A short slide presentation on how to approach improving a business process.

1. Business Process
Improvement
Methodology for eliminating waste

2. Critical Process Characteristics
 Painful – it consumes excess time or resources
 No one person is accountable for its success or failure
 The market dictates a process change
 The organization changes its goals and processes must
be aligned with the change.

3. What does waste look like?
 8 categories:
 Waiting (delays)
 Overprocessing
 Defective products
 Transportation
 Motion
 Variation
 Inventory
 Overproduction

4. The methodology
 Five Step method
 Define the improvement opportunity
 Collect available data
 Analyze the process
 Develop Solutions
 Implement improvements
 Plan
 Do
 Check
 Adjust

5. Details of the Methodology
Define the Collect Data Analyze the Develop Implement
Opportunity Opportunity Solutions Improvements
Clarify With process With Identify major Generate PLAN ADJUST
expectations customers process waste areas alternatives
suppliers
Zero-base Clarify the Try again
Define process Understand Clarify input Determine root
the process project
boundaries how outputs requirements causes of waste
areused
Identify other Develop Develop a Maintain the
Identify
Stakeholders Then: preferred plan gain
customer
alternatives
needs
DO Spread the
Develop Agree on Assimilate word
preliminary customer Improvement
indicators requirements ideas
Execute the Move ahead
Set Assimilate Finalize plan
improvementgo customer process
als information indicators
CHECK Move on
Benchmark With Implement
the Process Feedback and
process
reporting
doers Check the
results
Lay out a
flowchart
Collect process
documentation

6. Define the
Improvement  What is the current
situation?
Opportunity
Define the  What are the symptoms of
Opportunity the problem
Clarify
expectations  What should the situation
be?
Define process
boundaries
Identify other
 What would improvement
Stakeholders
look like?
Develop
preliminary  How will we measure
improvement?
indicators
Set
improvementgo
als
Benchmark
the Process

7. Collect Available
Data  Get a more complete
Collect Data description of the problem
 Gather statistics
With process
customers
With
process
 Check historical records
suppliers
 Identify potential causes
Understand Clarify input
how outputs
areused
requirements
 Interview stakeholders
Identify
 Suppliers
Then:
 Process “doers”
customer
needs
Agree on
customer
Assimilate
Improvement
 Customers
ideas
requirements
 Develop a process flowchart
Assimilate Finalize
customer process
information indicators
With Implement
Feedback and
process
reporting
doers
Lay out a
flowchart
Collect process
documentation

8. Process
Flowcharting  Flowcharting Basics
 Define the beginning and
Symbols the end of the process
Document  Chart from upper left to
lower right
Delay  List affected departments /
functions on the left
 Draw lines across to
Decision
separate the functions
 Define the process with 30
Transportation symbols or less to start
Inspection
Operation
File

9. Analyze the  Where is the waste in the
process?
Opportunity
 What is the data telling us?
Analyze the
Opportunity
 What are the root causes of
Identify major
waste areas
the problem (ask 5 why’s)?
Determine root  Which causes need to be
targeted for action?
causes of waste
 Which analysis tool?
 Cause & Effect diagram
 Nominal Group Technique
 Root Cause Analysis

10. Develop  Generate creative solutions
Solutions  Question the root causes
 Why is this being done?
Develop  Who is doing this?
Solutions
 What is being done?
Generate  When is it being done?
alternatives
 How is it being done?
Zero-base
the process  Set aggressive improvement
goals
Develop
preferred
alternatives
 Reduce errors by 90%
 Cut time by 75%
 Flowchart the “ideal
process

11. Implement  Plan
 Clear understanding of the
Improvements solution
 Lay out who is going to do
Implement
Improvements
what and when
PLAN ADJUST  Do
 Work the plan
Clarify the Try again
 Check
project
Develop a Maintain the  Are the intended effects
plan gain
being realized?
DO Spread the
word
 Adjust
Execute the Move ahead
 Return to the analysis and
plan solutions development
CHECK Move on  Alternative solutions may be
required
Check the
results

12. Conclusion
 A disciplined approach will yield breakthrough
improvement.
 Best results come when you use a team approach.
 Always set aggressive goals for improvement
 Revisit the improvements periodically to insure
permanence.
 Don’t forget to celebrate your success!