asq 2012 delivering process excellence through process management

7/27/2019 ASQ 2012 Delivering Process Excellence Through Process Management

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10/30/201

Delivering Process Excellence

through Process Management

Why is Process Management Important?

Most organizations are trying

(in varying degrees), to:

Create compelling new products

and service offerings

Provide service delivery as defined

by Customers

Generate attractive returns for

Shareholders

Ensure they are the best place to

work for Employees Operate mutually value-creating

partnerships with third party

Partners/Suppliers

Act with social responsibility

In operating environments

characterized by increasingly:

Aggressive competition

Discerning, value oriented buyers

(consumers, businesses and

shareholders!)

Mobile, itinerant employees

Extended supply chains across

multiple organizational functions

Complex third-party partner and

suppliers relationships, often across

numerous cultures, time zones and

geographies

Tough regulatory and corporate

governance requirements



10/30/201

Lean, DMAIC, & Process Management

are most often used for addressing change

These methodologies utilize the most powerful

tools in the “business improvement tool box” today

No one method can address every problem. The

challenge for organizations is to apply the right

method in the right way at the right time to get the

required results

Our recent survey findings indicate that today’s

leading firms are delivering results from combining

methods that have been adapted to their own

specific organizational culture, circumstances and

needs

We’ll now provide a brief overview of LSS Process

Excellence and each of these core methods.

LSS Process Excellence is

both a goal and an

overarching framework to

achieve that goal.

The approach enables

organizations to apply the

most appropriate and powerful

methods, tools, and

techniques to transform andcontinually improve their

performance.

It’s about achieving improved

business results - it’s not

about implementing a

methodology!

LSS Process Excellence



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LSS Process Excellence mobilizesthe organization’s performance

transformation and improvement

efforts around three key themes:

1. Process leadership

2. Process knowledge

3. Process execution

LSS Process Excellence

LSS Process Excellence Framework

Customer

Shareholder

Regulator

Organization

Mission, Vision

& Values

Strategies

&

Tactics

Organization

Results

Process

Leadership

Vision

Strategy

Process

Results

Process Knowledge

Ownership Process Execution

Capabilities Archit ecture Measurement

Governance

Transformation

And

Improvement

Culture



10/30/201

Six Sigma – The Methodology Explained

There are two main types of Six Sigma methods:

Six Sigma Improve and Design for Six Sigma

Define Measure Analyze Improve Control

Six Sigma Improve (Classic)

Typically used to remove defects and variation in order to

improve an existing process

Define Measure Analyze Design Verify

Design for Six Sigma (or Redesign)

Typically used to design new processes or redesign existing

processes containing numerous defects

Lean Basics – Core Concepts

Value

Each activity has a value that can be described as value adding, value

enabling or nonvalue adding. Target non-value-adding activities for

removal, and optimize those tasks which add value to the customer

Flow

Align capacity with demand and organize the flow of the product so that

the process flows at the right speed (Takt)

Pull Change the process so that the actual customer orders trigger

production or movement in the process - move away from forecasting

Perfection

Establish a culture with a complete intolerance of imperfection and

waste and a desire to seek continuous improvement



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Process Management is a system of management that enables

process leaders and participants to answer the following criticalquestions about their business:

What’s important to our customers and other key

stakeholders?

Are our processes fully addressing their requirements?

What projects should we be working on and in what

priority order?

How do we know that our improvement efforts are

creating tangible and sustainable value?

Process Management

The purpose of Process Management is to optimize the

results from the organization’s process improvement

initiatives.

Customer

Expectations

Service Standards

Product Specifications

Process Design

and Execution

Service Delivery

Process Management Is A System…

Feedback Loop – Outside in Black

Translation Loop – Inside in Blue



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Define… The process, the value, the process owner,

customers, and other key stakeholders

Measure… The voice of the customer, the voice of the

process, map the process, and establish clear

measures for both

Analyze… The gaps between the two, establishscorecards and project opportunity pipeline

Improve and Control… Processes by establishing a

process governance framework

The Process Management Methodology

Define Measure AnalyzeImprove

Control

LSS Process Management

The Define Phase


Control

Objective: The objective of the define phase is to establish the

team for the end-to-end initiative, to scope the relevant

processes, and begin to understand your customers’

requirements.

Key steps in the define phase:

Process maturity

Beginning the effort

Understanding your processes

Understanding your customer and stakeholder



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The Measure Phase

Define Measure Analyze ImproveControl

Objective: The objective of the measure phase is to create

detailed diagrams of your process, collect and validate existing

data, and build new metrics as needed.

Key steps in the measure phase:

Documenting the process

Measuring the process

The Analyze Phase


Control

Objective: The objective of the analyze phase is to understand

the performance of your current process, the key drivers of that

performance, and to identify the common failures in that process.

This allows you to establish common performance standards for

the process.

Key steps in the analyze phase:

Understanding process relationships

Establishing baseline standards

Identifying process failures



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The Improve/Control Phase

Define Measure Analyze ImproveControl

Objective: The objective of the improve/control phase is to

create a system for managing and assessing your processes in

a sustainable fashion.

Key steps in the improve/control phase:

Plan for control

Manage the scorecard

Manage the portfolio of improvement opportunities

It starts with leadership ….

Organization

Results

Customer

Shareholder

Regulator

Organization

Mission, Vision

& Values

Strategies

&

Tactics

Process

Leadership

Vision

Strategy

Process

Results

Process Knowledge

Ownership Process Execution

Capabilities Archit ecture Measurement

Governance

Transformation

And

Improvement

Culture

Requirements Process Results



10/30/201

…. and requires a vision of the future process world ….

A

Company Name

Process Maturity Model

Date

B C D E F

Themes (e.g. process

leadership) andtopics

(e.g. end-to-endProcess results

orientation)

Perfect Process World Aspirational Statements (e.g. performance relatedpay is integrally linked toachieving the end-to-end

process (POA) .

Current process maturity (e.g. all performance relatedpay is made based on meeting

functional, departmentalgoals)

Journey plan with interim

checkpoints to enable you to get

from today’s “process world” to

your “ perfect process world”

Today’ s Process World

…. ideally expressed in key metrics ….

Customer Acquisition End-to-End Process

Process Performance

Today POA

Applications Processed 10MM 25MM

Sigma Level 3.2 6.0

Unit Cost 5% 50%

Customer Satisfaction 80% >95%



10/30/201

1

…. with clearly defined roles & accountabilities ….

Process Owner Process Leadership

TeamProcess MBBs Improvement Teams

•Establish and lead theprocess leadership Team;

• Develop the process POA

and journey plan;

• Regularly liaise with other

process owners to ensure

that core process linkages

and interfaces are

understood and aligned;

• Guide process

management

implementation;

• Develop and establish

process governance;

• Make available required

resources;

• Remove barriers to cross-

functional performance;

• Be a ‘role model’ –display

and communicate the

critical cross-functional

behaviors required for

end-to-end process

management.

•Review processperformance

using the health

of the process

dashboard;

• Monitor and

guide

development of

new scorecards

and metrics;

• Assess progress

on closing data

gaps;

• Manage the

project portfolio;

• Enable processes

to optimize results

such as financial

controls, IT

support;

• Manage change

activities

•Operationalize the process POAby developing a

multigenerational plan;

• Develop and execute end-to-end

process measurement plans to

ensure robust dashboard data is

available for decision making;

• Support benchmarking

initiatives;

• Manage the end-to-end process

project portfolio on a day-to-day

basis – prepare updates for

process review meetings;

• Align and sequence LSS projects

for maximum impact;

• Expertise in advanced

improvement methods, tools and

techniques;

• Quarterly assessments of

progress toward process

maturity;

• Day-to-day guidance to

improvement teams.

•Refine LSS Projectcharters and

validate the project

rationale/value;

• Select appropriate

improvement

approach and level

of investigation to

develop effective

solutions;

• Maintain

communication with

the process

leadership team;

• Drive projects to

successful

completion;

• Provide

documentation of

team efforts such as

progress reports and

project storyboards

….and supported by a reward and recognition system

Drivers of

Performance Pay

Before

Six Sigma

With

Six Sigma

Overall company performance 20% 20%

End-to-end process performance 0% 40%

Function performance 50% 10%

Individual performance 30% 30%



10/30/201

In Summary

There are improvement methodologies that

address one or two of these areas:

The Program

The Process

The Project

And the People!

Process Management integrates all the piecesinto a coherent strategy for change

• About ASQ and more on this topic

– www.asq.org

– www.asq/org/sixsigma

– www.asq.org/knowledge-center/

http://www.asq.org/knowledge-center/search










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