Process improvement simplified : a how-to book for success in any organization

189 Pages·2014·2.99 MB·English

by  Davis

A How-to Book
for Success
in any Organization
YES
Process
Improvement
Simplified
STATUS
QUO
NO
James B. King
Francis G. King
Michael W. R. Davis
Process
Improvement
Simplified
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To request a complimentary catalog of ASQ Quality Press publications,
call 800-248-1946, or visit our website at www.asq.org/quality-press.
Process
Improvement
Simplified
A How-To Book for Success
in Any Organization
James B. King, Francis G. King,
and Michael W. R. Davis
Under the Guidance of John Manoogian,
Gene Nelson, Ray Smock, and Larry Sullivan
ASQ Quality Press
Milwaukee, Wisconsin
American Society for Quality, Quality Press, Milwaukee 53203
© 2014 by ASQ
All rights reserved. Published 2014
Printed in the United States of America
20 19 18 17 16 15 14 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Cataloging in Publication Control Number: 2014000230
ISBN 978-0-87389-883-6
No part of this book may be reproduced in any form or by any means, electronic,
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of the publisher.
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Printed on acid-free paper
Table of Contents
List of Figures and Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Chapter 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 2: Troubled Processes in Real Life . . . . . . . . . . . . . . . . . 9
Airport Screening.................................... 9
State and Local Governments........................... 10
Small Businesses .................................... 11
Big Business ........................................ 11
Professional......................................... 11
Institutional......................................... 11
Service ............................................ 12
Chapter Summary.................................... 12
Chapter 3: Yield and Throughput . . . . . . . . . . . . . . . . . . . . . . . . . 13
Example of the Shirt: Learning About Yield............... 13
Successive Outputs from Machines .................. 14
Supplementing Experience with Data................. 15
What Does Experience Plus Data Tell Us?............. 15
Example of the Breakfast: Learning About Throughput ..... 16
Measurements and Their Analysis Are Done Methodically
with Discipline ................................... 19
Advantages and Disadvantages of Measuring and Analyzing
a Process ........................................ 20
Chapter Summary.................................... 23
Chapter 4: Who Is the Customer? . . . . . . . . . . . . . . . . . . . . . . . . . 25
Can a Dryer Be a customer?............................ 25
Process Boundaries................................... 26
v
vi Table of Contents
Suppliers and Customers of the Process .................. 27
The Example of the Restaurant: Learning About Unhappy
Customers ....................................... 29
Fear as a Motivator: Making a Decision on
Implementing PI................................... 30
Chapter Summary.................................... 31
Chapter 5: How to Begin Process Improvement . . . . . . . . . . . . . . 33
Pains and Opportunities in PI........................... 33
Turning PI Opportunities into Goals ..................... 35
Critical Process and Process Boundaries.................. 37
Define the Boundaries of the Critical Process .......... 38
Who Is Going to Do the Work? ......................... 39
Identify Management Roles and Form PI Team............. 40
Develop the First 90-Day Work Plan ..................... 41
Chapter Summary.................................... 44
Chapter 6: The Six Phases of PI . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Definition of Process Improvement ...................... 45
The Six Phases of Process Improvement .................. 47
Phase 1. Identify the Critical Process ................. 48
Phase 2. Measure Process.......................... 49
Phase 3. Redesign Process.......................... 51
Phase 4. Test Redesigned Process.................... 52
Phase 5. Institutionalize Redesigned Process ........... 53
Phase 6. Continuous Improvement ................... 53
Chapter 7: Mapping the Process . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Overview of the Business—Level I Process Maps .......... 55
Specific Level I Process Maps .......................... 59
Mapping the Kitchen Process........................... 61
Level II Process Maps ................................ 64
Chapter Summary.................................... 65
Chapter 8: Voice of the Customer . . . . . . . . . . . . . . . . . . . . . . . . . 67
Pains of the External Customers ........................ 67
Getting the Voice of the Customer....................... 68
Performing the Gap Analysis........................... 69
Difficulties in Obtaining the Voice of the External
Customer ........................................ 72
Pains of Internal Customers............................ 74
Gathering Existing Data to Confirm the Pains ............. 74
Chapter Summary ................................... 75
Table of Contents vii
Chapter 9: Measuring the Process . . . . . . . . . . . . . . . . . . . . . . . . . 77
Why Measure the Process?............................. 77
Measurement of Results Does Not Work . . . . . . . . . . . . . . . . . . 78
Systemic Issues of the Process ...................... 78
What to Measure..................................... 79
Measuring Throughput and Yield ....................... 80
Measurement Plan................................ 80
Throughput and Yield Results....................... 83
Measuring the Other Current Conditions .............. 84
Determine Process Cost............................... 85
Compile Data ....................................... 85
Chapter Summary.................................... 87
Chapter 10: Redesign, Test, and Institutionalize Phases . . . . . . . 89
Phase 3: Redesign Process ............................. 89
Analysis........................................ 89
Formulating an Ideal State ......................... 91
Formulating a To-Be State.......................... 91
Phase 4: Test Redesigned Process ....................... 92
Enabling Management Buy-In....................... 92
Allow for Gradual Achievement of Goals in the
Work Plan ................................... 94
Testing the Redesigned Process ..................... 94
Phase 5: Institutionalize the Redesigned Process............ 95
Chapter Summary.................................... 95
Chapte 11: Real-World Throughput and Yield . . . . . . . . . . . . . . . 97
Medical Examples ................................... 97
Pharmacies ..................................... 97
Medical Clinic................................... 98
Medical Misdiagnosis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Public Service Examples .............................. 101
Road Paving..................................... 101
Postal Delivery .................................. 102
Renewal of Driver’s License and License Plates ........ 103
Professional Services ................................. 103
Public Relations.................................. 103
Patent Applications ............................... 104
Group Dynamics................................. 105
Heavy Industries..................................... 106
Shipbuilding .................................... 106
Military............................................ 107
viii Table of Contents
Maintenance and Repair of Naval Vessels ............. 107
Nonprofit Organizations—Church with School............. 107
Chapter Summary—Where There Is a Process . . . .......... 108
Chapter 12: PI Tools and Measures . . . . . . . . . . . . . . . . . . . . . . . . 109
Problem-Specific Tools of PI ........................... 109
Generic PI Tools..................................... 112
PI Relationship to Dr. Deming’s PDCA Cycle.............. 117
Chapter Summary.................................... 118
Chapter 13: Case Histories of PI Successes . . . . . . . . . . . . . . . . . 119
Case History 1: A Family-Owned Fabric Manufacturer ...... 119
Identify ........................................ 120
Measure........................................ 120
Redesign ....................................... 121
Test............................................ 121
Institutionalize................................... 122
Case History 2: A Distributor’s Toll-Free Customer Service
Telephone Center.................................. 122
Identify ........................................ 123
Measure........................................ 124
Redesign ....................................... 124
Test............................................ 125
Institutionalize................................... 125
Case History 3: Key Component Manufacturer within a
Large Multinational Automotive Corporation............ 126
Identify ........................................ 127
Measure........................................ 127
Redesign ....................................... 127
Test............................................ 128
Institutionalize................................... 129
Case History 4: Tablet Production by a Large
Pharmaceutical Company ........................... 129
Chapter Summary.................................... 129
Chapter 14: Epilogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
What Is a Process? ................................... 131
What Is Process Improvement? ......................... 132
PI Can Be Applied Universally ......................... 133
What Does It Take to Make PI Successful?................ 134
Difference from Other Books........................... 135
“We Are Doing It”................................ 136
Why We Wrote the Book .............................. 137
Table of Contents ix
Appendix A: Are You “Doing PI”? (Ten Questions) . . . . . . . . . . 139
Appendix B: Medical Clinic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Appendix C: Process Capability (C ) . . . . . . . . . . . . . . . . . . . . . . 145
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Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Suggested Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
About the Advisors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163