Organizational process improvement online presentation

ORGANIZATIONAL
PROCESS IMPROVEMENT
(VOL: 1)
Online Training Workshop Presented by
Ritetrac Consulting Nig. Ltd

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Copyright@RitetracConsultingNgeria
Ltd::.www.ritetracconsult.com.ng

ABOUT RITETRAC
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AGENDA
 Lean Background & Thinking
 Lean Tools, : 5s; Waste
 Process Mapping
 Mapping
 Six Sigma Tools (DMAIC)
 Root Cause Analysis
 Mistake Proofing
 Change Management Considerations
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INTRODUCTION
Before diving into the step-by-step discussion,
let’s first clarify some terms, look at the benefits
of process improvement, and think about the best
way to get started.
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WHAT IS A PROCESS?
A process is no more than the steps and
decisions involved in the way work is
accomplished. Everything we do in our lives
involves processes and lots of them.
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HERE ARE SOME EXAMPLES:
 writing a work order
 shooting a weapon
 getting out of bed
 repairing a valve
 ordering a part
 performing a test
 preparing a message
 loading a missile
 allocating a budget
 conducting a drill
 . . . and the list goes on. 7

WHO OWNS PROCESSES?
Everyone has a stake in one or more processes.
Groups of individuals usually share in—and
“own”—the activities which make up a process.
But the one individual who is ultimately
responsible and accountable for the proper
working of the process is known as the “process
owner.” The process owner is the immediate
supervisor or leader who has control over the
entire process from beginning to end.
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CONT’D
A process owner may choose to be a team leader
and participate directly in the actions of a
process improvement team. Or, the process
owner may decide to delegate the team
leadership role to another person who is
knowledgeable about the process. Whatever the
case, it is very important for the process owner to
stay informed about the team’s actions and
decisions affecting the process.
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WHAT IS PROCESS IMPROVEMENT?
“Process improvement” means making things
better, not just fighting fires or managing crises.
It means setting aside the customary practice of
blaming people for problems or failures. It is a
way of looking at how we can do our work better.
When we take a problem-solving approach or
simply try to fix what’s broken, we may never
discover or understand the root cause of the
difficulty.
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CONT’D
However, when we engage in true process
improvement, we seek to learn what causes
things to happen in a process and to use this
knowledge to reduce variation, remove activities
that contribute no value to the product or service
produced, and improve customer satisfaction.
A team examines all of the factors affecting the
process: the materials used in the process, the
methods and machines used to transform the
materials into a product or service, and the
people who perform the work. 11

HOW DOES PROCESS
IMPROVEMENT BENEFIT THE
ORGANIZATION?
A standardized process improvement
methodology allows us to look at how we perform
work. When all of the major players are involved
in process improvement, they can
collectively focus on eliminating waste—of
money, people, materials, time, and
opportunities.
The ideal outcome is that jobs can be done
cheaper, quicker, easier, and—most importantly
—safer
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CONT’D
A teamwork approach is intrinsic to life in many
industries. Using total quality tools and methods
reinforces teamwork.
Using team members’ collective knowledge,
experiences, and efforts is a powerful approach to
improving processes. Through teamwork, the
whole becomes greater than the sum of its parts.
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HOW DOES AN ORGANIZATION GET
STARTED ON PROCESS
IMPROVEMENT?
An essential first step in getting started on
process improvement is for the senior leader to
make it a command priority.
The importance of process improvement must be
communicated from the top. Leaders need to
foster an organizational environment in which a
process improvement mentality can thrive and
people are using quality-related tools and
techniques on a regular basis.
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CONT’D
For the organization to reach this state, leaders
must ensure that everyone receives the training
that will enable them to carry out their process
improvement efforts effectively.
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CONT’D
Instilling a process improvement mentality in an
organization can be difficult because it requires
some different ways of thinking than we are
accustomed to. Process improvement requires
everyone to become a “fire preventer,” rather
than a “fire fighter.”
The focus is on improving a process over the long
term, not just patching up procedures and work
routines as problems occur.
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ACTION STEPS
 What process should we select for improvement?
 What resources are required for the improvement
effort?
 Who are the right people to improve the selected
process?
 What’s the best way to learn about the process?
 How do we go about improving the process?
 How can we institutionalize the improved
process?
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LEAN THINKING
History of Industry:
Toyota Post War
The Need:
• High-quality (the first time around)
• Work based on demand vs work for work’s
sake
• Dramatically lower costs
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HISTORY OF INDUSTRY:
TOYOTA POST WAR
The Solution:
• Flow production: make what is needed when it’s
needed
– No inventory
– Based on customer demand and specifications
• Highly flexible, highly capable, efficient processes
• Consider what customer wants: ‘voice of
customer’
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CHALLENGES FACING INDUSTRIES
 Reduced funding
 Demand for greater accountability
 Perceived as expensive and inefficient
– Processes failing to meet needs of those they serve
‘customer’ employers, staff and etc.
– Processes slow; lack documentation, standardization
and training
– Processes cross many unit areas with each area
working on their part of the process in silos; no real
owner responsible for ensuring process is optimal
 Climate of continuously improving does not exist
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THE COMPETITIVE UNIVERSE
“I WANT IT ON TIME and in the proper
hands. I want it done correctly, accurately,
exactly, precisely, perfectly, efficiently,
reliably, expertly, proficiently, faithfully,
totally, absolutely, unequivocally,
unmitigatedly, maturely, lawlessly,
supremely, unsurpassedly and certainly
without fault. I want it unharmed,
unbotched, untainted and unscrewed-up.
And most of all I want it done CHEAP!”
FedEx
“Our Most Important Package Is Yours.” 21

WHAT IS LEAN?
• What have you heard?
 Isn’t this stuff for people who make cars?
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LEAN THINKING
A simple definition:
Deliver the most value from your customer’s
Perspective while consuming the fewest
resources
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CUSTOMER IS KING
Who is a customer?
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WHY A LEAN OFFICE? DOES IT
APPLY TO MY INDUSTRY?
• Most organizational costs are administrative
• Work completed faster and more accurately
• Improves productivity and morale
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LEAN THINKING:
THE FUNDAMENTAL INSIGHT
• Focus on each product/service and its
value stream (how it’s created)
• Ask which activities are waste and which
truly create value
• Enhance the value and eliminate the
waste to optimize the whole!
How do we gauge success? Time
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WHERE’S THE TIME IN A TYPICAL
PROCESS?
• Traditional improvement efforts focus on the
value added time – the good process steps that
create value
• Focusing on non value added (NVA) has largest
opportunity for improvement
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LEAN THINKING IN SUMMARY
1. Specify Value by product/service
2. Identify the Value Stream
3. Make the product/service Flow
4. At the Pull of the customer
5. In pursuit of Perfection
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CONT’D
1. Specify Value by product from the standpoint
of the customer
– Applies to “services” as well as “goods”:
Most customers just want a solution to their
problem!
2. Identify the Value Stream from the start of
the process to the end
– Eliminate steps that don’t create value and cause
waste
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CONT’D
3. Make the product/service Flow continuously
Avoid defects and bottlenecks
– Rework
– Errors
– Waiting
4. At the Pull of the Customer:
– Delivering only what is needed, when it’s
needed
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CONT’D
5. In pursuit of Perfection
– Perfection is the complete elimination of waste
and non value added activities; requires a
continuous improvement mentality
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LEAN PRINCIPLES
• The customers always define value for the
process
• Lean distinguishes steps that create value from
those that do not
• Lean reduces waste and builds in quality
• The people who do the work are the experts
• Learning to improve work is as important as
producing the work output
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5 S
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LEAN TOOLS:
5S & WASTE
5S
A five-step improvement process to create and
maintain a clean, neat, and high performance
workplace. Used to READY the workplace for future
continuous improvement efforts.
1. Sort - distinguish needed items from unneeded;
eliminate unneeded
2. Straighten - keep needed items in the correct
place
for easy access
3. Shine - keep workplace tidy
4. Standardize - method of making the steps above
a
habit
5. Sustain - establish procedures
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1. SORT
• Sort out necessary and unnecessary items
− Tag items for removal or storage
• Store often used items at the work area and
infrequently used items away from the work
area
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CONT’D
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2. STRAIGHTEN
• Arrange all necessary items
– Establish locations
– Naming convention for electronic files
– Signage for work production and supply areas
“Visual Work Environment”
• “A place for everything, everything in its
place”
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CONT’D
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3. SHINE
• To keep your area clean on a continuing
basis
– Physically clean
– Clean electronic folders on
– a regular basis; no outdated
– versions
– Can a colleague find it
– No unused icons/shortcuts
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4. STANDARDIZE
• To maintain guidelines – Sort, Straighten and
Sweep
– Develop schedules, checklists, audits,
information boards
– Periodically evaluate area using 5S spreadsheet
– Workgroup agrees on naming conventions, where
to save/store/retrieve data
• Prevents regression back to an
unclean/disorganized environment (return items
to where they belong)
• Continually improve neatness 40

5. SUSTAIN
• To maintain discipline, we need to practice and
repeat until it becomes a way of life
– Training everyone is vital
– Involvement from all is necessary
• To build housekeeping into every day process
– Commitment and discipline toward housekeeping
is essential in taking the first step in being World
Class
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CONT’D
Before After
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BENEFITS OF 5S
• Organized workplace
• Reduces stress
• Reduces waste
• More pleasant place to work
• Credibility/impress customers
• Safer work environment
• Foundation for other improvement projects
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WHAT IS WASTE?
• The elements of an activity that do not add
value from the customer perspective
• Adds cost & time
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ADDRESSING WASTE
Address the underlying problems (causes of
waste) to improve performance:
1. Correction/Rework
2. Overproduction
3. Unnecessary Movement of Items/Materials
4. Unneeded Motion
5. Waiting
6. Inventory
7. Over-Processing/Complexity
8. Underutilization of Resources
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ADDRESSING WASTE
1. Correction/Rework: Errors or mistakes; not doing it
right the first time. Additional work or resources necessary to
correct,
rework or otherwise mitigate defects and mistakes.
• Ask:
– Do we have data entry errors, typos?
– Do we have billing, or coding errors?
– Do we forward incomplete documentation to the next
process?
– Do we receive incorrect information on a document?
– Do we ever lose files or records?
– Are your email distribution lists up-to-date?
– Are instructions or requirements unclear or confusing? 46

ADDRESSING WASTE
2. Overproduction: Producing more of an
item than is needed.
• Ask:
– Are we producing more reports than needed?
ARE
they needed?
– Are we making extra copies? ARE they needed?
– Are we printing, faxing, emailing more than what
is
needed?
– Are we entering repetitive information on
multiple
work documents or forms?
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3. UNNECESSARY MOVEMENT OF
Items/Materials: Unneeded travel or movement
of materials used when producing an item.
• Ask:
– Are you delivering/routing documents that are
not required?
– Are you doing excessive filing of work
documents that will never be used again?
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4. UNNEEDED MOTION:
Unnecessary motion required by a worker to complete a
task.
• Ask:
– Are you searching for computer files on your desktop?
Unable to find or too many layers in electronic files?
– Are you searching for work documents (files) in
cabinets
and/or drawers? Digging through stacks of paper?
– Are you hand-carrying paper work to another process
or
department regularly?
– Are you walking to a copier or printer?
– Are you spending a lot of time traveling to meetings? 49

5. WAITING:
Idle time while individuals wait for work to arrive;
customers waiting
for service.
• Ask:
– Are there bottlenecks?
– Are there excessive signatures or approvals required?
(long approval cycles)
– Is there too much dependency on others to complete a
task?
– Are there cross-departmental resource commitments
issues? How do they know how to prioritize?
– Are there delays in receiving information?
– Is there time spent waiting for decisions?
– Are there system downtimes, slow systems?
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6. INVENTORY
Excessive inventory that ties up space and capital.
• Ask:
– Are files (work) sitting in an inbox (backlog of
work)?
– Are we processing information in batches?
– Are we purchasing excessive supplies of any
kind?
– Do we have any obsolete files/folders/equipment
in the area?
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7. OVER-
PROCESSING/COMPLEXITY:
Doing more work than is necessary to complete a
task.
• Ask:
– Are we doing more work than is required for that
process? (too many process steps)
– Are Job descriptions/work processes clear?
– Are we receiving unclear reports/memos?
– Are we duplicating reports or information?
– Are we entering repetitive data?
– Are we producing repetitive documents from
scratch?
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8. UNDERUTILIZATION OF
RESOURCES
Not getting what is possible from people, processes and
resources. Limiting worker authority or responsibility.
Inadequate resources to do the job. Inadequate training
or education for workers.
• Ask:
– Are we in positions we were trained to do?
– Can we assist other areas when work is slow in our
primary area?
– Can we be trained to do more within the organization?
(Cross training)
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TO INCREASE OUTPUT, WASTE
MUST
BE ADDRESSED
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DEFINING/IDENTIFYING CURRENT
PROCESS
As – Is Process: Steps & Tools
 Common Understanding of big picture – SIPOC
 Detailed Common Understanding of CURRENT
 Process - Top Down Flow Diagram
 Cross Functional Flow Chart
 Value Stream Map
 Walk the Process
 Obtain Customer/User Perspective
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SIPOC
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PROCESS THINKING AT TOYOTA
“Brilliant process management is our strategy.
We get brilliant results from average people
managing brilliant processes.
We observe that our competitors often get
average (or worse) results from brilliant
people managing broken processes.”
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WHAT IS PROCESS MAPPING?
• A graphical representation of how work is
done that shows tasks in sequence and makes
work visible
• Clarifies roles and responsibilities
− What activities are completed by whom and in
what sequence
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WHY PROCESS MAPPING?
• Orient and train employees and customers
• Improve a process:
– Identify opportunities for improvement
– Streamline activities and eliminate redundancies
– Automate processes
– Identify metrics (costs, resource allocation
etc.) to improve
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WHY ARE THERE PROCESS ISSUES?
• Process was not designed well initially
• Customer needs changed but process did
not
• Technology changed but process did not
• Process was changed over time
– Added steps, approvals, checks on accuracy
• Process dependent on a few individuals
but not documented
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CONT’D
• Process owners rarely take/have the time to
review a process
• Those working on a process don’t have a
mechanism to fix the process
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WHAT IS LEAN SIX SIGMA
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SIX SIGMA PHASES
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WHY SIX SIGMA IMPLEMENTATION
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ROOT CAUSE ANALYSIS/ 5 WHYS
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MISTAKE PROOVING
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CONCLUSION
It is in our opinion that every organization need
to encourage a philosophy of constant, logical and
sustainable process improvement to avoid waste
and defects.
Henry Ford “We will not put into our
establishment anything that is useless.”
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OUR SERVICES
 Lean Six Sigma Consulting & Training
 Process Management
 Operational Excellence
 Diagnostics and Analytics using MINITAB.
ENGAGE ON SOCIAL MEDIA
 Website: www.ritetracconsult.com.ng
 Facebook: www.facebook.com/ritetrac
 Twitter: @ritetracconsult
 Blog: http://ritetracpm.blogspot.com
 Instagram:https://www.instagram.com/ritetracco
nsulting/
 Linkedin: http://bit.ly/RitetracLinkedin 68

QUESTIONS/FEEDBACK
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