Assessment Assignment
Improving the Process
Six Sigma
Processes and Operations
“Processes” determine how work flow is managed.
“Operations” are how work is accomplished.
Therefore, Operations are determined by how the Process was “designed” to work.
So… The key to improvement is to understand the process.
The Process is the key to everything
To make meaningful changes you MUST UNDERSTAND all of the nuances of the process
This is normally started with doing a process map which means that you need to talk to the Subject Matter Experts to determine how the process is currently being done. NOTE – this is really Operations since it may deviate from the way it is supposed to be done (i.e. the Process).
Compare Operation to Process
If the current Operation deviates from the Process you can immediately skip to Control by enforcing the Standard Operating Procedure (SOP).
Track the metrics to see if Controlling obtained the desired results.
If they don’t, then you must change the Standard Operating Procedure.
Compare Operation to Process
If the current Operation DOES NOT deviate from the Process you need to alter the process thereby changing the Standard Operating Procedure.
Be careful to change too much, too quickly. Remember that you are looking for incremental improvement.
Look at your Pareto analysis, the areas where there is the largest potential return on investment (value added steps), and the “low hanging fruit” (i.e. easy stuff).
4 Categories of Processes
Processing – physical change in the information or the product. Value is sometimes added
Inspection – comparison to the established standard. No value added, but costs may occur if not done incorrectly.
Transportation – the movement of information or the product. No value added, but costs may occur if not done incorrectly.
Delay – time where no processing, inspection, or transport is happening. No value added. Costs usually increase as delay increases.
Value Added versus Non-Value Added Activities
Value added activities – change the information or product in a positive way. Only change if the Return on Investment analysis shows that MORE VALUE could be added by changing the process.
Non-value added activities – any step or delay that is not changing the information or product in a positive way. These are candidates for elimination, consolidation with other steps, or simplification.
A Typical Process
Non-Value Adding Steps Value Adding Steps
Processing Processing
Transport
Delay
Inspection
95%
5%
Waste in the Process
Overproduction
Waiting
Transportation
Processing
Inventory
Defective Products
Employee Inefficiencies
Process Improvement Opportunities
Customer complaints, internal & external
Returns
Things that must be done over
Problems that never get resolved
Missed deadlines
Excessive workload
Long lead times
Exceeded budgets
Declining productivity
Declining customer satisfaction
Excessive overtime
Adding people as a solution to problems
Why Opportunities for Improvement Exist
Nobody in charge of the entire process, no “owner”
Business or process has changed and is out of date
No future planning for the process
Processes are not controlled
Chosen metrics do not help control process
Too much emphasis on output (operations) instead of on the process itself
Process Owner
Has the most resources invested in the process
Does the most work in the process
Has the power and authority to change the process
Can influence the process the most
Feels the most pain if the process is not controlled and producing desired results, and receives the most reward if it is
Green Belt Conundrum
The Green Belt rarely owns the process
The Green Belt that finds an improvement is helping the company while at the same time exposing the “potential mismanagement” of the process owner
The Green Belt can become much more trusted by the Champion than the process owner
In the final step the Green Belt must turn the process back over to the Process Owner to Control. It is easy for the Process Owner to throw things off balance after the Six Sigma project is over.
There is a fine political line that must be walked to ensure that the Six Sigma project is managed so that the Process Owner can take part of the credit for the improvements, or eventually the project will fail.
Summary
The first step in improving is to determine if it is a process issue or an operations issue.
If operations, control the process.
If process, improve the process and then control.
Be prepared to work with the Process Owner to take mutual credit for any improvements.
Return the process back to the Process Owner in better shape than you got it.