5-Continuous Process Improvement

REFERENCETotal Quality Management by Besterfield et al

ProcessInteraction of some combination of

people, materials, equipment, method to produce an outcome.

INPUTMaterials

MoneyInformation

Data

OUTPUTProductService

Information

OUTCOMES

PROCESSPeople

Equipment

Environment

MethodMaterials

FEEDBACK

Improvement5 Ways to Improve1. Reduce resource input2. Reduce errors3. Meet or exceed expectations of

customers4. Make the process Safer5. Make the process more

satisfying for the people doing it

Improvement Strategies: RepairAnything 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: RefineContinually improve the process that is

not brokenIncremental improvements in products,

processes, servicesA strategy for both individuals & teamsDoing things just a bit quicker, better,

easier or with less wasteBenefit: Little resistance from

employeesDrawback: Gradual change might not be

recognized or rewarded by management

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: ReinventMost demanding strategyThinking 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

Drawback: Potential resistance from within

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 process3. Develop optimal solution4. Implement5. Study the results6. Standardize solution7. Plan for future

1- Identify the OpportunityPareto 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 schemesData on performance of competitorsComments 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 TeamAuthorityObjective & 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 ProcessUnderstand 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

system

2- Analyze the current Process:Data RequirementsCustomer info (complaints,

surveys etc)Design info (specifications,

drawings, function, bills 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 variation, on-time delivery, technical competency)

3- Develop optimal Solutions

Search the best solution after considering all available information

Creativity plays an important role in1. Creating new process2. Combining different processes OR3. Modifying the existing process Possible change areas: Bottle

necks, delays, equipment, timing, # of inspections, rework, cycle time, inventory levels etc

4- Implement ChangesImplementation plan should

describeWhy 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 resultsTrack the effectiveness of the

improvementImportant to Institutionalize

meaningful changeEnsure 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 not satisfied

6- Standardize the solutionPositive 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 FutureImprovement process continuesTQM 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

KAIZENJapanese 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.