PROCESS

IMPROVEMENT

Identify, analyze, and improve upon our

existing business processes to achieve
optimization and to meet new quotas and

Presented standards of quality.

by Engr.
Mohsin
 Table of Contents

Process Improvement Cycle

Benefits of Lean Manufacturing
Process Improvement Benefits
5-S Analysis
Business Process Mapping
Kaizen for Continuous
Process Improvement Roadmap
Benefits of Six Sigma Improvement
Areas of Improvement
Gap Analysis Chart Kaizen Implementation
Root Cause Analysis (Fishbone)
Gap Analysis Matrix Business Process Redesign Cycle
Root Cause Analysts (5-Why)
BPI Complexity & Business Process Redesign
Deming Cycle (PDCA)
Uncertainty Strategies
Six Sigma Analysis (DMAIC)
Building Dynamic Range Implementation Process
Six Sigma Analysis (DMADV)
Strategy Alignment Implementation Gantt chart
Benefits of Six Sigma
Risk Identification Improvement Timeline

Risk Management Plan Ongoing Monitoring & Reflection

Run Charts
Pareto Chart
Lean Manufacturing Process
 Process Improvement Cycle
Business process improvement (BPI) is a management exercise in which enterprise leaders use
various methodologies to analyze their procedures to identify areas where they can improve
accuracy, effectiveness and/or efficiency and then redesign those processes to realize
the improvements.

Identify Redesig
n
0 Whether it’s a process that is underperforming or
important to a new strategy, identify & name it.
0 Reengineer the whole process from
start to end increasing efficiency
1 4 altogether.

Mapping Implementatio
n
0 Gather all information from start to end; steps,
requirements, inputs, outputs, time duration etc.
0 Implement improvement on a smaller scale to
check it’s efficiency comparing to previous.
2 5
Analyze Monitor

0 Analyze the gathered data and identify the

bottlenecks & inefficiencies of the process.
0 Monitor result before standardizing the
process and before implementation on a
3 6 larger scale.
 Process Improvement Benefits

Better quality Improved business Reduced cycle

management efficiency time

Better cost Improved visibility of More regulated Effective resource

management process performance and compliant management

Business Process
Mapping
Bring together the Optimize the Analyze & identify areas
project team process steps for improvement

Identify the process Brainstorm Produce the baseline Implement & monitor
we need to map the process business process map improvements
steps

02 04 06

01 03 05 07
 Process Improvement Roadmap

Improvement Where we Goal in Goal in Goal in Goal in

Measurables
Goals are now 6 months 12 months 18 months 24 months

Spoilage Spoilage rate is Defect Breakdown Spoilage rate Spoilage rate

Spoilage Rate
Reduction too high (>8%) awareness analysis system in less than 5% less than 3%
program to all place

Current audit
Internal Audit Internal audit is Audit system Audit Score Audit score
practices reviewed Audit Score
Development not effective covers all above 80% above 90%
and improved
enough functional areas

Poor workplace
5S awareness 5S procedures & 5S audit score 5S audit score
5S organization & 5S Audit Score
program to all practices in place above 75% above 85%
Improvement conditions
 Process Improvement Roadmap

Improvement Where we Goal in Goal in Goal in Goal in

Measurables
Goals are now 6 months 12 months 18 months 24 months

Spoilage Spoilage rate is Conduct defect awareness Develop & Implement a

Reduction too high (>8%) program to all breakdown analysis
system

Internal Audit Internal audit is

Review and improve the current audit practices
Development not effective
enough

Poor workplace
Conduct 5S awareness
5S organization & program to all
Improvement conditions
 Revenue Growth Revenue
Optimization
Deliver sustainable revenue growth Create a sustainably
to maximize profitability. Enhance profitable network &
the customer interface & determine fleet size & shape
experience. for operations.
Areas of
Improveme
Technological Fit
nt Organizational
Excellence
Deliver a cost effective IT Deliver & design cost effective org.
service that meets customer, structure, with management & staff
operational, and internal fully aligned to company objective
requirements.
 Root Cause Analysis (Fishbone)

People Production Marketing

Lack resources allocated Inappropriate Planning Deficiency in Promotion

Unclear of responsibility Reduced Quality Dull Product Image

Declining Sales

No policy in place Poor Inventory High Staff turnover

No monitoring/reporting Old management system Lack of Vital Expertise

Process Management Human Resource

Root Cause Analysis (5-Why)
We can use this iterative interrogative technique to explore the cause-and-effect relationships
underlying our sales problem. The primary goal of this analysis is to determine the root cause by
repeating the question "Why?”. From there, each answer forms the basis of the next question.

0 0 0 0 0
1 2 3 4 5
Why are the sales Why are there less Why are the leads Why did we Why was it
down? the sales
Because leads?
Because a big chunk cold?
Because we switched switch?
Because finance dept. rejected?
Because they raised
team isn’t closing as of the leads are cold to a different company rejected working with their rates by 20% and
much as they used to and uninterested to source leads from the original company exceeds our budget.

Bad quality of
Sales down Uninterested leads Insufficient budget Raised cost
leads
 Deming Cycle (PDCA)

Plan
Identifying a goal or purpose,
formulating a theory, defining Do
success metrics, eliminating potential Implementing the plan on a
problem and putting a plan into
small scale to prove or disprove
action.
it’s validity. If invalid, go back to

Act the first step and restart the

cycle
Taking the knowledge gained from
the previous steps and putting it to Check
use. This can either mean
Measuring and monitoring
implementing it on a wider scale or
outcomes to test the validity of the
restart the cycle
plan. This allows for identification of
potential problems and areas for
improvement
 SIX SIGMA Analysis - DMAIC
DMAIC refers to a data-driven improvement cycle used for improving, optimizing and stabilizing
business processes and designs. The DMAIC improvement cycle is the core tool used to drive Six
Sigma projects.

D M A I C
Define the problem Measure the defects & Analyze & find Improve the process Control & monitor
& what customer process operation causes of defect
• Identify solution • Implement process control
requires
• Identify project output • Identify the root causes • Refine & test solution • Prepare roll-out solution

• Select project – CTO’s metric • Quantify the opportunity • Cost benefit calculation • Project Closure

• Create project charter • Develop data collection plan

SIX SIGMA Analysis - DMADV
DMADV refers to a data-driven improvement cycle used for improving, optimizing and stabilizing
business processes and designs. The DMADV improvement cycle is the core tool used to drive Six
Sigma projects.

Measure Design
• Requirements into measures • Deploy functions to elements

D •
•
Deploy needs to requirements
Understanding requirements
A •
•
Deploy to process variables
Develop design elements
V
• Set performance targets • Cascade requirements

Define Analyze Verify

M D
• Prepare project • Functional analysis • Launch pilot
plans • Generate design concept • Manage product lifetime
• Assemble the team • Evaluate design concepts • Verify/Validate design
• Prepare charter • Resolve contradictions • Transition to production
• Assess risk
 Benefits of Implementing Six Sigma

Trained Individual
Six sigma Trained individuals 01
working on improvement
projects
Data Driven Approach
02 Six Sigma is completely data
driven. It works with Facts, Data &
Statistics
Customer Focused
Improvement Projects are focused 03
on customer & company Strategy

Project by Project
04 Project by Project Focused and
time bound improvements

Bottom Line
Improves bottom line 05
Reducing Defects & Rework
 Gap Analysis Chart

Gap
Gap Remedial
Objective Current State Future State Descriptio Factors
Identification Actions
n

To increase 25 million/annum 15 million/annum is Inept Sales personnel Review & Training

10 million/annum Yes
annual revenue By next three years The difference with latest tools Based on the same

Profitability to be Average 8%
Average 8% on sales No N/A N/A N/A
at 8% on sales on sales

Update HR Manual
Lack of employee Employee morale Lack of clarity in
Employee morale Yes Update HR Manual in sync with current
morale at workspace To be enhanced HR policy
environments

Product just launched. Conduct review with

Product feature & Limited features & To improve the Does not have
Yes It has limited features existing customers &
Functional ties functionalities Same by next year uniqueness
& functionalities improve the product.
 Gap Analysis Matrix

Have Need

Understanding about the Business To find out about Business

Business Concept (Terms, Relationships, Meanings) Business Concept (Terms, Relationships, Meanings)
Business Process (Work flow, Decisions, Criteria) Business Process (Work flow, Decisions, Criteria)
Business Rules (Possible States, Changes, formulas) Business Rules (Possible States, Changes, formulas)

Reports (Metrics, Slicers), Views (query logic) Reports (Metrics, Slicers), Views (query logic)
ETL (Transformation logic), Tables (Facts, ETL (Transformation logic), Tables (Facts, Staging)
Staging) Source(Availability, connection, understanding)
Source(Availability, connection, understanding) Data(Coverage, Quality, History)
Data (Coverage, Quality, History)

Have in Need in
EDW EDW
 Strategy Alignment

Voice of the Customer & Business

Outside-in & Drivers of satisfaction and loyalty

01
Growth & retention analytics, Establish vision

02 Set Direction & Deploy Goals

Define top level imperatives and measures of success
Launch business planning process

Implement Initiatives & Projects

03

Align all plans to corporate strategy, Align core processes

Balance contributors to gap-closure

Review and Manage Adjust & Feedback

04

Review performance regularity, Manage market changes

Analyze causes of gaps & assess impact of gaps
05

Execute through improved processes

Improved Methods:
DMAIC, BPM, Lean, QbD, RCCA
 Risk Identification

• Team in under-resourced
Resources • Materials shortage, Skills gap
• Machinery unavailable, Industrial
Action

• Adverse environmental effects occur

• Environmental approvals are not complied with Environmental
• Bad weather results in re-work & delays
progress

• Miscommunication between team members

Communicatio • Positive & timely communication- positive publicity
n • Poor Communication- stakeholders dissatisfaction

• Schedule overruns & Scope creep

• Project changed managed poorly with time Time & Scope
• Tasks omitted from schedule & Scope poorly defined
 Risk Management Plan

Additiona
Proposed risk Person
Risk Treatment l Target
Type of risks Outcome Rating Treatment Responsibl
Actions in Place Resource Data
actions e
s

Proper
Detailed
Performance assessment Company
2 understanding 31/04/2020 John Smith
Strategic Risk deterioration of underlying resource
of the market
strategies

Dividend Ratio Analysis 5 Collaborative

Combined fund 05/09/2020 Lara Greene
Stakeholder Risk allocation of turnover functions

Product design Economies

Buying power 7 Strategic risk 01/12/2020 Morgan Jones
Customer Risk and quality of scale
Run Charts 50

45
We’re tracking trends & to comparing
our performance (e.g. delays, errors,
40
reworks) before and after
implementation of our solution to 35
measure its impact. It focuses attention
on vital changes in the process. 30

25
Median = 22.5
20

15
Percentage
10
Median
5

0
Wk 1 Wk 2 Wk 3 Wk 4 Wk 5 Wk 6 Wk 7 Wk 8 Wk 9 Wk 10 Wk 11 Wk 12 Wk 13 Wk 14
 Crew Understaffed

Pareto Chart 01 Half of the time, our teams are

understaffed and unable to meet
quota within the given time frame.
This chart focuses on efforts on the problems that offer the greatest potential for
improvement by showing their relative frequency in a descending bar graph. It
helps our team to focus on those causes that will have the greatest impact if Scheduling Error

02
solved.
We need better contingency plan
70 for scheduling errors due to
external causes. Mitigate
60
production delays.

50
Unprepared Facility
40

30
03 Older parts of our facility might
not be fully ready for newer
modes of production. Thus
20 causing delays.

10
Inclement Weather

04
0
Crew understaffed Forgot to schedule Facility not ready Rainy weather Weather conditions in some
locales of our facilities are harder
to predict than others and thus
cause delays.
 Lean Manufacturing Process

01 02 03
Transport Inventory Motion

The inefficient transportation of The cost of maintaining excess inventory For years, manufacturers emphasized the need
goods or business materials. Any generally outweighs the potential benefits you for making accurate forecasts of market
postponed between when one might realize. It can tie up resources, slow down requirements. However, this is not always the
process steps closed & the response time and complicate quality-control optimal approach in a fast-paced environment.
subsequent stage starts. issues.
 Lean Manufacturing Process (Cont.)

04 05 06 07
Waiting Over Processing Over Production Defects

Related to motion, when there’s When more resources and time are No immediate or real demand for a Too much time wasted
wasted time between the production put into producing a product than certain product, yet lots of the product altering mistakes in the
steps, i.e. employees experience needed. This helps the process to is still produced. This is helpful for production process. Your
time when they have nothing to do. move further faster than before future bulk sales so it doesn’t slow existing inventory is higher
down. than it should be.
 Benefits of Lean Manufacturing

Increased product quality Sustainability

Improved efficiency frees up Less waste and better

employees and resources for 01 02 adaptability makes for a
innovation and quality control that business that’s better
would have previously been equipped to thrive well into
wasted. the future.

Benefits

Employee satisfaction Increased profits

03 04
Workers know when their daily And, of course, more
routine is bloated or packed productivity with less waste
with unnecessary work, and it and better quality ultimately
negatively affects morale. makes for a more profitable
company.
Removing all unnecessary Sort
items from the workplace

This is a systematic form of visual management utilizing

everything from floor tape to operations manuals. It is not just
Creating a specific Set in about cleanliness or organization; it is also about maximizing
location for everything
order
efficiency and profit. 5S is a framework that emphasizes the
use of a specific mindset and tools to create efficiency and
value.

Clean the work areas Shine

regularly and properly
5S Analysis

Creating a specific
Standardi
ze
location for everything

Never slip back Sustain

into the old ways
 Kaizen for Continuous Improvement
Kaizen requires Identifying areas for improvement, creating solutions & plans for a rollout &
then cycling through the process again for other issues or issues that were inadequately
addressed.

Encourage
Get employees Gather a list of Test the
solutions, then
involved problems solution
choose best idea

Regularly measure
Repeat on an If successful,
and analyze
ongoing basis adopt the solution
results
 Kaizen Implementation

01 02 03 04 05

Plan Do Check Action

Lean Diagnostic Baseline Analysis Develop Plan Coaching Follow Up

Replace Seek the advice of Think of how to do Better products, Reduce expenses and
conventional fixed many associates before something, not why service, working manpower, and use of
ideas with fresh starting a Kaizen it cannot be done. environment, and material, energy and
ones. Start by activity. Don’t make processes and resources. Implement a
questioning current Think of how to do excuses. Make practices. Correct solution right away, even
practices and something, not why it execution happen. mistakes right away. if it covers only 50
standards. cannot be done. percent.
 Deming Cycle (PDCA)

Plan Do

Identifying a goal or purpose, Implementing the plan on a

A P
formulating a theory, defining small scale to prove or disprove
success metrics, eliminating it’s validity. If invalid, go back to
potential problem and putting a plan the first step and restart the
into action. cycle

Check Act

C D
Measuring and monitoring outcomes Taking the knowledge gained from
to test the validity of the plan. This the previous steps and putting it to
allows for identification of potential use. This can either mean
problems and areas for improvement implementing it on a wider scale or
restart the cycle
Process Redesign
Foundations

• Remove non-value adding tasks

• Re-sequence tasks (optimize flow)

Employee Cost Hybri Workstream-

Focused Focused d focused

• Empower employees • Do not empower • Empower employees • Manage exceptions

• Use generalists employees • Use generalists • Use specialists
• Maintain contact • Minimize the use • Maintain contact • Avoid adding
with customers of generalists with customers control tasks
• Minimize • Automated tasks • Minimize Automation
Automation • Add control tracks
Implementation
Process

Contract signed Project kick-off Planning meeting Analysis

Documentation Set expectations Identify needs Communication plan
with clients and milestones of reporting and gap analysis

Sign off Project planning Project execution Go live

Fixed budget, timing, Settle on start Weekly progress Alpha and beta
and expectations and final dates review meeting testing, launch plan
 Implementation- Gantt Chart (Project
Track)
Write Landing Page Copy 80%

Approve page copy 35%

Review landing page design 100%

Build landing page 27%

Code review landing page 35%

Write promotional email

Design promotional email 55%

Send promotional email 70%

Analyze Campaign Results 50%

Plan Agenda for meeting 45%

Finalize presentation 35%

Approve presentation 65%

Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar Mar
01 03 05 07 09 11 13 15 17 19 21 23 25 27 27
Ongoing Monitoring & Reflection

Task Team Contact Start Date End Date Completion Status

Project follow up Rob Davies 02/04/20 04/04/20

Project design Diana Greene 03/11/20 04/11/20

Project planning Sarah Jones 03/06/20 05/06/20

Project implementation Casey Wyatt 04/10/20 05/10/20

Process feedback Dominic Perez 04/02/20 06/02/20

Process improvement Troy Buchanan 05/07/20 06/07/20

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