organizational process improvement online presentation

ORGANIZATIONAL PROCESS IMPROVEMENT (VOL: 1)Online Training Workshop Presented by

Ritetrac Consulting Nig. Ltd

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Copyright@Ritetrac Consulting Ngeria

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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INTRODUCTIONBefore 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’DA 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 neverdiscover or understand the root cause of the difficulty.

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CONT’DHowever, 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 cancollectively 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 12



CONT’DA 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 tomake 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. 14



CONT’DFor 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’DInstilling 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? 17



LEAN THINKINGHistory of Industry:Toyota Post War

The Need:• High-quality (the first time around)• Work based on demand vs work for work’ssake• 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’19



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, standardizationand 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 exist20



THE COMPETITIVE UNIVERSE“I WANT IT ON TIME and in the properhands. I want it done correctly, accurately,exactly, precisely, perfectly, efficiently,reliably, expertly, proficiently, faithfully,totally, absolutely, unequivocally,unmitigatedly, maturely, lawlessly,supremely, unsurpassedly and certainlywithout 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 THINKINGA simple definition:Deliver the most value from your customer’sPerspective while consuming the fewestresources

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CUSTOMER IS KINGWho is a customer?

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WHY A LEAN OFFICE? DOES ITAPPLY 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 itsvalue stream (how it’s created)• Ask which activities are waste and whichtruly create value• Enhance the value and eliminate thewaste to optimize the whole!

How do we gauge success? Time

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WHERE’S THE TIME IN A TYPICALPROCESS?

• 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 SUMMARY1. Specify Value by product/service2. Identify the Value Stream3. Make the product/service Flow4. At the Pull of the customer5. In pursuit of Perfection

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CONT’D1. Specify Value by product from the

standpoint of the customer– Applies to “services” as well as “goods”:Most customers just want a solution to theirproblem!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’D3. Make the product/service Flow continuouslyAvoid defects and bottlenecks– Rework– Errors– Waiting4. At the Pull of the Customer:– Delivering only what is needed, when it’sneeded

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CONT’D5. 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

fromthose 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

5SA 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 placefor easy access

3. Shine - keep workplace tidy4. Standardize - method of making the steps

above ahabit

5. Sustain - establish procedures34



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 workarea

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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 itsplace”

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CONT’D .

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3. SHINE• To keep your area clean on a continuingbasis– 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

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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

housekeepingis 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 WASTEAddress the underlying problems (causes of waste) to improve performance:

1. Correction/Rework2. Overproduction3. Unnecessary Movement of Items/Materials4. Unneeded Motion5. Waiting6. Inventory7. Over-Processing/Complexity8. Underutilization of Resources

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ADDRESSING WASTE 1. Correction/Rework: Errors or mistakes; not

doing itright 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 nextprocess?– 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? AREthey needed?– Are we making extra copies? ARE they needed?– Are we printing, faxing, emailing more than what isneeded?– Are we entering repetitive information on multiplework documents or forms?– Are we doing more work than requested?

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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

arenot required?– Are you doing excessive filing of workdocuments 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

cabinetsand/or drawers? Digging through stacks of paper?– Are you hand-carrying paper work to another process

ordepartment 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 waitingfor service.• Ask:– Are there bottlenecks?– Are there excessive signatures or approvals required?(long approval cycles)– Is there too much dependency on others to complete

atask?– Are there cross-departmental resource commitmentsissues? 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? 50



6. INVENTORYExcessive inventory that ties up space and

capital.• Ask:– Are files (work) sitting in an inbox (backlog ofwork)?– Are we processing information in batches?– Are we purchasing excessive supplies of anykind?– Do we have any obsolete

files/folders/equipmentin the area? 51



7. OVER-PROCESSING/COMPLEXITY:Doing more work than is necessary to complete a

task.• Ask:– Are we doing more work than is required for thatprocess? (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 fromscratch? 52



8. UNDERUTILIZATION OF RESOURCESNot getting what is possible from people, processes

andresources. Limiting worker authority or responsibility.Inadequate resources to do the job. Inadequate

trainingor 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) 53



TO INCREASE OUTPUT, WASTE MUSTBE ADDRESSED

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DEFINING/IDENTIFYING CURRENTPROCESS

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 peoplemanaging brilliant processes.We observe that our competitors often getaverage (or worse) results from brilliantpeople managing broken processes.”

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WHAT IS PROCESS MAPPING?• A graphical representation of how work isdone that shows tasks in sequence and makeswork 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 allocationetc.) to improve

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WHY ARE THERE PROCESS ISSUES?• Process was not designed well initially• Customer needs changed but process didnot• Technology changed but process did not• Process was changed over time– Added steps, approvals, checks on accuracy• Process dependent on a few individualsbut 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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CONCLUSIONIt 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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