Process Optimization (Part 2)

Synopsis

Want to generate the most business values with the least amount of time and cost? Even a thriving business can always find ways to make its processes leaner, faster, and more efficient.

This Process Optimization (Part 2) presentation includes templates for tried-and-true methods to help trim the fat. It includes slides for root cause analysis, risk identification, complexity and uncertainty matrix, Kaizen, 4M checklist, Andon board, Toyota Product System, Deming Cycle, PDCA, and many more that can be customized for various team environments. Let's review how these methods can be used to improve existing operations.

Questions and answers

Can you provide real-world examples of companies successfully using the 4M checklist and Andon board for process improvement?

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Toyota is a prime example of a company that has successfully used the 4M checklist and Andon board for process improvement. The 4M checklist (Man, Machine, Material, Method) is a part of Toyota's Production System. They use it to identify and categorize potential sources of variation in a process. The Andon board, on the other hand, is a visual management tool that highlights the status of operations in real-time and signals any deviations from the norm. Toyota uses it to quickly identify and address issues, thereby reducing downtime and improving overall efficiency.

What are some alternative strategies to the Deming Cycle and PDCA for process optimization?

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Some alternative strategies to the Deming Cycle and PDCA for process optimization include Six Sigma, Lean Manufacturing, and Total Quality Management (TQM). Six Sigma focuses on reducing process variation and enhancing process control, while Lean Manufacturing aims at waste reduction and process flow efficiency. TQM, on the other hand, is a management approach that focuses on long-term success through customer satisfaction.

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Root cause analysis

Fishbone diagram

Before we get into individual methodologies, let's review ways that a project team can triage and plan process improvement efforts. To begin with, it's important to identify the main problem and the root of it first. In many cases, there are deeper causes to a problem than what the surface suggests.

Questions and answers

What role do grassroots movements play in shaping trends in process optimization?

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Grassroots movements play a significant role in shaping trends in process optimization. They often initiate change from the bottom up, identifying inefficiencies in existing processes and advocating for improvements. These movements can bring about innovative solutions that may not be apparent from a top-down perspective. They can also help in identifying the root causes of problems, as they are often closer to the operational issues. Furthermore, grassroots movements can foster a culture of continuous improvement, encouraging everyone within the organization to participate in process optimization.

Can you use analogies or metaphors to explain the concept of triage and planning in process improvement efforts?

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Yes, one can use the analogy of a medical triage. In a medical emergency, doctors perform a triage to prioritize patients based on the severity of their condition. Similarly, in process improvement, teams identify and prioritize problems based on their impact on the business. The planning phase can be compared to a roadmap. Just as a roadmap provides the best route to reach a destination, the planning phase outlines the steps to achieve process improvement goals.

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The Fishbone Diagram, also known as Ishikawa Diagram, presents the observed problem on the right hand side. (Slide 15)

Five why's

Another way to conduct a root cause analysis is the 5 Why's framework. Unlike the fishbone diagram, the 5 Why's uses a more top-down approach. (Slide 16)

Start with the big question by asking the first Why. Then, continue until five Why's have been asked to get to the finer points of the problem that weren't obvious to you at first.

Process risk

Risk identification

With any plans for change, there are risks that are already associated with the current process, and also risks that could come up with the new changes.

Whether the goal is to reduce the existing risks or to defend the business against potential future risks, it's important to lay out the possibilities to set a feasible expectation. (Slide 6)

This also brings up the question of: what's a worthy trade-off? Does the business align with more of a "high risk, high reward" approach? Or does it want to play it safe?

Complexity and uncertainty

Related to risk management, map out any complexity and uncertainty implied by your process improvement plan on this matrix. (Slide 5)

For example, for an organization that's looking for low risk and fast results, it could be worth starting with procedures in the lower-left quadrant. These are the low-hanging fruits that are not too complicated to implement and are fairly predictable. With that combination, you can see the results quickly after implementation.

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Continuous improvement

Kaizen

Now, let's get into the individual tools that can be used throughout the process optimization exercise.

Kaizen is one of the most common tools when it comes to process improvement, and for good reasons. It's the framework that's brought great success to companies from Toyota to Nestle.

Kaizen can be visualized as an ever-revolving wheel. The key word here is "continuous". This means that improvement doesn't simply stop at step number 7. It continues to refine and redefine to achieve even better results. (Slide 21)

If a team has a well-defined process improvement schedule, it can edit these steps to show specific dates or durations that correspond each step of the Kaizen process.

4M checklist

Under the Kaizen framework, the 4M checklist can be used to highlight and track detailed tasks on the ground. The 4 M's stand for: Man, Machine, Material, and Method. They allow a project team to be aware of all critical components with better clarity and organization. (Slide 22)

Note that the 4M checklist doesn't discriminate against the finer details. When it comes to process improvement, even a small detail can lead to significant cost and time savings. These small improvements can also add up when they happen in a high-volume production setting.

Toyota production system (TPS)

The tools we just mentioned can all be aggregated into the Toyota Production System, or TPS. This is the main ideology that process optimization is founded upon. (Slide 29)

In this powerhouse, we have the business goals at the top of the house, supported by pillars that are made of individual process optimization methods, and followed by the final successful results.