Continuous Process Improvement
Chang Model
Phase 1
Select
Define key requirements for core customers
Determine process to improve
Phase 2
Analyze
Document as is process
Establish process measures
Phase 3
Measure
Gather baseline process performance data
Identify process performance gaps
Phase 4
Improve
Set process improvement goals
Develop and implement improvements on a trial basis
Phase 5
Evaluate
Assess the impact of process improvements
Standardize process and monitor ongoing improvement
CPI
Systematic approach to make incremental and breakthrough improvements in processes
Helps us look at the details
Discover ways to improve
Vocabulary
Process - a series of linked tasks that turn inputs into outputs
Inputs - resources, knowledge, information, skills, materials, equipment, etc
Outputs - result of the process
Product or service
Unintended
Vocabulary
Value-added - contributes to production of output
Non value-added - doesn’t contribute to the production of the output
Process Chain
Process Chain
Suppliers furnish inputs according to requirements
Producer - process owner - provides output according to requirements
Customer - receives process output
External
Internal
Customer Requirements
Needs + Expectations
Every process is customer driven
Communication with customer is essential
- Passive - wait for feedback
- Active - seek feedback
Don’t assume you know customer’s requirements
Primary
Customer-Producer-Supplier
Key work process
Non-Value Tasks
Select Phase
Customer satisfaction objective, must begin with the proper customer
Improve process that is:
important to meeting customer expectations
critical to the successful achievement of goals
Requires
Define key requirements for "core" customers
Determine process to improve
Select Phase
Define key requirements for "core" customers
Identify internal and external customers
- Individuals, workgroups, consumers of the process output
Rank customer list "Who is most important?"
Define/detail customers more closely
Define criteria for ranking
Rank customers
Select Phase
Determine customers’ requirements regarding the issue
Identify customers’ requirement areas
- Brainstorm, verify with customer
Develop interview/survey questions
- Expectations, satisfaction, importance
Interview/survey customer
Determine process to improve
Survey/interview results
Frequency
Importance
Satisfaction
List relevant processes that affect customer satisfaction
Relate to problem areas - improvement areas
Establish selection criteria
Focus improvement
Customer satisfaction
Level of control you have
Time requirements
Cost
Resource requirements
Probability of success
Benefit for improving
Identify relationship between criteria and process
Selection matrix
Selection criteria by relevant process
Rate each process 1-10
Prioritize and select process for improvement
- Highest score - first to improve
Analyze
Document the "as is process"
Establish the process measures
Document the
"as is" process
List the major process tasks to transform inputs to outputs
Create a process flow chart
List the major process tasks
Determine the input and output involved
List 6-10 tasks that get you from the inputs to the output
Identify the smaller subtasks and decisions that link the tasks
Possible questions
What really happens next?
Is there a decision made?
Are there approvals required?
Is there anything missing?
Create a process flowchart
Identify any non value-adding steps
Opportunities for improvement
Establish the process measures
Linked to customer requirements
Measurable or countable
Observable
Types of measures
Result: outcome of the process.
Based on customer requirements
In-process measures: Performance within the process.
Satisfy customer requirements
Input (supplier) measures: Quantity, quality, delivery time.
To determine measures
Brainstorm
Identify most important
Verify with customer
Narrow list to those with greatest impact
Be careful
You can:
Measure too many things
Spend too much time measuring
Measure the wrong thing
Phase 3 Measure
Vital part of the process
Only way to determine if and how well the major tasks align with customer requirements
Two steps
Gather baseline process performance data
Identify process performance gaps
Gather baseline performance data
After identifying what to measure in Phase 2, determine how it should be measured.
Measurable
- Cycle time, task time, waiting time
- Length, weight, etc
Countable
- Number incorrect, with defects, occurrences
Goal is to track important customer satisfaction indicators
Identify Performance Gaps
Goal is to close performance gaps
Identify
Solve
Tool - Problem Areas Matrix
Major tasks (v) X Problem areas (h)
Use major tasks identified previously
Problem areas - brainstorm
Identify Performance Gaps
Compare each major task to the problem areas
Place a check in the box where the problem occurred
Determine horizontal and vertical scores
Determine which tasks are value-added
Identify non-value added components
Phase 4 Improve
First three steps
Selected a process
Analyzed the process in detail
Measured its effectiveness
Improving the process involves
Set process improvement goals
Develop and implement process improvements on a trial run basis
Set Process Improvement Goals
Goals should always be met and then reset
Benefits of setting process improvement goals
Identify opportunities
Keep you on track
Increase probability of success
Provides for recognition and reinforcement
Three substeps
Uncover improvement needs and opportunities
Confirm desired performance with customer requirements
Determine supplier performance requirements and specification
Develop and implement on a trial run basis
Identify the root cause of the process problem areas
Identify and prioritize opportunities to modify the process
Choose the best solutions for achieving the goals
Test improvement on a small scale
Gather data on process measures
Identify root causes
Allows you to target your efforts
Brainstorm, determine most likely, identify true root causes
Cause and effect diagram may help
Identify & prioritize opportunities to streamline & modify
- Streamline - eliminate steps, reduce activities
- Modify - make changes within a process
- Refer back to non value-added tasks
- Complete list
Choose the best solution
Not all choices are capable of producing the effects you desire
Refer to criteria for improvement
Test improvement on a small scale
Use original flow chart and modify it
Test you solutions
Trial run, if positive implement
Gather data on key processes
Gather data to help you determine if you should implement the solutions
Other measures may be required
Phase 5 Evaluation
Assess impact of process improvements
Solicit customer feedback
Review data
Determine if root cause has been reduced or eliminated
Verify that improvement efforts have been sustained
Refine improvements as needed
Standardize Process & Monitor Improvement
Communicate improved process flow
conduct training
Provide on-going customer support
Improve process performance gains
Disband improvement team