Overview of Continuous Process Improvement

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2 Overview of Continuous Process Improvement Breakout Session # E01 Henry F. Garcia, Adjunct Professor, Webster University Date Tuesday, 5 December 2017 Time

3 Definition Continuous Improvement The management philosophy that involves the relentless pursuit of product and process improvement through a never- ending exercise of achieving small wins. It is an integral part of a Total Quality Management system that seeks to eliminate waste and reduce variation. 2

4 Myths Continuous Improvement is too expensive Management does not understand/ support Continuous Improvement Processes do not need improvement in my area Continuous Improvement is only for large organizations 3

5 Key Concepts Total Quality Management Benchmarking Deming PDCA Cycle Deming Wheel 4

6 Total Quality Management Total Quality Management A philosophy and system of management focused on internal or external customer (user) satisfaction Quality integrated throughout the organization s activities Employee commitment to continuous process improvement Suppliers can participate in the improvement of the process 5

7 Total Quality Management (Cont d) Tools for Introducing Ideas Check Sheet Organized method of recoding data Scatter Diagram Graph showing the value of one variable versus another variable Cause-and-Effect Diagram Tool that identifies process elements (causes) that may effect (create) an outcome (Think Fishbone Diagram) 6

8 Total Quality Management (Cont d) Tools for Organizing Data Pareto Chart Graph to identify and plot problems or defects in descending order of frequency (Think Prioritization) Flowchart Chart that describes the steps in a process (Think Process Diagram in Project Management to identify Critical Path) 7

9 Total Quality Management (Cont d) Tools for Identifying Problems Histogram Distribution showing the frequency of occurrences of a variable (Think Gantt Chart as a bar chart that illustrates a project s schedule) Statistical Process Control Chart Chart with time on the horizontal axis to plot values of a statistic (Consider Upper Control Limit, Target Value, Lower Control Limit) 8

10 Benchmarking Benchmarking Making improvements by selecting the current best practices of other organizations as a standard of performance Determine what to benchmark Form a benchmark team Collect and analyze benchmarking information Take action to match or exceed the benchmark 9

11 Deming PDCA Cycle Plan Plan improvements to present processes Do Implement the plan initially on a small scale Check Test to see if desired results are achieved Act Implement corrective action on a wider scale 10

12 Deming Wheel Deming Wheel Model for conducting continuous process improvement activities Identify improvement area and associated problem(s) Implement and document change on a small scale first Evaluate implementation data for best fit Codify improvement as new standard for replication 11

13 Continuous Improvement Customer (User) Focus Cooperation Leadership Decisions Based on Data People/Culture Measurement and Metrics 12

14 Winning Strategies Continuous Improvement or Total Quality Management strategies create opportunities for performance improvement through better definition of the systems and processes that enhance employee productivity by building a culture of improvement within the organization. These strategies represent best practice, but they must be carefully planned and implemented. 13

15 Winning Strategies (Cont d) Management Support/Methods: Recognizing management s support as essential to success Understanding Continuous Improvement as a permanent change from business as usual or we ve always done it that way 14

16 Winning Strategies (Cont d) Management Support/Methods: (Cont d) Identifying key results Signing win-win agreement with support of executive management Focusing on data and performance issues rather than personalities Using the direct approach 15

17 Winning Strategies (Cont d) Management Support/Methods: (Cont d) Communicating openly and honestly Delegating to subordinates Conveying accurately expectations and following up on performance to those expectations 16

18 Winning Strategies (Cont d) Front Line Leadership: Implementing basic principles to empower staff Gathering good information to make best decision Using positive reinforcement Supporting win-win agreement 17

19 Winning Strategies (Cont d) Performance Management: Using job description Defining performance expectations for each key responsibility in job description Providing frequent feedback on performance results compared to expectations 18

20 Winning Strategies (Cont d) Continuous Improvement Measures: Applying a systematic approach to business operations Identifying key measurements and assigning functional or matrix leaders Focusing on important problem areas Allowing leaders to select improvements for Problem Solving teams 19

21 Winning Strategies (Cont d) Continuous Improvement Measures: (Cont d) Establishing regular team meetings and scheduling Problem Solving team training (if needed) Selecting problem areas and identifying measurement and metrics trends Linking measurements to problem solving and employee involvement part of the win-win agreement 20

22 Winning Strategies (Cont d) Continuous Improvement Measures: (Cont d) Establishing key measurements/metrics Reviewing trends based on these key measurements/metrics Ensuring progress will be measured and reported 21

23 Winning Strategies (Cont d) Employee Involvement: Providing training as required Understanding available quality tools used for measurement Attacking the problem, not the person Identifying the problem and selecting the team to mitigate or resolve the problem 22

24 Winning Strategies (Cont d) Rewards: Rewarding Problem Solving teams collectively and team members individually as they achieve their objectives Basing the type of reward on suggestions from the team (Think Quality Circles) 23

25 Winning Strategies (Cont d) Effective Meetings: Starting and ending on time Keeping meetings focused and short Distributing agenda before meeting Prioritizing agenda items Avoiding meeting interruptions when considering difficult/divisive tasks Publishing meeting minutes shortly after the meeting 24

26 Winning Strategies (Cont d) Time Management: Restraining procrastination Controlling events and taking action Recognizing need to achieve objectives on time, every time 25

27 Winning Strategies (Cont d) Project Management: Learning how to set realistic objectives and priorities Understanding the need for focus on value-added tasks only Organizing work for team building Using both quantitative and qualitative measurements to evaluate performance of Problem Solving teams 26

28 Continuous Improvement Assessment By learning to monitor, control, and constantly improve how employees work, managers can provide not only job satisfaction but also professional and personal enrichment 27

29 Continuous Improvement Concerns Organizations compelled to accommodate present workload with legacy systems and processes More work, less staff, and greater task complexity suggest review of systems and processes Organizational culture, inertia, and/or incapacity precludes innovation 28

30 Continuous Improvement Concerns (Cont d) Need to address the following: Identification and assessment of desired systems and processes Requirement for closing the gap between what is desired and what can be accomplished Absence of pragmatic problem solving and continuous improvement program Scarcity of time and resources committed to the development and execution of an effective program Lack of organizational culture and infrastructure to sustain continuous improvement initiatives 29

31 Conclusion Continuous Improvement is essential in today s business environment, and it can make the difference between long-term stability and short-term disaster. Continuous Improvement benefits go far beyond the bottom line. It affects the employee culture by involving them in change management. 30

32 Questions? 31

33 Contact Information Henry F. Garcia, MA, CPSM, C.P.M. Adjunct Professor Webster University Lackland AFB, TX Extended Campus 1550 Wurtsmith St. Lackland AFB, TX Phone: