Navigating The Road of Process ImprovementBest Practices and Tips

© Gary BlackardSeptember 15, 2015

Table of Contents

• What is Process Improvement?

• Program Methodology Review

• Application and Learning

• Next steps

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What is Process Improvement?

4

5

Process Improvement is NOT:

• An employee replacement strategy

• A complex, impossible-to-learn methodology

• A “fix everything” model

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Definition*

Systematic approach to closing of process or system performance gaps through streamlining and cycle time reduction, and identification and elimination of causes of below specifications quality, process variation, and non-value-adding activities.

*http://www.businessdictionary.com/definition/process-improvement.html

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Process Improvement Programs

• Total Quality Management (TQM)• Baldrige Award• ISO9000 Certification• PDCA• Lean Enterprise (Toyota Production System)• Six Sigma• Project Management (PMI Certification)• Agile (Scrum)• Constraints Management

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Examples of Process Improvement

Process Starbucks and Lean Methodology UCLA Health and CICARE approach Mistake Proofing (Poka Yoke) Color coding “fall” patients

Innovation Music integration with Phones – one device GPS replacement of maps/directions Fuel efficiencies for autos, trains and planes

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Culture and Process Improvement

• “Culture eats Strategy for Lunch” – Peter Drucker

• 70% of all change initiatives fail – John Kotter/Harvard

• Healthcare especially vulnerable

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Benefits of Process Improvement

• Better patient experience• Improved clinical outcomes• Higher employee

engagement/morale• Sustainable financials (reduced

costs)• Faster results• Ability to grow without incremental

costs• Reduced errors/quality

improvement

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Recommended Approach and ToolsThere is no “one way” to do process improvement

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Lean Six SigmaStrategic Linkage

andExecution

New Opportunities

Projects Generated

D M

AI

C

Priorities,Definition,

Scope

Effort

Benefit

Results

Strategic Linkage and Execution

$

StrategicPlan

AnnualPlan

Vision and Mission

What is Lean Six Sigma?14

6 Sigma:3.4 DefectsPer Million

6 Sigma:3.4 DefectsPer Million

3 Sigma:66,807 DefectsPer Million

SpecProcessOutput - Y

SpecProcessOutput - Y

SpecProcessOutput - Y

SpecProcessOutput - Y

• Lean Enterprise Thinking promotes speed and process waste elimination by reducing non-value added activities within any given process.

• Six Sigma is a formal methodology that eliminates or reduces variation in any given process. Its focus is on quality improvement and defect reduction. The higher the sigma level, the less variation in a process.

• Please see chart below:

Benefits of Lean Six Sigma

• Over $500M saved over 20+ years

• Faster processes• Waste elimination• Higher employee

morale• Better customer

experience

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Business Results

Culture Change

Leadership Development

• Profitability• Growth • New opportunities

• Future leaders• Shared business discipline• Continuous learning

• “Customer In” vs. “Company Out” market view

• Facts/data driven decisions• Busting bureaucracy• Collaborative, enhanced teamwork

Lean Six Sigma: Primary Objectives

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–Goal — Reduce waste and increase process speed

–Focus — Identify non-value add steps and causes of delay

–Method — Value Stream Tools, Kaizen (“quick-hit”) events

LeanSpeed + Low Cost

–Goal — Improve performance on customer CTQs (Critical to Quality)

–Focus — Use DMAIC process with various tools to eliminate variation

–Method — conduct project selection workshop and develop projects through volunteer consultants

Six SigmaCulture + Quality

Six Sigma QUALITY Enables Lean Speed

(fewer defects meansless time spent on rework)

Lean SPEED Enables Six Sigma Quality

(faster cycles of experimentation / learning)

Combining Two Powerful Approaches

Types of Waste – Eliminate or Streamline18

The phases and tools of Lean Six Sigma19

Tools You Should Know and Use

• Project Planning (WBS, Risk Assess, Comm Plan, RACI)• SIPOCR• Value Stream Map/Process Map• 5S• Spaghetti Diagram• DMAIC “thinking” for problem solving

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SIPOCR21

Value Stream Map22

Value Stream Map Example23

Process Map24

5S Overview25

Spaghetti Diagram26

DMAIC “Thinking”27

In Summary• Process Improvement is critical

for success

• Culture must be adaptive and agile

• Lean Enterprise and Six Sigma recommended

• Process Improvement must align to Vision and Mission

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?

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September 15, 2015© Gary Blackard