Continuous Process Improvement

CPI is designed to utilize the resources of the organization to

achieve a quality-driven culture.
Achieve Perfection
Work as Process to make it Effective, Efficient, and
Adaptable
Anticipating Changing Customer Needs
Control in process-Reduce Scrap, Time, Idle of
Resources
Eliminate Non Conformance in All Phases
Using Bench Marking to improve competitive
advantage
Innovating to achieve breakthroughs
Statistical Tools, QFD,FMEA. Taguchi Loss Function
Incorporating lessons learned into future activities 1
 CPI- Various Approaches

• PDSA Cycle
• Juran’s Trilogy
• Reengineering
• Kaizen
• Six-sigma concept

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 Shewhart (PDSA) CYCLE

• PLAN
• DO
• STUDY ACT PLAN
• ACT
STUDY
DO

It is a model for continuous improvement of quality. It

consists of a logical sequence of 4 repetitive steps for
continuous improvement & learning. 3
• PLAN – Plan ahead for every and any change.
Ask the following questions ("The Five Ws and an H"):
• 1. WHO does this plan impact (specifically, with what presumed or required characteristics or
qualifications)?
• 2. WHAT is the purpose of the interface/relationship? WHAT are we trying to accomplish? WHAT change
can we make that will result in improvement? (Whichever question is appropriate).
• 3. WHY does this support the end purpose of the system (i.e. 'vision')?
• 4. WHERE will this take place (addressing all characteristics of the intended location)?
• 5. WHEN is it to occur (i.e. earliest start/end, latest start/end, sequence/timing of steps/sub-processes)?
• 6. HOW - a step by step procedure to convert any and all system/process inputs to all system outputs.
HOW will we know that the change is an improvement
• DO -Try the change on a small scale under controlled circumstances (i.e. experiment or prototype first)
• STUDY- Analyze the results of your experiment. What do the data tell you about the effectiveness of the
test?
• ACT- Take action to STANDARDIZE the process that produced the results you desired

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 Continuous Process Improvement Cycle

Phase 1 Identify the

opportunity

Phase 2 Analyze the

Process
Phase 7 Plan for
the
ACT
Future PLAN
Phase 3 Develop the
Optimal Solution
Phase 6 Standardize STUDY DO
the Solution

Phase 5 Study the Phase 4

Results Implementation
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 The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification a small scale and measure
to the process, or the effects
abandon it.
CHECK
Study the results to
learn what effect the
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change had, if any.
 When to use PDSA/PDCA Cycle

As a model for continuous improvement.

When starting a new improvement project.
When developing a new or improved design of a
process, product or service.
When defining a repetitive work process.
When planning data collection and analysis in order to
verify and prioritize problems or root causes.
When implementing any change.

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Benefits of the PDSA/PDCA Cycle

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 Nested PDSA Cycle

Also referred to as "wheel-within-a-wheel," the

nested PDSA process involves doing PDSA as part
of each PDSA step. In other words, within the Plan
step we have PDSA - the need to Plan the Plan, Do
the Plan, Study the Plan, and Act on the Plan. Each
PDSA step would have a PDSA process "nested"
within.

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Juran's Trilogy
Juran - Father of Quality

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 Juran's Trilogy
Quality Planning

To determine customer needs and develop processes and

products required to meet and exceed those of the customer
needs. This can be particularly challenging for a planning
team, because customers are not always consistent with what
they say they want.

The challenge for quality planning is to identify the most

important needs from all the needs expressed by the
customer.

“Quality does not happen by accident, it must be planned”

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 Juran's Trilogy
STEPS in the Quality Planning Process

1. Identify who are the customers.

2. Determine the needs of those customers.
3. Translate those needs into our language.
4. Develop a product that can respond to those
needs.
5. Optimize the product features so as to meet
our needs and customer needs.

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 Juran's Trilogy
Quality Control
 The purposes of quality control is to ensure the process is running in optimal
effectiveness, or to ensure that any level of chronic waste inherent in the process does not
get worst.
 Chronic waste, which is a cost of poor quality that can exist in any process, may exist
due to various factors including deficiencies in the original planning. It could cost a lot of
money to the company (eg: rework, scrap).
 If the waste does get worst (sporadic spike), a corrective action team is brought in to
determine the cause or causes of this abnormal variation. Once the cause or causes had
been determined and corrected, the process again falls into the zone defined by the “quality
control” limits.

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 Juran's Trilogy
STEPS in the Quality Control
Choose control Subjects (What to Control)
Choose Units of measurements
Establish Measurement
Establish Standards of performance
Measure actual performance
Interpret the difference
Take action on the difference
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 Juran's Trilogy
Quality Improvement

 Eliminate waste, defects and rework that improves

processes and reduces the cost of poor quality.
 The processes have to be constantly challenged,
and continuously improved.
 Such an improvement does not happen of its own
accord. It results from purposeful Quality
Improvement or “Breakthrough.”

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 Juran's Trilogy
STEPS in the Quality Improvement

 Prove need for improvement

 Identify specific projects for Improvements
 Organize to guide & Diagnosis
 To find causes
 Provide Remedies
 Prove remedies for effective in operating conditions
 Establish the control to hold the gains

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Breakthrough
Quality Zone

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Juran’s ten steps to Quality improvement

1. Build awareness of the need and opportunity for

improvement
2. Set goals for improvement
3. Organize to reach the goals
4. Provide training
5. Carry out projects to solve problems
6. Report progress
7. Give recognition
8. Communicate results
9. Keep score
10.Maintain momentum by making annual improvement part of
the regular systems and processes of the company
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 Strength of Juran’s Trilogy
The methodology searches a continuous improvement of quality in every
aspects of the organization.
The methodology allows the use different quality tools to cover the steps of
Juran’s Trilogy.
 It allows a better understanding of the relationships of every stage of the
company.
The methodology is well structured and allows the companies that implement it,
an easy understanding and application.
Weaknesses of Juran’s Trilogy
To have quality control it is necessary to have a trained person with knowledge in
statistical processes or train a special person to be in charge of quality.
The program is focus in the company process and not in labor force.
This kind of methodologies show results in a long term; this represents a risk for
the company because the implementation of the quality program can be a waste of
time, money and resources. 21
 REENGINEERING
“Reengineering is the fundamental rethinking and
radical redesign of business processes to achieve
dramatic improvements in critical, contemporary
measures of performance such as cost, quality, service
and speed
Some of the recent headlines in the popular press read,

“Hewlett Packard’s assembly time for server computers touches new

low- four minutes.”

“Taco Bell’s sales soars from $500 million to $3 billion.”

The reason behind these success stories: Business Process Reengineering!

(BPR)

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 Why Business Process Improvement?
Improving business processes is paramount for businesses to stay
competitive in today's marketplace.

 Over the last 10 to 15 years companies have been forced to improve their
business processes because we, as customers, are demanding better and
better products and services.
And if we do not receive what we want from one supplier, we have
many others to choose from (hence the competitive issue for businesses!).

 Many companies began business process improvement with a

continuous improvement model.

This model attempts to understand and measure the current process, and
make performance improvements accordingly. 23
 Basic steps of Business Process Improvement?

Begin by documenting what you do today, establish some way to measure

the process based on what your customers want, do the process, measure the
results, and then identify improvement opportunities based on the data you
collected.
You then implement process improvements, and measure the performance
of the new process. This loop repeats over and over again, and is called
continuous process improvement. It’ also called business process
improvement, functional process improvement

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 Business Process Reengineering
Business process reengineering is the redesign of business processes and
the associated systems and organizational structures to achieve a dramatic
improvement in business performance. 
 The business reasons for making such changes could include poor financial
performance, external competition, erosion of market share or emerging
market opportunities.  BPR is not - downsizing, restructuring, reorganization,
automation, etc.

It is the examination and change of five components of the business:

1.Strategy
2.Processes
3.Technology
4.Organization
5.Culture

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 Basic steps of Business Process Reengineering

It begins with defining the scope and objectives of reengineering project,
then going through a learning process (with your customers, your
employees, your competitors and non-competitors, and with new
technology).

Given this knowledge base, you can create a vision for the future and
design new business processes. Given the definition of the "to be" state, you
can then create a plan of action based on the gap between your current
processes, technologies and structures, and where you want to go.

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So finally, it is then a matter of implementing your solution.
 Reengineering Team Composition

The reengineering team composition should be a mixed bag.

For example,

some members who don't know the process at all,

some members that know the process inside-out,
include customers if you can,
some members representing impacted organizations,
one or two technology gurus,
each person your best and brightest, passionate and committed, and
some members from outside of your company.

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Kaoru Ishikawa has expanded Deming's
four steps into six:
Determine goals and targets.
Determine methods of reaching goals.
Engage in education and training.
Implement work.
Check the effects of implementation.
Take appropriate action.

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 Quality Improvement Strategies

• Repair
• Refinement
• Renovation
• Reinvention

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 KAI Change/ Continuous

ZEN Good/Improvement

KAIZEN = Continual Improvement

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CPM-Kaizen
Overview the concept of-Kaizen
 Kaizen- Ideal circumstances

•It is very natural that people will propose some kind of

change in their own work place, when they become
unsatisfied with their present conditions.
•The Ideal situation is that the boss encourages their
subordinates to carry out their ideas. That’s what people
expect when they propose something.
•The +ve response given by the boss will then develop trust
with the subordinates and stimulate other improvements.
•Cumulatively, this will create momentum for continuing
improvement.
 The wet blanket List
The bosses should encourage their subordinates, but in
real life, the wet blankets put out the ‘fire’ of improvement
suggestions. Here is the list of wet blankets:
Basic tips for Kaizen activities
How can we eliminate climbing up the trap?
Here is the way…
5S
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5-S can be defined as

1. Seiri (Proper Arrangement and Clearing Up)

a) Look around your work area and ask yourself “is it really necessary for all items to be there?”
b) Separate the items
c) Rework the reworkable items and dispose of the rejected items.

2. Seiton (Orderliness)
Items must be placed inprefixed locations so that they are easily accessible and can be easily
used. Make sure that items can be clearly identified by labeling them properly.

3. Seiso (Clean Up)

Seiso means cleaning the work place and all the machinery by ourselves.

4. Seiketsu (Standardisation)
Even a clean work place with proper selection and proper arrangement will soon become dirty if
Seiri, Seiton and Seiso are not continuously repeated. Let us prevent problems by keeping
things standardized and maintaining a good environment.

5. Shisuke (Discipline)
Everyone should be disciplined to follow strictly the rules and maintain standards while working.
For example let us adhere to the timings and let us follow the prescribed operation standads.
Everybody should wear shoes for safety.

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44
 SEI-RI-Clearing Up

• Identification of materials, equipment

and tools data which are necessary or
not necessary, discarding and make
space for the required one’s.

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46
 SEI-TON = ORGANIZING

• Once Cleaned and then arrange them in orderly

manner.
• People should cultivate the habit of return the
tools to the place from where it was taken.
• Easily accessible
• Reduces time and confusions
• Improves Efficiency

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48
 SEI-SO= CLEANING

• After Clearing & Arranging .

• Organization should Identify and
Eliminate source of Dirt, Dust, (or) Trash
• Update Constantly

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SEI-KE-TSU=Standardization

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SHI-TSU-KE = Discipline

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Advantages of 5S

By thoroughly enforcing 5S in each work area.

1. Operations can be performed without error, proceeding in a

well-regulated fashion, resulting in fewer defective items thereby
increasing the overall quality of product.

2. Operations can be performed safely and comfortably, reducing

the chances of accidents.

3. Machinery and equipment can be carefully maintained, reducing

the number of breakdowns.

4. Operations can be performed efficiently, eliminating waste

thereby increasing the efficiency and productivity.

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How to Achieve 5S

5S can be achieved very easily by every employee by having a

close look at his work place. He is to ensure that

1. No rejected / unwanted items are lying at his work place.

2. All items are kept in proper locations/order.
3. Everybody should co-operate with each other in keeping his
and others areas and the machines clean.
4. All follow rules and regulations and maintain required
standards.

Please Check

1. Do you have any unwanted things around you?

2. Are all the required things kept at their allocated places?
3. Are you following the timings?
4. Are you following the operating standards? 53
5. Let us all review 5S.
 JUST-IN-TIME (JIT)

What is JIT?

A corporate system designed to produce output

within the minimum lead time and at the lowest
total cost by continuously identifying and
eliminating all forms of corporate waste and
variance.

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 JIT - Brief
In 1949, Toyota was on the brink of bankruptcy, whereas in the
United States Ford’s car production was at least eight times more efficient than
Toyota’s. The president of Toyota, Kiichiro Toyoda, presented a challenge to
the members of his executive team: ‘‘To achieve the same rate of production as
the United States in three years.’’
Taiichi Ohno, vice president of Toyota, accepted his challenge and,
inspired by the way that an American supermarket works, ‘‘invented’’ the JIT
method (with the aid of other important Japanese industrial
revolutionary figures such as Shigeo Shingo and Hiroyuki Hirano).
Ohno and Shingo wrote their goal: ‘‘Deliver the right material, in the exact
quantity, with perfect quality, in the right place just before it is needed.’’
To achieve this goal, they developed different methodologies
that improved the production of the business. 55
It is important to point out that, in
the figure, JIT appears as a result
of several methodologies being
applied, not as the beginning of a
different production philosophy.

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57
Seven Basic Types of Waste

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 Benefits of JIT Systems
• Reduced inventory levels
• High quality
• Flexibility
• Reduced lead times (A lead time is the latency (delay)
between the initiation and execution of a process)

• Increased productivity
• Increased equipment utilization
• Reduced scrap and rework
• Reduced space requirements
• Pressure for good vendor relationships
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• Reduced need for indirect labor
 POKA YOKE
Shigeo Shingo, a Japanese Industrial Engineer, contributed many concepts to
modern management and manufacturing practices, like

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Cont…

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 Cont…

PY devices
Prevention device: Is a device or process that prevents
errors from occurring or prevents these errors from creating
defects
Detection device: Is a device that will detect a defect or
concern and initiate a corrective action

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Characteristics of PY devices Cont…

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 Cont…
The poka-yoke methodology includes the following steps:

Remove potential for excuses.

 Reduce the opportunity to make mistakes.
 Eliminate the root cause of mistakes.
 Leverage teamwork and knowledge.
 Make the process insensitive to human mistakes.
 Eliminate nonvalue-added activities.
 Encourage creativity for “poka-yoke’ing.”

Poka-yoke means making it difficult to make mistakes

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PY examples Cont…
Circuit breakers prevent electrical overloads and
the fires that result. When the load becomes too
great, the circuit is broken.

Electronic door locks can have three mistake-proofing

devices:
1. insures that no door is left unlocked.
2. doors automatically lock when the car exceeds
18 miles an hour (for example).
3. lock won't operate when door is open and the
engine is running.

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PY examples Cont…

For some file cabinets, opening one drawer

locks all the rest, reducing the chance of
the file cabinet tipping.

Pen drive cannot be inserted unless it is

oriented correctly.

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PY examples Cont…
Even bathroom sinks have a mistake-proofing
device. It is the little hole near the top of the
sink that helps prevent overflows.

Hotel rooms are equipped with a room key

holder which turns off the power when the
key is removed.  This insures no electricity
flows to the room while it is vacant.

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PY examples Cont…
Many Elevators are equipped with an
electric eye to prevent doors from shutting
on people. They also are equipped with
sensors and alarms to prevent operation
when overloaded.

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KANBAN

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Kanban Scheduling System Cont…
Kanban scheduling systems operate like supermarkets.
 A small stock of every item sits in a dedicated location with a fixed space
allocation. Customers come to the store and visually select items.
An electronic signal goes to the supermarket's regional warehouse detailing
which items have sold. The warehouse prepares a (usually) daily
replenishment of the exact items sold.

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Cont…

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Kanban Square Cont…

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Cont…

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 Push system Cont…
One of the most important concepts in lean manufacturing is that of ‘push’
and ‘pull’ systems.

Traditional manufacturing uses ‘push’ systems. In a chain of operations

(stamping, milling, assembly, etc.) if a earlier operation is faster than a later
operation, then a pile of inventory will build up in front of the downstream
machine, as in the diagram below.

The ultimate inventory pile is at the end of the assembly process, where
finished goods are stacked up in warehouses, waiting for customers to
buy them.
It takes up space, uses up working capital and is liable to damage and 74
devaluation.
 Pull system Cont…
The principle of ‘pull’ is that control is transferred from the beginning of the
line to the end.
Thus, in the example above, Operation 2 needs to control what Operation 1
gives them.
The secret of this is the ‘Kanban card’. A kanban card is a control device
which effectively says to the recipient ‘Give me N items, and N items only.
When you have done that, stop! Wait until you get the next kanban card.’

The diagram below now shows the changed conversation between Operation 1
and Operation 2.

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Cont…

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