PROCESS Japanese competitive pinpoint - specifying in

success ” measurable terms what is

IMPROVEMENT expected
Kaizen Method: hindi mo
IMPROVEMENT – changing a
papalitan yung proseso. 2. Communicate
performance to a new level
iimprove mo lang. revisit
- publicizing key result
☞ to improve process, it and check kung ano
areas, the vision (finish
must be pwedeng iimprove.
line. what u attain) and the
sobrang bagal ng effect.
• repeatable mission (finish running)
pag naacchieve mo yon
statement
• measurable mas malaki yung financial
ability na maitulong mo sa 3. Translate and link
☞ you need the ability to
company.
learn from both successes - being adopted
and failures. Kaizen Event (Kaizen Blitz)
- teams translate the
☞ many organizations use // intense rapid improvement company-wide objectives
a variety of approaches, into their own language
— intense and rapid
including formal problem- and environment
improvement process in
solving methodologies to
which a team or 4. Create a management
identify potential
department throws all its action plan
improvements, analyze
resources into an
data, and implement - creates plan w specific
improvement projects over
solutions. actions to reach a goal,
a short time period as
including metrics to
Kaizen - Japanese word opposed to traditional
measure success.
that means gradual and kaizen applications, which
orderly continuous are performed on a part- 5. Improve Processes
improvement time basis.
- six-step problem solving
☞ focus on small, gradual, // mas mabilis yung effect kesa process
sa Kaizen philosophy.
and frequent
6. Measure Progress and
improvements over the = Structured Improvement provide feedback
long term with minimum Processes =
financial investment, and — Eastman is adamant
• Redefine and analyze
participation by everyone about the importance of
problems
in the organization unambiguous, visual
• Generate ideas feedback to employees
KAIZEN PHILOSOPHY
• Evaluate ideas and select and appropriate measure
— A focus on quality solution of performance.
improvement, by contrast, • Implement the Solution • feedback should be visual,
is relatively recent, frequent, simple and specific
stimulated by the success Example:
• the baseline performance
of the Japanese Eastman Chemical should be shown comparison
Kaizen Strategy – “the Improvement Process
• the past, current period and
single most important 1. Focus and pinpoint future goals should be posted
concept in Japanese
focus - getting everyone in • the best-ever score should be
management - the key to posted
the same page. one goal.
• a chart should be immediately customer wants, when, 3. Standardize the solution,
understandable and where, for both for example, by writing
• a good scorecard allows external and internal new standard operating
comments and annotations customers. procedures.

7. Reinforce behaviours ☞ determine what 4. Establish a process to

and celebrate results historical data are monitor and control
available on process process performance.
- Eastman reinforces that
performance, or what data
learning leads to positive SIX SIGMA DMAIC
need to be collected to
results be encouraging METHODOLOGY
better understand the
terms at celebrations
process. 1. DEFINE
THE DEMING CYCLE
DO - identify the problem.
- one of the earliest approaches
focused on quality 1. Conduct a pilot study or - no everything without
improvement that can be experiment to test the problem.
learned and applied by impact of the potential
everyone in an organization.
- U HAVE TO HAVE
solution(s).
PROBLEM.
- simple adaptation of the 2. Identify measures to
scientific method for - boil down the problem.
understand how any
process improvement changes or solutions are - describe the problem in
successful in addressing operational terms
+ check what is the
the perceived problems.
problem - drill down to a specific
STUDY problem (project scooping)
+ make changes if i alr
know the problem. if u hv do funnelling.
1. Examine the results of
the solution, act. the pilot study or - identify customers and
experiment. CGQs, performance
PLAN
metrics, and cost, revenue
2. Determine whether
☞ define the process: its implications
process performance has
stats, end, and what it
improved. // PROJECT SCOPING -
does.
process of drilling down to
3. Identify further
☞ describe the process: a more specific problem
experimentation that may
list the key tasks statement
be necessary.
performed and sequence
of steps, people involved, 2. MEASURE
ACT
equipment used, - when we measure, we
1. Select the best change
environmental conditions, collect data
or solution.
work methods, and
materials used. Key data collection
2. Develop an
questions
implementation plan: what
☞ describe the players:
needs to be done, who •What questions are we
external and internal
should be involved, and trying to answer?
customers and suppliers,
when the plan should be
and process operators. •What type of data will
accomplished.
☞ define customer we need to answer
expectations: what the the question?
•Where can we find the •Implementation planning 2. Check sheets
data? Who can provide the
5. CONTROL — tools aid in data
data?
collection
• Maintain improvements
•How can we collect the
— it is a data collection
data with minimum? • Standard operating
forms that facilitate the
procedures
effort and with minimum interpretation of data
chance of error? • Training Checklist or
-• Benefits:
reviews
3. ANALYZE
• creates easy-to-
• Statistical process control
- major flaw in many understand data
charts
problem-solving
• builds, with each
approaches is a lack of THE SEVEN QC TOOLS
observation, a clearer
emphasis on rigorous
1. Flowcharts picture of the facts
analysis.
— process map • forces agreement on the
- seeking the root cost.
definition of each condition
— picture of a process that
- u can do verification. or event of interest
shows the sequence of
- Focus on why defects, steps performed • makes patterns in the
errors, or excessive data become obvious
— helps the people
quickly
variation occur involved in the process to
understand it better 3. Histogram
- Seek the root cause
— kwanza flowchart is — studies regards to
- 5-Why technique
contracted it can be used getting sample
its abt root cause analysis. to identify quality
— turn off the variation in
problems as well as areas
why a system failed. a set of data
of for improvements
develop action to sustain — shows the frequency or
-• Benefits:
the problem. number of observation of a
• shows unexpected particular value or within
what cause the problem.
complexity, problem areas, specified group
mabibigat na question. redundancy, unnecessary
— provides clues about the
loops, and where
not simple question. characteristics of the
simplification may be
population from which a
- Experimentation and possible
sample is taken
verification
• compares and contrasts
-• Benefits
4. IMPROVE actual versus ideal flow of
a process • displays a pattern
- present your solution.
• allows a team to reach • gets or provide clue of
- improving is about giving
agreement on process population of the sample.
solutions
steps and identify activities clearer picture you want to
• Idea generation that may impact know about the population
performance you are gathering
•Brainstorming
• serves as a training tool
Evaluation and selection
• displays large amounts of - also known as fishbone test the strength of a
data that are difficult to or Ishikawa Diagram, relationship
interpret in tabular form named after the Japanese
• provides a good follow-
quality expert who
• shows centering, up to cause and effect
popularized the concept.
variation and shape diagrams
— simple graphical
• illustrates the underlying 7. Control charts
method for presenting a
distribution of the data
chain of causes and effects - backbone of statistical
• provide useful and for sorting out causes process control
information for predicting and organizing
— shows the performance
future performance relationships between
and the variation of a
variables.
• helps to answer "is the process or some quality or
process capable of meeting — facts not opinions productivity indicator
requirements?" overtime in aj graphical
— horizontal line -
fashion that is easy to
4. Pareto diagrams problem
understand and interpret
— A Pareto distribution is -• Benefits
— they also identify
one in which the
• enables at team to focus process changes and
characteristics observed
on the content of a trends over time and
are ordered from largest
problem not on the history shows the effects of
frequency to smallest.
of the problem or different corrective actions.
— A Pareto diagram is a personal interests of team
— productions, marketing
histogram of the data from members.
the largest frequency to -• Benefits
• creates a snapshot of
the smallest.
collective knowledge and • monitors performance of
— ginagamit sa airlines consensus of a team; build one or more processes over
supporting for solution time to detect trends,
— helps us to determine
shifts, or cycles
the cause of a problem • focuses the theme on
causes, not symptoms • distinguishes special from
-• Benefits
common causes of
6. Scatter diagrams
• helps a team focus on variables
causes that have the — plot of the relationship
• allows a team to
greatest impact between two numerical
compare performance
variables.
• displays the relative before and after
importance of problems in // u already analysed the implementation of a
a simple visual format cause and effect solution to measure its
impact
• helps prevent "shifting -• Benefits
the problem", where the • focuses attention on
• supplies the data to
solution removes some truly vital changes in the
confirm a hypothesis that
causes but worsens others. process
two variables are related
5. Cause-and-effect LEAN THINKING
• provides both a visual
diagrams
and statistical means to ° waste is the enemy of
effective process.
• Lean 3. performing steps in - ensure that all steps are
parallel rather than in performed collect correctly
- often used to refer to
sequence
approaches initially 5. Shitsuke (sustain)
developed by the Toyota -
- keep the process going
Motor Corporation that
4. involving key people through training,
focus on the elimination of
early communication, and
waste in all forms,
organizational structures.
including defects requiring - one of the best ideas
rework, unnecessary 5S’s
- avoid having to do things
processing steps,
over a result of key people • Visual controls
unnecessary movement of
not having given their
materials or people, • Efficient layout and
input until the process is
waiting time, excess standardized work
under way
inventory, and
• Pull Production
overproduction. - u r just delaying the game
• Single minute exchange
• "getting more done with LEAN TOOLS
of dies (SMED)
less"
• The 5S's
• Total productive
• involves identifying and
1. Seiri (sort) maintenance
eliminating non-value-
added activities - proper place • Source Inspection
throughout the entire
- ensuring that each item ( SIX SIGMA is useful and
value chain to achieve
in a workplace is in its complementary approach
faster customer response,
proper place or identified to lean production)
reduced inventories,
as unnecessary and
higher quality and better DIFFERENSE OF SIX SIGMA
removed
human resources. AND LEAN THINKING:
2. Seiton (set in order)
- Facilitated by a focus on -they attack different types
improvement and - to arrange materials and of problems.
continuous improvement, equipment so that they are
LEAN APPROACHES
cross-trained workers easy to find and use
addresses visible problems
PRINCIPLES OF LEAN 3. Seiso (shine) in processes.
THINKING
- clean work area - more intuitive and easier
1. reducing handoffs to apply by anybody in
- not only is this important
workplace
- eliminating error for safety but, as a work
area is cleaned, SIX SIGMA is more
- it’s about people, time
maintenance problem such concerned with less visible
that are waste.
as oil leaks can be problems.
2. eliminating steps identified before they
-required advanced
cause problems
- the best way to save time training and expertise
on a step is not to do it at 4. Seiketsu (standardize)
// the concept of 5s’s is
all
- formalized procedures easier to grasp than
and practice to create statistical methods
consistency
// organizations might be well advised to start with basic lean principles and evolve toward
more sophisticated Six Sigma approaches.

BENCHMARKING

- "the search of industry best practice that lead to superior performance"

-• helps company learn its strengths and weaknesses

-• through bench marking, a company discovers its strengths and weaknesses

-• can provide motivation by helping employees to see what others can accomplish

~ BEST PRACTICES

- approaches that produce exceptional results, are usually innovative in terms of the use of
technology or human resources, and are organized recognized by customers or industry
experts.

Types of Benchmarking

1. Competitive benchmarking

- studying products, processes or business performance of competitors in the same industry to

compare pricing, technical quality, features and other quality or performance characteristics of
products and services

- we can do everyday

2. Process benchmarking

- focus on key work processes

- u adopt or study work process of a company

- observations and analysis

3. Strategic benchmarking

- focus on how companies compete and strategies that lead to competitive advantage

- strategic planning

— Benchmarking Process

1. Determine what to benchmark

2. Identify key performance indicators to measure

3. identify the best-in-class companies

4. measure the performance of best-in-class and compare to your own performance

5. define and take actions to meet or exceed the best performance

THE BALDRIGE AWARD of Commerce who was killed detailed information on how
in an accident shortly before winning enterprises were
Malcolm Baldrige National the Senate acted on the able to change their cultures
Quality Award legislation. and achieve eminence.

-now known as simply the - Malcolm Baldrige was ======

Baldrige Award, has been highly regarded by world
- The Baldrige Award
one of the most powerful leaders, having played a
recognizes U.S. companies
catalysts of TQ in the United major role in carrying out the
that excel in quality
States and indeed administration's trade policy,
management practice and
throughout the world resolving technology transfer
performance.
differences with China and
HISTORY AND PURPOSE
India, and holding the first - it does not exist simply to
- Recognizing that U.S. Cabinet-level talks recognize product
productivity was declining, excellence, nor does it exist
- with the Soviet Union in
President Ronald Reagan for the purpose of "winning."
seven years, which paved the
signed legislation mandating
way for increased access for - Its principal focus is on
a national study/conference
U.S. firms in the Soviet promoting high-performance
on productivity in October
market. management practices that
1982.
lead to customer satisfaction
The purposes of the award
- The American Productivity and business results.
are to:
and Quality Center (formerly
- Up to three companies can
the American Productivity - help stimulate American
receive an award in each of
Center) sponsored seven companies to improve
the categories of
computer networking quality and productivity for
manufacturing, small
conferences in 1983 to the pride of recognition
business, service, nonprofit
prepare for an upcoming while obtaining a
health care, and nonprofit
White House Conference on competitive edge through
education. Health care and
Productivity. The final report increased profits;
education award categories
on these conferences
- recognize the achievements were established in 1999 and
recommended that "a
of those companies that the nonprofit categories in
National Quality Award,
improve the quality of their 2007
similar to the Deming Prize in
goods and services and
Japan, be awarded annually - The award evolved into the
provide an example to
to those firms that Baldrige Performance
others;
successfully challenge and Excellence Program, a
meet the award - establish guidelines and comprehensive program that
requirements. criteria that can be used by encourages and supports
business, industrial, organizations seeking to
- These requirements and
governmental, and other develop and sustain
the accompanying
enterprises in evaluating performance excellence.
examination process should
their own quality
be very similar to the Deming - The Baldrige program has
improvement efforts; and
Prize system to be effective." had a substantial impact on
The Baldrige Award was - provide specific guidance organizations throughout the
signed into law (Public Law for other American world, and we are confident
100-107) on August 20, 1987. enterprises that wish to learn that it will continue to lead in
how to manage for high building performance
- The award is named after
quality by making available excellence and providing
President Reagan's Secretary
organizational leaders with a quality and outstanding results throughout their
roadmap to achieving high organizations

THE BALDRIGE - encourage an 1.2 Governance and Societal

EXCELLENCE FRAMEWOK organization to use Responsibilities

(7 CATEGORIES) creative, adaptive, and a. organizational governance

flexible approaches, which
The Baldrige Excellence b. legal and ethical behaviour
will foster incremental and
Framework consists of the c. societal responsibilities
breakthrough
Criteria for Performance
improvement through
Excellence, the Core
innovation. 2. Strategy
Values and Concepts, and
scoring guidelines for - encourage a choice of examines how an
assessment. tools (eg, Lean, Six Sigma, organization develops
International Organization strategic objectives and
The Criteria for
for Standardization [ISO] action plans
Performance Excellence,
9000, a balanced
on which the Baldrige // the aim is to ensure that
scorecard, Plan-Do-Check- strategies are successfully
examination is based, are
Act [PDCA]) that are most deployed for goal achievement.
designed to encourage
suitable and effective for
companies to enhance 3. Customers
an organization in making
their competitiveness
improvements. examines how an
through an aligned
approach to organizational - consist of a hierarchical organization engages its
performance set of categories, items, customers for long-term
management. and areas to address. marketplace success and
builds a customer-focused
The Baldrige Criteria The Seven Categories are: culture.
- help an organization 1. Leadership - examines how the
understand and assess organization builds
As the first of the seven
how well it is relationships with
categories, it signifies the
accomplishing what is customers and increase
critical importance of
important to the their engagement
leadership to business
organization
success // the aim of these efforts is to
: how mature and how well improve marketing, build a
It examines how senior leaders
deployed its processes are, set and communicates the more customer-focused culture,
how good the results are, organization’s vision and value enhance customer loyalty, and
promote legal and ethical identify opportunities for
whether the organization
behaviour innovation
is learning and improving, build a successful organization,
and how well management communicate with the 4. Measurement, Analysis,
approaches address the workforce and customers and Knowledge
and create a focus on action to
organization's needs. achieve the organization’s Management
mission
- do not prescribe how an positioned as the
organization should be 1.1 Senior Leadership foundation for all other
structured or its categories in the systems
a. vision, values and mission
operations. framework that underlies
b. communication and
organizational performance
the Baldrige philosophy customers' evaluation of processes, your key
and provides a key an organization's product operational processes and
feedback structure linking offerings, as well as the performance result
business results. evaluation of key they yield.
processes and process
- examines an - all actions lead to Results-
improvement activities
organization’s selection a composite of product
and use of data and ORGANIZATIONAL and process, customer-
information for PROFILE focused, workforce-
performance focused, leadership and
- sets the context for your
measurement, analysis and governance and financial
organization.
review in support of and market results.
organizational planning - serves as the background
CORE VALUES AND
and performance for all you do
CONCEPTS
improvement.
LEADERSHIP, STRATEGY,
- basis of the criteria is a
// the aim is to improve CUSTOMERS
organizational efficiency and set of core values and
effectiveness and to stimulate - the Leadership triad concepts that are
innovation (Leadership, Strategy, embedded in high-
Customers) emphasizes the performing organizations
5. Workforce
importance of a leadership
- Systems Perspective
examines how an focus on strategy and
organization builds an customers. - Visionary Leadership
effective and supportive
- the system foundation - Customer-Focused
workforce environment
(Measurement, Analysis, Excellence
6. Operations and Knowledge
- Valuing People
Management) is critical to
Examines how an
effective management and - Organizational Learning
organization designs,
to a fact-based, knowledge and Agility
manages, and improves its
drive, agile system for
key products and work - Focus on Success
improving performance
processes to deliver
and competitiveness. - Managing for Innovation
customer value and
achieve organizational RESULTS, WORKFORCE, - Management by Fact
success and sustainability OPERATIONS
- Societal Responsibility
7. Results - the Results triad
- Ethics and Transparency
(workforce, operations and
provides a results focus
results) includes your - Delivering Value and
that encompasses
workforce-focused Results
objective evaluation and

THE BALDRIGE AWARD each examination item, and positive response to

EVALUATION PROCESS listing major "strengths" the criteria. Opportunities
and "opportunities for for improvement do not
- rigorous
improvement" relative to prescribe specific practices
- Examiners evaluate the the criteria. Strengths or examiners' opinions on
applicant's response to demonstrate an effective what the company should
be doing but, rather, requirements and the results, analyses, learning,
deficiencies in responding organization's operating and actions are
to the criteria. environment, the harmonized across
effectiveness of the use of processes.
To help examiners
the methods, and the
understand the context of Results
degree to which the
the organization,
approach is repeatable and organization's outputs and
applicants are required to
based on reliable data and outcomes.
provide an Organizational
information
Profile, which is basically a // Organizations that
snapshot of the Deployment receive the Baldrige Award
organization that describes are highly regarded role
extent to which the
the organizational models for others.
approach is applied in
environment; Characteristics that
addressing item
distinguish them from
- key relationships with requirements relevant and
other organizations-even
customers, suppliers, and important to the
those that reach the site
other partners; organization, the approach
visit stage but are not
is applied consistently, and
- types of employees and selected for the Award-
the approach is used
technologies used; are:
(executed) by all
- the competitive appropriate work units. Achievement in Results
environment;
Learning These organizations
- key strategic challenges it achieved significant results
refining the approach
faces; across all areas: product
through cycles of
(e.g, health care outcomes)
- and its system for evaluation and
and process, customers,
performance improvement, encouraging
workforce, leadership and
improvement. breakthrough change to
governance, and financials
the approach through
The Organizational Profile and marketplace. Results
innovation, and sharing
helps the organization were trended over time,
refinements innovations
focus on key performance and comparisons were
relevant work units and
requirements and results, made to benchmarks (top
processes in the
and helps examiners to performance levels).
organization
understand the Furthermore, results
organization and what it Integration measured were critical to
considers important. managing the organization
extent to which the
and to making fact-based
Each item is evaluated on approach is aligned with
decisions and
four factors: organizational needs
improvements.
identified in the
approach, deployment,
Organizational Profile and Entrepreneurism and
learning, and integration.
other process items; Innovation
Approach measures, information,
These organizations use
and improvement systems
methods used to innovative approaches to
are complementary across
accomplish the process, serve their customers'
processes and work units;
the appropriateness of the current needs and guide
and plans, processes,
methods to the item them with enticing
products and services that provide them with sound entire management
address their not-yet- guidance. They measure system, not just the quality
articulated needs. They the performance of their system
provide products, services, leadership and governance
// the most significant
and opportunities that lead teams-which is not
changes in the criteria
their marketplace. They common practice. They are
reflect the maturity of
take intelligent risks to good citizens of their
business practices and TQ
sustain themselves communities and measure
approaches.
through challenging times their social responsibility
and environments and results. They understand // The criteria evolved
achieve market leadership the needs of their com from a primary emphasis
positions. They do not rely munities and provide on product and service
on past achievements or resources of all types. quality assurance to a
reputation. They are the broad focus on
Work Systems and Work
organizations that ask performance excellence in
Processes
"Why not?" rather than a global marketplace.
"Why?" This is probably the most
// criteria updates are
challenging concept to
Agility designed to address
master. These
emerging and relevant
These organizations are organizations understand
issues facing business.
strategic in their decision their work. They know
making and in their ability their core competencies. // sustainability which
to adjust strategy. When They make intelligent refers to an organization's
conditions change or are decisions on their staff- ability to address current
anticipated to change, they performed work processes, business needs and to
are ready to adapt, look for capitalize on their core have the agility and
new markets, and adjust to competencies to decide on strategic management to
sustain themselves and those processes, and prepare successfully for
their stakeholders. execute those processes the future, and to prepare
Strategic plans do not sit well (with data to prove it). for real-time or short-term
on their shelves gathering They know when to rely on emergencies-into the
dust, and these plans are suppliers and partners. criteria.
developed with processes They use these critical
IMPACTS OF THE
that cause and monitor decisions to succeed in the
BALDRIGE PROGRAM
execution. These marketplace, even when
organizations track the competitors do not. The Baldrige Award criteria
execution of their plans form a model for business
CRITERIA EVOLUTION
with metrics, and the excellence in any
ability to make change is the word quality was organization-
part of the execution judiciously dropped in the manufacturing or service,
process. mid-1990s. large or small (see box
"Baldrige Pays Off for
Governance and the term performance has
Texas Instruments").
Leadership Metrics been substituted for
quality as a conscious // the program changed
These organizations have
attempt to recognize that the way in which many
leadership and governance
the principles of TQ are the organizations around the
systems in place that
foundation for a company's world manage their
operations, and helped small businesses may principles and JCAHO
significantly to bring the perform data and standards.
principles of TQ into the information management
Most states have
daily culture of these with a combination of
developed award
organizations. manual methods and
programs similar to the
personal computers.
Many small businesses Baldrige Award. State
(defined by the Baldrige Also, systems for employee award programs generally
program as those with 500 involvement and process are designed to promote
or fewer employees) management may rely an awareness of
believe that the Baldrige heavily on informal verbal productivity and quality,
criteria are too difficult to communication and less on foster an information
apply to their formal written exchange, encourage firms
organizations because they documentation. Thus, the to adopt quality and
cannot afford to size or nature of a business productivity improvement
implement the same types does not affect the strategies, recognize firms
of practices as large appropriateness of the that have instituted
companies. However, an criteria but, rather, the successful strategies,
organization's practices context in which the provide role models for
need not be formal or criteria are applied. other businesses in the
complex. state, encourage new
The incorporation of
industry to locate in the
For example, the ability to education and health care
state, and establish a
obtain customer and as categories in the award
quality-of-life culture that
market knowledge through program in 1999 and of
will benefit all residents of
independent third-party nonprofit organizations in
the state."
surveys, extensive 2007 were a reflection of
interviews, and focus the growing interest of Each state is unique,
groups, which are common performance excellence however, and thus the
practices among large outside of manufacturing specific objectives will
companies, may be limited and traditional service vary. For instance, Ohio's
by the resources of a small organizations. program is focused on
business. What is developing organizations
Many school districts are
important, however, is early in their performance
now using the criteria. One
whether the company is excellence journey as well
large Chicago-area hospital
using effective approaches as recognizing outstanding
applied for the Baldrige-
to gather information and organizations. Information
based Lincoln Award for
use it to improve customer about state award
Excellence and prepared
focus and satisfaction. programs can be found at
for its accreditation visit by
the Baldrige website cited
Similarly, large the Joint Commission on
earlier in this section.
corporations frequently Accreditation of
have sophisticated Healthcare Organizations
computer/information (JCAHO) at the same time,
systems for data recognizing the synergy
management, whereas and overlap of Baldrige Goodluck po sa exams! <3