3. Improvement Methodology
“Standards only exist to be superseded by better standards”
“Making continual improvement of products, processes and systems
an objective for every individual in the organization”.
Process Improvement model
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1.
Operational
Analysis of
process
2.Application of Process
improvement Principles
3. Benchmarking
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4.
PDCA
1. Operational Analysis of a Process
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This involves breaking the processes in 4
segments:
Who?
What?
How?
Where?
1. Operational Analysis of a Process
Who is performing the task ?
• Reveals hidden organizational problems
• Shows division of responsibility and authority
• Communication issues
• Skill base and experience
• Decision making power
• Technical vitality
1. Operational Analysis of a Process
What task is done ?
• Helps in redistribution of task
• Elimination of waste and unnecessary task
• Proper utilization of skills
• Consolidation of group activities
• Elimination of wasted efforts
• Correct skill deficiencies
• Task dependencies
• Time utilization
1. Operational Analysis of a Process
How is the task done ?
• Simplification of tasks
• Prioritization of task elements
• Elimination of excessive delays
• Eliminating unnecessary transportation
• Rearrangement of work stations
• Use of faster methods and tools
• Change in processing time
• Work load balancing
• Performance assessment
1. Operational Analysis of a Process
Where is the task done?
• Scrapping unwanted tools and equipment
• Efficient location of work stations
• Elimination of unwanted transportation
• Improvement in employee morale
• Changes in ergonomics
• Changes in work design
Process Improvement model
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2. Application of Process
improvement Principles
Operational
Analysis of
process
3. Benchmarking
4.
PDCA
2. Application of process improvement principles
1. Waste Reduction
Process
Improvement
Principles
2. Process Simplification
3. Cycle-time reduction
4. Process measures
5. Mistake - proofing
1. Waste reduction
Techniques of waste reduction
a )Value-added assessment
b) Eliminating non-value adding activities
c) Minimize checks and inspections
d) Minimize administrative tasks
e) Minimize storage and transportation activities
Value added assessment
Value to customer : First, the customer’s view point should be
considered. The customers are only interested in receiving the product
or service that satisfies their requirements. All activities that must be
performed to cater to the customer’s requirements are value -added
activities.
Does the activity add value to the customer ?
 Would any customer care if the activity
was not performed ?
 Would any customer object if the activity
was not performed ?
 Do the customers appreciate the results
of the activity?
Eliminate non-value adding activities
Value to business : There are many activities that may not add
value from the customer’s point of view. Attending meetings,
developing plans, compliance with regulatory guidelines, writing
procedures etc are examples of activities that may not add value
to the customers, but they do add value to the organization. Each
of these activities must be carefully examined.
Minimize checks & inspections
• Checks and inspections may be necessary in a
process, however they do not add value to the
process. Each inspection point should be
identified and challenged.
• The next slide lists some questions to use in
this challenge.
What if the inspection was eliminated?
• What if the inspection was eliminated?
• Would the inspection be missed?
• What is the potential impact in eliminating the
inspection?
• What potential consequences exist if the
inspection is eliminated?
• What is the likelihood that the inspection
would have revealed a problem?
Minimize administrative tasks
Administrative tasks often result in delays in process time due to
excessive paper work, levels of reviews and multiple signatures
(mostly by people who, it seems, are never available when
needed). Reviews, approvals, signatures, preparing written
documentation, making and distributing copies etc needs to be
thoroughly reviewed..
Minimize storage and transportation
activities
Sometimes
storage
and
transportation are necessary
evils but because they are both
non-value adding they should be
minimized. The purpose of justin-time inventory systems to
minimize
the
amount
of
inventory stored.
Minimize storage and transportation
activities
Transportation activities are also non-value adding. Often the
relocation of single activity can significantly reduce the
transportation requirements.
2. Process simplification
Simplification means reducing the complexities of process.
Simplification can lead to lessor activities and lessor things to
go wrong. Process simplification can be done by combining
similar activities and by analyzing decision points.
2. Process simplification
Efforts should focus on reducing layers of management and
structures that cause delays. Outdated systems and
procedures need to be evaluated.
3. Cycle-time reduction
Cycle-time is the time required to deliver
a product or service to a customer. Long
cycle-times not only prevent prompt
delivery of product/ service to your
customers, but also increase costs. One
of the best ways to cut down on your
cycle-time is to conduct activities in
parallel and eliminate unnecessary waste
times as demonstrated on the next slide.
1. Activities Performed in serial
2. Activities performed in parallel
4. Create and implement performance based measures
• If the performance of any system or process is not measured, it
can not be meaningfully improved. Quantitative and qualitative
measures that address both objective and subjective elements
should be implemented.
• The measures recommended are Revenue per employee, percent
defectives, cost of quality, profitability ratios, customer satisfaction
index etc.
Incorrect performance measures create barriers
Profit
Strategies
Sales
Customer satisfaction
Build
inventory
Efficiency
variance
Many
unfocused
projects
Many improved teams
Select
low price
supplier
Purchase
price
Performance
measures
Correct performance measures
Profit
Sales
Customer satisfaction
Strategies
Cycle-time
Performance
measures
Cost of poor quality
Supplier quality
5. Mistake proofing
Mistake proofing
Mistake proofing
Mistake proofing is a scientific technique for improvement of
operating system including materials, machines and methods with an
aim of preventing problems due to human error. The term “error”
means a sporadic deviation from standard procedures resulting from
loss of memory, perception or motion.
Example : Bar codes and bar code readers prevents incorrect billing.
Defect Vs errors
It is important to understand that defects and errors are not the
same thing. A defect is the result of an error, or an error is the
cause of defects as explained below.
Cause
Result
Error
Defect
Prevention of defects
Cause
Work
Procedure
Intermediate result
Machine
or
human error
Detect error
Modify work
procedure to
prevent such errors
Take
corrective
action
Analyze for
preventive action
End result
zero
defect
Process Improvement model
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2. Application of Process
improvement Principles
Operational
Analysis of
process
3. Benchmarking
4.
PDCA
3. Benchmarking
Benchmarking
Benchmarking is quality by comparison for achieving better
standards. In the global movement today, the competition is
increasing at a faster rate, and the only way to improve your relative
quality and move upwards is to find out and implement the best
industry practices.
Benchmarking processes :Stages of improvement
World Class
Recognized as the best.
Benchmarked by others even in other sectors
Best in Class
Exceeds customer expectations,outperforms
all competitors and has clear competitive edge
Efficient
Meets all internal requirements for cost margins,
asset utilization, cycle-time and measures of excellence
Effective
Satisfies all customer requirements
Incapable
Is ineffective, inefficient and at the risk of failing.
Needs major redesign
Benchmarking methodology
Benchmarking can be of various types - Competitive benchmarking,
product benchmarking, process benchmarking and best practices
benchmarking. Whatever be the category chosen by the organization, the
benchmarking methodology remains the same in each case.
Benchmarking methodology is explained through 5 simple steps in the
following slides.
a. Identify processes to benchmark
• Select processes to benchmark.
• Measure current process capability.
• Understand detailed process which needs improvement.
b. Select organization to benchmark
• Select organizations which perform your process.
• Compile a list of world class process parameters.
c. Compile the required information
• Develop a detailed questionnaire to obtain desired
information.
• Obtain the desired information. The information can be
obtained from various sources viz: Internet, trade journals,
professional associations, benchmarking centers, Industry
publications, Industry experts, libraries etc.
d. Analyze gaps
Too much information is as bad as too little. Gather and analyze
only the information you need to make a direct comparison of
performance. Compare like with like - Compare apples with apples
and pears with pears. Identify the performance gaps and develop
an action plan to close the gaps. Also highlight and quantify the
consequences of not closing the gap.
e. Develop an action plan
• Review observations of the gap analysis.
• Set new performance standards.
• Develop an action plan for meeting the new performance
standards.
Process Improvement model
F
E
E
D
B
A
C
K
L
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O
P
1.
Operational
Analysis of
process
2. Application of Process
improvement Principles
3. Benchmarking
4.
PDCA
4. PDCA
PDCA ( Plan-Do-Check-Act )
Plan-Do-Check-Act ( PDCA Cycle ):- A four step process for quality
improvement.
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In the first step (PLAN), A plan to effect improvement is developed.
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In the Second step (DO), the plan is carried out.
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In the third step ( CHECK), the effects of the plan are observed.
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In the last step (ACT) ,Action is taken to carry out the plan after making
necessary corrections.
This is repeated till the original plan is achieved.
Continuous process
The PDCA cycle has the advantage of being cyclical implying that improvement never ceases.
Application of PDCA Cycle
The ultimate aim of any management system is
continual
improvement of its performance. To achieve this, Deming’s PDCA cycle
of improvement is interwoven in the structure of the new standard.
PDCA Cycle applied to ISO 9001:2000
clause 4.1
ACT
Implementation of
improvement
( Clause 4.1f )
CHECK
Monitoring,
Measurement
& Analysis
( Clause 4.1e)
PLAN
Identification of
sequence, interaction
criteria & methods
( Clause 4.1 a,b,c )
DO
Implementation of
the planning
( Clause 4.1.d)
Deploying Quality Improvement Process
Continual improvement process of Quality Management System
can be deployed throughout the organization by undertaking
PDCA activities at various levels as explained in the subsequent
slides.
Application of PDCA at top management level
Plan
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Establish Policy
Define Objectives
Plan and Provide Resources
Define organization structure
Plan development of customer focus
Top Management
DO
• Lead by Example
• Show commitment
• Communicate Importance of customers
throughout Organization
• Deploy policy throughout Organization
• Define measurable objectives
• Delegate
Top Management
CHECK
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Undertake management review to assess:
Is the system working for us?
Are we meeting objectives?
Is our policy being followed?
Are our customers happy?
How is our business doing?
Are we planning anything that could affect the
system? (New product line; reorganization etc)
Top Management
ACT
• Incorporate review results into strategic
planning
• Provide for additional resources
• Reorganize
• Hire new staff
• “Convert”, “Sideline” or Fire “nonbelievers/non-performers”
Department/Section Heads
PLAN
• Establish procedures and instruction for
departmental activities
• Define responsibilities
• Establish objectives
• Plan resources including training of
personnel
• Establish communication channel for
instructions and feed-back
Department / Section Heads of Functional
Units
DO
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Allocate clear responsibilities
Provide resources and support
Coordinate and harmonize activities
Resolve problems
Department/Section Heads
CHECK
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How is my department doing?
Are processes under control?
What are my employees telling me?
Are we meeting customer requirements?
Am I meeting my objectives?
What are the key problems in my area?
How can we improve?
Department / Section Heads
ACT
• Systematic problem-solving (based on
importance, risks involved etc)
• Develop action plans
• Concentrate on improvement
(incremental or “breakthrough”
improvements)
• Review existing procedures, and need
for new procedures
Management Representative
PLAN
• Co-ordinate definition of key processes, their
sequences and interactions
• Define needs for documented procedures
• Co-ordinate preparation of Quality Manual
• Co-ordinate elaboration of Inter-functional
procedures (Document Control, Internal Audit
etc)
• Determine Legal and Regulatory Requirements
• Coordinate Quality Planning
Management Representative
DO
• Ensure processes are defined &
maintained
• Promote customer focus
• Facilitate Internal Communication
• Support line management functions
• Coordinate Training Activities (with HR)
• Collate measurement data (Product/
Process/System)
Management Representative
Check (Internal Audits)
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Is everyone managing their processes?
Are the customers happy?
Is our system working?
Are we communicating adequately?
How can we improve?
Management Representative
ACT
• Stimulate/co-ordinate inter-functional actions
• Review Internal Audit frequency
• Alert Top Management