The changing
needs of customers and new innovations in the market are a part of the business
environment. The challenge for businesses in this technological era is not to
enter the market but to survive in the market. To survive in the market means
to adapt to the changes as fast as possible. To adapt to the changes means to
be aware of the business environment. And to be able to fit in into this fast
pacing era, we have to improve the business process to satisfy both internal
and external customers. Improving process means using a set of techniques and
tools and improvement methodologies.
Process Improvement begins with ‘‘Thinking Big’’ and ‘‘Starting Small’’
W hat is process improvement?
What is Waste in terms of process
improvement?
Waste is anything that does not
add value to the existing process. We should avoid waste not only to reduce
cost but also it increases the long-term performance of a process.
Inventory Waste – forms waiting
to be worked on, cash not used to generate income, office space not completely
utilized, storing of unnecessary documents/obsolete forms.
Motion Waste – walking to deliver
paperwork, non-ergonomic office layout (excess motion/ non-value-added
activities)
Waiting Waste – waiting for
information from another person, waiting for approval, system downtime, waiting
for shared equipment.
Over Production Waste – unnecessary
paperwork, producing too much or too soon, more copies produced than needed,
more data than needed on reports, extra “Just in case” steps.
Over Processing Waste - occurs
when we do something unnecessary; Redundant processes; Manual processes were
still retained after automation.
Defect Waste – missing
information, errors, client complaints; by reducing the number of errors, we
reduce the amount of rework which in turn reduces costs and turn around time.
Process Improvement Goals
- ·
Understanding
existing processes
- ·
Introduce
process changes to improve quality, reduce costs, or accelerate schedules
- ·
Industry is
demanding increased attention to quality in general
- ·
Most process
improvement work focuses on defect reduction and prevention
- ·
There are
other process attributes that deserve our attention
Process Improvement Attributes
- ·
Understandability
- degree to which a process is well defined and understood
- ·
Visibility -
process activities have results that are externally recognizable
- ·
Supportability
- process activities supported by CASE tools
- ·
Acceptability
- defined processes are used and accepted by software engineers
- ·
Reliability
- process is defined so that errors are avoided or trapped before the product
errors result
- ·
Robustness - the process can continue despite unexpected problems
- ·
Maintainability
- process can evolve to reflect changing organizational requirements or
identified process improvements
- ·
Rapidity -
the time required to complete a system from specification to delivery
Process Improvement Techniques
There are several different
methodologies designed to help the organization tackle process improvement.
Each aims to help the business identify
process issues, fix them, and analyze the success or failure of those changes.
Despite that common goal, each methodology suits a different need. Some frameworks focus on lean process improvement techniques; others focus on getting your company culture in the right place for process improvement. There are also methodologies that help companies visually map out process workflows.
1. KaizeN
2. 5S ( Sort, Straighten, Shine, Standardize And Sustain)
3. PDCA:( Stands For Plan, Do, Check And Act )
4. Six Sigma
5. Cause and Effect analysis
6. SIPOC analysis
7. Value stream mapping (VSM)
8. Total Quality Management (TQM)
9. Kanban
10. Process mapping
Introduction/Overview to Six Sigma
What is Six Sigma?
Six Sigma (6σ) is a set of
techniques and tools for process improvement. It was introduced by American
engineer Bill Smith while working at Motorola in 1986. Six Sigma seeks to
improve the quality of process outputs by identifying and removing the causes
of defects.
It also defined as a collection of managerial and statistical concept and techniques that focus on reducing variation in processes and preventing deficiencies in product.
What reducing variations mean? Reduced variations mean:
•Improved Customer satisfaction
•Reduced operating costs
•Increased profitability
The Characteristics of Six Sigma
- Statistical Quality Control
- Methodical Approach
- Fact and Data-Based Approach
- Project and Objective-Based Focus
- The Customer Focus
- Teamwork Approach to Quality Management
Six Sigma Objectives
Six Sigma Major Methodologies
1. DMAIC
2. DMADV
These methodologies, composed of five phases.
DMAIC is a structured problem-solving procedure widely used in quality and process improvement. It is often associated with six-sigma activities, and almost all implementations of six sigma use the DMAIC process for project management and completion. DMAIC is used for projects aimed at improving an existing business process.
DMADV is used when a client or customer requires product improvement, adjustment, or the creation of an entirely new product or service. The application of these methods is aimed at creating a high-quality product keeping in mind customer requirements at every stage of the game.
DMAIC project methodology has five phases:
1. Define In this first step, project goals and both internal and external customer deliverables are defined. This piece focuses on the selection of high-impact projects as well as the understanding of which metrics will reflect the project’s success. Who are the customers and what are their requirements regarding services and products? What are their expectations? Project boundaries are defined, including starting and stopping points, the process flow is mapped out
Key activities in the Define phase are:
· Develop the project charter.
· Map the current process.
· Gather the voice of the customer (VOC).
· Form the project team.
Key activities in the Measure phase are:
· Identify the measurements to collect
· Develop and execute the measurements collection plan
· Develop and validate the measurement system
· Identify baseline performance measurements DPMO and sigma level
3. Analyze - This phase focuses on isolating the top causes behind the CTQ (Critical-to-Quality Characteristic) or metric that is being examined. Ideally, there should be no more than three causes that need to be controlled in order to be successful. This step identifies any gaps between current performance and goal performance, priorities improvement opportunities, and identifies any sources of variation. Tools used may include hypothesis testing, time-series plots, histograms, scatter diagrams, the Pareto chart, fishbone diagrams, and Multi-Vari Analysis.
· Stratify data to identify the underlying problem(s).
· Identify the root causes.
· Validate root causes.
4. Improve - Improve or optimize the current process based upon data analysis using techniques such as the design of experiments, poka-yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability. Tools commonly used in this phase include: hypothesis testing, analysis of variance (ANOVA), Design of Experiments (DOE) and regression analysis.
· Identify potential solutions.
· Evaluate and select potential solutions.
5. Control - Finally, all improvements need to be controlled in order to ensure lasting results and sustained changes. Control the future state process to ensure that any deviations from the target are corrected before they result in defects. Implement control systems such as statistical process control, production boards, visual workplaces, and continuously monitor the process.
Key activities in the Control phase include the following:
· Pilot potential solutions (if needed).
· Evaluate pilot results (if applicable).
· Develop the control plan.
· Develop the change implementation plan.
· Develop procedures, standards, and training material.
· Deliver training.
· Communicate improvements.
· Implement improvements.
DMADV project methodology has Five phases:
1. Define - The goals of the first phase are to identify the purpose of the project, process or service, to identify and then set realistic and measurable goals as seen from the perspectives of the organization and the stakeholder(s), to create the schedule and guidelines for the review and to identify and assess potential risks.
2. Measure - Next comes measuring the factors that are critical to quality, or CTQs. Steps taken should include defining requirements and market segments, identifying the critical design parameters, designing scorecards that will evaluate the design components more important to the quality, reassessing risk and assessing production process capability and product capability.
3. Analyze - Actions taken during this phase will include: developing design alternatives, identifying the optimal combination of requirements to achieve value within constraints, developing conceptual designs, evaluating then selecting the best components, then developing the best possible design.
4. Design - This stage of DMADV includes both a detailed and high-level design for the selected alternative. The elements of the design are prioritized and from there a high-level design is developed.
5. Verify - In the final phase, the team validates IF the design is acceptable to all stakeholders. Will the design be effective in the real world? Several pilot and production runs will be necessary to ensure that the quality is the highest possible. Here, expectations will be confirmed, the deployment will be expanded and all lessons learned will be documented.
SUMMARY
DMAIC and
DMADV are two Six Sigma methodologies that share a few common traits, but
cannot be used simultaneously on the same project or interchanged because they
are designed for use in different facets of organizational processes.
DMAIC and DMADV are similar in that they are both used to:
· reduce the number of defects to less than 3.4 DEFECT per million opportunities
· find quality related solutions to problems using data and statistical tools
· help achieve an organization’s financial and business objectives
DMAIC and DMADV are different in that DMAIC is used to improve existing processes while DMADV is used when creating new processes.
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