You Exec - Process Optimization Methodologies Complete
You Exec - Process Optimization Methodologies Complete
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PROCESS
OPTIMIZATION
TRIAGING
STRATEGY ALIGNMENT
Triaging
STRATEGY ALIGNMENT
Voice of The Customer & Business
• Outside-in
• Drivers of satisfaction and loyalty
• Growth and retention analytics
• Establish vision/mission
IMPLEMENT
INITIATIVE & PROJECTS Aligned Performance Plans
• Align All plans to corporate strategy
• Align core processes, process measures
• Integrate improvement initiatives
• Balance contributions to gap-closure requirements
REVIEW AND MANAGE
ADJUST & FEEDBACK
Management Reviews
• Review performance regularly
• Manage overall effects and market changes
• Analyze causes of gaps
EXECUTE THROUGH • Assess impact of gaps
MANAGED PROCESSES
Methods
• Improvement Methods:
• DMAIC, BPM
• Lean, QbD, RCCA
Triaging 5
GAP ANALYSIS CHART
Gap Analysis Chart involves the comparison of actual performance with potential or desired performance. This chart helps
the company to take remedial action as required to overcome the gap.
Objectives Current State Future State Gap Identification Gap Description Factors Remedial Action
25 million/annum by next three 15 million/annum is the proficient with latest tools on the same
To increase annual revenue 10 million/annum
years difference • Flawed processing of • Update the order
orders at Sales Office processing software
Profitability to be @ 8% on
Average 8% on sales Average 8% on sales N/A N/A N/A
sales
Triaging 6
Gap Analysis Matrix is a specialized relationship Matrix that is used to record gaps that exist
GAP ANALYSIS MATRIX between two versions of some part of an enterprise.
HAVE NEED
Business Concepts: Terms, Meanings, Relationships Business Concepts: Terms, Meanings, Relationships
Triaging 7
COMPLEXITY &
UNCERTAINTY
Look for ways to deconstruct project to reduce complexity Look for ways to deconstruct project to reduce complexity
High & minimize interactions, focus on bringing clarity quickly & minimize interactions, focus on detailed planning will
to Items/Paths with high uncertainty have high ROI
Degree of Complexity
Low High
Degree of Complexity
Triaging 8
TIME
COST
Schedule overruns
Budget Expenditure
Tasks omitted from Schedule
Unanticipated Cost
Opportunity to compress Schedule
RESOURCES
COMMUNICATION
RISK Team in under-resourced
Poor Communication (Stakeholder
dissatisfaction) IDENTIFICATI Materials Shortage
Machinery Unavailable
Positive & timely communications (positive
ON
Industrial Action
publicity)
Skills gap
ENVIRONMENTAL
SCOPE
Bad weather results in re-work
Scope creep
Weather delays progress
Scope poorly defined
Adverse environmental effects occur
Project changes poorly managed
Environmental approvals not compiled with
Triaging 9
RISK MANAGEMENT PLAN
Detailed
Performance Proper Assessment of
Strategic Risk 2 Understanding Your Text Here 31.4.2022 John Abraham
Deterioration Underlying Strategies
of the market
Detailed
Performance Proper Assessment of
Strategic Risk 2 Understanding Your Text Here 31.4.2022 John Abraham
Deterioration Underlying Strategies
of the market
Detailed
Performance Proper Assessment of
Strategic Risk 2 Understanding Your Text Here 31.4.2022 John Abraham
Deterioration Underlying Strategies
of the market
Detailed
Performance Proper Assessment of
Strategic Risk 2 Understanding Your Text Here 31.4.2022 John Abraham
Deterioration Underlying Strategies
of the market
Triaging 10
PROCESS MAP
Decision Point A decision is made. Different process paths and actions are taken as result from different decisions.
Continue process map on another page when it wont fit on only one. Put a letter (A or B etc.) inside the circle where you end on one page, and put that
Connector same letter in another circle at point the process continues on the next page
Triaging 11
PROCESS MAP
No
Management
Review
Business Leaders
Objectives
Objectives Deployment
Assessment Gap
Training Needs Project Plan Audit Report
Action Planning Audit Audit Program
Training
Process Documentation Procedures Records & Forms Work Instructions Job Description Training Plan Audit Checklist
Training Assessments/Test
Development
Triaging 12
PROCESS IMPROVEMENT
ROADMAP
Improvement Where we are Where we want to Where we want to Where we want to Where we want to
Measurables
Goals now be in 6 months be in 12 months be in 18 months be in 24 months
A good improvement roadmap should answer
the following questions:
Breakdown
Spoilage Spoilage rate is too Defect awareness Spoilage rate less Spoilage rate less
analysis system in Spoilage rate
reduction high (>8%) program to all than 5% than 4%
place
Where we are now?
Triaging 13
PROCESS IMPROVEMENT
ROADMAP
Improvement Where We
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Measurables
Goals Are Now
Internal Audit Internal Audit is not Review and Improve the Current
Audit Practices Audit Score
Development effective enough
Triaging 14
IMPLEMENTATION GANTT
CHART
Week 1 Week 2 Week 3 Week 4
Month - April 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Triaging 15
PART B
FRAMEWORKS
ROOT CAUSE ANALYSIS – TREE
DIAGRAM
OPEN PHASE NARROW PHASE CLOSE PHASE
The idea here is to generate as many ideas as possible possible, proving most of the theories wrong validates the final short-list of problems.
Symptom of Problem
Symptom of Problem
Frameworks 17
ROOT CAUSE ANALYSIS – FISHBONE (ISHIKAWA) DIAGRAM
PROBLEM
12% of product fails
inspection for screw
alignment
Cause Cause
Employee has not been trained The correct gauge was not used to
measure the parts
Cause Cause
Employee Fatigue The gauge was not zeroed before
measuring the parts
Frameworks 18
ROOT CAUSE ANALYSIS – 5 WHY’S METHODS
Why?
Because they raised their rates by 20%
WHY
?
Why?
Because the finance department rejected working with
the original company
WHY?
Why?
Because they’re sourced by a different company
WHY?
Why?
Because a big chunk of the leads are cold & uninterested
WHY?
Frameworks 19
5S METHODOLOGY
• Sort all items in the workspace • Analyze the workspace according to • Check if everything is in its place • Brainstorm possible standardization • Respect existing regulations to keep
• Keep what is necessary the previously established storage • Check if some items must be moved conditions the workspace carefully organized
PROCEDURE
• Eliminate what is unnecessary plan • Clean and inspect after each shift • Explain the identified conditions according to standards
• Reduce the number of articles to the • Target items to move from the area • Check if cleaning, repairs or • Select, test and adopt specific • Ensure that all employees have
minimum quantity needed • Decide where the items must go replacements are needed conditions received training related to the
• Make the new location for these • Check if specific equipment needs • Maintain and monitor selected procedures
items visually apparent repair conditions • Inform all employees and encourage
their involvement
o Examine the workspace and use the o Establish the criteria for item o Consistently define all tasks o Prepare standardization chart o Establish a 5S sustainability plan
list of tools and components as location o Ensure all team members fully o Identify standardization problems o Ensure management supports the
marking criteria o Establish and gather all necessary understand their responsibilities o Define ideal conditions to sort, sustainability plan
o Use a red tag to mark all non- equipment o Establish appropriate cleaning organize and clean o Inform all employees of 5S
essential items o Identify and relocate major methods o Make all standards clear and visible standards and objectives
CHECKLI
o Gather all marked items equipment. Use the zone's map to o Provide proper tools and supplies o Monitor and improve standards o Identify problems related to
o Designate a holding area for all find the most appropriate spot. o Carry out initial cleaning o Continue sorting, organizing and standards
ST
marked items & make sure it’s Prepare a relocation plan and have it o Replace wires, pipes, tubes, etc. cleaning to enhance standardization o Create and maintain a 5S
highly visible approved. conditions communication board, so all
o Create & implement a storage plan o Decide which small objects to move. employees throughout the plant
to dispose of all unnecessary items Decide on the best location. Move understand the 5S system
o Keep track of all items removed and identify small items and set up o Continue to improve upon standards
from the zone location indicators. and visual cues.
Frameworks 20
STEP 1 SCORE STEP 2 SCORE STEP 3 SCORE
SORT 02 SET IN ORDER 02 SHINE 02
Only REQUIRED items in the following categories are present in the Clear identification an proper placement of: Workstation is sufficiently clean in following areas
workplace:
7. Equipment & Machinery
12. Stop switches & breaker 15. Tools 20. Paperwork
1. Equipment 4. Spare Parts
8. Tools 13.
Fire Suppression Eqpmnt. 16. Equipment 21.
Location for Containers
2. Tools 5. Paperwork
9. Location for Containers 17. Work Surfaces
3. Furniture
10. Paperwork 18. Walls, partitions & roof
14. Aisles forklift lanes, pedestrian walkways and hazardous 22. Cleaning equipment is nearly stored and easy to find
areas are clearly mark
6. All Tripping hazards removed from work area
STEP 4
STANDARDIZE
SCORE
01
STEP 5
SUSTAIN
SCORE
01 5S AUDIT SCOREBOARD
23. Tools, equipment, paperwork is stored & returned to place 29. Tools, equipment, paperwork is stored & returned to place
0 1 2 3 4 5
24. Equipment maintenance records visible & 30. Management has participated in audit within the past
communicate when last maintenance occurred three audit cycle No Effort Slight Effort Moderate Average Above Avrg. Outstanding
Effort Results Results Results
25. Trash cans and other waste-preventive tools are present 25. Trash cans and other waste-preventive tools are present
26. Work conditions meets all appropriate standards 26. Work conditions meets all appropriate standards
Total Audit Score Previous Audit Score
27. Results of previous audit is posted and visible 27. Results of previous audit is posted and visible
05 04
28. Team has addressed issues expressed in previous audits 28. Team has addressed issues expressed in previous audits
Frameworks 21
1
Get Employees Involved
7 2
Repeat on an ongoing basis Gather a lost of problems
5 4
Regularly measure &
Test the solution
analyze the results.
Frameworks 22
KAIZEN - 4M CHECKLIST
MAN (Operator) MACHINE (Facilities)
Does he follow standards? Is he experienced? Does it meet production requirements? Does it meet precision requirements?
Is his work efficiency acceptable? Is he assigned to the right job? Does it meet process capabilities? Does it make any unusual noise?
Is he qualified? Does he maintain good human relations? Is the lubrication adequate? Are there enough machine/ facilities?
MATERIAL METHOD
Are there any mistakes in volume? Is there any waste in material? Are the work standards adequate? Is the sequence of work adequate?
Are there any mistake in grade? Is the handling adequate? Is the work standard upgraded? Is the setup adequate?
Frameworks 23
SIX SIGMA - DMAIC
Define the problem and what Measure Defects and Process Analyze the Data and Discover Improve the process to remove Control and monitor your
customer requires Operation Causes of Defects causes of defects improvement
1. Select Project – CTO’s 1. Identify project output metric 1. Identify root causes 1. Identify solution 1. Implement process control
2. Create Project Charter 2. Develop data collection plan 2. Validate root causes and determine 2. Refine and test solutions 2. Prepare roll-out solution
3. Develop High-level process map 3. Establish process baseline VITALFEW 3. Cost benefit calculation 3. Project closure
3. Quantify the opportunity
Frameworks 24
SIX SIGMA CONTROL
CHART
Time (minutes) Prepared By Date Document No.
CTQ Specification
Applicable
Process Specific Who Corrective
Unit Data Description Measure Method Sample Size Frequency Where Recorded Standard
Step Character Measures Action
KPIV KPOV LSL USL Operating
Outer Replace
Polishing 0.0004 0.0006 mm Variables Optical comparator 10 parts/lot Hourly Operator X-bar PM-005
Diameter paper
Time Late = Each Each Prod. Conduct
Delivery Due date 98% 100% Attribute P chart PC-001, 002
delivery 1 defect delivery delivery Control 5 why
Outer Replace
Polishing 0.0004 0.0006 mm Variables Optical comparator 10 parts/lot Hourly Operator X-bar PM-005
Diameter paper
Outer Replace
Polishing 0.0004 0.0006 mm Variables Optical comparator 10 parts/lot Hourly Operator X-bar PM-005
Diameter paper
Frameworks 25
DMAIC A3 REPORT
Event/project title:
Define - Background (Complete before event/project)
Why are we talking about it? Process owners Process experts Process outsiders Event/project facilitators
DEFINE
Define - Current Conditions (Complete before meeting)
Dates Team room
Where are we today and what is the problem?
Frameworks 26
• Conduct functional analysis
• Deploy requirements to functions (QFD#2)
• Resolve contradictions (TRIZ)
• Generate design concepts
• Evaluate/select design concepts
• Launch pilot
• Prepare Charter
• Assemble the team SIX SIGMA ANALYSIS: • Verify/Validate design
• Plan for/transition to production
• Prepare Project Plans
• Assess risk DMADV • Manage product lifetime
Frameworks 27
“DRUM-ROPE-BUFFER”
Workstation C
Workstation A Workstation B
CONSTRAINT
Work-In- Finish
Raw Materials 500 Units 600 Units 400 units Ship
Process Good
Frameworks 28
DEMING CYCLE (PDCA)
Continuous
improvement
• ANALYZE the aftermath of the experiment
• TEST Each solution in a small-scale project or
• ASSESS each solution’s viability and effectiveness
environment
• REVIEW how the results go against the success
• TRACK Data based on the success metrics
metrics
Frameworks 29
THEORY OF CONSTRAINTS
01 (TOC)
Identify the System
Constraints
Frameworks 30
CURRENT REALITY TREE
Unhappy Customer
Product is not well tested before release Features are poorly developed It takes a long time to get an incident fixed It takes a long time to get a fix verified Fixes aren’t well tested
Frameworks 31
TOYOTA
PRODUCTION SYSTEM
The right products in the
Goal: highest quality, lowest cost, shortest lead time right quantity and at the
right time
Frameworks 32
KANBAN BOARD
Product Backlog (3) To Do (5) In Progress (4) Done (3)
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Frameworks 33
ANDON BOARD
Run time per hour 4 Mins Run time per hour 4 Mins Run time per hour 4 Mins
Down time per hour 56 Mins Down time per hour 56 Mins Down time per hour 56 Mins
Production Line 2
Run time per hour 4 Mins Run time per hour 4 Mins Run time per hour 4 Mins
Down time per hour 56 Mins Down time per hour 56 Mins Down time per hour 56 Mins
Frameworks 34
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