DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Continual process improvement – A road map
One dictionary definition of a process is "a series of actions or steps taken in order to achieve a particular end". The particular end is satisfying the need of a customer. The
actions consist of procuring inputs – including materials, equipment and people – and specifying what should be done to, with, and by them to achieve the desired outputs.
At CSU, we want to deliver products and services that fit the promise we make to our key customer stakeholders, whether they are students, research clients, internal
organisation units or government agencies. And we want to do so with the least resources needed to do the job. The process improvement tools, techniques and methods
are the ways to get there.
Strategies to continually improve a process
There are two main strategies to improve a process:

Reduce the amount of variation in the output of the process by reducing the variation in the inputs and the process steps. This is the traditional route of Total
Quality Management and its modern offspring Six Sigma.
 Get products or transactions to flow through the process more freely, with fewer delays and less inventory.
Most processes have opportunities for improvements in both dimensions. Which of them you emphasise, and the order in which you tackle them, depends on the specific
objectives and the nuances of the current process. There's not much point in reducing the variation in a process step that could better be eliminated. On the other hand
it's difficult to improve the flow of a process that has a lot of variability in individual steps.
Measurement
If we want to improve something, it makes sense to have some sort of measure of how good that thing is before we start. We need some sort of rule to decide whether the
changes we make have in fact resulted in an improvement. So we need to give some thought to what we are going to measure and how we are going to carry out our
measurements. Following on from that we need to work out how to store, analyse and report on the data we collect. It is crucial to establish the chain of logic from the
real world process to the data we use. There are frequently disconnects in organisations between the work being done and the numbers being managed.
People
Analysing and improving processes requires engaging a range of stakeholders that may include people at all levels from the front line to the supervisors to executive
management, to include as many perspectives and ideas as possible and to gain buy in for the improvement efforts.
Continual process improvement roadmap
All improvement efforts need to have a roadmap. The continual process improvement model outlined in this guide is a tool that can be used to help groups and individuals
within CSU to meet their continuous improvement objectives. By following the stepped, road map a common language for improvement can be created within CSU.
The aim of the road map is to simplify process improvement efforts, streamline activities, and conserve organisational resources. In addition, a brief explanation is provided
on some of the suggested tools and techniques in the road map to ensure that the anticipated change will stick.
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Continual process improvement – A road map
1. Select an
2.
improvement opportunity
Bill Black
Fran Brown
Bob Grey
Amy Tan
Ian Blew
Customers waiting too
long to be served.
6.
Standardise and monitor
New rosters published
Improved procedures
documented
Customer feedback monitored
7. Review improvement strategy
Need for training in customer
service skills
Need for training in data
collection
Form a team
5. Study
the results
Review focus group results
Review customer handling
times
Review adequacy of staffing
levels
8.
Plan for the future
Use of computers to improve
customer handing procedures
Form a team?
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3. Analyse the current situation
Too few staff at peak times
Customer handling processes
inadequate
Too few seats in waiting area
4. Take improvement action
Improve staff rosters
Simplify procedures
Improve seating
Create customer focus groups
Continuous process improvement is an ongoing
cycle seeking incremental improvement over
time. Processes are constantly evaluated and
improved in the light of their efficiency,
effectiveness and flexibility.
This means
returning back to Step 1 of this Road Map and
start the cycle once more.
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Activity
1. Select an improvement opportunity
2. Form a team
3. Analyse the current situation
4. Take improvement action
Purpose
Tools




Select and prioritise improvement opportunities
Review process – are there existing process-work goals?
Ensure process goal linked to business strategy
Survey internal-external customers, consider customer needs to help identify
where value can be added, or time, money and energy reduced
 Identify key activities/role/functions/customers – touch points with other
groups or individuals
- Brainstorming
- Graphs
- Process flow chart
- Customer feedback, interviews,
surveys
 Agree on improvement team’s key roles and responsibilities
 Appoint an (external) Process facilitator, Process team leader
 Process Facilitator briefs team on process improvement tools and methods
 To describe the problem-opportunity – test assumptions
 To identify any immediate improvements to be made
 To collect and analyse any available data on aspects of the current situation to
understand the problem-opportunity
 Use data to establish a target or process goal
 To develop a current situation As Is process map that reflects actual work flow
 Identify next in-house-user or customer requirements
 Identify multiple methods of performing the process if there is more than one
 Identify process constraints
- Check lists
- Process maps
- Flow charting
- Graphs
- Pareto charts
- Cause and effect diagrams
 To develop and implement an Action Plan(address the who, what, when, where,
how and why)
 To re-design the process or process flow to better add value to the flow of
activities, better meet the needs of the customer or interested parties
 Plan and implement action to improve process or resolve the problem
 Agree and make process or process flow changes
 Create a draft To Be process map
 To select the monitoring measures
- Check lists
- Graphs
- Pareto charts
- Cause and effect diagrams
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Activity
5. Study the results
6. Standardise and monitor solution
Purpose





Confirm the action(s) taken achieved the target
Determine if the process has been improved, confirm level of effectiveness
Did the results correspond or confirm expectations
Identify the reasons target was met or not met are understood
Analyse constraints
 What additional actions are required (if target not met)
- Check lists
- Process maps
- Control chart
- Graphs
- Histogram




Plan for change to make it stick, identify change management issues
Team establishes, clear and measurable process measures
Create end of line measures that are important to the customer
Insert measures with their goals at critical junctures (hand over points, i.e.,
between function/roles) in the process map
Everyone understands the new process
Revised methods and procedures published
Training on new process took place.
Periodic review points established
Areas for replication considered
- Change management planning
- Check lists
- Control chart
- Graphs
- Histogram
Review the outcomes and outputs against original goals, objectives and
targets
Review the strengths and weaknesses of the entire process improvement
activity and the team activities
To schedule and conduct period process review (s)
Results documented and feedback provided to stakeholders.
All aspects of the process improvement, task and team activities evaluated for
their effectiveness.
Team’s personal and professional development needs identified and
addressed.
Process improvement efforts celebrated
- Check lists
- Flow chart
- Control chart
- Pareto chart
- Run chart





7. Review improvement strategy
Tools







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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Activity
8. Plan for the future –
Embrace continuous improvement
Purpose
Tools
 Review of the means established to monitor the process and identify future
improvement to the process
 Plan further to address any remaining process problems and opportunities
 Review lessons learned relating to problem solving skills and group dynamics
 Institute periodic reviews of the performance of the process (include in future
management reviews, quality plans)
 Ensure that actions are in place to lock in and maintain the gains that have been
realised.
 Ensure that a process of continual process review and improvement is established.
 Ensure that a process exist for gathering and evaluating other opportunities from
the team’s findings
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- Brainstorming
- Process improvement
storyboarding
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Improvement Tools and Techniques
Flow Charts
Often the first step to understanding or improving a process is to draw a flowchart. A process cannot be
improved, unless every team member understands and agrees on what the process is. A flowchart is a
pictorial summary of the various steps of a system or process. It helps to clarify what the system or
process does in order to clarify problems or improvement opportunities.
A flow chart helps in identifying:
 Suppliers and customers for each step in the process;
 Where critical measurements can be taken to monitor what the system/process is doing;
 Redundant steps and re-work (loops) in the process.
To find more out above this valuable process mapping tool, please use the following link to discover how
to contrast the actual versus the ideal flow of a process to identify improvement opportunities.
Run (Trend) Charts
Measurement
A run chart is perhaps the simplest of the statistical data tools, being a line graph showing change in data
over time. A run chart is used to study the behaviour of a single characteristic, to detect trends or
patterns in data which may develop over a period of time.
Run charts are very simple to make:
 The horizontal axis is always time related.
 The vertical axis is the scale of measurement of the characteristic.
Typical procedures for constructing a run chart include:
 Scale the horizontal axis for the time period of the analysis.
 Scale and label the vertical axis to cater for the maximum expected value.
 Plot each data value as a point at the appropriate time.
 Join each point to the previous point for easy interpretation
Time
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Check Sheets
A check sheet is a simple tool for collecting or gathering attribute data, and presenting the data in a
logical, organised ad readily understood manner. A check sheet is a simple tally of problems found, their
numbers and locations. Check sheets can show patterns of problems so that they can be investigated
and improved. The data of a check sheet can then be used in constructing the following charts:
 Pareto Charts
 Control charts
How to use a check sheet:




Clearly identify what is being observed - Events being observe should be clearly labelled
Keep the data collection process as simple as possible - Collecting data should not be a job in itself
Group the data - Data collected should be grouped in a way that makes the data valuable and
reliable
Be creative - Try to create a format that will give you the most information with the least amount of
effort
Pareto Chart
Pronounced pah-ray-toe and named after an Italian Vilfredo Pareto who studied the distribution of
wealth in Europe in the late 18th and early 19th centuries. Pareto concluded that 80% of the wealth was
held by 20% of the population. Thus the ‘Pareto principle’ was born. A Pareto chart helps to determine
which problems to solve and in what order. Drawing a Pareto chart based on information from check
sheets (or other forms of data collection) helps direct attention to the most important problems. The
idea is to work on the tallest bars of the chart, rather than tacking the smaller bars. A Pareto chart is
used to separate the ‘vital few’ from the ‘trivial many’. Typical steps in a Pareto chart’s construction:
 Decide what is to be measured.
 Decide how the data will be gathered and classified.
 Total the number of times each problem occurs.
 Calculate the percentage total for each problem by either frequency or cost.
 Draw the horizontal and vertical axes.
 Mark intervals on horizontal axis, with the most frequently occurring problems on the left.
 Draw on the vertical bar the height of each bar corresponding to the percentage.
 Complete the graph by filling in the remaining data.
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Cause and Effect-Fishbone Diagrams
Known as the ‘fishbone’ diagram because of its shape or the ‘Ishikawa diagram’ after its originator. The
cause and effect diagram was developed to represent the relationship between some ‘effect’ and the
possible ‘causes’. The effect or problem is stated on the right side of the diagram and the major
influences or ‘causes’ are listed to the left. This diagram can be used in presentations to show progress.
As problems are eliminated, they are removed from the fishbone.
With a cause and effect diagram:
 Decide the effect to be analysed, being as precise as you can (eg. variation of...; late delivery of…).
 Involve people who are familiar with the process being improved.
 Draw the diagram, identifying possible causes using brainstorming techniques.
 ‘Cluster’ the causes into broad headings.
 Add further causes as they arise.
 Decide on the key cause or causes.
 Add twigs to the branches of the key cause or causes.
 Proceed to data collection analysis and solution development.
Control Charts
Upper and lower control limits are calculated by running a process untouched, taking samples and
putting the averages of these samples into appropriate formula. Plotting these points on a chart will
determine whether a point falls between or outside the calculated limits, or if it forms an unlikely
pattern. If the point is outside the limits or an unlikely pattern appears, the process is said to be out of
control. The fluctuation of the points within the limits results from variations built into the process.
These result from common causes within the system. The points outside the limits are the result of
special causes that are not part of the way the process normally operates.
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Upper control limit - UCL
Measurement
# Defective
A control chart is used to monitor, control and improve process performance over time by studying
variation and its source. A control chart can identify whether the process being measured is statistically
stable (in control). A control chart is a run chart with statistically determined upper and lower control
limits.
Average
Lower control limit - LCL
Time
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DIVISION OF INFORMATION TECHNOLOGY
BUSINESS PROCESS OFFICE
Need more information??
Please contact the Business Process Office for further information at email – drop box address here: (bpo@csu.ed.au) or contact:
Colm Cox,
Colin Semmens,
Manager, Business Process Office
Tel: +61 2 6051 9709
Campus: Albury-Wodonga
Email: ccox@csu.edu.au
or
Process Analyst, Business Process Office
Tel: +61 2 6051 9442
Campus: Albury-Wodonga
Email: csemmens@csu.edu.au
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