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Process Improvement: Which Methodology is Best for Your Project? PMI Skyline Luncheon Sharon Valencia, PMP

Workharderand Harder

Jan 13, 2015





  • 1. Process Improvement: Which Methodology is Best forYour Project? PMI Skyline Luncheon Sharon Valencia, PMP

2. Agenda

  • Definitions
  • Business Improvement Methodologies
  • Methodology Comparison
  • Process Management
  • Process Mapping
  • Enabling Project Success

3. What is a Process?

  • Any set ofactivitiesthat when taken together,transforma series ofinputsinto anoutput , producing a result ofvalueto a customer

Process Suppliers Customer SIPOC Input Output 4. What is a Business Improvement Methodology?

  • A documented set of procedures, guidelines, and tools intended to develop better processes
  • Business improvement methodologies covered in this presentation:
    • Kaizen
    • Lean
    • Six Sigma
    • Lean Six Sigma
    • Design for Six Sigma (DFSS)

5. Kaizen

  • Defined: Philosophy of gradual, incremental, and orderly continuous improvement, creating more value and less waste; emphasis on process improvement and process control; Japanese word meaning ongoing improvement
  • Objective: Small improvements by optimizing existing systems
  • Requires:
    • Taking action on obvious problems and deviations to maintain process control
    • Establishing control through Standard Operating Procedures (SOPs)
    • 1-10 days

6. Kaizens Deming/ Shewhart PDCA CyclePlanStart with an idea for doing the job better; study the current situation; identify the problem and formulate a plan Conductexperiments to investigate the idea; implement the plan on a small scale If desired results were achieved, implement the change into the SOP Observe and evaluate results to determine if the idea produced the desired results Act Do Check * It is also acceptable to use the DMAIC framework for Kaizen events 7. Lean

  • Defined: Focus on speed, efficiency, and elimination of waste
  • Objective: Maximizing process speed (cycle time) by reducing waste
  • Requires:
    • Elimination of waste ( muda) : Defects, overproduction, inventories, unnecessary processing, unnecessary movement of people, unnecessary transport of goods, waiting, designing goods and services that dont meet customers needs
    • Value stream mapping: Map process and focus on elimination of non-value add activities
      • Ask what activities the customer is willing to pay for
    • Focus on process standardization

8. Leans 5s Approach Sort Sustain Determine what is necessary to perform the job; Eliminate unnecessary items from the workplace Arrange all essential items so that they are clearly marked and easily retrieved Sustain the other steps and continually improve the process Make cleaning and organizing routine; promote an orderly work environment; perform work the same way every time (standardize) Keep clutter out of the workplace; Scrub all machines and the work environment to maintain cleanliness Systematize Straighten Scrub 9. Six Sigma

  • Defined: Data-driven methodology focusing on reducing defects and variability
    • 6= 3.4 defects per million (Motorola Shift)
    • =Sigma = Standard deviation
  • Objective: Reduce variability through continuous process improvement
  • Requires:
    • Processes must be in place
    • The processes must be predictable (in statistical control with normal distribution)
    • The processes must be improved by reducing variation (continuous improvement)
    • Data availability
    • Focus on understanding customer requirements

10. Six Sigma Distribution Upper Control Limit/ Specification Lower Control Limit/ Specification Normal, Bell-Shaped Curve/ Distribution of Values Defects Defects 11. The Importance of Six Sigma

  • Traditional Quality (3 : 66,807 DPMO)
    • 54,000 incorrect drug prescriptions per year
    • 40,500 newborn babies dropped each year
    • Unsafe drinking water two hours each month
  • 6Quality (No Motorola Shift)
    • One incorrect drug prescription every 25 years
    • 3 newborn babies dropped each century
    • Unsafe drinking water one second every 16 years

Source: Institute of Industrial Engineers 12. DMAIC Framework for Six Sigma Define Measure Analyze Control Improve Define the goals of the improvement activity; determine projects business case; identify customer; map current & future state processes; determine scope Measure the existing system or process; determine metrics; define project success factors Control the system or process, including risk, quality, cost, scope, change management; determine reporting needs Improve and implement the system or process; determine necessary activities to achieve goals Analyze the system to eliminate gap between current system or process and the desired goal; determine and reduce obstacles to achievement 13. Lean Six Sigma

  • Defined: Approach to eliminating waste and variation
  • Objective: Increase quality and reduce defects/variation while increasing process speed and efficiency
  • Requires: The combination of both Lean and Six Sigma methods and tools

14. DMAIC for Lean Six Sigma

  • Integrate the methodologies and tools of both Lean and Six Sigma at each phase

Define Measure Analyze Control Improve 15. Design For Six Sigma (DFSS)

  • Defined: DFSS uses tools, training, and measurements to enable thedesignanddevelopmentof products, services, and processes that meet customer expectations at Six Sigma quality levels
  • Objective: Optimize the design and development processes to achieve Six Sigma quality levels from the beginning
  • Requires: A new product, service, or process to design and develop

16. DMADV Framework for DFSS Define Measure Analyze Verify Design Define the goals of the design act; determine critical to quality (CTQ) characteristics and their relative importance Identify CTQs to be addressed; establish metrics for CTQs; determine how customer satisfaction will be measured Standardize; establish control metrics; develop transition plan Detain selected design; simulate process; ensure design meets CTQs; develop implementation plan Link CTQs to features & determine importance; perform process benchmarking; develop, evaluate, and select designs 17. Methodology Analogy Design For SixSigma Lean SixSigma Kaizen LeanSixSigma 18. Methodology Comparison 19. Lean and Six Sigma

  • Lean cannot bring a process under statistical control
  • Six Sigma does not dramatically improve process speed or reduce invested resources
  • Combining Lean and Six Sigma maximizes advantages and reduces the disadvantages of each individual approach

20. Which Methodology is Best?

  • Best is depends by the needs and current state of your organization
  • Best may be a combination of methodologies
  • An organization ready for Six Sigma is also ready for Lean or other methodologies
  • The name of methodology used doesnt matter; what matters is leadership, commitment, vision, strategy, and follow-through from supplier to customer

21. Business Process Management

  • The future of business processes lies not in one methodology, but in the integration of technologies and methodologies in order to facilitate execution of the process
  • Customers are demanding customizations and total solutions
  • Innovative business processes can lead to competitive advantage
  • Business processes will drive IT

22. Changing Competitive Environment

  • The only thing certain in business is change
  • Industry boundaries are evaporating
  • The entire value chain is involved in providing total solutions to customers:
    • Competition
    • Collaboration
    • Partners may also be competitors

23. Process Mapping

  • Regardless of the methodology, start with mapping the current processes
    • Identifies current state, opportunities for improvement, process time
    • Allows identification of all process steps in order to determine which steps are value added or bottlenecks
    • Knowing current state will assist in identifying improvement opportunities
      • As-is vs. future process time, number of steps, handoffs, etc.
      • Determine steps which add value

24. Benefits of Process Mapping

  • Gain understanding of the process and process objectives
    • Answers who (including suppliers and customers), what, when, where, how, and duration
    • Identifies the information or data used in the process, decisions, bottlenecks
  • Identify sources of waste
  • Improve supplier and customer relations
  • Provides a common language for talking about the process

25. Sample Process Map 26. Indications of Process Improvement Opportunities

  • Internal
  • Non-compliance to Industry Standards
  • Scrap
  • Rework
  • Short Cuts to Beat the System
  • Excess Inventory
  • Capacity Constraints
  • Low Efficiency/ Productivity/Yields
  • Employee Symptoms
  • Shared Responsibility
  • External
  • Benchmarking
    • Company vs. World Class Performers
  • Market Share Drop
  • Negative Publicity
  • Pricing Inflexibility
  • Warranty Costs

27. Enabling Project Success

  • Management buy in is required from thestart
  • Align goals with the strategic direction of the organization
  • Combine project ownership and accountability
  • Manage change do it early, do it often
  • Allocate appropriate staff and time
  • Train staff in applicable techniques
  • Eliminate process variation

28. Experience. Results. Sharon Valencia, PMP Principal Computer Sciences Corporation [email_address]

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