process improvement overview for pappa to email.pptx … · title: microsoft powerpoint - process...

PROCESS IMPROVEMENT

Overview and Concepts

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Joe Cirafesi Cirafesi Consulting

1Copyright Joseph Cirafesi 2016

PRESENTATION OVERVIEW

Objectives

My Background

Context for Process Improvement

Strategic Considerations

Quick History

Key Methods for Process Improvement

Questions / Wrap Up

[email protected] WWW.POWERFULTEAM.COM 2Copyright Joseph Cirafesi 2016

OBJECTIVES

My goals are that you will…..

Learn from other people’s mistakes (mine!)

Gain knowledge that helps you

Understand some benefits and challenges of process improvement

Take away some tips / ideas to use


Strategy, Productivity and Project Management Consulting Guy Government – county, state agencies, military contractors, state police

For profit – casino, healthcare, manufacturing, financial services, tech

Non profit – domestic and international churches, colleges/universities

Former Executive – Finance, Accounting, HR, IT, Strategic Planning, Project/PMO….and Lean Six Sigma (LSS)

Led the integration of multiple process improvement methods and rolled out a unified approach internationally

Also did research in immunology, genetics and ophthalmology if you’re interested

BACKGROUND


CONTEXT

Passion for process improvement – why?

The world is changing at an ever increasing pace

For profit pressures and points of view coming to government and non-profits

Doing process improvement in government is “different”

And….it is a target rich environment for improvement


THE STRATEGIC PROCESS

Key points: Vision/Strategy creates picture of future everyone must go toward

Process Improvement is method for attaining strategic goals

6

Vision and Mission

Strategic Assessment

Strategy Map

Strategic Initiatives

Execution

Monitor and Adjust

Balanced Scorecard

Copyright Joseph Cirafesi 2016

STRATEGIC CONSIDERATIONS

Where can the improvement program best gain traction?

What gaps in performance are most strategic?

Has this been tried before at this location?

Can the right resources be made available?

Will other initiatives hurt or help us?

What support will management provide?


WHAT MAKES A PROCESS EFFICIENT & EFFECTIVE?

An ideal business process produces . . . what’s needed

when it’s needed

in the shortest time

with the least work

at the lowest cost

John J. Cotter, “The 20% Solution: Strengths and Weaknesses in Core Business Processes”


PROCESS MANAGEMENT CYCLES

Plan, Do, Check, Act was a concept popularized by W. Edwards Deming and has led to similar cycles for Lean Enterprise and Six Sigma (DMAIC). Every improvement cycle is fact / data based and has a learning step.

Process Manage

Plan

Do

Check

Act


METHODS - SIGMA / LEAN COMPARISON

Sigma

Reduce defects and variation

“Big wins” / large value projects

Requires strong statistical skills (beyond basics)

Specialist Focus – Black Belt / Master Black Belt

Lean

Waste Elimination / Cycle Time /Capacity Improvement

Small incremental improvements

Mostly “common sense” skills

Emphasis on worker as expert


Orion’s Four Waves of Process Management

Process-Oriented Organization Design

Process-BasedCompetition

Total Quality Management

Business ProcessReengineering

EVOLUTION OF PROCESS MANAGEMENT


TYPICAL RESULTS OF PROCESS IMPROVEMENT

Lead Time Reduction

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

0 25 50 75 100Percent Results Achieved

Similar to Your Results?


*DPMO - Defects Per Million Opportunities

BUSINESS IMPACT OF LEAN SIGMA

Improved processes benefit your customer and your bottom line!

DPMO* Market Position Cost of Quality

2 308,537 Non-competitive Undetermined

3 66,810 25 – 40% of sales

4 6,210 Industry average 15 – 25% of sales

5 233 5 – 15% of sales

6 < 4 World Class < 1% of sales

Source: Six Sigma by Mikel Harry, Ph.D. and Richard Schroeder


IMPROVEMENT VERSUS REDESIGN

Start with a customer problem

Process improvement

Customer focused

Isolated undertaking

One or two CTQs considered

Small team of 4-6

99-day timescale

+1 sigma increment

Many projects (19 n 20)

Small impact and focus

Start with business solution idea

Product/service design

Business focused

Part of a bigger picture in NPI

Every CTQ considered

Large team of 40+

999-day timescale

Launch at 4 to 5 sigma

Few projects (1 n 20)

Big impact and focus

IMPROVE DESIGN

From Geoff Tennant


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The ONE tip I give to people that say –

“What advice would you give me to get started with process improvement?”


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“Teach the forms of waste and how to recognize and eliminate them!”


3 TYPES OF WASTE


MURI AND MURA

Mura – “irregularity”Variation in Quality and QuantityOften driven by Muri

Muri – “strain”Asking greater than can be accomplishedWorking beyond the natural limitsLeads to unwanted variation in results


ELIMINATING FRUSTRATION

Frustration originates in uninteresting, unnecessary or wasteful work activity. When you eliminate the waste in the system, you free yourself to apply your most valuable talents to work that creates value for those you serve.

Inventory

Movement

Defects

Inappropriate processing

Waiting

Transporting

Over-production

MUDA – 7 forms of waste


IMPROVING OPERATIONS

The focus is on efficiency and effectiveness. This means we eliminate waste to remove non-value adding activities. We also improve or re-design the value-adding work to create higher value at less cost.

Eliminate Waste

Reduce non-value add

Improve

Redesign

Increase value add


VALUE ADDED / NON-VALUE ADDED (NVA)

Value is specified by the customer Done right the first time

Creates / improves the product / service

Knowledgeable customer is willing to pay for it

Anything else is NVA


A NEVER ENDING QUEST TO ELIMINATE WASTE

Traditional Industries

5% Value Added

World Class Industries

50% Value Added

In Any Work Process !


CULTURAL ELEMENTS

Philosophical Differences between Lean and SigmaLean – the people closest to the work know best

how to improveSigma – trained experts with sophisticated tools

drive improvement


TIPS, TRICKS AND TRAPS

Trap – don’t settle for part-time resources

Trick – hide some gains and reinvest

Tip – WIIFM

Trap – concurrently implementing major changes

Trick – ask for a variety of management levels to become trained – build influencers

Trap – develop your own training materials while implementing your process improvement


QUESTIONS AND CLARIFICATIONS

[email protected] WWW.POWERFULTEAM.COM

I would be happy to answer your questions!

484-347-3636


process improvement overview for pappa to email.pptx … · title: microsoft powerpoint - process...

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