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Process Improvement model
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1.Operational
Analysis of process
Who, what, how & where
2.Application of Process
improvement Principles
Process Improvement model
4.
PDCA
3. Benchmarking
F
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BA
C
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Process improvementprinciples
1. Waste Reduction
2. Process Simplification
3. Cycle-time reduction
4. Process measures
5. Mistake - proofing
Process
Improvement
Principles
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The first step in improving a processes is to eliminate waste with the
following techniques :-
I. Value-added assessment
II. Eliminating non-value adding activities
III. Minimize checks and inspections
IV. Minimize administrative tasks
V. Minimize storage and transportation activities
1. Waste reduction
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I. Value added assessment
Value to customer:First, the customersviewpoint should be considered. The customers are
only interested in receiving the product or
service that satisfies their requirements. All
activities that must be performed to cater to the
customers requirements are value -added
activities.
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Does the activity add value to the customer ?
Would any customer care if the activity was
not performed ?
Would any customer object if the activity was
not performed ?
Do the customers appreciate the results of theactivity?
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II. Eliminate non-value adding activities
Value to business : There are many activities that may not add valuefrom the customers point of view. Attending meetings, developing
plans, compliance with regulatory guidelines, writing procedures etc are
examples of activities that may not add value to the customers, but they
do add value to the organization. Each of these activities must be
carefully examined.
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III. Minimize checks & inspections
Checks and inspections may be necessary in a process, however they
do not add value to the process. Each inspection point should be
identified and challenged.
The next slide lists some questions to use in this challenge.
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What if the inspection was eliminated?
What if the inspection was eliminated?
Would the inspection be missed?
What is the potential impact in eliminating the inspection?
What potential consequences exist if the inspection is eliminated?
What is the likelihood that the inspection would have revealed a problem?
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Administrative tasks often result in delays in
process time due to excessive paper work,
levels of reviews and multiple signatures
(mostly by people who, it seems, are never
available when needed). Reviews, approvals,
signatures, preparing written documentation,
making and distributing copies etc needs to be
thoroughly reviewed..
IV. Minimize administrative tasks
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V. Minimize storage and transportation activities
Sometimes storage and transportation arenecessary evils but because they are both
non-value adding they should be minimized.
The purpose of just-in-time inventory
systems to minimize the amount of inventory
stored.
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Transportation activities are also non-value
adding. Often the relocation of single
activity can significantly reduce the
transportation requirements.
Minimize storage and transportation activities
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2. Process simplification
Simplification means reducing the complexities
of process. Simplification can lead to lessoractivities and lessor things to go wrong. Process
simplification can be done by combining similar
activities and by analyzing decision points.
Efforts should focus on reducing layers of
management and structures that cause delays.Outdated systems and procedures need to be
evaluated.
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Balance
verification
VisitBank
Collect cash
Visit ATM
Withdraw
cash
Present Cheque
Old Process
New Process
Quality
checksbuilt-in
Example of waste elimination:
Cash withdrawal
WASTE
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3. Cycle-time reduction
Cycle-time is the time required to deliver a product or service to a
customer. Long cycle-times not only prevent prompt delivery of product/service to your customers, but also increase costs. One of the best ways to
cut down on your cycle-time is to conduct activities in parallel and
eliminate unnecessary waste times as demonstrated on the next slide.
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1. Activities Performed in serial
2. Activities performed in parallel
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CC C
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Profit
Sales
Customer satisfaction
Purchase
price
Efficiency
variance
Build
inventory
Many improved teams
Many
unfocusedprojects
Select
low pricesupplier
Strategies
Performance
measures
Incorrect performance measures create barriers
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Profit
Sales
Customer satisfaction
Supplier qualityCycle-time Cost of poor quality
StrategiesPerformance
measures
Correct performance measures
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5. Mistake proofing
Mistake proofing is a scientific technique for improvement of
operating systems including materials, machines and methods with an
aim of preventing problems due to human error. The term error
means a sporadic deviation from standard procedures resulting from
loss of memory, perception or motion.
For more details see Mistake proofing under M