Administration of Continuous Improvement Initiative

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  1. 1. J Griffin Group, LLC 15 Administration of Continuous Improvement Initiative: A Structured Approach Written by: Maurice C. Spann, LSSBB Cofounder/President J Griffin Group, LLC (860) 281-9690
  2. 2. J GriffinGroup,LLC | A StructuredApproachto AdministeringaContinuousImprovementInitiative. 1 Administration of Continuous Improvement Initiative: A Structured Approach
  3. 3. J GriffinGroup,LLC | A StructuredApproachto AdministeringaContinuousImprovementInitiative. 2 Contents INTRODUCTION..................................................................................................................................3 A STRUCTURED APPROACH TO CONTINUOUS IMPROVEMENT ..............................................................4 SEVEN KEY ELEMENTS.........................................................................................................................5 Structure Approach Diagram for the Continuous Improvement Model .......................................7 STRUCTURE APPROACH DIAGRAMEXPLANATION.................................................................................7 The Organization..........................................................................................................................7 Continuous Improvement Leader ................................................................................................8 Continuous Improvement Initiative ..............................................................................................8 Vision & Goals..............................................................................................................................9 Process and System....................................................................................................................9 Manage & Improve.....................................................................................................................10 Execute & Monitor......................................................................................................................10 Train & Deploy............................................................................................................................11 TRAINING AND TOOLS.......................................................................................................................11 What is the D.M.A.I.C Cycle? ....................................................................................................12 Purpose and Tools .....................................................................................................................12 Annual Process Audit Procedure...............................................................................................14
  4. 4. J GriffinGroup,LLC | A StructuredApproachto AdministeringaContinuousImprovementInitiative. 3 INTRODUCTION In pursuit of excellence, a customized continuous improvement strategy provides the roadmap for organizations to achieve a blue ocean experience. To execute this strategy key elements must exist within the organization. There must be executive buy-in from the beginning for the initiative to be successful. Acontinuous improvement leader must be appointed or hired to lead the initiative. The culture of the organization must be primed to understand the reason and importance for executing the initiative. Process owners must be identified to assist in documenting and managing processes, policies, and procedures. Finally, division leaders must be trained to be project champions to execute divisional level improvement for the organization. Structure is the key to success in every implementation. The power of having a structured approach allows the organization to break up the continuous improvement initiative into manageable chucks. It is not unusual for an organization to have multiple continuous improvement projects running at the same time. This provides the organization the ability to: Create quick wins building momentum and forward progress through the initiating phase. Train project champions to be the voice of the business with the authority to select projects based on the strategy and direction set by the continuous improvement leader. Monitor and assess the initiative at designated intervals to assure pivotal milestones are completed within the allotted timeframe. Focus its culture on the importance of consistently finding opportunities to improve processes, procedures, and systems. Very few organizations implement continuous improvement as an enterprise initiative. Some organizations choose to implement continuous improvement projects for quick fixes. Some organizations choose to implement training to educate employees on Lean and Six Sigma tools. Unfortunately those organizations are not reaping the full benefits at the enterprise level. However, when an organization decides to administer a structure enterprise continuous improvement initiative at the enterprise level, the benefits are: Increase market shares creating a blue ocean experience for the company. Reduce cost to provide best in class services to its customer at a competitive price. Increase employee satisfaction rate creating a culture for success. High efficiency in its processes, procedures, and systems.
  5. 5. J GriffinGroup,LLC | A StructuredApproachto AdministeringaContinuousImprovementInitiative. 4 Administering a continuous improvement strategy brings to light inefficiencies, ineffectiveness variability, and vulnerability. To achieve excellence, an organization must be willing to expose its weaknesses, be open to changing the status quo, standardize the way it does business, and commit to the timeframe and resources needed to achieve the goal. Administering a continuous improvement initiative with a structured approach allows the organization to identify and implement industry best practices, continuous improvement tools and techniques, and quickly resolve risk and issues before they become deep-rooted problems for the company. A STRUCTURED APPROACH TO CONTINUOUS IMPROVEMENT Implementing continuous improvement through individual projects can yield great success at the division level. However, to achieve enterprise success, a structured continuous improvement strategy must be implemented. The organization must be willing to link continuous improvement to all its enterprise goals. It must not be seen as an individual project that has a beginning and ending date. It must be viewed and seen by the organization as a necessary tool to achieve it mission, vision, and goals. To achieve this, the organization must structure the way it administers continuous improvement. A structured approach encompasses seven key elements. The key elements are: Adopt continuous improvement as a pillar for achieving success. Appoint or hire a leader that understand and know how to customize a continuous improvement strategy to fit the needs of the organization. Select champions and project teams to lead the charge to embed best practices and standardized processes. Develop and execute a training strategy for employees teaching them how to identify and resolve defects, process inefficiencies, and workflow flow redundancies. Create a close loop communication strategy for champions and project teams to used to disseminate information. Select process owners to manage all processes within their respective divisions. Build an electronic repository to store electronic process flows, policies, and procedure manuals.
  6. 6. J GriffinGroup,LLC | A StructuredApproachto AdministeringaContinuousImprovementInitiative. 5 SEVEN KEY ELEMENTS I. Adopt Continuous Improvement Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them ~W Edwards Deming~. Continuous improvement is not a fad. It is a movement. It is a structured approach to shift the culture and align the organizations resources, processes, systems, and strategies. The purpose of this culture shift is to increase the organizations market share and provide customer with quality products and services. By adopting continuous improvement as a pillar the organization as a whole is better equipped to deal with and continually resolve negative impacts to its bottom-line. In addition, it allows the organization to service repeat customers and their referrals with excellence. II. Continuous Improvement Leader Having a competent leader at the helm of this initiative is half the battle. Jim Collins wrote in his book Good to Great that good-to-great companies made a habit of putting their best people on their best opportunities, not their biggest problems. Administering a structured continuous improvement initiative is one of the best opportunities for an organization to maintain and attract existing and new customers. Appointing or hiring the best leader to spearhead the initiative provides the organization with the greatest opportunity for success. This leader must understand the importance of collaborating, coaching, training, and auditing the efficiency and effectiveness of the organization. III. Champions and Project Teams The role of the champions are twofold. The champions are the Lieutenants and commission with leading their respective project teams. The champions are the voice of business and therefore communicate the strategy and direction set by the continuous improvement leader. As the initiative matures the champion becomes a vital resource. The champion must ensure the intensity and passion for excellence does not diminish. They are the gatekeepers. However, the project teams are made up of employees from each division within the organization. It is imperative for the project teams to be diverse. The project teams must have a project leader, process owners, lean six sigma professionals, and divisional representatives. Each project team members will play a crucial role in th

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