MethodBusiness Process

Improvement (BPI)Lean Six Sigma TOC - Theory of Constraints

Business Architecture/

ReengineeringFactory Physics CMMi

TRIZ - Theory of Innventive

Problem Solving

SCOR - Supply Chain

Operational Reference Model

Theory In order to change substantially the

timeliness, cost or quaity of any

output, one must change the process

that creates it.

Continous pursuit towards perfection

through structured problem solving.

Reduce variation. Improve the process

output (Y) by focusing on the critical

process inputs (x's). Y = f(x)

Management of critical links in any

Chain

Based on industrial engineering and

optimization theory. Uses activity

based costing and simulation as

analytical tools. for process

management across the enterprise to

align processes to business strategies

and goals.

Factory Physics borrows from

traditional physics to establish laws for

how flow systems behave.

The quality of a system is highly

influence by the quality of the process

used to acquire, develop and maintain

it

A systematic method and process for

problem solving and coming up with

inventive ideas. (A method not a

software program) - Looks at all

problems from a Systems and Value

Engineering Analysis Standpoint

Combines aspects of business

process re-engineering,

benchmarking, and application of best

practices. A reference model for

Supply Chain Management

Application Guidelines

*Choose a process *Diagram the As Is

& identify the Disconnects

* Prioritize the gaps * Determine if

redesign (should be) is necessary

* Do either Should Be design or the

project(s) identified * Implentation

plan

* Structure every Activity

* Clear connection cust-supplier

* Specify/Simplify flow

* Experiment towards ideal state

* Direct Observation

* Systematic Waste Elimination

* High Agreement

* Learning Organization (Learn-Apply-

Reflect)

* Define * Measure * Analyze *

Improve * Control

* ID Constraint * Exploit constraint *

Subordinate Processes * Elevate

Constraint * Repeat the Cycle

* Align process architecture to

business strategy * Identify and

Document Value Chains * Determine

process performance levels *

Implement selected processes for

optimal performance

4 Is - Identify, Investigate, Improve,

Integrate

Use to: 1) Help set process

improvement obj/priorities 2) Ensure

solid processes 3) Guide improvement

of org and project processes 4)

Includes appraisal methodology to

assess improvement efforts

* Formulate the problem

* Apply TRIZ principles, Technology

Trends, Scientific Effects

* General Solutions suggested

* Specific Solution set defined by

engineer

* Analyse basis of competition *

Configure Supply Chain * Align

performance levels * Implement

supply chain processes

Focus Process As Is Disconnect

identification and redesign

100% Organizational Engagement to

effect a continuous improvement

cultural change Reduce variation

Working to DONE instead of Working

to DUE DATES

Aligning process to strategy. Process

performance and optimization.

Uses real science to drive an

operation to peak efficiency

Organizational Software Development

Maturity

Technical Problem Solving at org or

individual level

Process Performance and

performance monitoring

Assumptions *Based on world view that reflects the

way work actually gets done

*Every result a business achieves is

the output of a process

Lean objectives will connect to

business objectives

A problem exists. Quantitative data

driven. Process flows are valued.

System output improves if variation in

all processes is reduced.

Product Design Teams understand

their current development process

Strategies have measurable goals.

Processes must be measured.

Metrics must tie to both process and

strategy. Have to map your processes

and apply analytical tools to determine

how best to optimize

Not intended to replace existing

methods but uses the 22 laws of

manufacturing as a body of k

Following a process model that

describes attributes and

characteristics of proven processes

will improve the overall product quality

Experts / experienced personnel

applying their content knowledge to go

after breakthrough solutions in design

&/or mfg problems or opportunities

SCOR is a generic representation of

the operational processes of the

supply chain

Primary Effect

* Improved timeliness, cost or quality

of any output

* Standardization

* Elimination of Non-Value Added

Activities

* 100% Organizational Engagment in

Problem Solving

Uniform, predictable process output

Identify the constraint or bottle neck in

the system and resolve it to increase

the throughput of any system

* Explicit description of Value Chain

processes * Stategic Planning &

Prioritization tool * Identification

of operating measures for bottom/top

line performance

Factory Physics is a body of

knowledge that relates fundamental

manufacturing measures such as

cycle time, throughput, capacity, work-

in-process, inventory, and variability.

Improved quality through standardized

processes

* Resolving technical contradictions,

tradeoffs, *

Solving problems faster by shortening

the time solution *

Targeting elegant technical

breakthrough solutions

* More solutions to a given problem =

better final solution selected for

implementation

* Standard description of Mgmt

processes * Stategic Planning tool

* Uniform Supply Chain operating

measure *Prioritization of process

improvement within the supply chain

Secondary Effects

* Clarification of Roles and

Responsibilites * Clarifies decision

making

* Reduced Variability

* Reduced Cycle Times

* Higher Quality

* Lower Costs

Less waste

Fast TPT

Less inventory

Performance measures for mgmt

Improved quality

Common scheduling and execution

process, predictable results, improved

execution

* Process Peformance Analysis

* Alignment of architecture to strategic

objectives * Cycle

time improvements *Common Work

Flow

explores historical practices and the

natural behavior at work in factories

1) Improved cycle time/TTM

2) Increased productivity (reduced

effort) and Quality (Reduced Defects)

3) Increased predictability

* Overcoming the typical trial & error

approach by focusing on BKM

strategies for solving problems

* Increasing creativity

* Helps to zero in on the actual

problem area, identifying and focusing

on the real problem vs. symptoms and

effects

* Peformance Analysis *

Alignment of objectives

* Common Work Flow

Complimentary Systems/

MethodsSix Sigma, TOC, BPRE, Lean, TRIZ,

SCOR Six Sigma, TRIZ, BPI. BPRE, TOC Lean. TRIZ, BPRE, BPI, SCOR

Business Process Mapping, BPRE,

ISO, Lean, TRIZ

Six Sigma, BPI, SCOR/VCOR, CMMI,

Lean, TRIZ BPI, TRIZ ISO, Six Sigma, Lean, Baldridge, BPI

Six Sigma, Lean, TOC - breaking the

bottleneck, BPRE, Factory Physics,

BPI ISO, Six Sigma, Lean, BPI, BPRE

Links

Prichett Vendor Site Multiple vendors and sites

ge.com or America Society for Quality

(ASQ.org) among others TOC (Goldratt.com)

There are many vendors and trainers

for Process Reengineering. Factory Physics www.sei.comu.edu/cmmi www.aitriz.org/about-us SCOR Org

Users

Many firms have adopted this model

over the many years it has been in

publication. Prichett LLC is a leading

educational vendor

Primarily identified with Toyota, many

companies have their own

implimentations

Numerous - Examples: GE, Motorola,

Dell, TI, Coca-Cola, Honeywell,

Lockheed Martin, DuPont, Ratheon,

Kodak, IBM, Bank of America, etc.

Boeing Aerospace, Callaway Golf,

Abbott Laboratories, Proctor &

Gamble, US Military

Many consulting firms, IBM, Dell,

UPS, Proctor & Gamble, Taco Bell

and many other corporations IBM, Bristol Meyers, Bolt, Eli Lilly Nearly all IT organizations world wide

Widely used at Samsung, Proctor and

Gamble, Whirlpool, Ferrari, Nokia,

Phillips, Rolls Royce, and Hitachi.

Deployed at Boeing, Intel, Daimler-

Chrysler, multiple companies world-

wide. Invention Machine Corp is a

leading software vendor that

automates part of the TRIZ methods. Members include many companies

Common Criticisms

Typically requires at least one all day

F2F session

Requires a cultural shift - large

commitment. Multiple interpretations

of Lean based on different authors

and perspectives

System interaction not considered.

Processes improved independently.

Extremely difficult to implement in a

design environment

Received "bad rap" for headcount

reductions in 90's. Hard work - not a

quick fix TBD Not cost-effective for small companies

– Takes time to learn. (1 week /

class )

– Achieves innovative solutions, but

does not improve solution

implementation overheads and

barriers: approval loops and

processes, conflicting priorities etc

Methodology does not include

implementing the improvements

Continuous Improvement Tools

Compatibility Report for Continuous Improvement Methods Summary by

the Strategy Plus Innovation Group.xls

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