processimprovement[2].ppt

7/27/2019 processimprovement[2].ppt

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Process Improvement

for Any Business

Presented by Scott A. Silverman


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To the optimist

the glass is half full.

To the pessimistthe glass is half empty.

To the engineer

the glass is twice as big

as it needs to be.


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Seminar Objective

To present a step by step

guide to process improvement

and give you the ability toapply the guide to your own

company


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Seminar Overview

Business Processes

The importance and challenges of process

improvement.

Step by Step guide to process

improvements.

Apple Pie Company example.


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Processes

Every type of business has processes.

Simple like paying bills.

Complex like handling customercomplaints.

Just about everything we do can be

defined as a process.


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Importance of Process

Improvement

To be competitive both financially and

technologically.

To combat rising energy and benefit costs.

To increase customer satisfaction.


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Customer Satisfaction

Quality product or

service

On time delivery

Reasonable cost


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Challenges to process

improvement

Time

People do not like change

Nothing wrong with theway we do it now.


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Keys to success

Commitment of time

by top management.

1 hour once a week

or twice a month. Start with just one

process.

Start small to getquick results.


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Step 1: Define the business

processes of the company.

Break down the organization into

manageable pieces.

Break down by departments or jobfunctions.


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Customer

places order

Order rawmaterials

Receive raw

materials

Make pies

Delivery

or pickup

Deliver Pies

Storage

A

A

Receive

Payment

Send out

invoices

Pay Bills

Payroll

Business

ProcessFlow Chart


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Step 2: Define the variables of the

process.

Pick one process.

Inputs what is needed to perform the

process .

Outputs what the process produces

Users are the department or people who

will use the information or products.


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Step 3: Observe the process.

Physically go through the process to

uncover opportunities for improvements.

Look for waste either time or materials.

Error Proof.

Automate repetitive activities.

Are all the steps being done adding value? Is the work area organized?


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If possible video tape the process.

Explain to the employees performing the

process what you are doing.

Ask employees for insight.

Did the users get acceptable outputs?


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Step 4: Discuss findings and

identify problems

Discuss and list observations and findings

Decide which of the findings are the most

relevant

How can problems be quantified

We need objective evidence that a

problem exists.


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Problems

Anything that creates waste either time or

materials. Examples are;

Missing information.

Defective material.

Clutter


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Checklist made on a

spreadsheet program

Order slip evaluation form

DATE: SLIP NUMBER:

PhoneNumbermissing

Quantityneededwro

ng

DeliveryDateMissing

CustomerNameMissing

Oth

er NOTES:


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Order slip problem Pareto Chart

220 Pies

0.0%10.0%20.0%30.0%40.0%50.0%60.0%

70.0%

Delivery

Date

Missing

Phone

Number

missing

Customer

Name

Missing

Other Quantity

needed

wrong

Pe

rcentofslipsw

rong

Series1

Step 5: Conduct root cause

analysis.


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analysis.

Need to fix the root

cause of the problem

not a symptom.

Use the 5-Why analysis

to find the root cause.

Ask Why? 5 times.


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Step 6: Brainstorm a solution and

set goals.

Everyone should contribute solution ideas.

What is the goal?

Who is going to be in charge? When do we want it done by?


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Step 7: Test and evaluate the

solution.

Test the solution

Gather objective evidence to verify the

solution.

A little extra time testing and evaluating

now can save a lot time and money in the

future if our solution is not effective.


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Step 8: Implementation and

follow up Train employees

Make employees part of the change

process.

Continue to collect objective evidence to

verify the solution is effective.

Associate a cost savings Move on the next problem or process.


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Apple Pie Company

Problems

Orders are getting

mixed up.

Not enough pies

made to fill orders.

Too many pies.

Late deliveries.


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Customer

places order

Order rawmaterials

Receive raw

materials

Make pies

Delivery

or pickup

Deliver Pies

Storage

A

A

Receive

Payment

Send out

invoices

Pay Bills

Payroll

Apple Pie

Company

Step 1: Define

the business

processes of

the company

Step 2 Define the ariables of the


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process.

Taking orders process Inputs

Outputs

Users Purchasing

Kitchen Staff

Delivery Staff


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Watch orders being taken by different

employees.

Talk to purchasing, the kitchen staff and

the delivery staff. Did they get the

information they needed or are changes

necessary.


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Step 4: Discuss findings and

identify problems.

Order slips have the wrong number of

pies on it.

The delivery date is missing or is wrong.

The phone number was not written on

the slip.

No customer name on the slip.

APPLE PIE COMPANY


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APPLE PIE COMPANY

Order slip evaluation form

DATE: SLIP NUMBER:

Ph

oneNumbermissing

Qu

antityneededwrong

D

eliveryDateMissing

Cus

tomerNameMissing

Other NOTES:


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Order slip problem Pareto Chart

220 Pies

0.0%10.0%20.0%30.0%

40.0%50.0%60.0%70.0%

Delivery

Date

Missing

Phone

Number

missing

Customer

Name

Missing

Other Quantity

needed

wrong

Percentof

slipswrong

Series1

Problem Statement: Order slips have missingor wrong information.

Step 5: Conduct root cause analysis.


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analysis.

1. Why is the order slip wrong or missinginformation?

The person taking the order did not get all the

information needed from the customer orwrote the information down wrong.

2. Why?

The employee forgot to ask the customer for

the information. The information was writtenwrong due to human error or the employeemisunderstood the customer.


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analysis.

3. Why?

The person forgot to ask the information

because there is nothing in front of the

employee to remind them what informationthey need, they rely on memory. The

information was written down wrong or the

order taker misunderstood the customer

because the order was not repeated back to

the customer at the end of the phone call.


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analysis.

4. Why

Because we never thought the employees needed

cues to remember what to ask. We have never

trained our employees to repeat the orders back to

the customer.

5. Why

When our business was small we had very few

orders and we usually did not sell more than 1 or 2pies at a time. The business has grown rapidly in the

last 2 years and we overlooked the fact that we need

a better system for taking orders.


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set goals.

Create a new pre-printed order form

Have the supervisor confirm orders with

customers

New computer system


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set goals..

New Order Form

The new form should reduce errors to less

then 5 per 100 orders.

Rochelle is in charge of creating a draft

form. She will get input from employees

that will use the form.

Rochelle will present the draft form next

Wednesday at 10:30.

Apple Pie Company Sales Order


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Slip# Date:

1) Customer Name:

Address

City State

2) May I have your phone number please.

3) How many pies will you be ordering today?

4) Is this for delivery or pickup?

Pickup Date: Delivery Date:

Time: Time:

Address same as above

Shipping Address

5) I am going to read the order back to you. Order verified with the customer

Notes:

Apple Pie Company Sales Order

Zip Code


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Step 7: Test and evaluate the

solution.

Try out our new form for 2 weeks.

Use the check list the verify the solution.

Rochelle will get feedback the employees. We will meet after the evaluation period to

discuss the results.


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After New Order Form


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Step 8: Implementation and follow up.

Train all employees and encourage

feedback on the new form.

Continue to use our checklist for the next

couple of months to verify the form is

effective.

Give updates at future meetings about

how many errors were found during thepast 1 or 2 weeks.


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Step by Step guide to conducting

process improvements

Step 1: Define the business processes of

the company.


process.


Step 4: Discuss Findings and identify

problems.


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Step by Step guide to conducting

process improvements continued

Step 5: Conduct root cause analysis.

Step 6: Brainstorm a solution and set

goals.

Step 7: Test and evaluate the solution.

Step 8: Implementation and follow up.


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Summary

It may be difficult to see that there is abetter way.

Have someone from outside your

company observe your process. We must improve our processes.

Ask what can we do to get our product or

service to the customer faster. Use this guide to improve your processes.

Commit the time

Fl h t F P bl R l ti


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Flowchart For Problem Resolution

Dont Mess With It!

YES NO

YES

YOU IDIOT!

NO

Will it Causea Problem?

NO

Look The Other Way

Anyone ElseKnows?

Too Bad for You!YESYES

NO

Hide ItCan You BlameSomeone Else?

NO

NO PROBLEM!

Yes

Is It Working?

Did You MessWith It?


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We help small manufacturing

companies make their productfas ter and cheaperwhile

maintaining quality.

www.jaryengineering.com508-284-2153

Please visit us at booth 20
http://www.jaryengineering.com/http://www.jaryengineering.com/

Documents

processimprovement[2].ppt