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Practical Process Management asconditional
A beehive or an ant hill are communities that behave like a single intelligent organism.
hen executing
Belts will perform projects and start implementing their solutions
into the organization. We encountered problems in the implementation
process. Although formally the new methods and tools were acc
results started to slip after several months. Analysis demonstrated lack of
management follow up, but also that the responsible managers were not
aware of their lack of
continuous cost reduction and per
priorities for short term results in daily work.
necessary condition for the application of Lean, Six Sigma or any other
improvement programma
those who recognize the
n the article we will propose a simplified version of process
management, based upon the European Foundation of Quality
reduced from the initial achievements (phase 0). But the most concerning
element was, that local managers were not aware. Although they understood
conceptually the need of control (phase 1) and even the need of continuous
improvement (phase 2), each of the managers stated that the actual workload
did not allow time for these “theoretical” needs. Some of them remembered
the old days when they had still time for reflection and TQM efforts. I once met
a manager who stated: “I prefer to kick the ball very high than putting my
energy in conserving the ball at a too low level”.
Since each of the managers was responsible for many processes, they would
only intervene when a major problem occurred. Slow decay of performance
can thus remain unnoticed for a long time because it can be caused by many
successive small changes. Furthermore individual managers indicated that it
was impossible to make the culture change alone; some had earlier work
experience with other companies and fully understood both the problem as
the proposed solution. We approached the problem with a minimized version
of the European EFQM model (or the American Baldrige model). Starting from
the detail level of activity rather than top-down (which is the Lean element).As an example we will use the issuing of permits to work in a petrochemical plant. At
a permit desk anybody who intends to work on the plant has to receive clearance.
Permit desk operators are the interface between operation and maintenance. Since
safety is vital, time pressure is undesirable for the permit process. On the other hand,
waiting time is a classical waste and should be avoided. Also the process will surface
any other problem in the work preparation; it signals the waste in many other
activities as well. This makes it a good first project; In other areas similar processes
exist:
Monitoring sick leave may signal many other problems, not only medical but
also private or conflicts at work.
Help desk questions may signal unclear forms, unclear website text and many
other topics.
Punished children at school removed from the classroom and send to the
headmaster may reveal problems of the teacher, of the social structures in
the class, or maybe private problems of the pupil.
In general such processes are a good start because they reveal the most obvious
waste in the organization. Also the employees giving the signal are not authorized to
remove the root cause.
asic process execution is essential for any process. The classical SOP
(Standard Operating Procedure) may seem obvious; in many cases the
text is not guiding the work process, but derived from the work process
instead. Each ISO audit will thus be a challenge because details may differ in
reality.At the permit desk, experienced operators find a practical way to run their processes.
Since each plant has different specific conditions, the interpretations of the formal
process description develop differently in the course of time. For instance opening
hours, permit by phone, validity over the weekend, getting the permit while somebody
B
else gets the personal safety gear, … all practical interpretations around the formal
procedure.
The manager does not get alarmed
informal way; there are no complaints and no sudden problems
who typically work at more than one plant, will complain about local rules? But in the
end they will appoint dedicated foremen to each of the plants, thus avoiding problems
with the customer. The increased overhead will increase the price for the customer.
A Lean Six Sigma Project, aimed at reducing waiting times and at increasing Hand
on Tools time, implemented improvements in December. The implementation met
serious resistance at s
challenge; the Lean and Green Belt
implementation with good reason! After major improvements, the waiting times
started to return to old levels after
improvements. In response, the process was redesigned using a simple model:
employees get used to a high level of individual freedom. Also the daily
team will act aut
achieve higher “span of control
absolutely needed. The lean approach is totally different at the lowest
level of work. Although creativity and continuous improvement a
strongly encouraged, the details of work methods are not free for
individual interpretation. Best practices are enforced upon all
employees.
2. The data collection
time for the permit desk)
incidents where the ideal process was obstructed.
together with the reason
detected during waste walks, but during the process by the direct
employees. A major ba
We do not like to write down mistakes of colleagues.A contractor was in the
paperwork and had to travel back to the office. The permit operator knows
this guy and is
Overcoming this barrier will require a new attitude of the management, and
confidence in this new attitude by the permit desk operator at the same time.
EFQM, Business Excellence Model,as background reading for “practical process management”.
Leo Monhemius Dutch Six Sigma BV October 2010 (translated and summarized from Dutch language1998)
Brief History of Quality Awards :
In 1950 the Deming Prize was founded in Japan, its purpose being theencouragement of Quality Management introduced by the gurus fromUSA. As a part of restructuring Japan after WWII (Marshall program),General Mc Arthur invited the same consultants to Japan, thatsupported American industry during the war. Quality statistics were amilitary secret at that time. In after war USA, everybody tried to forget assoon as possible anything reminding the war, including TQM.
In 1980 The Baldrige Award was founded in United States. Japaneseindustry at that time is competing Western industry in major areas(Automotive, Consumer electronics, Photography). The Baldrige Awardmust stimulate business excellence and thus regain the lost territory.
1985 EFQM Award; founded by major business leaders in Europe. It ismeant to boost in its turn European industry. Both Baldrige and EFQMaward were further developed and gained acceptance in all areas ofactivity, including service, public health and education.
1988, Dutch version of EFQM founded, as is the case for most otherEuropean countries. After a few years even within the Netherlandsregional award versions are developed, which happens in othercountries as well. The phasing described in this text is typical for theDutch self assessment in the pioneering days, but it is directly related tothe scores of the EFQM model.
Phase 1 : Product Orientation (score 200)
The writer of this article is interviewing a CEO on his vision about theEFQM business excellence model. The CEO gives a convincing speech,telling the reporter about his fanatics in quality. He does, in fact, notneed the model because he scores high in Leadership. All employeesknow he is always ready to take the lead in quality for the customer. Thetelephone rings … A customer complaining about a late order, to whichthe CEO had committed himself earlier. The CEO stops the interview atonce, but invites the reporter to witness his response. Full of pride theCEO shows how his employees produce a rush order. Accompaniedwith a bottle of wine he delivers to the customer in his own Mercedes …
The CEO scores phase 1 inleadership, thus limiting furtherimprovement of the wholeorganization to this level.
The illustrations are meant tosymbolize how every employeecan only cooperate when hisown skills are not a limitationanymore; if they rise above thefence, the next phase can bepursued. In phase oneemployees are limited to theirindividual skills.
Phase 2 : Process Orientation (score 400)
The reporter meets again with the CEO, a few years later. Theorganization developed strongly in the meantime. The CEO took severalcourses. When he suffered health problems, he had to step back a little,and he had to change his style of management. Supported by externalconsultants he initiated several change projects. No longer trying to doeverything himself. Much time was invested in training of employees,but special efforts were in changing the management style at all levels.Processes started to run smoother and the frequency of errors anddefects was reduced strongly over a period of one and a half year. Withhindsight it was easy to realize how much money was lost byfirefighting. It proved to be approximately 20% of the turnover. Astatistic that no one would have believed beforehand. Profits increasedin spite of price-erosion. It was also only afterwards that managementrecognized how much the efforts used to be focused upon firefighting.Nowadays the organization is more quiet and management has time leftfor structural improvements. The telephone rings ... The same customer
is on the phone. "Everything issatisfactory, this time, however,something went wrong indelivery". The CEO finishes theinterview, and again invites thereporter to join him in solving theproblem. When arriving at shopfloor, the cause of the problem isfound within 15 minutes. In ashort meeting of 45 minutesactions are agreed andrecurrence of the problem isprevented. A minor change in a
computer program and in an operating procedure are required. Theproduction manager will implement the changes, and of course start arush order for the customer. The CEO phones the customer to informhim. The CEO acts at level two for leadership.
The fences per employee are no limitation anymore. At all levels teamsof employees work together and compensate for each others limitations.Although the teams achieved strong cohesion, other departments arefelt as adversaries sometimes .The next challenge is cooperation. Againhigher fence, this time around the teams.
Phase 3 : System Orientation (score 600)
The reporter and the CEO meet again at the yearly EFQM conference. Ithas been two years since the previous contact. After the conferencethey have dinner and the CEO tells about developments in the company.
The company expanded rapidly since the last contact. Growth wasinitiated by a few large orders of new customers. These orders requireda fast offer for a new product. This imposed close cooperation betweendepartments. In early days this seemed impossible, but now it proved achallenge. When receiving the order, the customer explained that noneof the competitors made a proposal al all within the timeframe. Once theproduction started, the customers carried out audits in a way that wascompletely new to the company. In all cases long term contracts wereoffered by the customers. Growth was possible thanks to this certainty.The CEO only then realized how TQM got integrated in the wholeorganization. New customers admitted that the audit had convinced
them that TQM was part of the dailywork methods and not (as is oftenthe case) a performance during theaudit. Reliability and stability werethe most important criteria forsupplier selection.
All fences within the organizationare exceeded, the cooperation isseen at department level andprocesses are optimized within theboundaries of the organization. Thecustomer is still outside, which isthe next fence to overcome.
A few years later, the CEO and the reporter meet for the last time. Thereporter attends the National EFQM Award meeting, and the CEO willreceive the prize on behalf of his company. At dinner the reporter listensto the developments of the last few years. The new customers of a fewyears ago bring the company in a new situation. Long term contracts aredeveloping into stable partnerships, stimulating to develop similarrelationships with the own suppliers. Within these partnershipsimportant developments take place. Employees are exchanged,information systems are shared, research results are exchanged. Theclose cooperation resulted in a major improvement of productivity, for
both partners. Because the growthexceeded this improvement, massivelayoffs could be prevented. This wasthe case for all partners in theproduction chain.
The meaning of the fences? Eachemployee is aware of his or herscontribution to the customer. In asimilar way suppliers are part of theteam. Exchange of employees isoccurring frequently.
Phase 5 : TotalQuality (score 1000)
The dream hasbecome true. Basisprocesses are nolonger limited by theorganizationalstructures. ThisUtopia of QualityManagement is onlythreatened by thelack of furtherimprovement. Thereporter isconvinced, thatconsultants andmanagers will react before Utopia is reached. New ideals will develop,the EFQM model will either be extended to phase 6 and phase 7. Maybenew insights will result in a totally new model?