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“ If I had one hour to
save the world, I would
spend fifty-five minutes
defining the problem and
only five minutes finding “
the solution.

Albert Einstein

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Copyright © Business Explained (2023)


www.business-explained.com

Disclaimer

All the information in this book is to be used for informational and educational purposes
only. The author will not, in any way, account for any results that stem from the use of the
contents herein. While conscious and creative attempts have been made to ensure that all
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INTRODUCTION 5
WHAT IS PROCESS IMPROVEMENT? 6
THE IMPORTANCE OF PROCESS IMPROVEMENT 7
KEY PRINCIPLES OF PROCESS IMPROVEMENT 9
Continuous Improvement 9
Waste Reduction 10
Standardization 11
Customer Focus 12
PROCESS IMPROVEMENT METHODOLOGIES 14
Lean 14
Six Sigma 17
Kaizen 18
Business Process Re-engineering (BPR) 19
Total Quality Management (TQM) 20
Theory of Constraints (TOC) 22
Design Thinking 23
Hoshin Kanri (Policy Deployment) 25
Balanced Scorecard 26
PROCESS MAPPING: UNDERSTANDING YOUR CURRENT STATE 27
DEFINING AND SETTING PROCESS IMPROVEMENT GOALS 32
ROOT CAUSE ANALYSIS: IDENTIFYING UNDERLYING ISSUES 35
PRIORITIZING PROCESS IMPROVEMENT INITIATIVES 38
PROCESS IMPROVEMENT TOOLS AND TECHNIQUES 41
Value Stream Mapping 41
Pareto Analysis 42
Fishbone Diagram (Ishikawa Diagram) 43
5 Whys 44
Gemba Walk 46
SIPOC Diagram (Suppliers, Inputs, Process, Outputs, Customers) 47
Control Charts 48
Failure Modes and Effects Analysis (FMEA) 49
Benchmarking 49
Brainstorming and Affinity Diagrams 50
IMPLEMENTING PROCESS IMPROVEMENT INITIATIVES 51
CHANGE MANAGEMENT: OVERCOMING RESISTANCE AND
DRIVING ADOPTION 53
MEASURING THE IMPACT OF PROCESS IMPROVEMENTS 56
SUSTAINING LONG-TERM PROCESS IMPROVEMENT 59
BUILDING A CULTURE OF CONTINUOUS IMPROVEMENT 62
PROCESS IMPROVEMENT SUCCESS STORIES AND CASE STUDIES 65
OVERCOMING COMMON PROCESS IMPROVEMENT CHALLENGES 68
THE FUTURE OF PROCESS IMPROVEMENT: AUTOMATION
AND EMERGING TECHNOLOGIES 70
CONCLUSION 72

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INTRODUCTION

A dysfunctional business process can waste valuable


resources and time. It’s not always clear what went wrong
and why, making it difficult to remedy broken processes.
The phrase “Process Improvement” refers to the method of
analyzing current practices to identify areas for enhancement
in an effort to increase productivity. The goal is to boost
productivity, cut down on waste, and raise the bar for the
final product or service quality by constant evaluation and
tweaking.

The idea behind process improvement is that businesses


can improve their production by rooting out and fixing
inefficiencies in their procedures. By adopting such a
strategy, businesses can boost their bottom line, expand their
consumer base, and advance in their fields.

The benefits of process improvement are numerous. Boosting


efficiency and cutting down on unnecessary activities helps
businesses save money, make more money, and strengthen
their financial situation. Boosting customer happiness,
product quality, and competitive advantage are all possible
outcomes of focusing on process enhancement.

But, process enhancement is not a one-time event. As it is


ongoing, data must be monitored and evaluated often so
that improvements may be made. Companies in today’s fast-
paced economy need an openness to new ideas and a never-
ending quest for process improvement to survive.

Process improvement is an essential strategy businesses


may employ to enhance process efficiency, reduce waste,
and boost output. Organizations can achieve lasting results
and keep their competitive edge by adopting a methodical
strategy to identify inefficiencies, develop a plan for
improvement, implement the plan, and monitor and evaluate
the results.
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WHAT IS PROCESS
IMPROVEMENT?

Process improvement is a continuous effort to identify and


eliminate inefficiencies in business processes to improve
overall performance. It involves a systematic approach
to analyzing current processes, pinpointing areas for
improvement, and implementing changes to optimize
efficiency, reduce costs, and increase quality.

An organization’s existing business processes can be


optimized, and new quality requirements can be met through
a proactive process improvement initiative. It usually requires
a systematic strategy that adheres to a predetermined
technique, while other options should also be examined.
Improvement strategies can range from benchmarking
and lean manufacturing to targeting specific problems and
employing unique solutions. Processes can either be adjusted
or enhanced by sub-processes or even abolished for the
ultimate purpose of improvement.

Process improvement aims to increase organizational


effectiveness, customer satisfaction, and profitability. It
is an ongoing effort that requires continuous monitoring
and evaluation to ensure that the improvements made are
sustainable and meet the organization’s and its customers’
evolving needs.

Examining concrete improvement areas should always


accompany a process improvement initiative, as process
improvement is a continual practice. When applied properly,
the benefits can be quantified in the enhancement of product
quality, customer happiness, customer loyalty, enhanced
productivity, personnel skills development, efficiency, and
greater profit resulting in a higher and faster return on
investment (ROI). (Corona, 2022)
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THE IMPORTANCE OF PROCESS
IMPROVEMENT

Each business that wants to survive in today’s market must


constantly seek ways to enhance its processes or risk falling
behind the competition. Enhancing procedures yields various
benefits, including:

• Increased efficiency and productivity: Process


improvement helps organizations streamline their
processes, eliminate bottlenecks, and reduce the amount
of time and resources required to complete tasks. This
enhances output and earnings by increasing productivity.

• Cost reduction: By identifying and eliminating


inefficiencies, organizations can reduce costs associated
with wasted resources, idle time, and rework. This
can impact the bottom line significantly, especially for
organizations that operate on tight margins.

• Improved quality: Process improvement helps


organizations identify areas of improvement.
Organizations can increase customer satisfaction and
reduce the cost of rework and returns by eliminating
defects, errors, and other quality issues.

• Competitive advantage: Continuous process


improvement puts a company in a stronger position to
compete. They can innovate, adapt to consumer
preferences, and use cutting-edge technology better than
competitors.

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• Employee satisfaction: Process improvement can also
positively impact employee satisfaction. Organizations
can create a more positive work environment that
fosters employee engagement and loyalty by eliminating
unnecessary work, streamlining processes, and reducing
stress.

• Better decision-making: Process improvement helps


organizations collect data and analyze performance
metrics to identify improvement areas. This information
may help with resource allocation, process optimization,
and technology adoption.

• Compliance and risk management: Many organizations


operate in industries that are subject to regulatory
requirements and compliance standards. Process
improvement can help organizations ensure that they are
meeting these requirements and mitigating risks
associated with noncompliance.

• Customer satisfaction: Ultimately, process improvement


is about delivering value to customers. Companies
can boost customer loyalty and advocacy by optimizing
processes to meet or exceed consumer expectations.

Process improvement helps firms become more efficient,


decrease costs, enhance quality, gain a competitive edge,
improve employee satisfaction, improve decision-making,
ensure compliance, and provide value to customers.
Continuous process improvement can help businesses
develop and succeed. Team (2022)

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KEY PRINCIPLES OF PROCESS
IMPROVEMENT

CONTINUOUS IMPROVEMENT
Continuous improvement means analyzing and improving
corporate processes to boost productivity, quality, and
customer satisfaction. It involves methodically seeking
areas for improvement, implementing those changes, and
monitoring the results to ensure they work.
Companies must embrace continual improvement to thrive in
today’s fast-paced business landscape. Continuous process
improvement may boost production, lower costs, and please
customers. The continuous improvement process consists of
the following steps:

• Identify areas for improvement: This involves analyzing


current processes to identify inefficient or ineffective
areas. Data analysis, process mapping, and consumer
feedback may achieve this.

• Develop an improvement plan: Once areas for


improvement have been identified, a plan should be
developed to address these issues. This plan should
involve specific goals, timelines, and metrics for
measuring success.

• Implement changes: The next step is to implement the


changes identified in the improvement plan. This may
require revamping processes, modifying work practices,
or adding new technologies.

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• Monitor and measure results: It is essential to monitor
and measure the results of the improvement process to
ensure that the changes have had the desired impact. This
involves gathering data and comparing it to metrics.

• Continuously improve: The final step in the continuous


improvement process is to use the results of the
monitoring and measurement process to identify new
areas for improvement. This lets the company improve
over time.

WASTE REDUCTION
Reducing waste is essential to process improvement, as it
entails doing away with anything that isn’t directly beneficial
to the customer. Businesses may boost productivity, save
money, and delight their clientele by cutting down on waste.
Companies should make efforts to lessen the following
categories of waste:

• Overproduction: Producing more than what is expected]


by the customer can result in excess inventory, storage
costs, and potential product obsolescence.

• Waiting: Waiting for materials, equipment, or personnel


to become available can result in wasted time and delays
in the production process.

• Defects: Defective products or services can result


in rework, additional costs, and potential customer
dissatisfaction.

• Over-processing: Performing unnecessary or redundant


work can waste time and resources and increase costs.

• Excess inventory: Maintaining excess inventory can


result in increased storage costs, obsolescence, and
potential damage to the products.

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• Unnecessary motion: Unnecessary movement or
motion can waste time and result in potential safety risks
for employees.

• Unused talent: Not utilizing employees’ full potential


can result in wasted talent and potential opportunities for
improvement.

Enterprises can realize substantial reductions in expenses,


improve efficiency, and enhance customer satisfaction
by reducing waste. It is important to continually monitor
and evaluate processes to identify opportunities for waste
reduction and implement appropriate solutions. (Core
Principles of Business Process Improvement, n.d.)

STANDARDIZATION
Standardization is the process of setting organizational work
standards. Standardization ensures that a process is done
the same way every time, improving quality, efficiency, and
predictability.

Standardization can benefit manufacturing, service delivery,


communication, and documentation. Written protocols or
rules are needed to standardize processes.

The benefits of standardization include the following:

• Improved efficiency: Standardization eliminates


unnecessary steps or activities and ensures that all
necessary steps are performed in the correct sequence,
resulting in improved efficiency and reduced waste.

• Consistency: Standardization ensures that tasks are


performed in the same way every time, resulting in
consistent quality and customer satisfaction.

• Reduced variability: Standardization minimizes the


variability in the way tasks are performed, resulting in
reduced defects and errors.
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• Training: Standardization provides a clear set of
guidelines for training new employees, ensuring that they
understand the correct procedures and can perform their
tasks efficiently.

• Continuous improvement: Standardization provides


a baseline for evaluating and improving processes over
time, as deviations from the standard can be identified
and addressed.

Standardized procedures ensure consistency. Quality,


productivity, and consistency improve greatly.

Standardization is essential for continuous improvement


and operational excellence. (The Transformative Impact of
Standardization, n.d.)

CUSTOMER FOCUS
Putting the client first is the guiding principle of customer-
centric company strategies. The company’s processes and
strategies must reflect customers’ needs. Customer-centric
companies focus on client demands and provide high-quality
goods and services at reasonable pricing. Customer-focused
strategies offer these advantages:

• Improved customer satisfaction: By understanding the


needs and expectations of customers, organizations can
design products or services that meet their requirements,
resulting in improved customer satisfaction and loyalty.

• Increased revenue: Customers that are satisfied are


more likely to make repeat purchases and refer their
friends and family to the business, resulting in increased
revenue and profitability.

• Improved brand reputation: A customer-focused


approach can help to build a positive brand reputation, as
customers are more likely to mention the business to
others and provide positive reviews and feedback.
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• Better decision-making: By understanding customers’
needs, organizations can make better decisions about
product development, marketing strategies, and customer
service, resulting in improved business outcomes.

Businesses must embrace numerous techniques to become


customer-focused, including:

• Understanding customer needs: Organizations must


gather and analyze customer data to gain insights into
their needs, wants, and preferences.

• Creating a customer-focused culture: An organization’s


culture must be aligned with the customer-focused
approach, with all employees trained to understand and
prioritize customer needs.

• Measuring customer satisfaction: Regular measurement


and analysis of customer satisfaction levels can help
organizations identify improvement areas and meet
customer needs.

• Continuous improvement: A customer-focused


approach requires a commitment to continuous improvement,
with a willingness to adapt and change processes and
strategies based on customer feedback.

Concentrating on consumers’ needs and wants is crucial to a


business’s success, leading to happier customers, more sales,
and a better reputation. (Churchill, 2022)

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PROCESS IMPROVEMENT
METHODOLOGIES

Process improvement methods are the structured ways


businesses discover, examine, and enhance their internal
procedures. These techniques aim to improve workflows, cut
down on waste, and boost productivity and earnings.
Different sorts of businesses and objectives for process
improvement call for different strengths and limitations of
each of these techniques. Your organization’s goals, culture,
and resources will all play a role in helping you determine
the best approach to take. Organizations can cut costs,
boost productivity, and enhance their offerings by taking a
methodical approach to process optimization and employing
the appropriate methodology.

LEAN
Lean process improvement reduces waste while improving
productivity. It was initially used by Toyota in the 1950s and
has since extended to enterprises of all sizes and in many
areas. Lean eliminates all procedures that don’t immediately
improve product quality.

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The foundation of Lean is the elimination of all processes that
do not directly contribute to the quality of the final result.
Overproduction can result from things like waiting, wasteful
movement, having too much inventory, faults in the product,
overprocessing, or having skilled workers go to waste.
Organizations may save money, boost productivity, and
enhance quality by rooting out and eliminating waste in these
areas.

Lean approach typically makes use of the following tools and


techniques:

• Value Stream Mapping (VSM): VSM is a visual tool used


to map out the steps in a process and identify areas of
waste. It allows organizations to see the flow of work and
identify opportunities for improvement.

• Just-In-Time (JIT): JIT is a philosophy of producing and


delivering products or services just in time to meet
customer demand with minimal waste. It involves
synchronizing production with demand and reducing
inventory to the lowest possible level.

• Kanban: Kanban is a visual tool used to manage and


control workflow. It involves using a visual board to track
work items and their status and limit work in progress to
prevent overburdening employees.

• Poka-yoke: This is a Japanese term that means “mistake


proofing.” It involves designing processes and products
to make errors and defects impossible or difficult to
create.

• Kaizen: This represents a philosophy of continuous


improvement. It involves identifying small, incremental
improvements to a process and implementing them on a
regular basis to achieve sustained improvements over
time.

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Lean methodology has several benefits for organizations,
including:

• Improved quality: Organizations can improve the


quality of their products or services by eliminating waste
and focusing on value.

• Increased efficiency: By reducing cycle times,


minimizing inventory, and optimizing processes,
organizations can increase their efficiency and reduce
costs.

• Better customer satisfaction: By focusing on value


and meeting customer demand, organizations can
improve customer satisfaction and loyalty.

• Empowered employees: By involving employees in the


process of identifying and eliminating waste,
organizations can empower their employees and create a
culture of continuous improvement.

In a nutshell, Lean is a powerful approach to process


improvement that seeks to cut down on waste while
increasing productivity. VSM, JIT, Kanban, Poka-yoke, and
Kaizen are just some of the tools and approaches that can
help businesses increase quality, efficiency, and customer
happiness over the long term. (Introduction to Lean
Manufacturing | Lean Production, n.d.)

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SIX SIGMA
Six Sigma is a data-driven process improvement approach
that emphasizes minimizing failure rates and process
variation. Since Motorola pioneered the approach in the
mid-1980s, firms across several sectors have embraced it.
DMAIC—Define, Measure, Analyze, Improve, and Control—is
the Six Sigma problem-solving strategy.

• Define: Identify the problem, project goals, and customer


requirements.

• Measure: Collect data and analyze it to understand the


current process performance.

• Analyze: Identify the root causes of defects and


variations in the process.

• Improve: Develop and implement solutions to address


the root causes.

• Control: Establish a system to monitor the process and


sustain the improvements.

The Six Sigma approach also emphasizes the importance


of leadership and team engagement in driving process
improvement initiatives. Organizations that adopt Six Sigma
often create dedicated teams of Black Belts and Green Belts,
who receive extensive training in the methodology and lead
improvement projects.

Six Sigma’s most important methods are statistical


process control, hypothesis testing, process mapping, and
experimentation design. These instruments aid businesses
in pinpointing process variance, quantifying its causes,
gauging the effectiveness of suggested fixes, and tracking
performance over time.

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An organization’s process performance, defect rate, and
budget can benefit greatly from adopting Six Sigma
principles and using these tools and procedures. (Corporate
Finance Institute, 2022)

KAIZEN
Kaizen is a philosophy and methodology for continual
improvement that originates in Japan. It was created in Japan
after World War II and used by many enterprises worldwide.
The Kaizen method stresses the significance of constant
enhancement across the board, from production to customer
service. It entails making constant, minor adjustments to
better the process as a whole. All individuals within the
organization, from the CEO to the receptionist, should be
invested in fostering a culture of continual improvement.

https://www.techtarget.com/searcherp/definition/kaizen-or-continuous-improvement

The Kaizen methodology involves a structured approach to


improvement that includes the following key steps:

• Identify opportunities for improvement: This can be


done through observations, discussions with employees,
customer feedback, and data analysis.

• Analyze the current process: Understand the current


process to identify areas for improvement.

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• Develop a plan: Develop a plan for improvement that
includes specific actions and timelines.

• Implement the plan: Implement the plan and measure


the results.

• Evaluate the results: Evaluate the results to determine


if the changes resulted in improvements and if additional
changes are necessary.

• Standardize the process: Once the changes have


been implemented, standardize the process to ensure the
improvements are sustained.

The Kaizen approach also emphasizes the importance


of teamwork, employee empowerment, and leadership
involvement. It encourages everyone to participate in the
improvement and own the changes.

Kaizen can improve processes, reduce costs, improve quality,


and boost employee engagement and satisfaction. (Kaizen:
Culture of Continuous Improvement | Lean Production, n.d.)

BUSINESS PROCESS RE-ENGINEERING (BPR)


BPR aims to completely redesign business processes.
Analyzing and redesigning business processes to improve
quality, cost, and speed. Instead of making small adjustments
here and there, businesses should consider a BPR.

The BPR methodology involves the following key steps:

• Identify business processes to re-engineer: Identify


the processes that must be re-engineered to achieve the
desired improvements.

• Analyze the existing process: Analyze the existing


process to identify inefficiencies, constrictions, and areas
for improvement.

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• Redesign the process: Develop a new process design
that eliminates inefficiencies, reduces costs, and improves
quality.

• Implement the new process: Implement the new


process design and monitor its performance.

• Continuously improve the process: Continuously


monitor and improve the process to ensure that it remains
efficient and effective.

An organizational mindset shift is necessary for successful


BPR implementation. To do so, one must be willing to
question the status quo and try out novel strategies. The
best business process re-engineering (BPR) is led by
upper management and includes widespread employee
participation. BPR can boost productivity and efficiency, but
it’s not easy. Thus, BPR results require careful planning and
management. (Hayes, 2022)

TOTAL QUALITY MANAGEMENT (TQM)


TQM encourages all employees to improve a company’s
products and services. TQM promotes problem-solving by all
employees to improve product and service quality.

https://safetyculture.com/topics/total-quality-management/

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TQM involves the following key principles:

• Customer focus: TQM strongly emphasizes


understanding and meeting customer needs and
expectations.

• Continuous improvement: TQM involves continuously


improving products, services, and processes.

• Employee involvement: TQM involves the active


participation of all employees in the quality improvement
process.

• Process approach: TQM involves a process approach to


quality management, with a focus on improving the
efficiency and effectiveness of processes.

• Data-driven decision-making: TQM involves the use of


data and analysis to drive decision-making.

• Leadership involvement: TQM requires senior


leadership’s active involvement and commitment to drive
the quality improvement process.

TQM necessitates a radical change in an organization’s


perspective on quality. Quality improvement requires
commitment and resources. TQM can improve quality,
productivity, and profitability if leaders commit to quality
improvement over time.

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THEORY OF CONSTRAINTS (TOC)
The TOC is an approach to figuring out what’s stopping you
from reaching your goals and then improving that one thing,
one limitation, one at a time until it’s no longer a problem. The
constraint is often called a bottleneck in manufacturing.

https://txm.com/theory-of-constraints-vs-lean-which-makes-sense-for-your-business/

Process optimization research formed the Theory of


Constraints. It states that all complex systems, such as
manufacturing processes, are composed of a network of
interconnected activities, one of which constrains the system.
To what end, then, do most factories strive? To make money
fast and long-term. This can be done using the Theory of
Constraints (TOC) toolkit, which includes:

• Focus on the constraint: The first step in TOC is to


identify the constraint in the system, which is the factor
that limits the organization’s ability to achieve its goals.

• Exploit the constraint: Once the constraint has been


identified, the organization should focus on maximizing its
utilization and efficiency.

• Give priority to the constraint: All other processes and


activities should be aligned with the needs of the
constraint in order to avoid creating additional
bottlenecks.
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• Elevate the constraint: If the constraint cannot be
sufficiently improved, additional resources should be
invested to improve its capacity.

• Repeat the process: The TOC methodology is iterative,


and the process of identifying and improving constraints
should be repeated continuously.

TOC is used in manufacturing, supply chain, and project


management. TOC emphasizes prioritizing key system
components and over-optimizing everything. TOC improves
productivity, quality, and profits, but it requires time and
money to implement. (Staff, 2022)

DESIGN THINKING
Design Thinking is a problem-solving approach that prioritizes
the end user’s needs. It entails identifying problems,
thinking of novel solutions, and testing those ideas. Even
though its most popular application is in product design and
development, Design Thinking may be utilized to solve any
number of business problems.

https://www.maqe.com/insight/the-design-thinking-process-how-does-it-work/

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Design Thinking follows these fundamentals:

• Empathy: Design Thinking starts with a deep


understanding of the user’s needs, desires, and
challenges. To understand users, you need to observe,
listen, and interact with them.

• Define the problem: Once the user’s needs have been


identified, the next step is clearly and concisely defining
the problem. Focus on user requirements and goals.

• Ideation: In the ideation phase, a variety of creative


ideas are generated to address the problem.
Brainstorming and other collaborative activities can be
used to achieve this.

• Prototyping: Once one or more promising ideas have


been identified, prototypes are developed to test and
refine the solutions. This can involve creating physical
models, digital simulations, or other representations of
the proposed solution.

• Testing: The final step in Design Thinking is to test the


prototypes with users to gather feedback and identify
areas for further improvement. This feedback refines the
solution and iterates the process.

Design Thinking is used in product development, healthcare,


education, and public policy. It helps organizations create
more user-centered and effective solutions and is associated
with innovation and creativity.

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HOSHIN KANRI (POLICY DEPLOYMENT)
Hoshin Kanri, also known as Policy Deployment, is a
management methodology that aims to align the goals and
activities of an organization with its strategic objectives. It is
a Japanese term that can be translated as “direction setting”
or “policy management.”

Hoshin Kanri involves a structured process of planning,


implementing, and monitoring the progress of strategic
initiatives. It typically involves the following steps:

• Establishing the strategic objectives: The first step in


Hoshin Kanri is to identify the long-term goals and
objectives of the organization. Knowing the company’s
goal, vision, values, and strategic problems and
opportunities is crucial.

• Developing the action plans: Once the strategic


objectives have been set, the next step is to develop a set
of action plans to achieve these objectives. These
strategies should be SMART and connected with the
company’s strategy.

• Cascading the plans: The next step in Hoshin Kanri is


to cascade the action plans throughout the organization.
This involves communicating the plans to all levels of the
organization and ensuring that everyone understands
their role in achieving the strategic objectives.

• Implementing the plans: Once they have been


cascaded, the next step is implementing them. This
involves assigning responsibilities, allocating resources,
and monitoring progress toward the strategic objectives.

• Monitoring and reviewing progress: The final step in


Hoshin Kanri is to monitor and review progress toward the
strategic objectives. This involves establishing
performance metrics, regularly reviewing progress, and
making adjustments to the plans as needed.
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Organizations seeking to improve performance and gain a
competitive edge use Hoshin Kanri. It promotes collaborative
and structured strategic planning and helps organizations
align their activities with their long-term goals. (Hoshin Kanri:
Policy Deployment Method | Lean Production, n.d.)

BALANCED SCORECARD
The Balanced Scorecard is a method of strategic
management that aids businesses in putting their plans into
motion. Since Robert Kaplan and David Norton invented it in
the early 1990s, organizations worldwide have used it.
The Balanced Scorecard method involves defining KPIs that
align with the organization’s strategic objectives across four
perspectives:

1. Financial Perspective: This perspective emphasizes


revenue growth, profitability, and return on investment.
These metrics show the company’s financial health and
ability to create value for stakeholders.

2. Customer Perspective: This perspective emphasizes


customer satisfaction, retention, and loyalty. These
metrics show the company’s ability to satisfy customers.

3. Internal Business Processes Perspective: This


perspective emphasizes internal processes, quality, and
innovation. These metrics show the company’s ability to
meet customer needs.

4. Learning and Growth Perspective: This perspective


emphasizes employee satisfaction, skills development,
and innovation. These metrics show the company’s
ability to adapt and improve.

The Balanced Scorecard helps companies evaluate their


performance more holistically. Performance measurement
and development toward strategic goals are also stressed.
(Tarver, 2023)

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PROCESS MAPPING:
UNDERSTANDING YOUR
CURRENT STATE

Process mapping is all about visually depicting the various


actions and decisions that make up a process. It is vital for
process improvement since it identifies inefficiency, waste,
bottlenecks, and improvement opportunities.

Process maps are visual representations of workflows that


show who does what and when. They are especially useful
for sharing process information among stakeholders and
uncovering potential trouble spots. Usually, process maps
will begin at a high level and drill down to offer additional
information as required.

1 2 3 4 5
Establishing Monitoring and
Developing the Cascading Implementing
the strategic reviewing
action plans the plans the plans
objectives progress

Following the definition of process boundaries and


identification of important stakeholders, the process map
should detail the many activities that make up the process.
Flowchart shapes and swimlane diagrams are just two
examples of the many symbols and notations that can
be used for this purpose. Information such as the order
of events, points of decision, and interdependencies or
interactions between acts should be included.

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Process mapping is an invaluable tool when it comes to
gaining insight into a process’s current status, finding
places where it may be enhanced, and building consensus
around the process’s inner workings. In addition to serving
as a foundation for additional research and improvement
initiatives, the visual representation that process mapping
provides can also aid in increasing communication and
collaboration among stakeholders.

Types of process maps

There are numerous variations of process maps. Methods


used in cartography include:

• Basic flowcharts: These diagrams show the fundamentals


of a procedure, such as its inputs and outputs, in a visual
format.

• Deployment maps: Relationships between departments


are shown in these diagrams, which are also called
cross-functional flowcharts. These maps frequently
employ swimlane diagrams to better understand how
a process moves throughout the organization and identify
potential bottlenecks or duplications.

• Detailed process maps: This chart shows a detailed


process, including information on its constituent steps.

• High-level process maps: Top-down maps, often called


value chains, provide an overarching perspective on a
process by labeling major stakeholders like “supplier,”
“input,” “process,” “output,” and “customer” (SIPOC).

• Rendered process maps: This depicts a process’s


existing and/or desired status to highlight development
opportunities.

• A value stream map (VSM): This is a lean six sigma


method for recording the processes involved in bringing a
product or service to market.

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Process mapping symbols

Visual representations, like simple symbols, are used to


describe each step of the process in a process map. Arrows,
circles, diamonds, boxes, ovals, and rectangles are some of
the most often-used symbols. Both the Business Process
Model and Notation (BPMN) and the Unified Modeling
Language (UML) (link located outside IBM) provides a
graphical notation for process maps that can be used for
these purposes.

In most cases, a process map can be completed with just a


handful of universal symbols. Examples of such signs are:

• A rectangle is used to symbolize the operations


associated with a certain process.

• An arrow is used to illustrate the flow’s direction as well as


the relationship between its constituent parts.

• An oval is commonly employed to denote a procedure’s


starting and stopping locations.
• A diamond is meant to emphasize a turning point in
events. Depending on the choice, the process will
proceed along one of many predetermined paths.

• A rectangle with one end rounded is commonly used as


a delay symbol, denoting a temporary halt in the process
before it resumes.

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How to create a process map

You should use this approach while creating your map of


business processes:

• Pick one procedure to analyze in detail: Prioritizing a


process that is having trouble achieving goals or that
has an effect on customer satisfaction can have the
greatest overall impact.

• Bring in the appropriate personnel: Collect a team


of experts who know the process you’re trying to
improve. Specialists can help you determine the process’s
most crucial elements, including participants, procedures,
scheduling, resources, and more. They may highlight
inefficiencies like bottlenecks and duplications. At this
stage, document all process information.

• Trace out the plan of action: Identify the beginning and


conclusion points of the present process and the stages
that come before and after them. Information on inputs,
outputs, measures, and stakeholders is often provided,
though the level of detail might vary.

• Use symbols often found in the flowchart to improve


the process map: Improve the current process map by
using standard flowchart components. This is mostly done
with the help of process mapping tools.

• Collect opinions: Team members should verify the


updated process map for accuracy, making sure there
are no duplicates or missing steps. After everyone
involved has settled on the current-state process stages,
you can start gathering input on how to best improve
things. The process may be streamlined by doing away
with some steps or expanded upon by adding others,
such as those that promote teamwork and quality control.

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• Alter the way things are done and then evaluate their
effectiveness: Before rolling out sweeping changes to
the entire organization, try out the notion with a smaller
test group first. Management is then able to more easily
scale up to the new process with less disruption to the
business and the chance to include further feedback to
improve the process. Continuous improvement is possible
with consistent process monitoring.

Why Is Process Mapping Important?

Business process mapping’s major objective is to help


businesses improve their performance in a certain area. It
does this by making it easier to see where and how decisions
are made, which aids in locating areas of inefficiency within
and across processes. Using visual cues and symbols, process
maps simplify the process of explaining a procedure to a
large group of people. Long-form documentation can be
laborious for both owners to develop and for end users to
consume; thus, this can improve participation.

Teams can quickly interact and brainstorm methods to


streamline work processes by using pre-made templates
within process mapping software. This facilitates business
process improvement. By doing so, organizations may better
tackle issues like new hire retention and sagging sales. (What
Is Process Mapping? | IBM, n.d.)

Among the many advantages of using a process map are the


following:

• Improved potential for scenario testing and evaluations

• More uniformity and understanding of one’s place in the


system

• Improved ability to pinpoint weak points in a procedure

• Team output and worker morale both increased.

• Employees will have a shorter learning curve during


training.

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DEFINING AND SETTING
PROCESS IMPROVEMENT
GOALS

Process improvement is a crucial aspect of organizational


success. It entails identifying areas of an organization
that need improvement and making efforts to improve
procedures, efficiency, and waste. To achieve these
objectives, it is crucial to define and set process improvement
goals that are specific, measurable, achievable, relevant, and
time-bound (SMART). Steps in defining process improvement
goals include:

Identifying areas that need improvement

The first step in defining process improvement goals


is identifying company problem areas. To achieve this
goal, examining existing procedures is necessary to spot
bottlenecks and inefficient steps. For instance, if a company’s
customer support process is cumbersome, streamlining
it could shorten customer wait times and boost their
satisfaction.

Set specific goals

When problems have been pinpointed, the next stage is to


formulate solutions that contribute to the larger aims of the
business. SMART goals are necessary for success. Setting
clear goals helps everyone stay on track. Goals that can be
measured are much easier to analyze and monitor. Goals that
can be accomplished are those that the organization has the
resources to complete.
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Goals that are significant to the organization’s stakeholders
and are in line with its overall mission are considered
relevant. Setting a specific date by which the goal must
be accomplished increases the likelihood of success and
facilitates responsibility taking.

Reducing client wait times by half within six months is an


example of a SMART objective that is specific, measurable,
attainable, relevant, and time-bound. This goal is SMART
because it is well-defined in terms of the desired outcome
(decreased wait times), quantifiable (by comparing wait
times before and after the improvement process), attainable
(by devising a plan to cut wait times), relevant (to the
organization’s overarching goal of boosting customer
satisfaction), and time-bound (within six months).

Involve all stakeholders in the process

Including all relevant parties in defining process improvement


objectives is also crucial. Everyone from workers to clients to
vendors falls under this category. Including all parties ensures
that the organization’s goals are realistic and supported by
the necessary resources. Employees have a better awareness
of the processes and may provide useful insights into areas
for development; thus, including them in goal-setting for
process enhancements can assist in building buy-in and
engagement. Similarly, including end-users in goal-setting
for process enhancements may guarantee that the resulting
improvements meet their requirements.

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Regular monitoring and evaluation

It is also necessary to regularly assess and evaluate progress


toward process improvement goals. This ensures the
organization is on the right track to achieve its goals and
allows for course corrections to be made if necessary. Key
parameters like cycle time, throughput, and defect rates
can be collected and used to track improvement in the
process. Reviewing this information on a regular basis allows
the company to spot problem areas and take corrective
measures.

Successes achieved on the path to achieving process


improvement targets should be recognized and rewarded.
The momentum toward process improvement goals can be
maintained, and people can be motivated through recognition
and rewards.

An organization’s success needs to define and set targets


for process improvement. To get there, you need to zero
in on problem spots, set SMART (specific, measurable,
attainable, relevant, and time-bound) objectives, get buy-
in from everyone involved, and keep tabs on your progress
periodically. This helps businesses cut down on inefficiencies,
boost productivity, and accomplish their goals. (Klingensmith,
2022)

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ROOT CAUSE ANALYSIS:
IDENTIFYING UNDERLYING
ISSUES

Root cause analysis is a method for resolving problems by


investigating their origins rather than focusing solely on
their effects. Finding the origin of an issue allows businesses
to take preventative measures that are both specific and
efficient. Doing a root cause analysis entails the following
steps:

Define the problem

Identifying the issue is the starting point for any root cause
analysis. Explaining the issue, its significance, and its impact
on the business must be stated explicitly. In the case of high
employee turnover, for instance, the organization needs to
define the problem by specifying the number of departing
workers, the monetary cost, and the negative effects on
productivity and morale.

Gather data

The next stage in determining the reason is to collect relevant


data. First, find out how frequently, where, and what causes
the problem. Surveys, interviews, observations, and statistical
studies can obtain this information. If employee turnover is
an issue, the company might track things like satisfaction
levels among workers, departmental turnover rates, and exit
interviews to figure out why people are leaving.

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Identify possible causes

After all the inputs has been gathered and examined, the
following stage is to pinpoint the root of the issue. This
entails listing all potential causes of the issue, no matter
how trivial or irrelevant they may initially appear. Many tools,
like a fishbone diagram, a 5-Why analysis, and a cause-
and-effect matrix, can help with this step. High employee
turnover may be caused by low job satisfaction, incompetent
management, poor training, or a lack of professional progress
and advancement.

Determine the root cause

After a list of potential reasons has been compiled, the


following stage is to zero in on the true origin of the issue.
Finding the root of a problem requires investigating all
plausible explanations in order to zero down on the one
or ones responsible for it. Further data analysis, study, or
specialist advice may be necessary at this stage. A company
may need to dig more into issues like salary, recognition,
and work-life balance if it finds that dissatisfaction with
employees’ jobs is a major contributor to their leaving.

Develop and implement solutions

After identifying the problem, devise and implement a


solution. To do so, one must establish how to solve and
prevent the problem. New methods, policies, or structures
may solve the issue. If employee turnover is caused by
dissatisfaction with their jobs, one possible remedy could be
to offer better pay and benefits, more chances for employees
to be recognized and grow in their careers, or more flexible
scheduling options.

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Monitor and evaluate results

The last part of a root cause analysis is to check in on how


things are doing now that changes have been made. KPIs
must be monitored and compared to pre-implementation
data to see if the solutions worked. The firm should monitor
the situation to prevent a recurrence to see if the steps
worked. If the study indicates unsuccessful solutions, the
organization should attempt something else.

Root cause analysis helps identify what went wrong and how
to avert it from happening again. Businesses may ensure
holistic, long-term problem-solving by following the above
criteria. (Root Cause Analysis Explained: Definition, Examples,
and Methods, n.d.)

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PRIORITIZING PROCESS
IMPROVEMENT INITIATIVES

To maintain a competitive edge and guarantee steady


progress, businesses must regularly undertake process
improvement efforts. Nevertheless, not every process
improvement idea can be implemented at once due to
resource constraints. The benefits and effects of a process
improvement endeavor can be amplified considerably if the
initiative is prioritized. Follow these procedures to determine
which process improvement projects should come first:

Identify potential process improvement initiatives

Identifying possible process improvement initiatives is the


first step in establishing a priority list. Problem-solving,
process-streamlining, cost-cutting, efficiency-boosting, and
patron-pleasing are all examples. Employees, consumers,
specialists in the field, and even upper management can all
take the initiative.

Determine the benefits and impact of each initiative

The next step is to analyze the outcomes and advantages of


each project. Assessing the influence on the organization’s
aims and objectives requires weighing the pros and cons of
each project. Cost-benefit analyses, risk assessments, and
SWOT analyses are useful tools for this investigation.

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Assess the feasibility of each initiative

After weighing the merits and consequences of such


initiatives, the following step is to evaluate their practicability.
Assessing whether or not the organization has the time,
money, and people to carry out a program entails reviewing
the resources needed for the initiative. Any risks, obstacles,
or issues that could develop during the initiative’s execution
should also be factored into the study.

Evaluate urgency and importance

The next stage is assessing the importance and urgency


of each process improvement endeavor. This requires
determining how critical each endeavor is to achieve the
company’s overall mission. Initiatives that are time-sensitive
and consequential to the organization’s stated goals and
objectives should be prioritized.

Score each initiative

The next stage is assigning a score to each project based


on how well it meets the benefits, feasibility, urgency, and
priority criteria. However, the criteria established in the
preceding steps should serve as the foundation for the
scoring system that the organization ultimately uses. One
popular method of ranking initiatives is to give each criterion
a score between one and five, with 5 being the highest
importance.

Rank the initiatives

After evaluating initiatives, the following stage is to place


them in order of importance. To do this, we simply tally up the
points earned by each program and then sort them in order.
Priority should be given to the initiatives with the highest
rankings.

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Develop an action plan

Creating a strategy for implementing the highest-ranked


process improvement initiatives is the final step in the
prioritization process. Each project needs its own detailed
plan outlining its start and end dates, budget, personnel,
and outputs. Each initiative’s progress should be tracked and
evaluated using a method outlined in the action plan.

For organizations to get the most out of process


improvement initiatives, they need to be prioritized.
Organizations can rest assured that they are adopting a
thorough and systematic approach to prioritizing process
improvement initiatives if they adhere to the aforementioned
stages. As a result, resources can be allocated more wisely,
helping the company achieve long-term success.

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PROCESS IMPROVEMENT
TOOLS AND TECHNIQUES

Ineffective business procedures can be pinpointed and


corrected with the help of any number of available process
improvement tools and strategies. We will dig into some
of the most popular methods for enhancing operational
efficiency.

VALUE STREAM MAPPING


The purpose of value stream mapping (VSM) is to map and
analyze the flow of resources, data, and labor that goes into
making a good or service. In order to determine which parts
of a process are unnecessary, this tool is employed. Lean
manufacturing relies on VSM, which creates a visual map of
the production process and pinpoints inefficiencies.

https://goleansixsigma.com/value-stream-mapping

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Value stream mapping (VSM) is a technique used to analyze
processes in search of inefficiencies by separating those that
add value from those that don’t. VSM is a collaborative tool
used by interdisciplinary teams to first document the current
state of a process and then design its optimal future iteration.
Basically, any business or service with a production process
can benefit from implementing VSM. If you want to boost
productivity and cut down on waste, this technology is for
you.

PARETO ANALYSIS
Pareto Analysis isolates the most important elements
affecting a process or system to prioritize their treatment.
It was named after Italian economist Vilfredo Pareto, who
observed that 20% of Italians owned 80% of its wealth.
Pareto Analysis holds that the top 20% of process
contributors cause most problems. If they can identify and
prioritize the problem’s core causes, organizations can make
the most progress.

The first phase of a Pareto Analysis is to pinpoint the most


pressing concerns. The next step is gathering information on
how often and severely each condition occurs. The collected
information is then displayed in the form of a bar chart, with
the issues ranked from most common or significant to least.
As more problems are added to the chart, the cumulative
percentage line represents the total number of problems
covered.

Because it allows businesses to direct their efforts where


they will have the most impact, Pareto Analysis is an effective
method for boosting process efficiency. By zeroing in on the
root causes of the most pressing issues, businesses can focus
their improvement efforts where they will have the greatest
impact. (Wilson, 2022)

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FISHBONE DIAGRAM (ISHIKAWA DIAGRAM)
The Fishbone Diagram, otherwise known as an Ishikawa
Diagram or Cause-and-Effect Diagram, is a tool used to
spot the root causes of a problem or issue. Japanese quality
control expert Kaoru Ishikawa developed it in the 1960s.
Its fish-like skeleton gives it its name. The “head” of the
fish stand for the the issue being investigated, while the
“bones” or branches reflect potential reasons. Depending
on the situation, these branches include people, processes,
equipment, materials, and the environment.

https://www.investopedia.com/terms/i/ishikawa-diagram.asp

A team brainstorms probable issue sources to build a


Fishbone Diagram. Each potential cause is written on a bone
or branch of the diagram. The team then works to identify
the underlying or root causes of each potential cause, adding
additional branches and bones to the diagram as needed. The
team can comprehend the complexity of the problem and
build focused solutions by mapping out probable causes and
their fundamental causes.

Process improvement teams employ Fishbone Diagrams to


discover root causes rather than just symptoms. It also helps
to visually organize the potential causes and identify common
themes or patterns that may be contributing to the problem.

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5 WHYS
The 5 Whys approach asks “Why?” after each answer to
find the fundamental cause of a problem. Toyota Industries
founder Sakichi Toyoda created it as part of the company’s
problem-solving approach.

To find the problem’s root, ask “Why?” five times or more.


Each “Why?” builds on the preceding response, revealing the
core cause.

If a machine breaks, the team may ask:

• Why did the machine stop working? (Because the motor


stopped running)

• Why did the motor stop running? (Because the bearings


failed)

• Why did the bearings fail? (Because they were not


lubricated properly)

• Why were the bearings not lubricated properly? (Because


the maintenance schedule was not followed)
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• Why was the maintenance schedule not followed?
(Because it was not communicated effectively to the
operators)

By asking “Why?” five times, the team identified that the


machine failure’s root cause was a communication breakdown
about the maintenance schedule.

The 5 Whys approach is a simple and effective way to


identify the underlying cause of a problem, and It can be
used in tandem with other process enhancement methods.
It helps teams focus on the problem’s true cause rather
than just addressing symptoms and encourages a deeper
understanding of the problem and potential solutions.

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GEMBA WALK
The Japanese word gemba means “the true spot” or “the
actual location.” Gemba walks are a method used in process
improvement that entails going to the actual location where
the work is being done to observe and understand the
process. Gemba walks are conducted to gain insight into a
process by observing it in action, interviewing employees
involved in the process, and collecting data and feedback.

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During a Gemba walk, an individual or group observes a
process as it happens, making notes and asking questions
along the way. They might also record information or take
visuals to illustrate the procedure. The Gemba walk aims to
learn about the process and find ways to enhance it.

Lean manufacturing and other process improvement


methodologies rely heavily on gemba walks to help pinpoint
sources of waste, inefficiency, and bottlenecks. By traveling
to the production site, teams can observe the process in
action and gain insight from the workers who use it daily.
With this data, we may design more streamlined methods
that save time and resources. (5 Whys: The Ultimate Root
Cause Analysis Tool, n.d.)

SIPOC DIAGRAM (SUPPLIERS, INPUTS, PROCESSES,


OUTPUTS, CUSTOMERS)
SIPOC diagrams show a system’s high-level process flow.
The diagram shows process inputs, outputs, and participants.
SIPOC diagrams assist in identifying process improvements
and decrease mistakes and inefficiencies by providing a clear
and simple view of the process.

The five components of a SIPOC diagram are as follows:

• Suppliers: The suppliers are the individuals, teams, or


departments that provide the inputs needed for the
process. This can include raw materials, information, or
resources needed to complete the process.
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• Inputs are the resources, materials, or information
required to start and complete the process. Inputs can
include data, instructions, equipment, and other resources
necessary for the process to function.
• Process: The process is the series of steps or activities
required to transform the inputs into outputs. The process
component of the SIPOC diagram maps out the sequence
of events in the process flow, showing how each step is
connected to the next.

• Outputs: The outputs are the end products or services


generated by the process. This can include finished
goods, completed tasks, or other deliverables produced
by the process.

• Customers: The customers are the people or entities


who receive the outputs produced by the process. This
can include internal or external customers who benefit
from the work completed by the process.

A SIPOC diagram is an important tool in process


improvement as it helps to identify the key components of
a process and the relationships between them. By analyzing
the inputs, suppliers, outputs, customers, and process flow,
teams can identify opportunities for improvement and
optimize the process for better efficiency and effectiveness.

CONTROL CHARTS
Processes can be monitored and managed with the help
of control charts, which are visual aids for recording and
analyzing data over time. You can use them to spot patterns
and trends within a process and judge whether or not the
process is under control.

The centerline in a control chart is the horizontal line that


indicates the average value of the process. Three standard
deviations from the mean or centerline are the upper and
lower control boundaries. The process’s anticipated range of
values is believed to be inside the control borders, whereas
outliers are beyond the control limits.
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Control charts have many applications outside of just industry
and healthcare and even extend to the service sector. They
are an effective method for analyzing processes and arriving
at informed conclusions about how to fix them.

FAILURE MODES AND EFFECTS ANALYSIS (FMEA)


FMEA is a systematic method for identifying and analyzing
process, product, and service problems. FMEA prevents or
mitigates failures.

FMEA involves a team of experts who analyze the process


or system under study and identify potential failure modes
or causes. The team then assesses the prospective failure
mode’s severity, probability, and detection before reaching
the client. This information prioritizes hazards and creates a
risk mitigation plan.

Manufacturing, healthcare, and services use FMEA. It’s


applicable in a variety of processes, including design,
manufacturing, service delivery, and maintenance.

BENCHMARKING
Benchmarking may improve business processes, goods, and
services. Best practices and industry standards will enhance
production and offer you a competitive edge. A corporation
benchmarks its operations, goods, and services against
market competitors. Companies may see how they compare
to others and what they need to alter to improve.

Internal, external, functional, and general benchmarking


are all forms of practice. When conducting an internal
benchmarking, you will be comparing the results of several
departments or divisions inside the same company. The
term “competitive benchmarking” refers to the practice of
evaluating a company’s success against that of its direct
rivals. In functional benchmarking, comparable business
processes from different sectors are compared, while in
generic benchmarking, best practices from multiple sectors
are analyzed.

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Companies can spot inefficiencies, cut expenses, boost
quality, and gain a competitive edge by comparing
themselves to similar organizations. It can also aid companies
in keeping abreast of developments in their respective fields.

BRAINSTORMING AND AFFINITY DIAGRAMS


Effective process improvement teams regularly use
brainstorming and affinity diagrams to discover and organize
ideas.

Brainstorming generates many ideas rapidly. Individuals


converse freely without judgment. Quantity above quality.
The group then evaluates and ranks their suggestions.

Ideas can be organized and grouped during the


brainstorming process using affinity diagrams, also known
as KJ diagrams. Each concept is recorded using sticky notes
or index cards and then filed into appropriate categories
based on shared characteristics. This is useful for spotting
commonalities that can inform process-improvement efforts.

Affinity diagrams and brainstorming are helpful tools for


process development since they facilitate teamwork and
enable members to see connections between seemingly
disparate ideas. They are useful across the whole process
improvement lifecycle, from spotting problems to creating
fixes to putting them into action. (Corrigan, n.d.)

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IMPLEMENTING PROCESS
IMPROVEMENT INITIATIVES

One of the crucial aspects of the process improvement cycle


is actually putting those efforts into action. This phase is
all about implementing these fixes and ensuring they stick.
Important measures to take in order to improve processes
include:

Define the scope and goals of the initiative

The first step in launching a process improvement program is


to establish its parameters and objectives. The first step is to
define the initiative’s purpose and determine which processes
need to be enhanced. Everyone who has any interest in the
project’s success has to know its parameters and objectives.

Form a team and assign roles and responsibilities

Next, form a leadership team and assign each member


certain tasks. The crew should be qualified to complete the
job. Define roles and duties so everyone knows their role.

Analyze the current process

After assembling the team, the next step is to audit the


current procedure to pinpoint problem areas. This entails
collecting information about the current process, assessing
that information to find places for improvement, and
pinpointing the underlying cause(s) of any issues that have
arisen.

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Develop and test solutions

The next step is for the team to brainstorm and try out
alternative solutions once the problem regions and their
causes have been isolated. This involves brainstorming
alternatives, analyzing their practicality and impact, and
selecting the best one. To guarantee feasibility and efficacy,
pilot test the chosen solution(s).

Implement the solution

Implementing the chosen solution on a bigger scale is the


next stage after testing and refining the solution. Creating a
clear plan for implementing the solution, including milestones,
resource needs, and assigned roles, is necessary. Everyone
participating in the effort should be made aware of the plan.

Monitor and evaluate the results

Monitor progress after implementing a solution to confirm


it’s working. After implementing the solution, gather process
data again and compare it to previous data. The group should
also assess the solution’s impact on the organization’s goals.

Make adjustments and continue to improve

Based on monitoring and evaluation, the team should change


the solution. The solution may need to be changed or new
methods developed to accomplish so. If a corporation
wants to enhance operations and accomplish goals, it should
continuously improve. (Izquierdo, 2022)

Businesses can’t succeed in their missions without launching


process improvement projects. Organizations can guarantee
they are taking a thorough and systematic approach to
implementing process improvement efforts by adhering to
the aforementioned stages. As a result, resources can be
allocated more wisely, helping the company achieve long-
term success.

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CHANGE MANAGEMENT:
OVERCOMING RESISTANCE
AND DRIVING ADOPTION

Businesses must grasp change management to prosper and


remain ahead. Change-resistant persons might make new
efforts hard to implement. Change management is all about
managing change and overcoming opposition to increase
acceptance. The phases of change management are as
follows:

Define the change

Change management begins with defining the change. This


process begins with acknowledging the need for change
and setting goals for the new situation. The affected parties
should be informed of the change and its need.

Identify stakeholders

Finding out who will be affected by the transition is the next


stage. Employees, customers, and vendors are examples of
critical stakeholders. To ensure that the change management
strategy is effective, gaining insight into all stakeholders’
requirements, concerns, and expectations is crucial.

Assess the impact

After identifying the stakeholders, the following phase is to


evaluate how the change will affect each group. Assessing the
possible influence on the company’s culture, procedures, and
resources, as well as the risks and opportunities connected
with the change, is an important part of this process.
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Develop a change management plan

The results of the change impact analysis will be used to


inform the subsequent change management strategy. This
strategy should detail what will have to be done to win
over skeptics and get people on board with the change.
The plan should outline the timeline, necessary resources,
and communication strategy for maintaining stakeholder
engagement.

Communicate the change

Change management relies heavily on clear and open lines


of communication. Notify those affected by the change.
Stakeholders should get regular, relevant information
customized to their needs during the transition. Stakeholders
need to be helped through the transition, and the
communication plan should address any opposition to the
change.

Build support and overcome resistance

Being proactive in dealing with the typical problem of


people resisting change is crucial. Stakeholders need to be
consulted, their concerns addressed, and their participation
in the change process encouraged in order to build support
for the change. Methods such as instruction, mentoring, and
encouragement can help bring this about. Offering incentives
for change, including stakeholders in the change process,
and resolving concerns through open communication are all
effective ways to overcome resistance to change.

Monitor and evaluate the change

After a change has been made, it’s crucial to monitor how


well it works. This requires assembling information about the
shift’s effects and contrasting those with ideal results. The
success of the change may be measured, and the plan can be
tweaked accordingly if necessary.

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Embed the change

At last, the shift must become ingrained in the institution’s


norms and practices. Training, communication, and constant
encouragement are all crucial parts of this process. The shift
must be ingrained in the organization’s culture to be effective
and long-lasting.

Change management is a must if businesses want to adapt to


new circumstances and ensure that new initiatives are widely
adopted. Organizations can overcome resistance to change,
gain buy-in from key stakeholders, and permanently integrate
the new way of doing things by following the aforementioned
stages. This ensures the company’s long-term success and
keeps it competitive in an ever-shifting market.

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MEASURING THE IMPACT OF
PROCESS IMPROVEMENTS

Process improvements should be assessed to see if they


worked. Businesses need a mechanism to assess prior
advancements to make educated decisions regarding process
optimization. Below are the actions required to evaluate the
results of process enhancements:

Define the key performance indicators (KPIs)

The first step is creating KPIs to analyze process


modifications. KPIs should be well-defined, quantified, and
tied to process improvement objectives. A key performance
indicator (KPI) could compare the average amount of time
taken to accomplish a task both before and after the process
improvement is implemented.

Collect baseline data

After identifying key performance indicators, collecting


baseline data on them is the next stage. Before starting a
process improvement program, evaluate the present process.
Baseline data helps assess process improvement program
efficacy.

Implement the process improvement initiative

The next step in the process improvement program is


implemented, following baseline data collection. This step
entails implementing the process adjustments discovered
during the process improvement phase.

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Collect post-implementation data

After implementing the process improvement project,


key performance indicator data can be collected.
Process improvement programs must be assessed
after implementation. Comparing before- and after-
implementation data can assess process improvement
success.

Analyze the data

The results of the process improvement program can be


measured by comparing pre-and post-implementation
statistics. This requires analyzing the performance of each
KPI by comparing pre-and post-implementation data.
Verifying that observed performance shifts cannot be
attributed to chance alone is crucial.

Interpret the results

The next step after data analysis is figuring out what that
analysis means. This involves checking to see if the measured
KPIs have improved as a result of the process improvement
initiative. If the outcomes show that the process
improvement initiative was successful, the business can
proceed with the modifications. If the findings show that the
process improvement endeavor has not been successful, the
company may need to pinpoint other areas for improvement
or try a new strategy.

Communicate the results.

Lastly, everyone who has a stake in the process improvement


endeavor must know the outcome. Managers, workers, and
any other relevant parties are included. The key performance
indicators (KPIs), pre-and post-implementation data, and
analytical findings should all be shared. Having stakeholders
fully grasp the significance of the process improvement
endeavor depends on effectively communicating the findings.

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Organizations can’t enhance their processes or get the
desired results until they know how those modifications
affect the business. Organizations can establish the KPIs,
gather baseline and post-implementation data, analyze
the data, interpret the results, and share the results with all
stakeholders by following the procedures mentioned above.
Organizations may make better decisions based on hard
facts, pinpoint problem areas, and create lasting success
by measuring the consequences of process modifications.
(Amin, 2023)

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SUSTAINING LONG-TERM
PROCESS IMPROVEMENT

Process improvement is ongoing. Long-term process


improvement helps companies accomplish their goals and
outperform the competition. Here are the measures required
for sustained process improvement over time:

Establish a culture of continuous improvement

Long-term process improvements require a culture of


continual improvement. This entails encouraging employees
to discover areas for improvement and giving them the
means to make improvements. How often management
promotes process improvement and recognizes personnel
shows their commitment to continuous improvement.

Set goals and objectives

Long-term process improvement can only be maintained by


establishing goals and objectives that are in harmony with
the organization’s overarching strategic aims. Objectives and
targets should be well-defined, quantifiable, and time-bound.
Goals and objectives help businesses zero in on the areas that
will impact their success and measure their development over
time.

Monitor and measure performance

Continuous monitoring and measurement of performance are


essential for sustaining process improvement over the long
run. In order to do this, data must be gathered and analyzed
for patterns and room for development. Organizations can
prevent problems from becoming catastrophic by measuring
and monitoring performance.
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Continuously improve processes

Organizations must continually enhance their processes if


they are to maintain process improvement over the long run.
This entails recognizing problem areas, creating and putting
into action fixes, and keeping tabs on the outcomes. To
remain competitive and achieve their goals, businesses must
constantly innovate and enhance their processes.

Involve all stakeholders

To sustain long-term process improvement, organizations


must involve all stakeholders in the process. All relevant
parties, such as employees, customers, and suppliers, count
here. Organizations can guarantee that all employees are
working toward the same goals and that the results will last
when they involve all relevant parties in the process.

Provide training and development

Training and development programs are essential to


maintaining process improvements over the long term.
This includes training on process improvement approaches
and providing an opportunity for staff to build new skills
and knowledge. By providing training and development,
organizations can ensure that employees have the skills and
knowledge necessary to identify and implement process
improvements.

Communicate progress and results

Long-term process improvement requires regular updates to


stakeholders on the organization’s progress and outcomes.
It’s crucial to report progress, good or bad. Communicating
process improvement progress and outcomes helps create
support and guarantee that everyone is working toward the
same goals.

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Evaluating and reviewing progress

To sustain long-term process improvement, organizations


must review and evaluate their process improvement efforts
on an ongoing basis. This entails examining the efficacy
of process enhancements, finding places for additional
enhancement, and making appropriate adjustments. Process
improvement activities might indicate a company’s capacity
to improve and meet goals.

Without continual process improvement, businesses can’t


succeed or stay ahead of the competition. Establishing goals
and objectives, monitoring and measuring performance,
continuously improving processes, involving all stakeholders,
providing training and development, communicating
progress and results, and reviewing and evaluating process
improvement efforts can sustain long-term process
improvement and results.

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BUILDING A CULTURE OF
CONTINUOUS IMPROVEMENT

Long-term success requires a culture of constant


improvement. A culture of continuous improvement
emphasizes process improvements to enhance results
and efficiency. Building a continuous improvement culture
involves several steps:

Step 1: Establish leadership commitment

Building a culture of continuous improvement requires


strong leadership commitment. Leaders must emphasize
process improvement and provide an example of continual
improvement. This involves prioritizing process improvement,
providing resources and assistance, and rewarding and
recognizing individuals.

Step 2: Encourage employee participation

To build a culture of continuous improvement, organizations


must encourage employee participation. This entails inviting
employees to contribute ideas and participate in decision-
making. Encourage employee engagement to tap into their
expertise and experience and enable them to own process
improvement efforts.

Step 3: Foster a culture of learning

Learning is part of ongoing progress. Allowing employees


to learn promotes learning. Organizations may train staff
to identify and execute process changes by investing in
employee development.
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Step 4: Provide tools and resources

To build a culture of continuous improvement, organizations


must provide their employees with the tools and resources
necessary to identify and implement process improvements.
This includes providing access to data, analytics, and process
improvement methodologies and tools. Organizations can
empower their employees to identify and implement process
improvements by providing tools and resources.

Step 5: Develop a process improvement framework

Organizations must develop a process improvement


framework to build a culture of continuous improvement.
This framework should define the process improvement
methodology and the roles and responsibilities of all
stakeholders. By developing a process improvement
framework, organizations can ensure that each and everyone
is working towards the same goals and objectives and that
process improvements are implemented consistently and
effectively.

Step 6: Measure and communicate progress

Organizations must measure and communicate their progress


to build a continuous improvement culture. This involves
tracking the implementation of process improvements and
the impact on key performance indicators. Organizations
can build support for process improvement initiatives by
measuring and communicating progress and motivating
employees to continue identifying and implementing
improvements.

Step 7: Celebrate successes

Success must be celebrated in order to foster a culture of


continual improvement inside an organization. This includes
publicizing the positive effect that process improvements
have had on KPIs and rewarding employees for participating
in such initiatives. Successes should be celebrated so
organizations can gain momentum and encourage workers to
keep looking for and implementing improvement methods.
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Step 8: Learn from failures

Organizations can’t just try new things and hope for the best
if they want to foster a culture of continuous development.
This entails performing post-mortems to determine the
causes of failures and then formulating countermeasures to
ensure they don’t occur again. Organizations can improve
their methods and the quality of their outputs over time by
studying past mistakes.

Long-term success requires a constant improvement


culture. Organizations can improve outcomes and efficiency
by committing to continuous improvement, encouraging
employee participation, fostering a culture of learning,
providing tools and resources, developing a process
improvement framework, measuring and communicating
progress, celebrating successes, and learning from failures.
(Van Der Lingen, 2022)

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PROCESS IMPROVEMENT
SUCCESS STORIES AND
CASE STUDIES

Process Improvement Success Stories

Continuous improvement has been successful in many


sectors. Notable successes include:

1. Toyota Production System: Toyota’s production system


is considered the best for process improvement. Toyota’s
success is due to its waste reduction, just-in-time
production, and continuous improvement approach.

2. Florida Hospital: They implemented a process


improvement initiative to cut down patient wait times
and improve patient satisfaction. By streamlining patient
flow, standardizing processes, and empowering staff
to make decisions, the hospital reduced wait times by
89%, increased patient satisfaction scores, and improved
staff morale.

3. American Red Cross: They used process improvement


methodologies to improve their blood donation process.
The company reduced the average donation time
from one hour to 45 minutes by deploying a new donor
questionnaire and streamlining the screening process,
improving donor satisfaction and efficiency.

4. Amazon: Amazon has always prioritized ongoing


improvement utilizing data and user input. The
company’s optimization of packing sizes and materials to
avoid waste has saved money and the environment.
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5. Ford Motor Company: Ford implemented a process
improvement initiative called the “Ford Production
System” to reduce waste, improve efficiency, and
increase quality. The initiative involved empowering
employees to identify and solve problems, implementing
standardized processes, and using data to drive
decision-making. As a result, Ford improved quality and
reduced defects, leading to increased customer
satisfaction and profitability.

These examples show how process optimization may boost


corporate performance, customer happiness, and profits.
Continuous improvement and data-driven initiatives may help
organizations adjust and stay ahead. (Corporation, 2021)

Process Improvement Case Studies

Here are a few process improvement case studies:

1. Honeywell International Inc.: Honeywell International


Inc., a Fortune 100 technology and industrial firm,
provides aerospace, safety, and productivity solutions.
They used Lean Six Sigma to simplify and optimize their
production process. They cut manufacturing cycle time
by 30%, faults by 25%, and expenses by $120 million.

2. Florida Power & Light Company: FPL, a significant


energy business in Florida, services over 5 million
consumers. They used Six Sigma to minimize power
outages and enhance customer satisfaction. They
decreased outages by 41%, restored time by 30%, and
customer satisfaction by 8%.

3. Virginia Mason Medical Center: Seattle-based Virginia


Mason Medical Center is a nonprofit healthcare provider.
They used the Toyota Production System (TPS) to
increase patient safety and efficiency. They reduced
patient wait times by 50%, patient falls by 70%, and care
quality by improving.

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4. Ford Motor Company: It’s a global carmaker. Lean
manufacturing techniques were used to optimize their
production process and decrease waste. As a
consequence, they cut car recalls by 50%, production
time by 30%, and customer satisfaction by 10%.

5. Xerox Corporation: Document management and


workflow solutions are Xerox’s specialty. To enhance
customer service and cut expenses, they used Six
Sigma. As a consequence, they cut the average time to
handle customer complaints by 60%, saved expenditures
by $2 billion, and increased customer satisfaction
by 15%.

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OVERCOMING COMMON
PROCESS IMPROVEMENT
CHALLENGES

Process improvement requires continual attention to detail


to simplify operations and increase production. However,
organizations may face several challenges during this process.
Identifying and overcoming these challenges can help ensure
successful process improvement initiatives. Some typical
obstacles to process improvement and their solutions are as
follows:

• Resistance to change: One of the most significant


challenges in implementing process improvement
initiatives is resistance to change. Employees may be
unwilling to adopt new processes, leading to a lack of
engagement and cooperation. To combat this, convey
the suggested changes’ advantages and include
employees in the improvement process. Training and
coaching can help employees adjust to change.

• Lack of data: Another common challenge is a lack of data


to identify areas for improvement. Data is needed to
discover inefficiencies and evaluate process changes.
Data gathering techniques and data analytics, and
business intelligence technologies can help firms address
this difficulty.

• Ineffective processes: Sometimes, organizations


may have ineffective or outdated processes, leading
to inefficiencies and delays. To address this, organizations
should conduct regular process audits to identify areas
that need improvement. Implementing lean or Six Sigma
methodologies can help streamline processes and
eliminate waste.
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• Lack of stakeholder engagement: A lack of stakeholder
engagement can hinder the success of process
improvement initiatives. Include stakeholders throughout
the improvement process to overcome this. Effective
communication, collaboration, and feedback can help
ensure stakeholder engagement.

• Poor leadership: Leadership is crucial in driving process


improvement initiatives. Weak leadership hinders process
improvement projects by lacking direction and support.
A continual improvement, transformation, and
organizational alignment culture requires strong
leadership.

• Lack of resources: Limited resources can pose a


challenge in implementing process improvement
initiatives. Organizations may need to invest in
technology, training, or new hires to facilitate process
improvements. To overcome this challenge, organizations
can prioritize areas for improvement based on their
impact and allocate resources accordingly.

Organizations face several challenges in implementing


process improvement initiatives. However, by identifying and
addressing these challenges, organizations can overcome
resistance to change, establish data-driven processes,
eliminate waste, engage stakeholders, drive change through
effective leadership, and allocate resources effectively. This
can help establish a culture of continuous improvement and
drive sustainable business growth.

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THE FUTURE OF PROCESS IM-
PROVEMENT: AUTOMATION
AND EMERGING TECHNOLOGIES

Process improvement requires automation and new


technology. Businesses are using automation technology
to enhance production, save costs, and please consumers.
Automation technology streamlines workflows automates
repetitive operations, and eliminates mistakes, saving money
and improving quality.

Robotic process automation (RPA) is a promising new


technique for streamlining operations. In RPA, software
“robots” are used to automate mundane operations. RPA
can help firms save money, increase accuracy, and free
up employee to focus on more complicated activities by
automating repetitive ones.

Artificial intelligence (AI) is another technology expected to


significantly affect process enhancement. AI makes big data
analysis, trend detection, and forecasting possible. This data
helps companies focus and make informed decisions.
RPA, AI, blockchain, IoT, and machine learning are expected
to affect process optimization in the future. These innovations
may help standardize operations, lessen expenses, and
maximize productivity.

Implementing this new technology is challenging. Businesses


must invest in staff training and education to profit from
these technologies. Businesses must also protect client data
while utilizing such technologies.
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Existing procedures require automation and new technology.
These innovations will grow in significance as firms look to
boost productivity while cutting expenses. Although there
are obstacles to overcome, organizations that successfully
adopt and implement new technologies will be ahead of the
competition.

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CONCLUSION

In today’s fast-paced business world, process improvement


is essential to survival. Companies need to routinely assess
their operations, spot potential weaknesses, and develop and
implement methods to boost productivity. This calls for the
application of a wide range of techniques and strategies, such
as Lean, Six Sigma, Kaizen, and Total Quality Management.
Planning, stakeholder involvement, data analysis, and
measurement are all crucial to the success of process
improvement programs.

Resistance to change, a lack of resources, and insufficient


stakeholder support are some of the obstacles organizations
typically face when attempting to execute process
improvement efforts. Maintaining progress made via process
improvement efforts depends on instilling a continuous
improvement culture.

Automation and new technologies are becoming more vital to


process optimization. Businesses may employ data analytics
and machine learning to optimize processes, reduce waste,
and increase productivity.

Successful process improvement involves a dedication to


iterative tweaks, stakeholder buy-in, and the application
of attempted approaches. Organizations can enhance
their performance significantly and set themselves up for
sustained success in today’s cutthroat business climate by
improving processes and providing value to stakeholders.

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