Continuous
Improvement
A Guide To
Continuous
Improvement
Tools
1
Index
Index ............................................................................................................................................... 2
What is Continuous Improvement? ................................................................................................. 3
Continuous Improvement – What’s in it for me? .............................................................................. 5
Beauty Contest ............................................................................................................................... 6
Car Park ......................................................................................................................................... 7
Fishbone (Ishikawa) Diagram.......................................................................................................... 8
PESTLE .......................................................................................................................................... 9
Process Mapping .......................................................................................................................... 10
Rich Picture .................................................................................................................................. 12
Stakeholder Analysis .................................................................................................................... 13
Pareto Analysis ............................................................................................................................. 16
SIPOC .......................................................................................................................................... 17
Contact Information....................................................................................................................... 19
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What is Continuous Improvement?
Continuous Improvement (CI) is the incremental improvement of processes to improve the service
provided to our customer, be that student, staff or industry. The aim is to ensure that our
processes add value to the service and that non-value adding steps are reduced to a minimum. In
the streamlining of the processes we will attempt to remove the 8 Wastes (explained later) thereby
improving the “flow” of the process.
There are 5 Principles to CI and they are:
Value – Are you providing what the customer wants or is willing to pay for (yes a student
does pay)?
Value Stream – How do we currently provide that service and are all the steps adding
value to the “end product”.
Flow – Does our process follow a logical pattern and are there any bottlenecks within it?
Pull – Are we only providing our product/service when the customer wants it.
Perfection – It may have worked before but we can keep “fine tuning” everything we do to
ensure we maintain the previous four principles.
With the correct implementation of CI the University can improve its effectiveness and efficiency
by:
a. Having sufficient resources and procedures in place to deliver its customers’ current
and future demands.
b. Managing the customers’ demand so that variation in processes is minimised.
c. Ensuring staff are not overstretched and therefore have the capacity to meet the
customers’ needs.
d. Removing activity which does not add value to the customer (ie: waste) from all
processes.
e. Ensuring items purchased, that enable the outputs, are reduced to a minimum.
Process
CI is a team-based approach to improvement. That approach is important because experience
has shown that the best ideas for improving any process tend to come from the people who
operate the process day-to-day. Furthermore, experience has also shown that improvement is far
more likely to be sustained if the idea behind it was generated from within the team or organisation,
rather than imposed upon the team by someone else.
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Although managers should encourage ideas to flow 'bottom-up', they themselves have a key role
to play in CI in terms of planning, motivation, guidance, encouragement and reward. People will
only propose changes to a process if they understand why improvement is necessary, feel that
their ideas will be valued by their management and believe that effort expended on creating
change will be rewarded. For that to happen, managers must not only communicate an
explanation for change but also behave in a manner which encourages people to think and act
differently. Further, as any change requires investment of much effort and time, people need
guidance on which processes to focus their attention upon.
History
CI is an adaptation of LEAN which originated within Toyota in the 1930’s. LEAN commonly relates
to the manufacturing industries which are concerned with repeatable processes with minimum
defects. CI can use these methods but is more about empowering personnel to develop the
processes that they use day-in day-out and streamline them to provide the most efficient process.
Other Terms
There are numerous terms relating to CI and the few below are listed to allow the reader to have a
further understanding of their meanings:
Kaizen
This can be literally translated from the Japanese to read Change for the good.
It is a term often used to describe a CI event or workshop. Kaizen is the
gradual / developmental improvement of a process.
Kaikaku
This is a more radical / revolutionary change to a process and is used when
faster solutions are required to meet circumstances. Kaizen will always provide
the better solution so Kaizen can follow Kaikaku.
Kanban
Another Japanese term meaning Flag. This technique is used to highlight when
supplies may need to be re-ordered.
Gemba
This is the process of going to where the work is being carried out to observe
the issues being experienced rather than trying to understand them from an
office or meeting room. Another more colourful term is GOYA which stands for
Get Off Your Arse.
Muda
This is the Japanese for Waste. The aim of any CI review is to remove as much
waste as possible from the process and therefore streamline the activity.
Poka Yoke This term describes the aim of making any process “idiot proof”. If there is no
ambiguity to a process people will not deviate from it and thereby cause issues
that could result in an increase in Muda.
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Continuous Improvement – What’s in it for me?
How often do you bang your head against the wall due to having to repeat work, complete
senseless forms or change information from another department into a format you can use? Do
you despair at the bureaucracy around your daily tasks and simply wonder WHY?
Then hopefully CI can give you the way forward to overcome your frustrations. The aim is to
empower you to propose changes to the way you work and allow you to take responsibility for your
actions. The Senior Management Team (SMT) within the University have authorised a programme
of process reviews and currently there have been over 26 processes identified, by staff not the
SMT, for review.
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Beauty Contest
This tool is used to determine the best option when multiple solutions are proposed to an issue.
The team is divided into groups with each group looking at creating one option for the beauty
contest. The groups then return and brief the team on their ideas. Using the table below the
options are investigated and scored by the team using the following method:
1.
Determine the criteria that must be scored for each option in the first column.
2.
Apply a weighting to each option of 1 – 10 were 1 is least important and 10 is most
important.
3.
Enter the option identifiers on the top row.
4.
Every member of the team scores each criteria 1 – 10 as before and the average is placed
in the top section of the corresponding box for Option 1.
5.
Multiply the score by the weight and enter the value in the lower section of the box.
6.
Complete this work for each option and then return to option 1 to make sure that the score
was realistic now that the others were graded.
7.
Total up each lower section score for each option to give an Option Total Score.
8.
The option with the highest score may be the best solution but often the final solution may
be a mix of the best criteria from differing options.
Beauty Contest Form
Criteria
Weight Option 1
Criteria 1
Criteria 2
Criteria 3
Criteria 4
Criteria 5
Criteria 6
Criteria 7
Criteria 8
Criteria nth
Total Score
Option 2
Option 3
Option nth
Note: Do not allow too much discussion when conducting the scoring of each option the only
discussion should be clarification on why a score is suggested if it is required.
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Car Park
During an event numerous ideas will hopefully be forthcoming and all inputs should be
encouraged. Unfortunately some inputs may require further investigation or be a valid point but
beyond the scope of the event. These inputs cannot be discarded and need to be recorded so that
they can be presented at the out brief, the tool for this recording is the Car Park.
This is simply a piece of paper on a wall or flip chart with the title Car Park added to it and any
inputs not covered by the scope of the event or needing further work are added to the sheet along
with who raised it (should further clarification be needed during the out brief).
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Fishbone (Ishikawa) Diagram
The use of a Fishbone or Ishikawa Diagram is to group numerous issues into manageable
categories, identify the root causes and thereby ensure all issues are covered.
On a large piece of paper draw the head and central backbone of the fishbone. At the head write
up the problem that needs actioning (do not pre-judge the issue by trying to be too specific). After
conducting the Wailing Wall exercise have the group determine common areas for these issues
and add these categories to the spines coming from the backbone (Category 1, Category 2, etc).
There is no limit to the amount of spines but be aware of too many sub-sets of issues as they need
to be actioned. Typical areas for the spines are:
Manpower
Communication
Policy
Infrastructure
Time
Finance
With the spines allocated transfer the Post-Its from the Wailing Wall onto the right hand side of the
appropriate spine (Issue A, B, C, D). Then to the left of the spine, utilising the 5 Whys approach
determine the root cause of this issue (Why A1, Why A2, etc). By adding the answer to each Why
on a Post-It on the left you can identify issues for attention.
Once the Ishikawa has been completed use it to ensure that all areas are answered within the
implementation plan at the end of the event or those that cannot be answered are highlighted to
the Sponsor and Process Owner of the event.
Category 2
Category 1
Why C1
Why C2
Why C3
Why A1
Why A2
Why A3
Why A4
Why A5
Why B1
Why B2
Why B3
Why B4
Why B5
Issue C
Issue A
Issue B
The Problem
Why D1
Issue D
Why E1
Why E2
Issue E
Category 3
Why F1
Why F2
Why F3
Why F4
Issue F
Category 4
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PESTLE
This tool is used to help understand the environment in which a change is being made. By
identifying the positive and negative aspects for each point then risks can be predicted, managed
and hopefully overcome or avoided.
The acronym stands for:
P – Political
E – Economic
S – Social
T – Technological
L – Legal
E - Environmental
The tool is often used at the start of an event to give the team an understanding of the environment
but there is no reason why it cannot be used post event to see if the changes implemented have
had the necessary affect or have caused further issues.
An example of a PESTLE analysis for the London 2012 Olympics:
Negative
Positive
Political
Local council objections based on road
capacity
Up skilling through the requirement to be
self-managing
Economic
Large initial expenditure
Increased short/long term revenue
Social
High number of visitors creating
restrictions to locals
Increased community cohesion for areas
around venues (volunteers)
Technological
Increased IT for planning and monitoring
purposes
Increased ability of IT staff due to further
training
Legal
Extra police required for crowd/traffic
control
Extra police to provide visual presence
and increased security
Environmental
Impact of noise/waste pollution
Recycling initiative will be initiated within
the community
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Process Mapping
The saying a picture paints a thousand words is very true when it comes to understanding a
process from its initialisation through to completion by providing a product or service. Often people
believe they know what happens but once they start to record the process step by step they realise
that there are hidden steps or “broken” legs.
Often a task will have a defined process that is documented and approved by management but in
the day to day working environment the operator will have developed their own “best way” to
complete the work. As long as this new process does not increase costs, reduce quality or
efficiency or infringe any legislation why not incorporate it?
Using a long sheet of brown paper identify the initial start point of the process and write it down on
a Post It Note. Place the Post It Note vertically in the centre of the paper and approximately 30cm
in from the end of the paper. This gap is because it is often found later in the discussion that there
is a previous step and it can be added to the process map without moving all the other Post It
Notes. Follow the process through step by step using a single Post It Note for each step. The
convention for the orientation of the Post It Notes is as follows:
Square – a process step/action.
Diamond – A decision point with a “leg” coming off for each option of the decision.
Different colours can be used to show demarcation for different departments or process
options.
By ensuring that all stakeholders are at the event the “real” process rather than the documented
process is recorded. This map will allow the team to identify bottlenecks in the current process and
areas that are value adding, non-value adding or necessary non-value adding.
On a separate sheet of brown paper create another process map of how the new process should
look but without any constraints such as manpower, infrastructure and finance. The aim is to keep
all the value adding steps and remove the non-value adding steps and as many of the necessary
non-value adding steps as possible. This process is known as the Blue Sky option.
Using this option as a baseline start to bring realism into the process but try to keep as close to the
Blue Sky option as is possible. This will be the Future State that the team will present at the out
brief to the Sponsor.
On all of these variations of process map Data Tickets can be utilised. A data ticket can be placed
on the brown paper under each process step recording various information (see below) and by
collating this information timings for each process can be calculated and savings identified. An
example of a data ticket is shown below.
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Trigger
Complete
Flow Time
Touch Time
No of People
WiP
VA/NVA/NNVA
Issue with step
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Rich Picture
Rich Picture is a technique for enabling a group to show the issues with a current process or to
describe the ideal solution to the current issue. This tool is ideal when a group find it hard to
express, in words, what they feel is wrong or what a perfect solution would “feel” like.
Split the group up into syndicates and give each syndicate a flip chart and pens.
Explain to the syndicates that they are to describe the topic without using words. They can draw a
specific diagram that sums up all the topic in one or a group of individual pictures that gives
solutions to each part of the issue.
The main point is that they cannot use any words within their drawings.
The syndicates then back brief to the group on their drawings and explain the reasoning behind
each diagram.
This tool will allow syndicates to think about the issue and look at it in different perspectives. This
tool often elicits a light hearted approach to the topic and is an ideal way to “bond” the group and
allow them to start inputting to the discussions.
The Rich Pictures are often related to the emotions felt with the issue and therefore allow the
human element of the process to be examined and then improved thereby giving a “quick win” and
building momentum to change.
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Stakeholder Analysis
For any process review it is essential that everyone has a say in the new way of working, but how
do you know who to invite to the review. By conducting a stakeholder analysis you can determine
which areas/individuals should be invited along with who needs to be kept informed of any
progress.
Stakeholder analysis it a way of determining who is affected by your new process and who can
affect it. By not including these parties you will either miss an area of the process or build up
resentment to the new process because they have a feeling of not being involved.
There are three steps to conducting a stakeholder analysis and these are:
Brainstorming – who do you believe is involved.
Influence/Interest Mapping – determining where they have input.
Prioritising Input – who needs to be involved and who just needs to be informed.
Brainstorming
This is probably the hardest step as you need to ensure that all parties have a voice so the more
people you can involve the better the outcome will be.
Influence/Interest Mapping
Once you have a list of personnel or departments you need to determine what interest and
influence they will have over the new process. For example if a fast food outlet was to be built at
the end of your street you will have a high interest in the planning but probably little influence;
whereas the planning department will have high interest and influence over the decision. By using
the map below you can plot the personnel and departments and then allocate a priority system on
who is invited to the event.
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High
1
2
3
4
Influence
Importance
Low
High
Prioritising Input
By placing the personnel/departments in the corresponding boxes on the graph you can determine
who needs to attend your event. For example those in box 2 would definitely need representation
as they are important to the process review’s success and have influence over it whereas those in
box 3 have little influence and their actions are not as important to the success. However, despite
those in box 3 not having much sway in the success of the review they should still have some input
but not at the expense of those in boxes 1, 2 or 4. It is also important that all those identified in
boxes 1, 2, 3 and 4 are kept informed of all progress throughout the review as, depending on the
actions taken, they may move boxes and therefore become more influential or important.
Influence Diagrams
If you are having trouble identifying who is involved in a process, and therefore needs to be invited
to the event, then creating an influence diagram can help. By drawing the organisation in stages
and identifying the way they interact the correct people can be involved in the process. For
example the influence diagram for the University of Lincoln may look like the one below. The
thickness, colour and type of line can have different meanings dependant on what you require to
indicate for your process.
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University
College of Arts
Professional Services
College Executive
Office
Finance
Lincoln School of
Media
LPAC
Student
Administration
Lincoln School of Art
& Design
Catering
College of Science
College Executive
Office
School of
Chemistry
Vice Chancellor’s
Office
School of
Pharmacy
School of
Engineering
College of Social
Science
Lincoln Law
School
School of
Psychology
Lincoln Business
School
College Executive
Office
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Pareto Analysis
When starting to look at the issues facing a team at the beginning of an event it may seem there
are numerous issues that need addressing. Unfortunately time constraints will prevent you
addressing every issue and the best course of action would be to look at the issues that are
causing the most “hurt”. Pareto Analysis, or as it is also known the 80/20 rule, allows you to
identify the issues to work on. In this context the 80/20 rule will show that 80% of your hurts will
come from 20% of your issues so you should address this 20% first. It is often hard to understand
this rule but if you look at your wardrobe at home you probably wear 20% of your clothes 80% of
the time – Pareto!
To use the rule in an event have the team list every issue they have with the process on an
individual Post It Note and then rank them in an order that is applicable to the general issue under
discussion For example the issues could be ordered in the time spent addressing them, the most
often experienced or the most costly (in time, finance or resources). With the list created start with
the “worst” issue and work down the list as time dictates. At the out brief it is important to explain
the reasoning behind why the issues were addressed in the specific order and to ensure that any
not addressed are recorded for future action.
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SIPOC
To enable all steps to be covered and understood within a process you need to understand what
the inputs and outputs are of each step and who provides or receives them. The tool for this
activity is SIPOC which stands for Supplier, Input, Process, Output and Customer. The diagram
below shows the process graphically.
The tool can be used two way; firstly to identify what the inputs and outputs are of a process and
therefore the suppliers and customers or secondly to identify if any steps within a process do not
have inputs or do not produce an output and can therefore possibly be removed.
To undertake a SIPOC exercise to identify inputs and outputs the following steps should be
followed:
1.
Map the current process on the SIPOC form under the column P.
2.
Identify the inputs for each step of the process and list them under column I.
3.
For each input identify who is the supplier of the input and place their details in column S.
4.
Now for each process step determine what is output and record it in column O.
5.
For each output list who that output is delivered to and place the information in column C.
6.
Now using the completed form look to see that each step has an input with a supplier and
an output for a customer, for those that are missing either investigate if there is: a. A need for that
step or b. An input or output has not been identified.
To undertake a SIPOC exercise to identify any steps within a process that do not have inputs or do
not produce an output the following steps should be followed:
1.
On a large sheet of brown paper list all the suppliers, inputs, outputs and customers on
individual Post It Notes.
2.
Now draw lines from the Inputs to the Supplier that provides it and from an Output to the
Customer that receives it.
3.
Add each step of the process to a Post It Note and place it on the brown paper and connect
them to the applicable Inputs and Outputs.
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4.
The diagram should now be checked to see if there are inputs that do not have a supplier
(this will prevent your process from working) and any outputs that do not have a customer (this is
wasted effort in the process).
5.
If any of the areas above are identified look at the process step involved to see what
alteration is required.
SIPOC Form
Process Name
S
I
P
O
C
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Contact Information
If you want more information on any of the tools described in this guide or would like to investigate
a process within your department please contact the University of Lincoln Continuous Improvement
Team using the following options:
E-mail:
smorris@lincoln.ac.uk
Telephone:
01522 886110
Web Site:
http://continuousimprovement.blogs.lincoln.ac.uk/
Internal:
Ext 6110
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