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What is an effective continuous improvement approach?

An Effective Process Improvement Approach - Richard Skiff

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The attached slides summarize my approach to continuous improvement. It borrows concepts from Lean, Six Sigma, and other improvement methodologies, as well as my 25+ years of experience.

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Page 1: An Effective Process Improvement Approach - Richard Skiff

What is an effective continuous

improvement approach?

Page 2: An Effective Process Improvement Approach - Richard Skiff

Process Improvement Approach

The following slides summarize my approach to continuous improvement. It borrows concepts from Lean, Six Sigma, and other improvement methodologies, as well as my 25+ years of experience.

Contact Information:

Richard Skiff

[email protected]

270-304-6075

www.LinkedIn.com/in/RichardSkiff

My LinkedIn profile contains summaries of some of my projects.

Page 3: An Effective Process Improvement Approach - Richard Skiff

Value Added Activity:1) The Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

PROCESS IMPROVEMENT OVERVIEW

VALUE

The Key to Success is providing Value.

Everything else is secondary to

providing Value.

Page 4: An Effective Process Improvement Approach - Richard Skiff

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

PROCESS IMPROVEMENT OVERVIEW

VALUE

Who Defines Value?

Page 5: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

PROCESS IMPROVEMENT OVERVIEW

VALUE Effectively and Efficiently

THE CUSTOMER!

Page 6: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

PROCESS IMPROVEMENT OVERVIEW

VALUE Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

Who is the Customer?

Page 7: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

PROCESS IMPROVEMENT OVERVIEW

VALUE

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

Often overlooked, but very important factor.

Your product may provide excellent value to the customer, but if the process to get that value is too painful, the customer may seek to obtain it

from someone else.

What hassles does the customer go

through to obtain this value?

Page 8: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

PROCESS IMPROVEMENT OVERVIEW

VALUE Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

This is related to the “hassle factor”

The Value must be delivered both Effectively AND Efficiently.

They are NOT the same thing.

What hassles does the customer go

through to obtain this value?

Page 9: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

To continue to be able to provide value to the

customer, the Provider must also be able to produce that value

effectively and efficiently.

The cost of delivering that value must be less

than what the provider is being “paid” to deliver

that value.

Page 10: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

Remember, the customer defines the

value.

Page 11: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

Determine the process that delivers that value, in sufficient detail to be able to see where things

are “not the way they should be.”

Page 12: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

Every process has waste. People are NOT waste; the processes that they

have to work with have waste in them.

Page 13: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

These categories help to identify waste. It doesn’t matter what bucket the waste goes

into; waste is waste.

Page 14: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

By continuously identifying and removing waste, you can design your process to flow smoothly from point to point, without delays or buildup

between steps of the process

Page 15: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

“You will never reach perfection. But by pursuing perfection, you can catch excellence.”

Vince Lombardi (Paraphrased)

Page 16: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently

You cannot improve a process sitting by a desk. You need to go to where the value is being produced to

make improvements.

Be respectively critical as you observe the process. Continually ask why, using the expertise of those trying

to deliver value until you drill down and fully understand how and why each step of the process works.

Page 17: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

The Lean Process uses a variety of tools and techniques to approach the problem, including:

- Value Stream Mapping - Process Mapping- Level Loading/Work Balancing - 5 Why; Root Cause Analysis- 5S and Visual Management - Critical to Quality/Driver Diagrams- Standardized Work - Just in Time- PDCA Cycles; Kaizen - Failure Mode Effects Analysis

If Variation in a process is the issue (or if a deeper dive into data analysis is called for), then another approach may be needed, such as 6 Sigma.

6 Sigma DMAIC Process1) Define: What is “not the way it should be”2) Measure: How will I measure success? How good is my measurement?3) Analyze: What are the key factors that are driving this result?4) Improve: What needs to be done to “fix” the problem?5) Control: How can I make sure that the improvements made “stick?”

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Customers)VALUE Effectively and

Efficiently

There are a number of methodologies that can help you figure out how to deliver Value to the customer.

Lean and Six Sigma are two effective frameworks to help.

Remember, the focus of any improvement effort should be on delivering value, not implementing a methodology or using an improvement tool.

To do otherwise could cause more long term harm than good.

Page 18: An Effective Process Improvement Approach - Richard Skiff

Customer (Including Internal

Customers)

Value Added Activity:1) Customer must be

willing to “pay” for this value

2) The activity must change the “item” in some way

3) It must be done right the first time

The Customer Determines the Value!

Effectively and Efficiently

The customer is the one whose

evaluation of your delivery of value is

critical to your ability to continue to deliver

that value.(i.e. he decides whether he will

continue to use you)

PROCESS IMPROVEMENT OVERVIEW

The Lean Process uses a variety of tools and techniques to approach the problem, including:

- Value Stream Mapping - Process Mapping- Level Loading/Work Balancing - 5 Why; Root Cause Analysis- 5S and Visual Management - Critical to Quality/Driver Diagrams- Standardized Work - Just in Time- PDCA Cycles; Kaizen - Failure Mode Effects Analysis

If Variation in a process is the issue (or if a deeper dive into data analysis is called for), then another approach may be needed, such as 6 Sigma.

6 Sigma DMAIC Process1) Define: What is “not the way it should be”2) Measure: How will I measure success? How good is my measurement?3) Analyze: What are the key factors that are driving this result?4) Improve: What needs to be done to “fix” the problem?5) Control: How can I make sure that the improvements made “stick?”

What hassles does the customer go

through to obtain this value?

PROCESS*1) Define the value to be delivered2) Map the Process that delivers that

value.3) Determine and remove the waste in

delivering this value• Defects• Overproduction• Waiting• Non-efficient use of people• Transportation• Inventory• Motion• Excess Processing

4) Make the value flow5) Pursue perfection

* Key Elements• Go See• Ask Why• Show Respect

Provider(Including Internal

Providers)VALUE Effectively and

Efficiently