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Fundamentals of Process Improvement
Process improvement is based on system thinking. Systems are composed of factors, processes, outcomes, and feedback loops.
Our approach to process improvement is by first measuring outcomes, then understanding the connections between outcomes, processes, and factors, and finally adjusting and controlling those key factors that impact outcomes.
Our approach to any process improvement project begins with an assessment of the current reality. We work with teams to identify future desired state, develop a gap analysis, and work toward that desired state. A key element is securing the engagement and knowledge of leadership and key stakeholders to ensure improvements are implemented and leveraged for maximum benefit and sustainability.
We apply improvement methodologies considered to be best practice among leading companies and organizations. Application of these methodologies is based upon years of real world project experience. We use Six Sigma, Lean, Action Sessions, Change Management, and Simulation approaches to understand and improve processes.
Process Improvement Methodologies
Change Management is a set of assessment tools, strategies, and actions to understand stakeholders, identify resistance, and increase acceptance of improvement actions. Successfully managing a change effort is challenging as it encompasses many belief and behavioral issues.
Action Sessions are facilitated events that create consensus in a well scoped area, identify problems, develop solutions, assign actions, and set timelines based on the group’s knowledge. These events can condense decision making into single powerful sessions that, with follow-through in delivering benefits, would otherwise require months of meetings and coordination.
Six Sigma is a process that uses principles, tools, and a standard project approach to clearly identify an organizational problem, to specify root causes through intensive process analysis, and to deliver improved performance with sustainable solutions.
Six Sigma’s standard project approach is DMAIC which represents Define, Measure, Analyze, Improve, and Control. This stepwise approach assures full consideration of all elements of a process and leads to better project results.
At the heart of Six Sigma is understanding drivers of outcomes. We want to create a transfer function, Y = f(x), where Y is the outcome of interest, and f(x) represents key inputs and their impact on the outcome. With this knowledge, we can then focus our improvement activities.
Lean is a theory and practice continuously focused on maximizing the delivery of value at every step, decreasing waste, and reducing time and distance between supplier and customer.
If we map a visit to the Doctor’s office, we might observe the following:
In many processes, up to 80-90% of time is non-value added from the perspective of the customer. This non-value added activity, or waste, falls into typical categories of wait, movement, rework, and over-production.
Lean addresses these issues by allowing us to identify where these wastes are occurring and then addressing them. There are a number of improvement approaches including standardization, simplification, error proofing, single piece flow, level loading, creating pull, and increasing visual management.
While useful, these toolsets are best applied in a structured system. A system that creates a “virtuous cycle” is as follows:
Strategic Alignment & Execution
Ultimately, this process improvement system creates “pull” – an organization’s best people are interested in participating in a high impact program as it leads to success and promotion.
With application of these toolsets in a structured system, an organization can move to a culture of a quality. The traits exhibited by these high performance organizations include:
- Focus is on the Customer
- Processes targeted for improvement
- Solutions are generated internally
- Decisions are data-driven
- Accountability enhanced by measurement
- Defects prevented rather than fixed
- Costs decreased by higher quality
- Quality is everyone’s job