 3 11 Act 1 Select the best change or solution 2 Develop an implementation plan what needs to be done who should be involved and when the plan should be accomplished 3 Standardize the solution for example by writing new standard operating procedures 4 Establish a process to monitor and control process performance 12 Analyzing Process Maps 1 of 2 Are the steps in the process arranged in logical sequence Do all steps add value Can some steps be eliminated and should others be added in order to improve quality or operational performance Can some be combined Should some be reordered Are capacities of each step in balance that is do bottlenecks exist for which customers will incur excessive waiting time What skills equipment and tools are required at each step of the process Should some steps be automated 13 Analyzing Process Maps 2 of 2 Where are the critical points of customer contact At which points in the system might errors occur that would result in customer dissatisfaction and how might these errors be corrected At which point or points should quality be measured Where interaction with the customer occurs what procedures and guidelines should employees follow to present a positive image 14 Kaizen Events A kaizen event kaizen blitz is an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period as opposed to traditional kaizen applications which are performed on a part time basis 15 Poka Yoke Mistake Proofing Poka yoke an approach for mistake proofing processes using automatic devices or methods to avoid simple human or machine error such as forgetfulness misunderstanding errors in identification lack of experience absentmindedness delays or malfunctions 16 What is Mistake Proofing The use of process or design features to prevent errors or their negative impact Also known as Poka yoke Japanese slang for avoiding inadvertent errors which was formalized by Shigeo Shingo Inexpensive Very effective Based on simplicity and ingenuity Everyday Examples Which dial turns on the burner Stove A Stove B 18 Everyday Examples How would you operate these doors Push or pull left side or right How did you know A B C Everyday Examples 3 5 inch diskettes cannot be inserted unless diskette is oriented correctly This is as far as a disk can be inserted upside down The beveled corner of the diskette along with the fact that the diskette is not square prohibit incorrect orientation Fueling area of car has three error proofing devices 1 insert keeps leaded fuel nozzle from being inserted 2 tether does not allow loss of gas cap 3 gas cap has ratchet to signal proper tightness and prevent overtightening New lawn mowers are required to have a safety bar on the handle that must be pulled back in order to start the engine If you let go of the safety bar the mower blade stops in 3 seconds or less 21 A New Attitude Toward Preventing Errors Make wrong actions more difficult Make it possible to reverse actions to undo them or make it harder to do what cannot be reversed Make it easier to discover the errors that occur Make incorrect actions correct Three Levels of Mistake Proofing Design potential errors out of the product or process Eliminates any possibility that the error or defect might occur Identify potential defects and stopping a process before the defect is produced Requires time to stop a process and take corrective action Find defects that enter or leave a process Eliminates wasted resources that would add value to nonconforming work but clearly results in scrap or rework 22 Poka Yoke in Services Task errors