Upload
tom-burton
View
933
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Process Improvement:Which Methodology is Best for
Your Project?
PMI Skyline Luncheon
Sharon Valencia, PMP
2© 2006 Process Improvers, LLC
Agenda
• Definitions
• Business Improvement Methodologies
• Methodology Comparison
• Process Management
• Process Mapping
• Enabling Project Success
3© 2006 Process Improvers, LLC
What is a Process?
• Any set of activities that when taken together, transform a series of inputs into an output, producing a result of value to a customer
Process
Input
Output
Su
pp
liers
Cu
stome
r
SIPOC
4© 2006 Process Improvers, LLC
What is a Business Improvement Methodology?• A documented set of procedures, guidelines, and tools intended to
develop better processes
• Business improvement methodologies covered in this presentation:– Kaizen– Lean– Six Sigma– Lean Six Sigma– Design for Six Sigma (DFSS)
5© 2006 Process Improvers, LLC
Kaizen
• Defined: Philosophy of gradual, incremental, and orderly continuous improvement, creating more value and less waste; emphasis on process improvement and process control; Japanese word meaning “ongoing improvement”
• Objective: Small improvements by optimizing existing systems
• Requires:– Taking action on obvious problems and deviations to maintain process
control– Establishing control through Standard Operating Procedures (SOPs)– 1-10 days
6© 2006 Process Improvers, LLC
Kaizen’s Deming/ Shewhart PDCA Cycle
Plan
Start with an idea for doing the job better; study the current situation; identify the problem and formulate a plan
Conduct experiments to investigate the idea; implement the plan on a small scale
If desired results were achieved, implement the change into the SOP
Observe and evaluate results to determine if the idea produced the desired results
ActDo Check
* It is also acceptable to use the DMAIC framework for Kaizen events
7© 2006 Process Improvers, LLC
Lean
• Defined: Focus on speed, efficiency, and elimination of waste
• Objective: Maximizing process speed (cycle time) by reducing waste
• Requires:– Elimination of waste (muda): Defects, overproduction, inventories,
unnecessary processing, unnecessary movement of people, unnecessary transport of goods, waiting, designing goods and services that don’t meet customers’ needs
– Value stream mapping: Map process and focus on elimination of non-value add activities• Ask what activities the customer is willing to pay for
– Focus on process standardization
8© 2006 Process Improvers, LLC
Lean’s 5s Approach
Sort Sustain
Determine what is necessary to perform the job; Eliminate unnecessary items from the workplace
Arrange all essential items so that they are clearly marked and easily retrieved
Sustain the other steps and continually improve the process
Make cleaning and organizing routine; promote an orderly work environment; perform work the same way every time (standardize)
Keep clutter out of the workplace; Scrub all machines and the work environment to maintain cleanliness
SystematizeStraighten Scrub
9© 2006 Process Improvers, LLC
Six Sigma• Defined: Data-driven methodology focusing on reducing defects and
variability– 6 σ = 3.4 defects per million (Motorola Shift)– σ = Sigma = Standard deviation
• Objective: Reduce variability through continuous process improvement
• Requires:– Processes must be in place– The processes must be predictable (in statistical control with normal
distribution)– The processes must be improved by reducing variation (continuous
improvement)– Data availability– Focus on understanding customer requirements
10© 2006 Process Improvers, LLC
Six Sigma Distribution
Upper Control Limit/Specification
Lower Control Limit/Specification
Normal, Bell-Shaped Curve/Distribution of Values
DefectsDefects
11© 2006 Process Improvers, LLC
The Importance of Six Sigma
• Traditional Quality (3 σ: 66,807 DPMO)– 54,000 incorrect drug prescriptions
per year– 40,500 newborn babies dropped each
year– Unsafe drinking water two hours each
month
• 6 σ Quality (No Motorola Shift)– One incorrect drug prescription every
25 years– 3 newborn babies dropped each
century– Unsafe drinking water one second
every 16 years
Source: Institute of Industrial Engineers
12© 2006 Process Improvers, LLC
DMAIC Framework for Six Sigma
Define Measure Analyze ControlImprove
Define the goals of the improvement activity; determine project’s business case; identify customer; map current & future state processes; determine scope
Measure the existing system or process; determine metrics; define project success factors
Control the system or process, including risk, quality, cost, scope, change management; determine reporting needs
Improve and implement the system or process; determine necessary activities to achieve goals
Analyze the system to eliminate gap between current system or process and the desired goal; determine and reduce obstacles to achievement
13© 2006 Process Improvers, LLC
Lean Six Sigma
• Defined: Approach to eliminating waste and variation
• Objective: Increase quality and reduce defects/variation while increasing process speed and efficiency
• Requires: The combination of both Lean and Six Sigma methods and tools
14© 2006 Process Improvers, LLC
DMAIC for Lean Six Sigma
• Integrate the methodologies and tools of both Lean and Six Sigma at each phase
Define Measure Analyze ControlImprove
15© 2006 Process Improvers, LLC
Design For Six Sigma (DFSS)
• Defined: DFSS uses tools, training, and measurements to enable the design and development of products, services, and processes that meet customer expectations at Six Sigma quality levels
• Objective: Optimize the design and development processes to achieve Six Sigma quality levels from the beginning
• Requires: A new product, service, or process to design and develop
16© 2006 Process Improvers, LLC
DMADV Framework for DFSS
Define Measure Analyze VerifyDesign
Define the goals of the design act; determine critical to quality (CTQ) characteristics and their relative importance
Identify CTQs to be addressed; establish metrics for CTQs; determine how customer satisfaction will be measured
Standardize; establish control metrics; develop transition plan
Detain selected design; simulate process; ensure design meets CTQs; develop implementation plan
Link CTQs to features & determine importance; perform process benchmarking; develop, evaluate, and select designs
17© 2006 Process Improvers, LLC
Methodology Analogy
DesignForSix Sigma
Lean
Six Sigma
Kaizen
Lean Six Sigma
18© 2006 Process Improvers, LLC
Kaizen Lean Six Sigma Lean Six Sigma DFSS Defined Philosophy of gradual,
incremental, and orderly continuous improvement, creating more value and less waste; emphasis on process improvement and process control
Focus on speed, efficiency, and elimination of waste
Data-driven methodology focusing on reducing defects and variability
Approach to eliminating waste and variation; combines both Lean and Six Sigma tactics
DFSS uses tools, training, and measurements to enable the design and development of products, services, and processes that meet customer expectations at Six Sigma quality levels
Objective Small improvements by optimizing existing systems
Maximizing process speed by reducing waste
Reduce variability through continuous process improvement
Increase quality and reduce defects/variation while increasing process speed and efficiency
Optimize the design and development process to achieve Six Sigma quality levels from the beginning
Requirement(s) Taking action on deviations to maintain process control
Establishing control through Standard Operating Procedures (SOPs)
Taking action on deviations to maintain process control
Elimination of waste (muda)
Value stream mapping
Processes must be in place
The processes must be predictable (in statistical control with normal distribution)
The processes must be improved by reducing variation (continuous improvement)
Data availability
The combination of both Lean and Six Sigma tools and methods
A new product, service, or process to design and develop
Approach Kaizen’s Deming-Shewhart PDCA Cycle Plan Do Check Act
DMAIC is acceptable
5S Sort Straighten Scrub Systematize Sustain
DMAIC Define Measure Analyze Improve Control
DMAIC; Integrate the methodologies and tools of both Lean and Six Sigma at each phase
DMADV Define Measure Analyze Design Verify
Methodology Comparison
19© 2006 Process Improvers, LLC
Lean and Six Sigma
• Lean cannot bring a process under statistical control
• Six Sigma does not dramatically improve process speed or reduce invested resources
• Combining Lean and Six Sigma maximizes advantages and reduces the disadvantages of each individual approach
20© 2006 Process Improvers, LLC
Which Methodology is Best?
• “Best” is depends by the needs and current state of your organization
• “Best” may be a combination of methodologies
• An organization ready for Six Sigma is also ready for Lean or other methodologies
• The name of methodology used doesn’t matter; what matters is leadership, commitment, vision, strategy, and follow-through from supplier to customer
21© 2006 Process Improvers, LLC
Business Process Management
• The future of business processes lies not in one methodology, but in the integration of technologies and methodologies in order to facilitate execution of the process
• Customers are demanding customizations and total solutions
• Innovative business processes can lead to competitive advantage
• Business processes will drive IT
22© 2006 Process Improvers, LLC
Changing Competitive Environment
• The only thing certain in business is change
• Industry boundaries are evaporating
• The entire value chain is involved in providing total solutions to customers:– Competition– Collaboration– Partners may also be competitors
23© 2006 Process Improvers, LLC
Process Mapping
• Regardless of the methodology, start with mapping the current processes– Identifies current state, opportunities for improvement, process time– Allows identification of all process steps in order to determine which steps
are value added or bottlenecks– Knowing current state will assist in identifying improvement opportunities
• As-is vs. future process time, number of steps, handoffs, etc.• Determine steps which add value
24© 2006 Process Improvers, LLC
Benefits of Process Mapping
• Gain understanding of the process and process objectives– Answers who (including suppliers and customers), what, when, where,
how, and duration– Identifies the information or data used in the process, decisions,
bottlenecks
• Identify sources of waste
• Improve supplier and customer relations
• Provides a common language for talking about the process
25© 2006 Process Improvers, LLC
Sample Process MapMedic Clerk Vendor OtherPatient
Provide Care
Complete PPCR Review PPCR
EMS Supv
Perform Quality Check
Enter Data in System
Review
Batallion Chief
Print & Mail Bills
Sort, Assemble, & Mail Bills
Remit Payment
InsuranceCompany
Need Insurance Info
Receive Bill & Insurance
Authorization
Bill & InsuranceAuthorization
Return Insurance
Authorization
Approved PPCR
Completed PPCR
Rework
Incomplete PPCR
IncompletePPCR
Complete PPCR
Enter Insurance Information
InsuranceInfo On File
InsuranceCompany
Insurance Info On FilePrint & Mail Bills
Payment
Completed InsuranceAuthorization
26© 2006 Process Improvers, LLC
Indications of Process Improvement Opportunities
Internal
• Non-compliance to Industry Standards
• Scrap
• Rework
• Short Cuts to Beat the System
• Excess Inventory
• Capacity Constraints
• Low Efficiency/ Productivity/Yields
• Employee Symptoms
• Shared Responsibility
External
• Benchmarking– Company vs. World Class Performers
• Market Share Drop
• Negative Publicity
• Pricing Inflexibility
• Warranty Costs
27© 2006 Process Improvers, LLC
Enabling Project Success
• Management buy in is required from the start
• Align goals with the strategic direction of the organization
• Combine project ownership and accountability
• Manage change – do it early, do it often
• Allocate appropriate staff and time
• Train staff in applicable techniques
• Eliminate process variation