Practical Process Improvement®
This blog is dedicated to discussion of topics and commentary of interest to process improvement professionals
Sunday, April 26, 2015
Welcome to the Practical Process Improvement blog. From January 2014 to March 2015, I published a twice monthly Process Improvement Prognostication (PIP). I have discontinued the series and now focus on various LinkedIn groups to continue the discussion of topics of interest to those in the process improvement profession.
Saturday, March 14, 2015
Process
Improvement Financials: Make Sure You Are Really Saving the Money You Think You
Are
In last weeks’ PIP, I
went over five criteria for project selection.
At the start and during the project, it is important to make sure we
have a common understanding of metrics used to measure performance
improvement. In business there are many
but in nearly all organizations, they all boil down to money in one form or
another. Like oxygen to the human body, deprived
of money an organization will quickly perish.
So how do we measure the
true, incremental improvement money our projects deliver? In a previous PIP I mentioned the importance
of determining the true, incremental cost savings or, if appropriate, increased
revenue. You should take the same
disciplined approach to analysis of these financial measures as you do with
other process metrics.
You will have to be skeptical
with all these measures. Before six
sigma entered the quality profession, many of the gurus and practitioners were too
nonchalant with the financials around improvement projects. The best approach to take is the opposite of
the US justice system and can be summed up as ‘guilty until proven innocent’. An increase in revenue or cost savings is
neither until it can be proven with hard, indisputable data.
Lastly don’t forget to
include the costs of the project in the calculations. You and your project colleagues are an
expense to the organization. There is
the cost to have your work covered if this is a full-time commitment. Process or service improvement tests will
cost money to develop and trial. These
costs must be added to others when calculating the benefits of the project.
I’m sure all of you are
familiar with the common metric categories of increased sales, improved productivity,
reduced cycle times, improved satisfaction scores, etc. Just remember to continually dig deeper and
deeper into each so you can determine if they are truly incremental and in fact
actual increase revenue or cost savings.
Saturday, February 28, 2015
Get
the Right Start: Five Criteria for a Practical Process Improvement Project
What are the proper
criteria necessary for a successful start to your first practical process
improvement projects? From my experience,
five are necessary.
First,
I suggest that you start with a small project first. It should not be too big or too
ambitious. It should be big enough
though that its success would be clearly beneficial to the department and,
hopefully, the entire company.
Second,
the top management team of your company must be committed to the project. Not just involved but committed to the
project.
Third,
try to find something that “slightly hurts” the organization at this time. A little pain is ideal and for our purposes,
it should involve something that your area or department is directly
responsible for.
Fourth,
set up a system to track the cost of the project before you begin. For the type of basic project you should
start with, labor is probably the most costly component. Keep in mind though it is not just the cost
of the time participants meet for the project.
They will need additional time to perform project tasks.
Fifth review
team size. I would like to suggest that
for your initial projects, you keep the team small and involve the areas
“touched” by the process you want to improve.
My suggestion is no more than four or possibly five to start.
It’s a
good idea to get a few successful projects under your belt to build
momentum. By taking this approach you
will build credibility and gradually move to bigger projects with larger
benefits to your organization.
Saturday, February 14, 2015
Assembly
vs. Transformation Production: Some Commonalities but Also Differences
Until
recently much of my career I was in the printing industry. My undergraduate degree is in printing and I
spent over twenty five years in the newspaper business. I’m mostly out of it now but I still keep up
with some of the goings on. Recently I read
a printing group discussion on LinkedIn on application of the Toyota Production
System to printing production.
The
dozens of comments are interesting but through it all one point was not clearly
brought up which is not all production operations add value the same way. Because of this, not all approaches to
improvement apply equally to both.
Let’s
start with vehicle production in any plant.
Very little if anything is actually made in the plant. Components and subassemblies from different
vendors all over the world are placed onto the vehicle as it proceeds ‘down the
line.’ Value is added in this case by “assembling”
the various pieces onto the vehicle. In
the vehicle assembly plant, product control is key. Each of those components must have final
specifications from their production operation which dovetail with those of other
components when they are assembled.
Printing
is different. Substrates/paper and
colorant/ink of many different types are supplied to a printing press. The paper and ink are put in the press, it is
turned on, and through the use of an imaging technology those components are “transformed”
into a printed product. That is how
value is added in this production operation.
Printing must use process control to ensure ink is placed accurately on paper
during transformation.
These
are two examples of the common types of production and there are many variations. By all means study the various techniques of
how any manufacturer controls and improves quality. But take a selective approach and you’ll be
much more successful. Approaches don’t
apply equally across industries.
Saturday, January 31, 2015
Formal
Certification: Independent Organization or Company Issued, Which Way to Go?
I recently saw a discussion in a LinkedIn
group around six sigma certification. The
question is a good one. Is six sigma
black belt certification from ASQ or another respected, accredited organization
the way to go or is through your work organization the better path to take? There is another question which needs to be
asked at the same time also. Do you
intend to stay with the organization or do suspect you will eventually seek employment
elsewhere?
If the
organization you work for is Motorola, Allied Signal, General Electric, or another
recognized as a six sigma leader, a company issued certification is the way to
go. These organizations have credibility
producing top shelf six sigma belts.
Individuals selected to six sigma certify go through thorough training, need
to demonstrate mastery of the body of knowledge and complete an appropriate
project.
Many other
organizations offer six sigma certification but do not have the same level of
credibility. In all likelihood, those
organizations have high standards and are as rigorous to certify belt status as
the three companies above. But outside
the organization, their certifications are questionable. In the future, you might apply for a position
at another organization and if the company you received certification from is
one they never heard of, you could have a problem.
That’s
where ASQ or other credible, accredited organization certification is the path
to follow. ASQ certification is recognized
and readily accepted by organizations worldwide whereas a six sigma green belt
from XYZ Widgets is not. The same goes
for other quality certifications, along with non-quality certifications such as
the PMI PMP, CAPM and PgMP certifications.
All my quality
certifications come from either ASQ or Villanova. I am a certified quality manager from ASQ and
have lean six sigma master black belt certification from Villanova. I also have ITIL and CMMI certifications. If I should ever leave the organization where
I now work, I know all of these certifications will be recognized as credible
and accepted. Others I know who company
certified and then left their organizations had their certifications questioned
and in some cases were not recognized at all.
Given the dynamic, readily changing world we live in today, that’s not a
risk I suggest anyone take.
Saturday, January 17, 2015
Lean
Six Sigma – Is it an Oxymoron?
During a
conversation with a colleague this week, we got into a discussion around a
favorite topic, lean six sigma. Both of
us received our initial training when it was just called six sigma. Lean tools were briefly mentioned in the body
of knowledge. The formal addition of ‘lean’
came about in the early to mid-2000s.
The conversation eventually lead to the point where we tossed around the
question of do the two belong together?
At a certain level one could argue they do
not. Lean looks to improve efficiency
with a laser focus on optimizing processes to reduce or eliminate waste. Steps of the process or processes are
examined for either value-added and non-value added activities. Other concepts include pull systems, value
stream mapping, Kaizen events, and 5S (sort, set in order, shine, standardize,
and sustain).
Six
sigma seeks to improve effectiveness of processes with an intense focus to determine,
meet and satisfy the needs of customers.
A strong underlying philosophy is that if one puts customer needs to the
front of the line, the net results will improve the bottom line. There are frameworks such as DMAIC and DMADV,
each with a plethora of tools we all know very well.
So is
there a conflict here? I’ve seen and I’m
sure you have also the definition of efficiency as doing things right and
effectiveness as doing the right things.
I’ve seen situations where too intense focus on efficiency ended up
producing a product or service customers perceived as cheapened and stopped
their purchases. I’ve also seen
situations where listening excessively to customers resulted in a great product
or service the customer was delighted with but nearly bankrupt the
organization.
Coexistence is the best
way to describe it. At certain points in
a process improvement project, you should pull out the lean tools. Example are when you look at the existing processes
or processes and propose new ones. At
other times in the same project don’t forget the six sigma tools such as the
voice of the customer and critical to quality.
So like many areas of life the need is for balance.
Saturday, January 3, 2015
Self-Focused Continual Learning: Keeping Your ‘Edge’
as a Six Sigma/Process Improvement Professional
As I
write this PIP, it is January 3rd, 2015. Like many of you, I make New Years’
resolutions and I’ll achieve some but may come up short in others. When the end of this December rolls around
though, I will have improved myself in many areas with professional development
being one of them. With that in mind, I’d
like to share with you some areas where six sigma and process improvement
professionals can focus on to further or fine tune their skills.
First is
applied statistics which is a key tool and knowledge area for any six sigma
belt level. For many of us, statistics
was challenging to learn and the ease with which we learned was in direct
proportion to the effectiveness of our teacher/professor. Recently I got my hands on three basic
statistics books with simple, even humorous approaches. I intend to read them and incorporate as
appropriate their approach to teaching.
Second
is project management an area where a number of process improvement projects I’ve
been involved with were lacking. Right
now, I’m going through DVDs, CDs, and books to prepare for the PMI PMP
exam. I see a lot of information in the
PMBOK which we should use on our projects.
Even if you are a PMP you might want to pull out the latest PMBOK book
and go through it again for ideas.
Finally
is to review the basics of six sigma. I
obtained both my LSSBB and LSSMBB certifications through the University
Alliance/Villanova University. Both
courses supplied printed material and CDs with the course lectures in video
format. Over the course of this year, I
will go through each one of them again.
To
conclude, I’d like to remind everyone of something I heard earlier in my career
around professional athlete skills. When
those professionals need to improve their game, do they seek new
techniques? Occasionally yes but more
often they work over and over relentlessly on the fundamentals. Daily batting practice for baseball players
and foul shots for basketball players among others. In your profession, you are no different than
they are.
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