| INTRODUCTION
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| | if they are appropriate and what
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|
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| | improvements could be made. Also decide
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| Objective:
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| | if the cycle time is acceptable for
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| | competitive purposes, regardless of how
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| - To help enable process improvement for
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| | easy or difficult it would be to improve
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| better performance-do it better, cheaper,
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| | it.
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| faster.
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|
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| | - Estimate Improvements-For principal
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| Would you like a simple, effective
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| | metrics. Do this at the start and again
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| approach to process improvement? This is
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| | after the internal process has been
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| a generic method for almost any type of
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| | analyzed. For each one of the
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| process and is intended as a guide of
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| | performance improvements, write up how
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| things to do, rather than an in-depth
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| | you will accomplish it. When work
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| tutorial. Because it's generic, it
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| | actually starts on improvement planning,
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| doesn't contain discipline-specific
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| | other ways will be probably also be
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| technical advice. While it outlines a
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| | found.
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| methodical approach, we also encourage
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| |
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| creativity in concert with it, because
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| | Now you're ready to look at the internal
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| the biggest breakthroughs happen when
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| | process steps. . .
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| method and creativity find a way to
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| co-exist.
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| | Internal to the Process
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| This article first defines key terms,
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| | Analyze the overall process flow,
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| then discusses how to improve inputs to
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| | preferably using pictorial charts and
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| the process, the process itself, and
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| | problem identification techniques.
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| wraps up with some "lessons learned"
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| | Repeatedly walk through the process
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| advice. Although production and
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| | physically with employees, customers,
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| manufacturing terms are employed, nearly
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| | suppliers, consultants, objective
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| everything herein works for service
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| | bystanders and learn all you can about
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| businesses and office operations. It is
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| | what is right and wrong. This seems to
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| currently fashionable to say that value
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| | work better when one performs the
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| is only added on the factory floor, but
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| | external steps first. Look for
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| little would happen on its own without
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| | continuity, search for gaps or
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| the intelligence value-added of such
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| | redundancy, delays and defect generation.
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| "non-value- added" activities as
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| | It helps to do a map of the area,
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| marketing, selling, planning, designing,
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| | superimposing activity, paper and
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| contracting, buying, shipping, etc. The
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| | material movement.
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| "value-added" concept needs expansion
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| beyond the narrow realm of production
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| | Finally, it is also helpful to prepare a
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| that it is now so myopically focused
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| | summary of activities chart, showing:
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| upon.
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| | responsible person, cycle time consumed,
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|
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| | delays, inspection, movement, wasted
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| DEFINITIONS
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| | time, defect generation, process Takt
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| | time, value-added component,
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| Process
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| | non-value-added, probable reduction and
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| | whether step is needed under current
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| - A process is a collection of related
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| | conditions, wait time, defects produced,
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| activities that adds value to a product
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| | resources consumed, applicable policies,
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| or service, that a customer would be
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| | procedures and instructions. The number
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| willing to pay for. A process
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| | and complexity of worksheets used is a
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| accomplishes specific objectives.
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| | function of the complexity of the process
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| Products consume processes, which consume
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| | and the mindsets of those in charge.
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| activities, which consume resources, such
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| | Space limitations don't allow us to show
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| as money, manpower, material, and
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| | you enough samples.
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| machine. They may also require
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| information, in the form of
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| | See if the broader, overall process, or
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| specifications, instructions and
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| | even parts of this process are
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| schedules." - George Miller, PROACTION
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| | interfering with the portion you are
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|
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| | working on. For example, in a recent
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| - A collection of activities that takes
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| | project, a company discovered that its
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| one or more kinds of input and creates an
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| | order picking effectiveness was being
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| output that is of value to the customer."
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| | severely hampered by improper stock and
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| - Hammer and Champy, in Reengineering the
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| | record keeping practices that eroded
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| Corporation
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| | inventory record accuracy. This prompted
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|
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| | the company to properly redirect its
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| Typical potential process improvement
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| | energies on improving this critical
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| areas are:
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| | upstream activity first. Redo Figure 6
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| | when you are done, including the
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| - Speed
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| | additional "how-to" write-ups.
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| - Cost/Return on Investment/Assets
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| - Quality
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| | Focus on eliminating defects, problems
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| - Flexibility
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| | and constraints.
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| - Product Innovation/Improvement
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| |
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| - Compliance/Safety
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| | Rather than detail planning, followed by
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|
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| | a "big bang" implementation of changes,
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| And will help enhance:
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| | it is desirable to test and incrementally
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| | implement new changes. In the case of
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| - Profitability/asset return/shareholder
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| | radical process change, this is not
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| value
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| | always possible, although prototyping and
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| - Customer service
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| | parallel operation can help alleviate the
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| - Market share
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| | risk and pain of major change.
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| - Reputation
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| |
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|
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| | - The performance of a process may often
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| Select from the targeted improvement
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| | be improved without a change to the
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| areas above to support your company
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| | process itself, but just by better
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| project strategies. The most critical
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| | clarification, training, measurement or
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| areas should have "metrics" to track
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| | emphasis on it.
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| performance and possibly, targets.
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| |
|
|
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| | - Tips for organizing a process:
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| Excellent processes have or utilize:
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| | Determine WHAT is to be accomplished and
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|
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| | WHY first, before determining HOW, WHEN,
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| - Mission
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| | WHO and with WHAT, pretty much in that
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| - Objectives, Metrics
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| | sequence. This can best done correctly
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| - Responsibility-- who is in charge of
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| | by putting the process in perspective
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| process to see that it is right
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| | with the overall enterprise, business
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| - Resources, such as:
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| | unit and workflow.
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| - Material
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| |
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| - Manpower
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| | - Internal Process Improvement Checklist
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| - Energy
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| | Here is a list of improvement ideas to
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| - Equipment- machinery, tools,
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| | help out. Keep in mind that some of
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| technology
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| | these are radical and may require
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| - Information- specs, direction,
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| | planning and coordination. For example:
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| instructions, procedures, software,
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| | don't eliminate inspections of nuclear
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| schedules
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| | pressure vessels without some overarching
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| - Activities
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| | quality strategy in place, along with
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| - Cycle Time
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| | customer and regulatory approvals!
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| - Inputs
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| |
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| - Outputs-- Products, by-products, waste
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| | - Identify or assign process "owners"
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| - Defects (even excellent processes
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| | and accountability for implementation of
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| usually have)
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| | improvements and ongoing performance
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| - Policies/Procedures
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| | results.
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| - Tools/Technology
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| | - Compress time, do things faster and
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|
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| | cheaper, by overlapping operations,
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| Do yours have these? Make sure their
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| | eliminating hold points and inspections,
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| availability and quality are addressed in
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| | scheduling better, eliminating capacity
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| your process review.
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| | and defect bottlenecks.
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|
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| | - Eliminate non-essential activities.
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| VALUE-ADDED ACTIVITY (VAA)
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| | - Eliminate non-value-added assets, such
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|
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| | as excess inventory, space or unneeded
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| Activity/cost that actually increases
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| | equipment. Some say this is impractical,
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| the value of a product or service in a
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| | because the assets are already there and
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| customer's eyes. Fabrication and
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| | the money is spent, but they might be
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| assembly are examples of this category.
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| | sold, scrapped, transferred, leased or
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| The ideal process consists of only
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| | converted, with some thought. For
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| Value-Added Activities
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| | instance, a company had four factories,
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|
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| | with much unneeded space. Employees were
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| NON-VALUE-ADDED ACTIVITY (NVAA)
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| | encouraged to consolidate layouts, move
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|
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| | out unneeded assets, rope off unused
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| Activity/cost that does not increase the
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| | spaces and place "FOR RENT" signs on
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| value of a product or service in the
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| | them. Result from this and other
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| customer's eyes. Example: storage. Decide
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| | actions: Plants were consolidated, one
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| if the activity is needed at all, is it
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| | plant closed and employees transferred,
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| duplicated anywhere, can it be done
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| | some to better jobs, remaining plants
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| better or differently? Can the timing,
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| | saved from closure.
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| method, material, equipment, speed,
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| | - Do activities in parallel or other
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| training, technique, setup, specification
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| | optimized sequence to get high resource
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| be altered to improve the results? An
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| | utilization while reducing cycle time.
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| activity may be all value-added, all
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| | - Reduce queue, move, setup, inspection,
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| non-value-added, or a mixture. Certain
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| | storage, wait/administrative time.
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| non-value-added activities may still be
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| | - Time-phase improvements to improve
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| needed, such as a storage requirement due
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| | payback while reducing risk.
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| to a capacity imbalance or a wait for a
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| | - Eliminate bottlenecks, which might be
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| required inspection. Customers may see
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| | inadequate capacity, excessive setup
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| value in some of these activities, if
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| | time, bureaucratic check-in/out or
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| only to "Band-Aid" a weak process.
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| | approval procedures, etc.
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|
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| | - Reduce defects, through awareness
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| NON-VALUE-ADDED ASSET
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| | programs, personnel screening, process
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| | training, set-up training, equipment
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| Non-productive asset. Assets kept
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| | tune-ups/maintenance, rebuilding
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| working are more productive, but only if
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| | replacement, poke-a-yoke approaches,
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| the output is actually needed and soon.
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| | revised material specs, better screening,
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| The classic asset misuse is "keeping
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| | reworked tooling, redesigned processes.
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| machines or people busy" even though the
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| | - Reduce capacity constraints
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| results aren't needed. This wastes
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| | bottlenecks.
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| investment by inflating inventory, tying
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| | - Reduce number of required approvals,
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| up material, space, capital, manpower and
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| | sign-offs.
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| equipment resources. It is often
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| | - Reduce steps, complexity, in general.
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| aggravated by misapplication of metrics.
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| | - Reduce number of hand-offs. Reduce
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| For example a production manager who is
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| | number of organizations, people,
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| measured by raw unit production
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| | facilities involved- Change organization
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| "efficiency" measures is likely to commit
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| | and facilities to fit the desired process
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| this "sin." If assets cannot be kept
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| | if feasible.
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| productive under this rule, then
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| | - Increase flexibility- avoid "hard
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| divestiture, replacement or outsourcing
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| | wiring" the system, design it for change.
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| should be considered, as feasible. New
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| | - Use standardized approaches,
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| metrics may also be needed.
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| | "packaged" solutions, where practical.
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|
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| | - Simplify design of product, process,
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| CYCLE TIME
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| | tooling, equipment. Use the simplest
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|
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| | product, process, equipment, tooling
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| The total elapsed time to produce one
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| | design that will get the job done
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| unit. This includes all delays including
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| | effectively. Only automate/make
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| elapsed set-up, queue, move, inspection,
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| | significant investments when
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| rework and also the actual processing
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| | significantly higher productivity,
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| time. Typical processes have 60-95% idle
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| | quality or speed will result. Beware of
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| time, while product is not actually being
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| | expensive investments that cannot be
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| worked on. Therefore the greatest cycle
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| | recovered, or result in losses of money
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| time reduction opportunities are
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| | or flexibility when volume, mix or design
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| normally, but not always, in delay time.
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| | changes. Keep it flexible!
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| Lost time may be recovered by balancing
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| | - Try to modularize the new process
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| operations, reducing: storage time,
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| | design. Design process/business
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| handling, waiting for approvals, queues,
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| | "objects" that are self contained in what
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| handoffs, inspection, etc. Shorter cycle
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| | they do, that can easily be linked to
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| times usually improve competitiveness by
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| | other activities or processes and
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| cutting costs and response time.
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| | redesigned without having to "rewire"
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|
| |
| | other activities or processes. They
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| WORK TIME
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| | ideally should be reusable and
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|
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| | interchangeable elsewhere in the
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| Time required or spent actually working
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| | organization, system, maybe even in other
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| on the product.
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| | organizations.
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|
| |
| | - Throw away functional organization
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| TAKT TIME
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| | charts and functional space layouts.
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|
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| | Make the organization chart and layout
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| Interval of time for each unit to be
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| | fit the process, not vice versa. This
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| completed-the rate of production. A
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| | make take significant time, planning and
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| product may have a 2-hour cycle time, but
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| | internal salesmanship.
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| have three 20-minute operations and one
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| | - The amount of time and trouble to
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| 30-minute operation. One unit comes off
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| | accomplish needed changes is almost
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| the line an average of every 30 minutes.
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| | inversely proportional to the support,
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| Resources and work content should be
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| | strength and competence of the people
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| allocated to adjust Takt Time to the
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| | responsible for approving and making the
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| desired rate of production.
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| | changes. Get the best and most adaptable
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|
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| | people you can afford. You can't afford
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| DEFECT
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| | weak people.
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|
| |
| | - Employ cheaper materials, or maybe
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| Anything about the product which is
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| | even better, more expensive materials
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| legitimately not acceptable to the
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| | that reduce defects, improve quality,
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| customer or internal authorities
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| | reduce overall costs.
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| (normally, but not always, documented in
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| | - Reduce costs (most of the above reduce
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| specifications). Defects result in added
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| | costs).
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| cost, lost time or lost utility of the
| |
| | - Use OPM (Other People's Money)-
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| product to the customer, as well as
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| | "leverage" their inventory, capital
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| delays in response time, wasted inventory
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| | equipment, technology, organization,
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| and capacity.
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| | knowledge.
|
|
| |
| | - Set up supplier partnerships
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| PROCESS CAPABILITY
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| | contracts.
|
|
| |
| | - Outsource where practical, in-source
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| The ability of the process to meet the
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| | where you are clearly better.
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| desired quality and speed at an
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| | - Use consultants, where it makes sense.
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| acceptable cost.
| |
| | - Utilize professional and trade
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|
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| | associations contacts, services and body
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| METRIC
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| | of knowledge, to learn better methods,
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|
| |
| | find and train better people, locate
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| Important performance indicator to be
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| | helpful people and organizations.
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| measured. Examples: Inventory turns,
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| | - Use schools, colleges and
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| cycle time. Metrics should be meaningful
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| | universities, when they can deliver
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| to the level of the people held
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| | useful knowledge.
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| accountable. For instance, "average plant
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| | - Brainstorm, get outside opinions from
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| level cycle time" is not meaningful to a
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| | almost anyone you can-employees,
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| team responsible for assembling a certain
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| | managers, mad scientists, poets, writers,
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| model computer disc drive. They need
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| | freaks, even customers!
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| their own metric.
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| |
|
|
| |
| | Selectively Employ:
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| CELL
| |
| |
|
|
| |
| | - Policies/Procedures
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| Production unit designed to make one
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| | - Checkpoints
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| product/service line or process.
| |
| | - Controls
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| Ideally, all resources needed to complete
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| | - Auditing, Checking
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| a product or process are contained in the
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| | - Metrics
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| cell. Cells may be arranged as component
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| |
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| assembly feeders to final assembly test
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| | ... because these are "non-value-added"
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| cells. Functionally-oriented cells have
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| | activities that should only be used as
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| resulted in improvements, but product or
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| | needed.
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| process cells have generally shown
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| |
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| superior results.
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| | LESSONS LEARNED
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|
| |
| |
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| WASTE
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| | A. 80% of the improvement task is
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|
| |
| | selling it and getting peoples' support.
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| Any portion of an activity performed,
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| |
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| resource assigned or utilized that is not
| |
| | B. Organizations resist change, no
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| absolutely essential to meeting the
| |
| | matter what they say. Certain individuals
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| mission/objectives of a legitimate
| |
| | may help or even lead, but many people
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| process.
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| | will slow down, stop or even reverse
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|
| |
| | improvements unless they are properly
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| LEAN MANUFACTURING
| |
| | trained, motivated and led. Focus on
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|
| |
| | education and change management more than
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| Manufacturing process with as much waste
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| | technical improvements.
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| as possible eliminated. A Lean
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| |
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| Manufacturing manifesto and body of
| |
| | C. Talk to people first. Soften them up
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| knowledge has been created and is
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| | before the big push. People who are your
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| available through the Agility Forum. This
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| | friends are more likely to help you,
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| is having a profound influence on current
| |
| | simply because you are familiar and they
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| thinking.
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| | like you. Find out what thy want/need
|
|
| |
| | and help them if possible.
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| INPUTS TO THE PROCESS
| |
| |
|
|
| |
| | D. Try to hire, transfer, or borrow
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| External to the Process
| |
| | like-minded people. It's often easier
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|
| |
| | than trying to convert them.
|
| Don't jump right into the detailed guts
| |
| |
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| of the process. Start at the top, with
| |
| | E. Simple systems usually work better
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| the product or service to be provided.
| |
| | than complex ones.
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| Make sure it is defined to meet
| |
| |
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| customers' expectations-technical
| |
| | F. People are more accepting of change
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| specifications, service requirements,
| |
| | when you take the mystery out of it and
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| quality and pricing. First make sure
| |
| | show them what's in it for them.
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| you're working on the right process, with
| |
| |
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| the right objectives! The biggest,
| |
| | G. People are much more accepting of
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| easiest improvements often occur right
| |
| | change when you can show it working
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| here, before even getting into the actual
| |
| | somewhere else, preferable nearby and
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| process in question.
| |
| | full-scale.
|
|
| |
| |
|
| "Frame the process"-Look at things
| |
| | H. Teams and consensus are great, but
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| external to the process first. Before you
| |
| | strong leadership still has its uses.
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| do anything, make sure you know what you
| |
| |
|
| need the process to do. There should be
| |
| | I. Constant repetition and leadership by
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| a clear, simple, strong overall mission
| |
| | example are needed. Don't think that you
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| statement. Examples: "Eyeglasses in one
| |
| | can simply state the mission, objectives,
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| hour," (Lenscrafters) or... "When it
| |
| | conduct a brief training session, then
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| [your package] absolutely, positively has
| |
| | come back in a couple of months and reap
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| to be there overnight." (FedEx). Don't
| |
| | rich rewards. This war will consist of
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| waste time improving the wrong process
| |
| | multiple campaigns and many battles.
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| with the wrong mission or approach. As
| |
| | There will be resistance, indifference,
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| you break the process down into lower
| |
| | confusion, conflicting priorities
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| levels of detail, each piece may not
| |
| | philosophies, even outright opposition,
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| satisfy the overall mission statement,
| |
| | or worse yet, covert opposition.
|
| but it should be clear what role it plays
| |
| | Persistence and determination are called
|
| in doing that. Accomplish this by
| |
| | for!
|
| formulating simple objectives for each
| |
| |
|
| piece.
| |
| | J. The process improvement methodology
|
|
| |
| | can be straightforward. There are other
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| The mission statement potentially has
| |
| | approaches besides this one. Some will
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| enormous power to improve the process.
| |
| | yield better results, but may require
|
| For example, a while back, we were
| |
| | much more skill and complexity. The
|
| brainstorming the warehouse "process"
| |
| | methodology is only a framework.
|
| with a client. The "owner'" of the
| |
| | Technical expertise and creativity are
|
| process stated that her "mission" was to
| |
| | also needed. Beware of either letting
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| receive material, move it to inspection,
| |
| | "industry experts" drive the solution
|
| store it, issue it to production on work
| |
| | down the same old roads and also letting
|
| order kits when requested, replace
| |
| | those ignorant of industry lessons
|
| shortages and rejections, move finished
| |
| | learned move into naive approaches.
|
| goods to inspection and stores and
| |
| |
|
| "generate paperwork" (how's that for a
| |
| | K. Imagination and creativity are needed
|
| mission?). After much discussion, the
| |
| | for best results. The folks who were
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| new mission agreed upon was to ensure
| |
| | determined to deliver packages overnight,
|
| that material was safeguarded, provided
| |
| | provide a computer for "the rest of us",
|
| to production as needed and then
| |
| | sell books over the Internet, invent the
|
| accounted for. This triggered a flood of
| |
| | Internet, provide eyeglasses in one hour,
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| changes, questioning the very existence
| |
| | had real vision (no pun intended) and
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| of warehouses, inspection, work orders,
| |
| | enriched life for many.
|
| kits, etc. The company ended up starting
| |
| |
|
| to certify key suppliers, using
| |
| | Process Improvement Examples
|
| supplier-managed inventories, eliminating
| |
| |
|
| most work orders, using kanbans, pull
| |
| | When this session is presented live,
|
| systems, point of use storage and much
| |
| | workshops/examples are offered to
|
| smaller warehouses, inspection and
| |
| | illustrate the points made herein. If
|
| overhead.
| |
| | you're reading this, why don't you try
|
|
| |
| | the ideas out on your own with an actual
|
| - Decide on scope of change, process
| |
| | case, preferably a simple one to start
|
| boundaries. Are you reengineering the
| |
| | with--one that people agree needs great
|
| whole company, one process, several
| |
| | improvement?
|
| products, a department? Are you looking
| |
| |
|
| for a complete redesign or major
| |
| | REFERENCES
|
| improvements in the current approach or
| |
| |
|
| just incremental enhancements?
| |
| | Reengineering: 40 U$eful Hints," George
|
|
| |
| | J. Miller, APICS XX International
|
| - Formulate objectives and
| |
| | Conference Proceedings, APICS, Falls
|
| metrics--Preferably quantifiable and
| |
| | Church, VA
|
| measurable. More important ones will be
| |
| | The Process Reengineering Workbook,
|
| assigned quantifiable metrics, such as
| |
| | Jerry L. Harbour, 1994, Quality
|
| cycle time minutes, or defects for
| |
| | Resources, NY, NY
|
| significant attributes. Don't set them
| |
| | Reengineering Your Business, Morris &
|
| and measure them unless they are
| |
| | Brandon, 1993, McGraw-Hill, NY
|
| important, because it takes valuable
| |
| | Reengineering the Corporation, Hammer &
|
| resources and time just to do that. Most
| |
| | Champy, 1993, Harper-Collins Publishers,
|
| metrics will fall into speed, cost and
| |
| | NY, NY
|
| time categories. Others may relate to
| |
| | Business Process Improvement, James H.
|
| flexibility, innovation and compliance
| |
| | Harrington, 1991, McGraw-Hill, NY
|
| safety. Still others may meet quality of
| |
| | This article is also available on our
|
| life and even aesthetic objectives.
| |
| | website: PROACTION - Generating Best
|
| Metrics themselves are non-value-added
| |
| | Practices. It is an excerpt of a paper
|
| activities, to be used only when needed.
| |
| | originally written by George Miller,
|
|
| |
| | Founder of PROACTION. It has been
|
| - Analyze process inputs and
| |
