Navigating The Road of Process Improvement Best Practices and Tips © Gary Blackard September 15, 2015
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Navigating The Road of Process ImprovementBest Practices and Tips
© Gary BlackardSeptember 15, 2015
Table of Contents
• What is Process Improvement?
• Program Methodology Review
• Application and Learning
• Next steps
2
What is Process Improvement?
4
5
Process Improvement is NOT:
• An employee replacement strategy
• A complex, impossible-to-learn methodology
• A “fix everything” model
6
Definition*
Systematic approach to closing of process or system performance gaps through streamlining and cycle time reduction, and identification and elimination of causes of below specifications quality, process variation, and non-value-adding activities.
*http://www.businessdictionary.com/definition/process-improvement.html
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Process Improvement Programs
• Total Quality Management (TQM)• Baldrige Award• ISO9000 Certification• PDCA• Lean Enterprise (Toyota Production System)• Six Sigma• Project Management (PMI Certification)• Agile (Scrum)• Constraints Management
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Examples of Process Improvement
Process Starbucks and Lean Methodology UCLA Health and CICARE approach Mistake Proofing (Poka Yoke) Color coding “fall” patients
Innovation Music integration with Phones – one device GPS replacement of maps/directions Fuel efficiencies for autos, trains and planes
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Culture and Process Improvement
• “Culture eats Strategy for Lunch” – Peter Drucker
• 70% of all change initiatives fail – John Kotter/Harvard
• Healthcare especially vulnerable
10
Benefits of Process Improvement
• Better patient experience• Improved clinical outcomes• Higher employee
engagement/morale• Sustainable financials (reduced
costs)• Faster results• Ability to grow without incremental
costs• Reduced errors/quality
improvement
11
Recommended Approach and ToolsThere is no “one way” to do process improvement
13
Lean Six SigmaStrategic Linkage
andExecution
New Opportunities
Projects Generated
D M
AI
C
Priorities,Definition,
Scope
Effort
Benefit
Results
Strategic Linkage and Execution
$
StrategicPlan
AnnualPlan
Vision and Mission
What is Lean Six Sigma?14
6 Sigma:3.4 DefectsPer Million
6 Sigma:3.4 DefectsPer Million
3 Sigma:66,807 DefectsPer Million
SpecProcessOutput - Y
SpecProcessOutput - Y
SpecProcessOutput - Y
SpecProcessOutput - Y
• Lean Enterprise Thinking promotes speed and process waste elimination by reducing non-value added activities within any given process.
• Six Sigma is a formal methodology that eliminates or reduces variation in any given process. Its focus is on quality improvement and defect reduction. The higher the sigma level, the less variation in a process.
• Please see chart below:
Benefits of Lean Six Sigma
• Over $500M saved over 20+ years
• Faster processes• Waste elimination• Higher employee
morale• Better customer
experience
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Business Results
Culture Change
Leadership Development
• Profitability• Growth • New opportunities
• Future leaders• Shared business discipline• Continuous learning
• “Customer In” vs. “Company Out” market view
• Facts/data driven decisions• Busting bureaucracy• Collaborative, enhanced teamwork
Lean Six Sigma: Primary Objectives
17
–Goal — Reduce waste and increase process speed
–Focus — Identify non-value add steps and causes of delay
–Method — Value Stream Tools, Kaizen (“quick-hit”) events
LeanSpeed + Low Cost
–Goal — Improve performance on customer CTQs (Critical to Quality)
–Focus — Use DMAIC process with various tools to eliminate variation
–Method — conduct project selection workshop and develop projects through volunteer consultants
Six SigmaCulture + Quality
Six Sigma QUALITY Enables Lean Speed
(fewer defects meansless time spent on rework)
Lean SPEED Enables Six Sigma Quality
(faster cycles of experimentation / learning)
Combining Two Powerful Approaches
Types of Waste – Eliminate or Streamline18
The phases and tools of Lean Six Sigma19
Tools You Should Know and Use
• Project Planning (WBS, Risk Assess, Comm Plan, RACI)• SIPOCR• Value Stream Map/Process Map• 5S• Spaghetti Diagram• DMAIC “thinking” for problem solving
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SIPOCR21
Value Stream Map22
Value Stream Map Example23
Process Map24
5S Overview25
Spaghetti Diagram26
DMAIC “Thinking”27
In Summary• Process Improvement is critical
for success
• Culture must be adaptive and agile
• Lean Enterprise and Six Sigma recommended
• Process Improvement must align to Vision and Mission
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?
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September 15, 2015© Gary Blackard
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