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5-Continuous Process
Improvement



REFERENCE
Total Quality Management by Besterfield et al
Process
         Interaction of some combination of
          people, materials, equipment, method to
          produce an outcome.
                               FEEDBACK



   INPUT          PROCESS
 Materials          People       OUTPUT
   Money          Equipment       Product     OUTCOMES
Information       Environme       Service
    Data              nt        Information
                   Method
                   Materials
Improvement
 5 Ways to Improve
1. Reduce resource input
2. Reduce errors
3. Meet or exceed expectations of
   customers
4. Make the process Safer
5. Make the process more satisfying for
   the people doing it
Improvement Strategies:
Repair
    Anything Broken must be fixed
    Two levels of application
1.    If a customer receives damaged
      product: FIX IT (Temporary solution)
2.    Eliminate the root cause of the
      problem (long term solution)
Improvement Strategies:
Refine
 Continually improve the process that
  is not broken
 Incremental improvements in
  products, processes, services
 A strategy for both individuals & teams
 Doing things just a bit quicker, better,
  easier or with less waste
 Benefit: Little resistance from
  employees
 Drawback: Gradual change might not
  be recognized or rewarded by
Improvement Strategies:
Renovate
   Major break through improvements
   Output may appear to be the same
   Innovation & technology
    advancements are key factors in this
    approach
   More expensive
Improvement Strategies:
Reinvent
 Most demanding strategy
 Thinking process: Current approach
  will never satisfy customer
  requirements
 A new output (product, service or
  activity) might be developed
 Start with the imagination that
  previous system does not exist
 Benefit: Potential competitive
  advantage
Types of Problems
   Compliance (Specified by standards)
   Unstructured (Not specified by
    standards)
   Efficiency (from operations viewpoint)
   Process Design
   Product Design
Problem Solving Method
1.   Identify an Opportunity
2.   Analyze the process
3.   Develop optimal solution
4.   Implement
5.   Study the results
6.   Standardize solution
7.   Plan for future
1- Identify the Opportunity
 Pareto Analysis of external signals
  (field failures, complaints, returns etc)
 Pareto Analysis of internal alarms
  (scrap, rework, sorting and 100% test)
 Key Insiders (Managers, supervisors,
  workers etc)
 Suggestion schemes
 Data on performance of competitors
 Comments of key people outside
  organization (Customers, suppliers etc)
1- Identify the Opportunity Cont..
 Quality Counsel or work group
  prioritize problems on three criteria
1. Is problem important & not
   superficial?
2. Will problem solution contribute to
   the attainment of goals?
3. Can problem be defined clearly using
   objective measures
 Failures normally caused by poor
   definition of problems
1- Identify the Opportunity:
Charter for Problem solving
Team
 Authority
 Objective & Scope (expected
  outputs, specific areas to improve)
 Composition (team members and
  sub-process owners)
 Direction & Control (Guide lines for
  internal operations of team)
 General (methods to be used)
2- Analyze the current
Process
   Understand the current performance

   Define inputs, outputs, suppliers,
    process flow & Determine the current
    level of customer satisfaction
   Define target performance measures
    w.r.t to customer requirements

   Define data required to manage the
2- Analyze the current Process:
Data Requirements
 Customer info (complaints, surveys
  etc)
 Design info
  (specifications, drawings, function, bill
  s of materials, maintainability)
 Process info (routing, equipment, raw
  material, component parts etc)
 Quality info (Pareto diagram, cause &
  effect diagram, control charts etc)
 Supplier info ( Such as process
3- Develop optimal Solutions
 Search the best solution after
  considering all available information
 Creativity plays an important role in
1. Creating new process
2. Combining different processes OR
3. Modifying the existing process
 Possible change areas: Bottle
   necks, delays, equipment, timing, # of
   inspections, rework, cycle
   time, inventory levels etc
4- Implement Changes
 Implementation plan should describe
 Why will it be done?
 How will it be done?
 When will it be done?
 Who will do it?
 Where will it be done?
 Also the critical info and details about
  measurement of information
5- Study the results
 Track the effectiveness of the
  improvement
 Important to Institutionalize meaningful
  change
 Ensure ongoing measurement &
  evaluation efforts to achieve continuous
  improvement
 Project team should meet periodically
  during this phase to evaluate the results
 Some phases to be repeated if team is
6- Standardize the solution
   Positive control specifies variables
    that need to be kept under control
   What, who, how, where and when of
    the process
   Standardizing the solution prevents
    backsliding
7- Plan for the Future
 Improvement process continues
 TQM addresses the Quality of
  management as well as Management
  of Quality
 Every one in the organization is
  involved in long term endeavor of
  continuous improvement
KAIZEN
 Japanese philosophy that defines role
  of management in continuous
  improvement
 Process of continuous improvement in
  small increments that make process
  more efficient, effective, under control
  and adaptable
 Accomplished with little or no expense
  and without using sophisticated
  techniques or expensive equipment.

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Continuous process improvement (4)

  • 2. Process  Interaction of some combination of people, materials, equipment, method to produce an outcome. FEEDBACK INPUT PROCESS Materials People OUTPUT Money Equipment Product OUTCOMES Information Environme Service Data nt Information Method Materials
  • 3. Improvement  5 Ways to Improve 1. Reduce resource input 2. Reduce errors 3. Meet or exceed expectations of customers 4. Make the process Safer 5. Make the process more satisfying for the people doing it
  • 4. Improvement Strategies: Repair  Anything Broken must be fixed  Two levels of application 1. If a customer receives damaged product: FIX IT (Temporary solution) 2. Eliminate the root cause of the problem (long term solution)
  • 5. Improvement Strategies: Refine  Continually improve the process that is not broken  Incremental improvements in products, processes, services  A strategy for both individuals & teams  Doing things just a bit quicker, better, easier or with less waste  Benefit: Little resistance from employees  Drawback: Gradual change might not be recognized or rewarded by
  • 6. Improvement Strategies: Renovate  Major break through improvements  Output may appear to be the same  Innovation & technology advancements are key factors in this approach  More expensive
  • 7. Improvement Strategies: Reinvent  Most demanding strategy  Thinking process: Current approach will never satisfy customer requirements  A new output (product, service or activity) might be developed  Start with the imagination that previous system does not exist  Benefit: Potential competitive advantage
  • 8. Types of Problems  Compliance (Specified by standards)  Unstructured (Not specified by standards)  Efficiency (from operations viewpoint)  Process Design  Product Design
  • 9.
  • 10. Problem Solving Method 1. Identify an Opportunity 2. Analyze the process 3. Develop optimal solution 4. Implement 5. Study the results 6. Standardize solution 7. Plan for future
  • 11. 1- Identify the Opportunity  Pareto Analysis of external signals (field failures, complaints, returns etc)  Pareto Analysis of internal alarms (scrap, rework, sorting and 100% test)  Key Insiders (Managers, supervisors, workers etc)  Suggestion schemes  Data on performance of competitors  Comments of key people outside organization (Customers, suppliers etc)
  • 12. 1- Identify the Opportunity Cont..  Quality Counsel or work group prioritize problems on three criteria 1. Is problem important & not superficial? 2. Will problem solution contribute to the attainment of goals? 3. Can problem be defined clearly using objective measures  Failures normally caused by poor definition of problems
  • 13. 1- Identify the Opportunity: Charter for Problem solving Team  Authority  Objective & Scope (expected outputs, specific areas to improve)  Composition (team members and sub-process owners)  Direction & Control (Guide lines for internal operations of team)  General (methods to be used)
  • 14. 2- Analyze the current Process  Understand the current performance  Define inputs, outputs, suppliers, process flow & Determine the current level of customer satisfaction  Define target performance measures w.r.t to customer requirements  Define data required to manage the
  • 15. 2- Analyze the current Process: Data Requirements  Customer info (complaints, surveys etc)  Design info (specifications, drawings, function, bill s of materials, maintainability)  Process info (routing, equipment, raw material, component parts etc)  Quality info (Pareto diagram, cause & effect diagram, control charts etc)  Supplier info ( Such as process
  • 16. 3- Develop optimal Solutions  Search the best solution after considering all available information  Creativity plays an important role in 1. Creating new process 2. Combining different processes OR 3. Modifying the existing process  Possible change areas: Bottle necks, delays, equipment, timing, # of inspections, rework, cycle time, inventory levels etc
  • 17. 4- Implement Changes  Implementation plan should describe  Why will it be done?  How will it be done?  When will it be done?  Who will do it?  Where will it be done?  Also the critical info and details about measurement of information
  • 18. 5- Study the results  Track the effectiveness of the improvement  Important to Institutionalize meaningful change  Ensure ongoing measurement & evaluation efforts to achieve continuous improvement  Project team should meet periodically during this phase to evaluate the results  Some phases to be repeated if team is
  • 19. 6- Standardize the solution  Positive control specifies variables that need to be kept under control  What, who, how, where and when of the process  Standardizing the solution prevents backsliding
  • 20. 7- Plan for the Future  Improvement process continues  TQM addresses the Quality of management as well as Management of Quality  Every one in the organization is involved in long term endeavor of continuous improvement
  • 21. KAIZEN  Japanese philosophy that defines role of management in continuous improvement  Process of continuous improvement in small increments that make process more efficient, effective, under control and adaptable  Accomplished with little or no expense and without using sophisticated techniques or expensive equipment.