Picking The Right Process Improvement Approach Pros and Cons: Picking The Right Process Improvement Approach

Continuous Improvement Employee Buy In Agenda Continuous Improvement Employee Buy In Organizational Fit / Pros and Cons DMAIC PDCA Kaizen - SCORE Lean Selection Implementation

Continuous Improvement Philosophical belief of changing for the better Everyone's job Drives innovation to: Improve processes Reduce risk Improve the customer satisfaction & engagement Exceed regulatory requirements And of course: Do it … Safer! Better! Faster! Without it your business will fail!

Employee Buy In Sponsorship Knowledge Participation Across all levels WIIFM Improved decision making Reduced variability Better results

Have you started your journey? Do you use metrics? Do you have a plan? Organizational Fit Have you started your journey? Do you use metrics? Do you have a plan? Do your metrics support your plan? How do problems get addressed today? What resources are available? Financial, Training, Employee, Executive etc. Are there competing methodologies in other departments?

DMAIC – Define, Measure, Analyze, Improve, Control DMAIC – Six Sigma DMAIC – Define, Measure, Analyze, Improve, Control Originated from Motorola in order to prove process improvements Specifically target defects Implies a dollar value to any “defect” Requires a large statistical capability

DMAIC - continued Define – Creating a charter with clear defined goals including SMART metrics Measure – Collecting data relevant to the critical need of the process and the customer Analyze – Using statistical means to identify trends, root causes, and solutions Improve – Selecting and implementing solutions that eliminate defects Control – Monitoring the new process over time with statistical tools to ensure defect elimination

DMAIC - continued Pros Cons Results Complexity Repeatability Cost True root cause solution Resource intensive Higher return on projects Extensive training Business alignment Preconceived expectations Focuses on customer need Extended duration projects Long term solutions Limited use outside of manufacturing

PDCA PDCA – Plan Do Check Act Developed by Walter A. Shewhart in 1940’s, and popularized by W. Edwards Deming in the 1980’s Follows the scientific method of hypothesis, experiment, evaluate Most widely used improvement methodology

PDCA - continued Plan – Identify the issues at hand Do – Run pilot runs or experiments to determine solutions Check – Review the results and repeat as necessary Act – Implement the best solution to the process or repeat the PDCA cycle from the beginning

PDCA - Continued Pros Cons Easy to implement Iterative process Not process specific Limited tools dedicated Ample resources Requires pre-existing metrics Not affected by scope Over simplification of problems Low cost to train / implement Difficult to qualify / qualify results

Kaizen – Japanese = To make Better through Good Change Originated in Japanese manufacturing, and popularized by Toyota Motor Company Based on an iterative process that many small improvements add up to big changes Typically addresses the 8 wastes of business Defects, Overproduction, Waiting, Non-utilized resources, Transportation, Inventory, Motion, Excess processing i.e. - Manual Touches Designed to provide low cost / no cost solutions

Kaizen – SCORE SCORE – Select, Clarify, Organize, Run, Evaluate Can effectively use any tool from any other methodology Intended to include front line workers with the most “experience” Use of 12 Strategies for idea generation Eliminate, Perspective, Deviation, Adaptation, Proportion, Distribution, Functionality, Economy, Direction, Rearrange, Comparison, Redefine

Kaizen Continued Pros Cons Easy to implement Iterative process Not process specific Under usage Ample resources Over usage Applicable across the enterprise Limited Expertise Low cost to train / implement “Manufacturing” only Scalable Based on other principles Rapid Deployment Limited Certification / Standardization

Lean - creating more value for customers with fewer resources Focuses on efficiency through eliminating the “8 wastes” Originating in Japanese manufacturing addressing Waste, Burden, Variation Uses the “6 S’s” Sort, Straighten, Sweep, Standardize, Sustain, + Safety

Lean - Continued EFFICIENCY! Work Home School Relationships Managing from the bottom up!

Universal applicability Lean- Continued Pros Cons Low cost solutions Induces Fear Universal applicability Typically cost driven Proven track record Used as a catch all Scope Indeterminate Oversimplified

Selecting the Approach PDCA Focus: Improve key sub-process Goal: Big effectiveness / efficiency improvement Lead: Green Belt / Yellow Belt / Project Mgr. Tools: Blended methodologies, best practices, change management Source: Corporate Goals, Process Excellence, Business Performance issue, Regulatory/Risk concern DMAIC Focus: Radical Process Change Goal: Dramatic effectiveness improvement Lead: Sr. Leader or Black Belt Tools: Benchmarks, blended methodologies, external experts, change management Source: Corporate Goals, significant Regulatory or Risk concern Kaizen Focus: Small issue with sub-process Goal: Resolve issue / make improvement Lead: Process Owner – Kaizen trained facilitator Tools: Basic tools – blended methodologies Source: Process Excellence, Business Performance issue, 12 sources of Idea Generation Lean Focus: Structured process Goal: Continuous effectiveness / efficiency improvements Lead: TRIZ Practitioner Tools: 40 Principles IFR, single piece flow Source: Process Excellence, Business Performance issue, 6S’s Low Complexity of Problem / Risk High Narrow Scope of Problem Broad

Identify the Change Agent Secure management buy in Implementation Identify the Change Agent Experienced, recognized, capable Secure management buy in The higher the better Sell the appropriate methodology Have a project in mind Select initial projects with easy wins Political power is easy with successes Partner with your friends They will be the most willing to give cooperation and feedback

Implementation – Continued Improve what you already measure Use as many of the available tools as needed Follow the methodologies closely Include any financial considerations Use a dedicated project manager Have a published plan Provide regular and ample updates Hand pick the first team Delegate appropriately Maintain scope

Resources isixsigma.com Gembapentarei.com LEAN.ORG Wikipedia.com All knowing

Charter - Example Name: Date: General Information Project Objectives Scope Project Name: Streamline Automate Stop Start Process Start Process end Time Frame: Key Dates (tentative): Kickoff Management Committee Meetings: Follow up: Project Team Metrics Key Challenges Expected Benefits Project Sponsor: Management Team: Core Team: Extended Team: Throughput Yield Cycle time Takt Time Environmental factors Demand drivers Future changes Increased capacity Reduced Defects Increased flow Reduced inventory

TW202: Kaizen General Presentation Storyboard – A3 Report Implementation Results Improvements Problem Statement Root Cause Analysis Current Situation Ideal Situation/ Target Measures Standardizing and Sustainment Plans Show the slide. Intent of the slide: Introduce the Kaizen storyboard. Recommended Content: The kaizen storyboard (KFM 27.0) is used throughout the event to record the progress of the group and serves as the core method for gathering information and data for the final management report out at the end of the event. We will come back to the storyboard throughout the presentation today and complete each of the blocks as we go. The 11x17 storyboard (included in the kaizen kit) can be used and the information during the event transferred to it and posted in the team meeting room. Another possible solution is to use one sheet of flip chart paper for each block on the storyboard and title each sheet accordingly. When the event is complete the information will then be transferred directly into the power point management report out. Facilitator Tips: 2005 Time Wise Solutions, LLC. All Rights Reserved.

Another Charter Example