Professional Documents
Culture Documents
com, 07/22/2023
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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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ALL RIGHTS RESERVED.
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
information provided herein is as accurate and useful as possible, the author is not legally
bound to be responsible for any damage caused by the accuracy as well as the use/
misuse of this information.
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WHAT IS PROCESS
IMPROVEMENT?
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THE IMPORTANCE OF PROCESS
IMPROVEMENT
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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.
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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:
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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.
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:
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• Unnecessary motion: Unnecessary movement or
motion can waste time and result in potential safety risks
for employees.
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.
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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.
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:
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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.
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PROCESS IMPROVEMENT
METHODOLOGIES
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.
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Lean methodology has several benefits for organizations,
including:
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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.
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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
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• Develop a plan: Develop a plan for improvement that
includes specific actions and timelines.
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• Redesign the process: Develop a new process design
that eliminates inefficiencies, reduces costs, and improves
quality.
https://safetyculture.com/topics/total-quality-management/
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TQM involves the following key principles:
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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/
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• Elevate the constraint: If the constraint cannot be
sufficiently improved, additional resources should be
invested to improve its capacity.
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:
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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.”
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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:
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PROCESS MAPPING:
UNDERSTANDING YOUR
CURRENT STATE
1 2 3 4 5
Establishing Monitoring and
Developing the Cascading Implementing
the strategic reviewing
action plans the plans the plans
objectives progress
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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.
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Process mapping symbols
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How to create a process map
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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.
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DEFINING AND SETTING
PROCESS IMPROVEMENT
GOALS
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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.
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Regular monitoring and evaluation
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ROOT CAUSE ANALYSIS:
IDENTIFYING UNDERLYING
ISSUES
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
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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.
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Monitor and evaluate results
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
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Assess the feasibility of each initiative
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Develop an action plan
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PROCESS IMPROVEMENT
TOOLS AND TECHNIQUES
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.
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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
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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.
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• Why was the maintenance schedule not followed?
(Because it was not communicated effectively to the
operators)
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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.
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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.
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.
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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.
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.
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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.
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IMPLEMENTING PROCESS
IMPROVEMENT INITIATIVES
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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).
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CHANGE MANAGEMENT:
OVERCOMING RESISTANCE
AND DRIVING ADOPTION
Identify stakeholders
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Develop a change management plan
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Embed the change
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MEASURING THE IMPACT OF
PROCESS IMPROVEMENTS
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Collect post-implementation data
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.
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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
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Continuously improve processes
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Evaluating and reviewing progress
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BUILDING A CULTURE OF
CONTINUOUS IMPROVEMENT
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Step 4: Provide tools and resources
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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.
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PROCESS IMPROVEMENT
SUCCESS STORIES AND
CASE STUDIES
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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.
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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%.
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OVERCOMING COMMON
PROCESS IMPROVEMENT
CHALLENGES
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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.
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THE FUTURE OF PROCESS IM-
PROVEMENT: AUTOMATION
AND EMERGING 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
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REFERENCES
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Churchill, N. C. (2022, October 6). The Five Stages of Small Business Growth.
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What is Design Thinking? (n.d.). The Interaction Design Foundation. https://www.
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