[classification] pros and cons: picking the right process improvement approach 1
TRANSCRIPT
[Classification]
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Agenda
• Continuous Improvement• Employee Buy In• Organizational Fit / Pros and Cons
– DMAIC– PDCA– Kaizen - SCORE– Lean
• Selection• Implementation
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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!
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Employee Buy In
• Sponsorship• Knowledge• Participation• Across all levels• WIIFM
– Improved decision making– Reduced variability– Better results
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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?
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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
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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
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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
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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
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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
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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
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Kaizen
• 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
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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
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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
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Lean
• 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
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Lean - Continued
• EFFICIENCY!• Work• Home • School• Relationships• Managing from the
bottom up!
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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
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PDCA
Focus: Improve key sub-processGoal: Big effectiveness / efficiency
improvementLead: Green Belt / Yellow Belt / Project
Mgr.Tools: Blended methodologies, best practices,
change managementSource: Corporate Goals, Process
Excellence, Business Performance issue, Regulatory/Risk concern
DMAIC
Focus: Radical Process ChangeGoal: Dramatic effectiveness
improvementLead: Sr. Leader or Black BeltTools: Benchmarks, blended
methodologies, external experts, change management
Source: Corporate Goals, significant Regulatory or Risk concern
Kaizen
Focus: Small issue with sub-processGoal: Resolve issue / make
improvementLead: Process Owner – Kaizen trained
facilitatorTools: Basic tools – blended
methodologiesSource: Process Excellence, Business
Performance issue, 12 sources of Idea Generation
Lean
Focus: Structured process Goal: Continuous
effectiveness / efficiency improvements
Lead: TRIZ PractitionerTools: 40 Principles IFR, single
piece flowSource: Process
Excellence, Business Performance issue, 6S’s
Low
Com
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f Pr
oble
m /
Ris
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H
igh
Narrow Scope of Problem Broad
Selecting the Approach
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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
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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
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Resources
• isixsigma.com• Gembapentarei.com• LEAN.ORG• Wikipedia.com• All knowing
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Charter - Example
Name: Date:
Scope Process Start
Process end
Project ObjectivesGeneral InformationProject Name:
Time Frame:
Key Dates (tentative): Kickoff
Management Committee Meetings:
Follow up:
Project Team Metrics Throughput
Yield
Cycle time
Takt Time
Key Challenges Environmental factors
Demand drivers
Future changes
Expected Benefits Increased capacity
Reduced Defects
Increased flow
Reduced inventory
Streamline
Automate
Stop
Start
Project Sponsor:
Management Team:
Core Team:
Extended Team:
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[Classification]
Storyboard – A3 Report
Implementation Results
ImprovementsProblem Statement
Root Cause Analysis
Current Situation
Ideal Situation/ Target Measures
Standardizing and Sustainment Plans
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Another Charter Example
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Depository Trust &Clearing Corporation
Project Charter
Project : Off-Boarding
Business Case:
Opportunity Statement
Goal Statement
Project Scope: Process:
Start Point: End Point:
Business Parts:
Project Plan Team Members Task/Phase Start Date End Date Actual End Sponsor:
Form Team Process Owner:
Finalize Charter Master Black Belt :
Data Collection Member:
Analyze Data Member :
Recommend/ Implement Improvements SPR Operations
Member :
Monitor/assess/ modify improvements
Member :
Implement Improvements Member :
Monitor improvements SME :
M C I A D - Example -