process improvement model

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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

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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

process improvement model

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