Level: Intermediate - Some analytical knowledge and experience is helpful in fully understanding all of the concepts presented in this course. Recommended for 2.0 hours of CPE.

Some Good Starting Points

Everything everyone does within an organization is part of a process. So invariably if you want to improve whatintroduction to the process improvement, online advices, short coursesorganization does, then you have to focus on improving the process. By putting your emphasis on the process, you avoidintroduction to the process improvement, online advices, short coursestypical trap that so many business leaders seem to fall prey to - looking to cut costs, they focus on trimming payrolls or pushing people to do more with less. This short-sided approach may get a brief bump in performance. However, inintroduction to the process improvement, online advices, short courseslong-run you end up increasing costs, reducing value to the customer, and making it harder forintroduction to the process improvement, online advices, short coursescompany to compete.

Process improvement is a long-term approach to improving organizational performance with substantially less risks of destroying value when compared to short-term approaches. This short course will outline many ofintroduction to the process improvement, online advices, short coursesconcepts and tools people use to improve processes. online courses, understand process improvement, improve processword "quality" will be used a lot since we will learn that variations are the opposite of quality and by reducing variation (improving quality), we can embark onintroduction to the process improvement, online advices, short coursesroad to continuously improving a process.

Two Important Pioneers

Process efficiency, especially inintroduction to the process improvement, online advices, short coursesname of quality, has been around for a long time. For example, back in 1950 W. Edwards Deming spoke before Japanese business leaders, outlining a roadmap for total quality management. Deming’s roadmap consisted of fourteen key points:

1. Create a constancy of purpose so that you are continuously improving your processes. This requires defining both short term and long term problems, allocating resources appropriately, and working to improve product and service design.
2. Adopt a new philosophy of quality management, constant learning, embracing change and focus onintroduction to the process improvement, online advices, short coursescustomer.
3. Cease dependence on inspection as a means for ensuring quality. Instead, place much more reliance on statistical tools for assessing quality.
4. Don’t award simply on lowest price. Change your focus from lowest initial costs to lowest overall costs inintroduction to the process improvement, online advices, short courseslong run, incorporating quality, sole source, relationships, and other factors.
5. Search continuously to improve processes. Become innovative and look atintroduction to the process improvement, online advices, short coursesoverall process flow or system in terms of design, inputs, materials, maintenance, supervision, automation, training, teams, waste, and other areas that generate innovation.
6. Invest in great training to keep your people productive and innovative. New skills bring about improvements. Therefore, you must fuel this process by empowering your people to do their best.
7. Institute leadership that goes beyondintroduction to the process improvement, online advices, short coursesnumbers and instead, puts an emphasis on supporting and making sure people can execute. Leadership must be able to discern what’s important and what’s not to optimize how resources are applied.
8. Drive out fear and encourage people to participate and openly pursue needed improvements and change.
9. Break downintroduction to the process improvement, online advices, short coursesbarriers with workers, suppliers, and everyone involved inintroduction to the process improvement, online advices, short coursesprocess. Promote communication across all players.
10. Eliminate slogans, exhortations, and targets that tend to be divisive and counterproductive to one group of players withinintroduction to the process improvement, online advices, short coursesprocess.
11. Avoid numerical quotas since they impede quality, increase waste, and discourage productivity.
12. Allow pride of workmanship and do away withintroduction to the process improvement, online advices, short coursestraditional approaches of annual performance appraisals and management by objectives. Evaluate and reward performance in relation to quality.
13. Institute educational programs and self-improvement for life long learning and team building.
14. Make sure Senior Management is committed to improving quality and productivity. This may require changingintroduction to the process improvement, online advices, short coursesorganizational structure and putting an Action Plan in place for the 13 other points.

Needless to sayintroduction to the process improvement, online advices, short coursesJapanese took Deming very seriously, producing high quality products and capturing global markets for their products. So it is very clear that Deming was well ahead of his time and many of his principles are now widely practiced throughoutintroduction to the process improvement, online advices, short coursesworld.

A second pioneer behind the quality management movement is Joseph M. Juran. Juran, like Deming, advocated strong participation by everyone touched byintroduction to the process improvement, online advices, short coursesprocess. However, Juran took this concept one step further by includingintroduction to the process improvement, online advices, short coursescustomer. Juran argued that quality must be linked tointroduction to the process improvement, online advices, short coursescustomer. Juran documented his principles in a landmark book, Quality Control Handbook, in which he put heavy emphasis on understanding and measuring the customer. Here is a list of Juran’s ten step process:

1. Identify your customers
2. Seek out and define their needs
3. Translate customer needs into your business language and requirements
4. Establish units of measure
5. Define appropriate performance measurements
6. Develop products and services
7. Optimize product and service design
8. Develop production processes
9. Optimize processes / fully capable
10. Transfer into operations

For those wanting to learn how to improve a process,W. Edwards Deming and Joseph M. Duran are two ofintroduction to the process improvement, online advices, short coursesbest sources.

"Production technique is pretty much a level playing field. Anyone can purchase identical equipment and facilities, hire and train qualified people, and purchase raw materials required to make a product. There are certain steps required to make a particular product and everyone does themintroduction to the process improvement, online advices, short coursessame way. online courses, understand process improvement, improve processdifference appears to be inintroduction to the process improvement, online advices, short coursesmanufacturing technique - how we manage and balance people, materials, and machines." - Lean Manufacturing that Works by Bill Carreira

Breaking it Down

A process is a series of activities, often repeated over and over withintroduction to the process improvement, online advices, short coursesbasic flow of transforming inputs into outputs. online courses, understand process improvement, improve processbasic premise can be depicted as follows:



online courses, understand process improvement, improve processactivities that make upintroduction to the process improvement, online advices, short coursesprocess are notintroduction to the process improvement, online advices, short coursessame. Some activities add value to a process and other activities fail to add value. Therefore, one way to think "process improvement" is to think in terms of reducing non-value added activities.

online courses, understand process improvement, improve processconcept of value-added is not easy to pin down. We can borrow from lean thinking (which we will discuss later) to help define value added. Under lean, introduction to the process improvement, online advices, short coursesactivity needs to contribute in some way to adding value tointroduction to the process improvement, online advices, short coursescustomer. So in order to understand if an activity is value-added, you must understand what adds tointroduction to the process improvement, online advices, short coursescustomer experience. Maybe it’s something that gets the product tointroduction to the process improvement, online advices, short coursescustomer sooner or perhaps it’s an afterintroduction to the process improvement, online advices, short coursessale phone call that makesintroduction to the process improvement, online advices, short coursesproduct or service more complete. We need to distinguish between value added vs. non value added in relation tointroduction to the process improvement, online advices, short coursescustomer. This often boils down to getting the process to do onlyintroduction to the process improvement, online advices, short coursesright things inintroduction to the process improvement, online advices, short coursesright sequence at the right times and everything else is subject tointroduction to the process improvement, online advices, short coursesnon-value added test.

online courses, understand process improvement, improve processconcept of Lean tends to "flag" non value added activities into seven categories:

1. Overproduction - online courses, understand process improvement, improve processapplication of work that is not really needed.
2. Waiting - Time spent where resources are idle, not used for anything.
3. Transportation - Having to move resources from one location to another which introduces delay and inefficiency.
4. Nonessential activity - Performing an activity that makes no contribution to putting value into the hands ofintroduction to the process improvement, online advices, short coursescustomer.
5. Inventory - Holding resources until they can be used or sold.
6. Variation - Changes or deviations fromintroduction to the process improvement, online advices, short coursesexpected outcome ofintroduction to the process improvement, online advices, short coursesprocess.
7. Defects - Errors or nonconformities produced duringintroduction to the process improvement, online advices, short coursesprocess.

You can also flag a non value added activity by asking ifintroduction to the process improvement, online advices, short coursesactivity is a "Re" type activity; such as Rework, Reschedule, Resubmit, and so forth. Regardless of how you go about it, you need to squeeze non value activities out of a process. A few non value activities may be required, such as regulatory requirements within a process; but we want our processes to be lean and this will require very few, if any, non-value added activities.

Compress the Handoffs

One of the more common practices for improving a process is to reduceintroduction to the process improvement, online advices, short courseshandoffs or transfers that take place. This is usually accomplished by first understanding and mapping out the process using a flowchart. Onceintroduction to the process improvement, online advices, short coursesprocess is mapped out,introduction to the process improvement, online advices, short coursestrick is to compress the handoffs out ofintroduction to the process improvement, online advices, short coursesflowchart, streamlining and makingintroduction to the process improvement, online advices, short coursesprocess more efficient.

For example, large bureaucratic organizations transfer information, products, and other outputs between functions, departments, divisions, and other hierarchies that inject handoffs alongintroduction to the process improvement, online advices, short coursesway. With each handoff, there is delay involved, not to mention the introduction of errors. Consolidating these activities aroundintroduction to the process improvement, online advices, short coursesprocess flow can help reduce cycle times and lower the resources consumed (costs). online courses, understand process improvement, improve processfollowing example highlights the difference between organizing around functions vs. organizing aroundintroduction to the process improvement, online advices, short coursesprocesses:


Fundamental Principles

Many organizations recognize certain practices as part of improving a process. Here are some examples:

- Technology - online courses, understand process improvement, improve processuse of technology is often an enabler for improving a process. This is particularly important when it comes to innovation or rapid transformation of a process, commonly referred to as Business Process Redesign (BPR). For example, introduction to the process improvement, online advices, short coursesuse of Radio Frequency Identification or RFID’s to track inventory items is transforming how company’s manage high value items moving throughintroduction to the process improvement, online advices, short coursessupply chain. Technology can often help improve the efficiency or effectiveness of a process by introducing innovative approaches for doing things differently.

- Outsourcing - Non core processes where control byintroduction to the process improvement, online advices, short coursesorganization is not critical are sometimes outsourced. Outsourcing relies on outside expertise to take control over some non-core function, especially functions that are redundant and generic in nature. Outsourcing can quickly eliminate unnecessary activities, lower overall costs, and introduce better ways of how things should get done. There are some downsides to outsourcing, such as loss of control, initial costs of changeover, and possible loss of jobs to those whose positions have been outsourced.

- Benchmarking and Best Practices - One ofintroduction to the process improvement, online advices, short coursesfastest ways to gain insights into how to improve a process is to benchmark your performance in relation to best in class practices. You instantly see real world examples that highlight your strengths and weaknesses in relation to your peers. Many best practices cut across companies and industries, such as web enabled processes to service customers or procurement cards for consolidating payable processing. Additionally, best practices are often not overly complicated, such as forming teams for project based work or using an intranet web site for knowledge sharing.

- Supply Chains - For many organizations, introduction to the process improvement, online advices, short coursessupply chain is at the core of major processes and since supply chains involve lots of movement and complexity, they invariably are ripe for process improvement. For example, most supply chains move things from one point to another and anytime you move something, it ends up sitting around waiting forintroduction to the process improvement, online advices, short coursesnext activity to kick-in. Another problem is a fixation with lowest costs suppliers. There is much more to the value equation than simply price. Consequently, many supply chains are very poorly managed.

"Supply chains are as old as commerce, butintroduction to the process improvement, online advices, short coursesopportunities they now present are without precedent. Modern manufacturing has driven so much time and cost out ofintroduction to the process improvement, online advices, short coursesproduction process that there is only one place left to turn for competitive advantage. As business engineering guru Michael Hammer recently put it in his new book, online courses, understand process improvement, improve processAgenda, the supply chain isintroduction to the process improvement, online advices, short courseslast untapped vein of business gold."
- Supply Chains: A Manager’s Guide byDavid A. Taylor, Ph.D.

Measurement and Control

One ofintroduction to the process improvement, online advices, short coursesuniversal principles for a sustained approach to improving a process is to measure the process. And once you measureintroduction to the process improvement, online advices, short coursesprocess, you now have an opportunity to get control over the process. Measurement and control is particularly important where organizations want to continuously pursue process improvement in a very rigorous way. Process measurement typically takes three forms:

1. Quality - Measuring a process in relation to qualitative characteristics (reliability, appearance, color, weight, length, etc). Examples include: # of Breakdowns, # Service Requests by Product, # of Power Failures, % of Orders Rejected, # of Invoices Disputed, Write Offs as a % of Sales, etc.

2. Time - Measuring a process in relation to speed, response, turnaround, cycles, etc. Examples include Wait Time in Minutes, Round Trip Hours, Cycle Time, etc.

3. Productivity - Measuring a process in relation to actual outputs vs. what you desire in terms of outputs. Examples include % of orders shipped within 3 days, % of invoices entered within 24 hours, # of customers serviced, # of claims processed, % requests sentintroduction to the process improvement, online advices, short coursessame day, etc.

You can also think in terms of efficiency and effectiveness when it comes to understanding what should get measured. Listed below is a rating scale regarding process efficiency and effectiveness:



Once you know what to measure, the next step is control. Control often takesintroduction to the process improvement, online advices, short coursesform of a control chart. If you took statistics, you should remember something called the Normal Distribution curve:



Now flipintroduction to the process improvement, online advices, short coursescurve sideways and extend it out over measurable intervals. online courses, understand process improvement, improve processupper and lower control limits define variation fromintroduction to the process improvement, online advices, short coursesmean (average). This is the basic structure of a control chart for monitoring variation, sometimes described as Statistical Process Control (SPC).

We can take this one step further by experimenting with our inputs whereby we carefully alter or changeintroduction to the process improvement, online advices, short coursesinput variables to see how it changes the process and final outputs. This is one ofintroduction to the process improvement, online advices, short coursesmost common techniques for continuously improving a process - Design of Experiments (DOE).We will dig deeper into these statistical concepts (SPC and DOE) when we explore Six Sigma.

Formal Programs

Some organizations use formal programs for making process improvement happen. Two notable examples areintroduction to the process improvement, online advices, short coursesMalcolm Baldrige National Quality Award and ISO (International Organization for Standardization) 9000 Registration. online courses, understand process improvement, improve processMalcolm Baldrige Program was established to promote quality management and performance excellence for businesses in introduction to the process improvement, online advices, short coursesUnited States. Malcolm Baldrige requires a business to focus onintroduction to the process improvement, online advices, short coursesfollowing areas, totaling up to 1,000 points:

1 Leadership (125 points)
1.1 Organizational Leadership (85)
1.2 Public Responsibility & Citizenship (40)

2 Strategic Planning (85)
2.1 Strategy Development (40)
2.2 Strategy Deployment (45)

3 Customer and Market Focus (85)
3.1 Customer & Market Knowledge (40)
3.2 Customer Satisfaction & Relationships (45)

4 Information and Analysis (85)
4.1 Measurement of Organizational Performance (40)
4.2 Analysis of Organizational Performance (45)

5 Human Resource Focus (85)
5.1 Work Systems (35)
5.2 Employee Education, Training, and Development (25)
5.3 Employee well-being and Satisfaction (25)

6 Process Management (85)
6.1 Product and Service Processes (55)
6.2 Support Processes (15)
6.3 Supplier and Partnering Processes (15)

7 Results (450)
7.1 Customer Focused Results (115)
7.2 Financial and Market Results (115)
7.3 Human Resource Results (80)
7.4 Supplier and Partner Results (25)
7.5 Organizational Effectiveness Results (115)

the International Organization for Standardization (ISO) in Geneva, Switzerland. These standards cover eight management principles:

1. Customer Focus - Organizations depend on their customers and therefore should understand current and future customer needs, striving to exceed customer expectations.

2. Leadership - Leaders establish unity of purpose and direction ofintroduction to the process improvement, online advices, short coursesorganization. They should create and maintain the internal environment in which people can become fully involved in achievingintroduction to the process improvement, online advices, short coursesorganization's objectives.

3. Involvement of People - People at all levels areintroduction to the process improvement, online advices, short coursesessence of an organization and their full involvement enables their abilities to be used for the organization's benefit.

4. Process Approach - A desired result is achieved more efficiently when activities and related resources are managed as a process.

5. System Approach in Management - Identifying, understanding and managing interrelated processes as a system contributes tointroduction to the process improvement, online advices, short coursesorganization's effectiveness and efficiency in achieving its objectives.

6. Continual Improvement - Continual improvement of the organization's overall performance should be a permanent objective ofintroduction to the process improvement, online advices, short coursesorganization.

7. Factual Approach to Decision Making - Effective decisions are based on the analysis of data and information.

8. Mutually Beneficial Supplier Relationships - An organization and its suppliers are interdependent and a mutually beneficial relationship enhancesintroduction to the process improvement, online advices, short coursesability of both to create value.

Most ISO standards are very specific to products and services, such as Shipbuilding, Packaging, Mining, and Metallurgy. ISO also has a generic set of standards, grouped by certain categories: ISO 9000:2000 (vocabulary and definitions), ISO 9001:2000 (registration requirements), ISO 9004:2000 (guidelines for improvingintroduction to the process improvement, online advices, short coursesquality management system) and ISO 14000 (environmental management system). ISO Registration is often considered a pre-requisite for getting certain international business. Registration requires documentation of processes followed by a formal review conducted by auditors.

Although Baldrige and ISO 9000 are solid frameworks for rapidly putting a quality program together, they sometimes can be more show than substance. For example, some companies spend most of their efforts filling up notebooks with paper, documenting everything and usingintroduction to the process improvement, online advices, short coursesright buzz words to satisfy auditors. In reality, it can be more important to apply the concepts associated with these programs as opposed to jumping throughintroduction to the process improvement, online advices, short courseshoops to win the award. Also, many organizations seem to get more bang for their buck by pursuing process improvement methodologies such as Six Sigma. Therefore, you should not view programs such as Malcolm Baldrige or ISO 9000 as panaceas for process improvement, but instead look to them for concepts and principles that fit and work within your organization.