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ppt

Process Management
&
Continuous Improvements

A process
“ A process is a sequence of activities (tasks) that is
intended to achieve some result - typically to create value
for customers”

Input PROCESS Output

Supplier PROCESS Customer
--tasks
tasks--

VALUE ADDING
- through transformation of input to output -
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The value stream

Order
Order

SUPPORT process
process

Procure-
Procure-
Planning
Planning
ment
ment

Customers
Suppliers

RM
RM FG
FG
Step
Step11 Step
Step22
Inventory
Inventory Inventory
Inventory

PRODUCTION

Process Reengineering
Identify Transform Transform needs Identify
Identify Transformneeds
needs Transform needs Identify
customer into process and
customer into
intoattributes
attributes into process andmap
map
needs capabilities current
needs (Q,
(Q,C,
C,D)
D) capabilities currentprocesses
processes

Reengineer
Evaluate
Evaluatecurrent
currentprocesses
processesininterms
termsof:
of: Reengineerprocesses
processesfocusing
focusingon:
on:
satisfaction of customer needs customer needs
satisfaction of customer needs customer needs
ease
management
management easeofofproduction
production/ /delivery
delivery
cycle
costs
costs cycletime
time
employee
employeesatisfaction
satisfactionand
andeducation
education
flexibility
flexibilityand
andgrowth
growth

Monitor
Develop and
Develop and
Develop
Developcontrol
control Reengineer
Reengineer Implement
Implement Monitorand
and
document best and the the evaluate
document best and the the evaluate
practice check progress
checkpoints organisation changes progress
practice points organisation changes
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Types of processes
z An organisation consists of several processes:
– Development processes (i.e. R&D, strategy…)
– Production/delivery processes
– Support processes (Training, IT, accounting…)

z Production/delivery processes has external customers

(end-users)
z Development and support processes has internal
customers - these processes are prerequisites for creating
value for end-users

TQM Processes
Maximize
Individual's Department
Performance Every Day

Daily Management

Customer
Driven
Cross Master Plan
Maximize Hoshin Maximize
Functional
Coordination & Management Planning Focus on
Cooperation Strategic Targets
among All from CEO to
Related Functions Line Employees
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Daily Management

“Muda” is the Japanese word for waste. MUDA is:

“Everything that consumes

resources without creating
value”

Daily Management
z Different types of Muda
– all human activities that absorbs resources but creates no
value
– mistakes which requires rectification (re-work)
– production of items that no one really wants
– processing steps that aren’t actually needed
– movements of people/materials without any purpose
– groups of people waiting downstream because an upstream
activity has not delivered on time
– any goods and services which don’t meet the needs of the
customers
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Daily Management
z Control versus improvement (kaizen)

Performance

Control

Improvement

Control

Time

Daily Management
z Improvement versus innovation
Performance

Continuous
improvement

Innovation

Continuous
improvement

Time
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Daily Management
z Kaizen:
– Everybody must admit errors committed
– Everybody must try to do better next time
– Everybody must go through adequate education and training
in conducting improvements
– Continuous improvements are based on standardisation of
existing processes
– Improvements are preserved through standardisation

Daily Management

P S

KAIZEN = A D + A D
C C

PD SD
AC AC

PD SD
AC AC

PD SD
AC AC
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Daily Management
z Connection between PDCA and SDCA

A A D D

Daily Managements
z Performance measurements
– Quality control points
› measures the process result
– Quality check points
› measures the state of the process (the result drivers - 6M’s)

Quality check points Quality control point

Input Step
Step11 Step
Step22 Step
Step33 Step
Step44 Output
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Daily Management
z How to define control and check points
– What are the most important characteristics of the finished
process output (in tern of Q, C & D)?
› The answer(s) would be a good control point
– What drives (or influences) the process’ capability to deliver
this output?
› The answers would be good check points
– Define level of performance and how to measure it
– Communicate the checkpoints and level of performance to
the process upstream

Output
Output

Hoshin Planning
z The objective of Hoshin Planning is to deploy the
strategy of the organisation
Turning Strategic Intent into
Top
an Annual Operating Plan
Down

Agreement Coordinated action

Bottom Engagement of the whole

Up company
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Hoshin Planning
z From strategic intentions to yearly plans
Vision, Mission, Priorities

Setting 3-5 Year Goals & Strategies

Direction
Annual Objectives and Vital
Few Actions

Cascade Objectives and

Deployment Agree Vital Few Actions

Implementation

Management
Regular Review
Process

Annual Diagnosis

Hoshin Planning vs.Traditional

Traditional Flow Hoshin Flow
Purpose Purpose
Mission Values Values
Operating Principles Operating Principles

Environmental Scan
Environmental Scan
Scenario Analysis
Vision Scenario Analysis
Statement of Vision
Statement of Vision
Selection of Key vision Element

Objectives
Objectives
Year Plan Strategic Metrics
Metrics
Catshball
Deployment
Deployment

Breackthrough Strategic Breackthrough

Plan Implementation Process Improvements Strategic Process Improvements
Maintenance Strategic Maintenance

Analysis of Results
Plan Review Analysis of Results Analysis of Process
Annual Review Regular Review
Annual Review
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Hoshin Planning
z Catchball

Back and forth up to two times

Cross Functional Management

z Employees across functions share objectives as well as
the responsibility to reach these objectives
z The three cross-functional objectives Quality, Cost,
Scheduling/Delivery are overordnede i forhold til
liniefunktioner som design og produktion
z The aim of Cross Functional Management (CFM) is to
ease coordination in relation to the cross-functional
objectives and to break down the barriers between
departments
z CFM is a continuous search for improvements
horizontally as well as vertically
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Cross Functional Management

z Connection between KAIZEN and Hoshin Planning
KAIZEN Maintenance
Policy- Rutine-
deployment management
CFM
Departments
Quality
Cost
Schedule

Small group activity

Individual suggestions

Cross Functional Management

z QCS-wheel Top management

Strategic planning

Marketing Product-
planning

Quality
Production and
Cost Design
procurement
Scedule

Production
planning

Supporting functions
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Cross Functional Management

What are the best doing?

Lessons to be learned
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Leading practices
z Translate customer requirements into product and
service requirements early in the design process, taking
into account linkages between:
– product design requirements
– manufacturing process requirements
– supplier capabilities
– legal and environmental issues.

Leading practices
z Build quality into the product and service, using:
– engineering tools
– statistical tools
z Examples are the use of Quality Function Deployment
(QFD), Factorial Designs and Controlled Experiments.
z Use a product development process, that ensures:
– cross-functional participation and communication
– trouble free production
z Examples are the use of Quality Function Deployment
(QFD) Design For Manufacturability.
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Leading practices
z Define and document critical production/delivery and
support processes:
– make corrections to the present quality control systems
z Examples are the use of ISO 9000 Quality Standards.
z Define and communicate performance requirements for
suppliers:
– Quality
– Delivery
z Chose supplier based on performance rather than on
price.
z Examples are the use supplier management
programmes and supplier partnerships.

Leading practices
z Use statistical process control:
– Monitor all key processes
– Prevent special causes form returning
– Enhance process capability
z Facilitate continuous improvements:
– Continuous improvement programmes (CIP)
– Educate all employees and assign responsibility
– Set “stretch goals”
– Use benchmarking