Process improvement presentation

How to Improve Productivity and Increase Profits

Dr. John Persico Jr.

The Key to Profitability • Improve Quality —>• Costs decrease because of less rework,

fewer mistakes, fewer delays, snags, better use of machine-time and materials —>

• Productivity Improves —>• Capture the market with better quality and

lower price —>• Stay in Business —>• Provide jobs and more jobs

The Three Qualities • Quality of the Process• Quality of the Product• Quality of the Service

What most affects Quality?

Variability • Inputs• Design• Process Control• Customers

TamperingCan anyone define tampering for me?

Deming’s Funnel Experient

“When a system is stable, telling the worker about

mistakes is only tampering.” --- W. Edwards Deming

If It Ain’t Broke, Don’t Fix it!“The aim of leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to bring pride of workmanship to people. Put in a negative way, the aim of leadership is not merely to find and record failures of men, but to remove the causes of failure: to help people to do a better job with less effort.” --- Dr. W. E. Deming

Continuous Improvement• Lean Mfg.• Kaizen• Six Sigma• TQM• JIT• Kanban• Five S System• QFD• TRIZ

Continuous Improvement• “We installed quality control.” No. You can

install a new desk, or a new carpet, or a new dean, but not quality control. Anyone that proposes to “install quality control” unfortunately has little knowledge about quality control. --- W. E. Deming

What are you doing to improve?

Are you continually improving or continuously improving?

PDCA CYCLE

Useless Metrics• "There is no true value of any

characteristic, state, or condition that is defined in terms of measurement or observation. Change of procedure for measurement (change of operational definition) or observation produces a new number." - W. Edwards Deming

• "An operational definition is a procedure agreed upon for translation of a concept into measurement of some kind." - W. Edwards Deming

Balanced Scorecard

QFD

Not Understanding the Process

Not Understanding the Process

This is only one of six pages in the Malting Process

Bureaucracy

Big-Project Engineers Have to Deal with Too Much Red Tape

--- Scott Whitbread and Nathaniel D. Greene, HBR, JANUARY 14, 2016

• A sense that blanket design philosophies, technical standards, and previous designs cannot be questioned. 

• Removing responsibility for key technical decisions from the project team.

• An inability to easily determine the value of ideas. 

• A preoccupation with benchmarking against other projects. 

• Missing the forest for the trees.

Examples of Bureaucracy

• Gary, Indiana Printing Company

“I don't understand why it is SO difficult for a school to adhere to a set of written accommodations for a child on an IEP - Other than it may cause them to do a little bit more work! Yes, you might have to grade a test one day later. Is it really that difficult to set a child up to succeed rather than setting them up to fail. It took 8 times visiting the assistant principal for the bullying to stop this year and now this... my patience is running out! And they wonder why enrollment is dropping in the district... Hmmmmm???” From a Friend on 3-1-2016

• ?• ?• ?• ?

Superstitions• Full Definition of SUPERSTITION1.1a :  a belief or practice resulting from

ignorance, fear of the unknown, trust in magic or chance, or a false conception of causationb :  an irrational abject attitude of mind toward the supernatural, nature, or God resulting from superstition

2.2:  a notion maintained despite evidence to the contrary

Superstitions

Superstitions• “The supposition is prevalent the world over that

there would be no problems in production or service if only our production workers would do their jobs in the way that they were taught. Pleasant dreams. The workers are handicapped by the system, and the system belongs to the management.” --- W. E. Deming

Superstitions• We have the best workers in the industry• We need to hire great workers to succeed• The customer is never wrong• A happy worker is a productive worker• More training and education are needed for

our employees.

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