ie673session 5 - process management1 process management

IE673 Session 5 - Process Management 1

Process Management


Objectives

• To map a system’s fundamental elements• To select key processes for improvement• To construct Deployment Flow Charts• To determine meaningful measures• To analyze flowcharts for improvement ideas and

ways to eliminate waste• To create conditions for making flowcharting most

effective in converting ideas into actions


Major Steps

• Understanding the system• Selecting key processes• State change flowcharting• Deployment flowcharting• Improving processes• Ideas into action


Definition of Terms

• System Boundary - Describes system under study• Outputs - End product of system• Customers - Users of the outputs• Mission - Purpose for the system’s existence• Vision - The desired future outcomes of the

system• Values - The principles desirable to guide

behavior


Definition of Terms

• Output Measures - Observable characteristics which indicate how well the system outputs satisfy customers

• Inputs - Materials, information, etc. that must be put into the system to produce outputs

• Suppliers - People who provide inputs• Feedback Loops - Connections to provide

meaningful information upstream


Definition of Terms

• Primary Process - Series of essential activities for producing Output (should add value)

• Supporting Processes - Activities which allow a primary process to become more effective or efficient– Technical - physical activities

– Social - relationships between people

• Key Process - Significant impact on system


Identification of Key Processes

• Which process has the most problems, customer complaints?

• Which process consumes the most resources?

• What do people in system complain about most?

• Which processes have recurring problems?

• Which processes have high variability?

• Which supporting processes are weak or taken for granted?

• Which processes would have the greatest positive impact if improved?

• Which processes will be important in the future?


Key Process Planning Sheet

• System Under Study:

• Key Process:

• Reason for selecting as a key process:

• What is desired for this key process?

• Who should be involved in analyzing this process?

– Who owns the process?

– Who will be affected by changes to this process?

– Who is required to approve changes?

– Who is most knowledgeable?

• Process Improvement Team:


State Change Flowchart

• “State Change” - a physical change in the dimensions or properties of the input

• Purpose - To define the ideal process as a series of changes to convert the input to the output

• Construction Steps:– Label the process being flowcharted

– List the outputs of the process at the top

– List the output at the bottom

– Describe each physical state in between


State Change Flowchart

Output:

Process:Input:


Deployment Flowchart

Sales Design Quality MFG

Order

Design Review Meeting

WorkInstruction

QA Plan Build


“Rules of Thumb”

• CLEAR PURPOSE for the flowchart• “Really Is” vs “Should Be” vs “Could Be”• No such thing as a perfect flowchart … important

to convey understanding (KIS)• 2-6 in cast of characters• Maximum of 20 boxes per page


Common Pitfalls

• Wrong people doing the flowchart• Unclear purpose• Flowcharting everything or the wrong things• Flowcharting for the sake of flowcharting• Confusing or intimidating flowcharts


Improving Processes

Objective - To generate ideas for process improvements, bases on the knowledge gained from flowcharting and an understanding of the “7 Wastes”


So Far …

• Developed understanding of the “whole system”

• Selected critical few “Key Processes”

• Defined ideal process

• Constructed “Deployment Flowcharts”

• Identified important measures (collected real data?)


The “7Wastes”

• Processing waste

• Overproduction waste

• Waiting time waste

• Waste due to defects

• Waste of Motion

• Inventory waste

• Transportation waste


Improvement

• Aim for the ideal

• Ask– How can the process be changed to reduce error and rework?

– How can people upstream be linked to people downstream?

– How can the process be made more visible to everyone involved?

– How can the “people” process be improved?

– How can process interruptions be eliminated?


Ideas into Action

• Build support for process improvement

• “Do your homework”

• Make good changes

• Follow up


Useful Tools

• Force Field Analysis

• Action Planning - Who, What, When

• Run Charts - Visible monitoring

• Benefits vs Cost/Risk


Benefits vs. Cost/Risk

• How will quality or performance be improved?

• What wastes will be eliminated?

• How have cycle times improved?

• How will frustration be reduced/motivation enhanced?

• Cost of new machines, tools

• Cost of more people

• Cost of change

• How will cost/productivity suffer during transition?

• What happens if it doesn’t work?

• How will improvement be measured?

ie673session 5 - process management1 process management

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