continuous process improvement methods

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1 Continuous Process Improvement Achieve Perfection Work as Process to make it Effective, Efficient, and Adaptable Anticipating Changing Customer Needs Control in process-Reduce Scrap, Time, Idle of Resources Eliminate Non Conformance in All Phases Using Bench Marking to improve competitive advantage Innovating to achieve breakthroughs CPI is designed to utilize the resources of the organization to achieve a quality-driven culture.

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Continuous Process Improvement Methods, Total Quality Management, TQM, Juran's Trilogy, Deming Philosophy, PDSA cycle, PDCA cycle, Kanban, Poka Yoke, Kaizen, 5S, CPI, push-pull systems, Business Process Reengineering, JIT(just in time)

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Continuous Process Improvement

Achieve PerfectionWork as Process to make it Effective, Efficient, and AdaptableAnticipating Changing Customer NeedsControl in process-Reduce Scrap, Time, Idle of ResourcesEliminate Non Conformance in All PhasesUsing Bench Marking to improve competitive advantageInnovating to achieve breakthroughsStatistical Tools, QFD,FMEA. Taguchi Loss FunctionIncorporating lessons learned into future activities

CPI is designed to utilize the resources of the organization to achieve a quality-driven culture.

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CPI- Various Approaches

• PDSA Cycle• Juran’s Trilogy• Reengineering• Kaizen• Six-sigma concept

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• PLAN

• DO

• STUDY

• ACT

Shewhart (PDSA) CYCLE

PLAN

DOSTUDY

ACT

It is a model for continuous improvement of quality. It consists of a logical sequence of 4 repetitive steps for continuous improvement & learning.

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• PLAN – Plan ahead for every and any change.

Ask the following questions ("The Five Ws and an H"): • 1. WHO does this plan impact (specifically, with what presumed or required characteristics or

qualifications)? • 2. WHAT is the purpose of the interface/relationship? WHAT are we trying to accomplish? WHAT

change can we make that will result in improvement? (Whichever question is appropriate). • 3. WHY does this support the end purpose of the system (i.e. 'vision')? • 4. WHERE will this take place (addressing all characteristics of the intended location)? • 5. WHEN is it to occur (i.e. earliest start/end, latest start/end, sequence/timing of steps/sub-

processes)? • 6. HOW - a step by step procedure to convert any and all system/process inputs to all system outputs.

HOW will we know that the change is an improvement • DO -Try the change on a small scale under controlled circumstances (i.e. experiment or prototype first) • STUDY- Analyze the results of your experiment. What do the data tell you about the effectiveness of

the test?

• ACT- Take action to STANDARDIZE the process that produced the results you desired

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PLAN

DOSTUDY

ACT

Continuous Process Improvement Cycle

Phase 1 Identify the opportunity

Phase 2 Analyze the Process

Phase 3 Develop the Optimal Solution

Phase 4 Implementation

Phase 5 Study the Results

Phase 6 Standardize the Solution

Phase 7 Plan for the Future

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PLAN

CHECK

DOACT

The Deming Cycle or PDCA Cycle

Plan a change to the process. Predict the effect this change will have and plan how the effects will be measured

Implement the change on a small scale and measure the effects

Adopt the change as a permanent modification to the process, or abandon it.

Study the results to learn what effect the change had, if any.

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When to use PDSA/PDCA Cycle

As a model for continuous improvement.

When starting a new improvement project.

When developing a new or improved design of a

process, product or service.

When defining a repetitive work process.

When planning data collection and analysis in order to

verify and prioritize problems or root causes.

When implementing any change.

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Benefits of the PDSA/PDCA Cycle

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Nested PDSA Cycle

Also referred to as "wheel-within-a-wheel," the nested PDSA process involves doing PDSA as part of each PDSA step. In other words, within the Plan step we have PDSA - the need to Plan the Plan, Do the Plan, Study the Plan, and Act on the Plan. Each PDSA step would have a PDSA process "nested" within.

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Juran's TrilogyJuran - Father of Quality

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Juran's TrilogyQuality Planning

To determine customer needs and develop processes and products required to meet and exceed those of the customer needs. This can be particularly challenging for a planning team, because customers are not always consistent with what they say they want. The challenge for quality planning is to identify the most important needs from all the needs expressed by the customer.

“Quality does not happen by accident, it must be planned”

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Juran's TrilogySTEPS in the Quality Planning Process

1. Identify who are the customers.

2. Determine the needs of those customers.

3. Translate those needs into our language.

4. Develop a product that can respond to those

needs.

5. Optimize the product features so as to meet

our needs and customer needs.

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Juran's Trilogy Quality Control The purposes of quality control is to ensure the process is running in optimal

effectiveness, or to ensure that any level of chronic waste inherent in the process does

not get worst.

Chronic waste, which is a cost of poor quality that can exist in any process, may

exist due to various factors including deficiencies in the original planning. It could cost a

lot of money to the company (eg: rework, scrap).

If the waste does get worst (sporadic spike), a corrective action team is brought in to

determine the cause or causes of this abnormal variation. Once the cause or causes

had been determined and corrected, the process again falls into the zone defined by

the “quality control” limits.

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Juran's Trilogy

STEPS in the Quality ControlChoose control Subjects (What to Control)Choose Units of measurementsEstablish MeasurementEstablish Standards of performanceMeasure actual performanceInterpret the differenceTake action on the difference

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Juran's Trilogy Quality Improvement

Eliminate waste, defects and rework that improves processes and reduces the cost of poor quality.

The processes have to be constantly challenged, and continuously improved.

Such an improvement does not happen of its own accord. It results from purposeful Quality Improvement or “Breakthrough.”

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Juran's Trilogy STEPS in the Quality Improvement

Prove need for improvement Identify specific projects for ImprovementsOrganize to guide & DiagnosisTo find causesProvide RemediesProve remedies for effective in operating conditionsEstablish the control to hold the gains

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Breakthrough Quality Zone

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Juran’s ten steps to Quality improvement

1. Build awareness of the need and opportunity for

improvement

2. Set goals for improvement

3. Organize to reach the goals

4. Provide training

5. Carry out projects to solve problems

6. Report progress

7. Give recognition

8. Communicate results

9. Keep score

10.Maintain momentum by making annual improvement part of

the regular systems and processes of the company

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Strength of Juran’s TrilogyThe methodology searches a continuous improvement of quality in every aspects of the organization.

The methodology allows the use different quality tools to cover the steps of

Juran’s Trilogy. It allows a better understanding of the relationships of every stage of the company. The methodology is well structured and allows the companies that implement it, an easy understanding and application.

Weaknesses of Juran’s Trilogy

To have quality control it is necessary to have a trained person with knowledge in

statistical processes or train a special person to be in charge of quality.

The program is focus in the company process and not in labor force.

This kind of methodologies show results in a long term; this represents a risk for

the company because the implementation of the quality program can be a waste of

time, money and resources.

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REENGINEERING

“Reengineering is 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

Some of the recent headlines in the popular press read,

“Hewlett Packard’s assembly time for server computers touches new low- four minutes.”

“Taco Bell’s sales soars from $500 million to $3 billion.”

The reason behind these success stories: Business Process Reengineering! (BPR)

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Why Business Process Improvement?Improving business processes is paramount for businesses to stay

competitive in today's marketplace.

Over the last 10 to 15 years companies have been forced to improve their

business processes because we, as customers, are demanding better and

better products and services.

And if we do not receive what we want from one supplier, we have

many others to choose from (hence the competitive issue for businesses!).

Many companies began business process improvement with a

continuous improvement model.

This model attempts to understand and measure the current process, and

make performance improvements accordingly.

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Basic steps of Business Process Improvement?

Begin by documenting what you do today, establish some way to measure

the process based on what your customers want, do the process, measure the

results, and then identify improvement opportunities based on the data you

collected.

You then implement process improvements, and measure the performance

of the new process. This loop repeats over and over again, and is called

continuous process improvement. It’ also called business process

improvement, functional process improvement

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Business Process Reengineering

Business process reengineering is the redesign of business processes and

the associated systems and organizational structures to achieve a dramatic

improvement in business performance. 

The business reasons for making such changes could include poor financial

performance, external competition, erosion of market share or emerging

market opportunities.  BPR is not - downsizing, restructuring, reorganization,

automation, etc.

It is the examination and change of five components of the business:

1.Strategy 2.Processes 3.Technology 4.Organization 5.Culture

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Basic steps of Business Process Reengineering

It begins with defining the scope and objectives of reengineering project,

then going through a learning process (with your customers, your

employees, your competitors and non-competitors, and with new

technology).

Given this knowledge base, you can create a vision for the future and

design new business processes. Given the definition of the "to be" state, you

can then create a plan of action based on the gap between your current

processes, technologies and structures, and where you want to go.

So finally, it is then a matter of implementing your solution.

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Reengineering Team Composition

The reengineering team composition should be a mixed bag.

For example,

some members who don't know the process at all,

some members that know the process inside-out,

include customers if you can,

some members representing impacted organizations,

one or two technology gurus,

each person your best and brightest, passionate and committed, and

some members from outside of your company.

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Kaoru Ishikawa has expanded Deming's four steps into six:Determine goals and targets. Determine methods of reaching goals. Engage in education and training. Implement work. Check the effects of implementation. Take appropriate action.

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Quality Improvement Strategies

• Repair• Refinement• Renovation• Reinvention

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KAIKAIKAIKAI

ZENZENZENZEN

Change/ Continuous Change/ Continuous Change/ Continuous Change/ Continuous

Good/ImprovementGood/ImprovementGood/ImprovementGood/Improvement

KAIZEN = Continual ImprovementKAIZEN = Continual ImprovementKAIZEN = Continual ImprovementKAIZEN = Continual Improvement

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CPM-Kaizen

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Overview the concept of-Kaizen

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Kaizen- Ideal circumstances

•It is very natural that people will propose some kind of change in their own work place, when they become unsatisfied with their present conditions.

•The Ideal situation is that the boss encourages their subordinates to carry out their ideas. That’s what people expect when they propose something.

•The +ve response given by the boss will then develop trust with the subordinates and stimulate other improvements.

•Cumulatively, this will create momentum for continuing improvement.

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The wet blanket ListThe bosses should encourage their subordinates, but in real life, the wet blankets put out the ‘fire’ of improvement suggestions. Here is the list of wet blankets:

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Basic tips for Kaizen activities

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How can we eliminate climbing up the trap?

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Here is the way…

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5 S

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5-S can be defined as

1. Seiri (Proper Arrangement and Clearing Up)a) Look around your work area and ask yourself “is it really necessary for all items to be there?”b) Separate the itemsc) Rework the reworkable items and dispose of the rejected items.

2. Seiton (Orderliness)Items must be placed inprefixed locations so that they are easily accessible and can be easily used. Make sure that items can be clearly identified by labeling them properly.

3. Seiso (Clean Up)Seiso means cleaning the work place and all the machinery by ourselves.

4. Seiketsu (Standardisation)Even a clean work place with proper selection and proper arrangement will soon become dirty if Seiri, Seiton and Seiso are not continuously repeated. Let us prevent problems by keeping things standardized and maintaining a good environment.

5. Shisuke (Discipline)Everyone should be disciplined to follow strictly the rules and maintain standards while working. For example let us adhere to the timings and let us follow the prescribed operation standads. Everybody should wear shoes for safety.

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SEI-RI-Clearing Up

• Identification of materials, equipment and tools data which are necessary or not necessary, discarding and make space for the required one’s.

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SEI-TON = ORGANIZING

• Once Cleaned and then arrange them in orderly manner.

• People should cultivate the habit of return the tools to the place from where it was taken.

• Easily accessible• Reduces time and confusions• Improves Efficiency

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SEI-SO= CLEANING

• After Clearing & Arranging .

• Organization should Identify and Eliminate source of Dirt, Dust, (or) Trash

• Update Constantly

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SEI-KE-TSU=Standardization

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SHI-TSU-KE = Discipline

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Advantages of 5S

By thoroughly enforcing 5S in each work area.

1. Operations can be performed without error, proceeding in a well-regulated fashion, resulting in fewer defective items thereby increasing the overall quality of product.

2. Operations can be performed safely and comfortably, reducing the chances of accidents.

3. Machinery and equipment can be carefully maintained, reducing the number of breakdowns.

4. Operations can be performed efficiently, eliminating waste thereby increasing the efficiency and productivity.

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How to Achieve 5S

5S can be achieved very easily by every employee by having a close look at his work place. He is to ensure that

1. No rejected / unwanted items are lying at his work place.2. All items are kept in proper locations/order.3. Everybody should co-operate with each other in keeping his and others areas and the machines clean.4. All follow rules and regulations and maintain required standards.

Please Check

1. Do you have any unwanted things around you?2. Are all the required things kept at their allocated places?3. Are you following the timings?4. Are you following the operating standards?5. Let us all review 5S. 

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JUST-IN-TIME (JIT)

What is JIT?

A corporate system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance.

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In 1949, Toyota was on the brink of bankruptcy, whereas in the

United States Ford’s car production was at least eight times more efficient than

Toyota’s. The president of Toyota, Kiichiro Toyoda, presented a challenge to

the members of his executive team: ‘‘To achieve the same rate of production as

the United States in three years.’’

Taiichi Ohno, vice president of Toyota, accepted his challenge and,

inspired by the way that an American supermarket works, ‘‘invented’’ the JIT

method (with the aid of other important Japanese industrial

revolutionary figures such as Shigeo Shingo and Hiroyuki Hirano).

Ohno and Shingo wrote their goal: ‘‘Deliver the right material, in the exact

quantity, with perfect quality, in the right place just before it is needed.’’

To achieve this goal, they developed different methodologies

that improved the production of the business.

JIT - Brief

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It is important to point out that, in the figure, JIT appears as a result of several methodologies being applied, not as the beginning of a different production philosophy.

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Seven Basic Types of Waste

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Benefits of JIT Systems• Reduced inventory levels

• High quality

• Flexibility

• Reduced lead times (A lead time is the latency (delay) between the initiation and execution of a process)

• Increased productivity• Increased equipment utilization

• Reduced scrap and rework

• Reduced space requirements

• Pressure for good vendor relationships

• Reduced need for indirect labor

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POKA YOKEShigeo Shingo, a Japanese Industrial Engineer, contributed many concepts to modern management and manufacturing practices, like

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Cont…

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Cont…

PY devices Prevention device: Is a device or process that prevents errors from occurring or prevents these errors from creating defectsDetection device: Is a device that will detect a defect or concern and initiate a corrective action

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Cont…Characteristics of PY devices

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Cont…The poka-yoke methodology includes the following steps:

Remove potential for excuses.

Reduce the opportunity to make mistakes.

Eliminate the root cause of mistakes.

Leverage teamwork and knowledge.

Make the process insensitive to human mistakes.

Eliminate nonvalue-added activities.

Encourage creativity for “poka-yoke’ing.”

Poka-yoke means making it difficult to make mistakes

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Cont…PY examples

Circuit breakers prevent electrical overloads and the fires that result. When the load becomes too great, the circuit is broken.

Electronic door locks can have three mistake-proofing devices: 1. insures that no door is left unlocked. 2. doors automatically lock when the car exceeds 18 miles an hour (for example). 3. lock won't operate when door is open and the engine is running.

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Cont…PY examples

For some file cabinets, opening one drawer locks all the rest, reducing the chance of the file cabinet tipping.

Pen drive cannot be inserted unless it is oriented correctly.

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Cont…PY examples

Even bathroom sinks have a mistake-proofing device. It is the little hole near the top of the sink that helps prevent overflows.

Hotel rooms are equipped with a room key holder which turns off the power when the key is removed.  This insures no electricity flows to the room while it is vacant.

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Cont…PY examples

Many Elevators are equipped with an electric eye to prevent doors from shutting on people. They also are equipped with sensors and alarms to prevent operation when overloaded.

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KANBAN

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Cont…Kanban scheduling systems operate like supermarkets.

A small stock of every item sits in a dedicated location with a fixed space

allocation. Customers come to the store and visually select items.

An electronic signal goes to the supermarket's regional warehouse detailing

which items have sold. The warehouse prepares a (usually) daily

replenishment of the exact items sold.

Kanban Scheduling System

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Cont…

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Cont…Kanban Square

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Cont…

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Cont…One of the most important concepts in lean manufacturing is that of ‘push’ and ‘pull’ systems.

Traditional manufacturing uses ‘push’ systems. In a chain of operations (stamping, milling, assembly, etc.) if a earlier operation is faster than a later operation, then a pile of inventory will build up in front of the downstream machine, as in the diagram below.

Push system

The ultimate inventory pile is at the end of the assembly process, where finished goods are stacked up in warehouses, waiting for customers to buy them.It takes up space, uses up working capital and is liable to damage and devaluation.

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Cont…Pull system The principle of ‘pull’ is that control is transferred from the beginning of the line to the end.Thus, in the example above, Operation 2 needs to control what Operation 1 gives them. The secret of this is the ‘Kanban card’. A kanban card is a control device which effectively says to the recipient ‘Give me N items, and N items only. When you have done that, stop! Wait until you get the next kanban card.’

The diagram below now shows the changed conversation between Operation 1 and Operation 2.

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Cont…