Process Improvement - Lean Six Sigma Approach
The Lean Six Sigma Black Belt Handbook: Tools and Methods for Process Acceleration
Frank Voehl, H. James Harrington, Chuck Mignosa, Rich Charron
CRC Press, 09-Jul-2013 - Business & Economics - 621 pages
https://books.google.co.in/books?id=EHcVk4K6HcEC
When you read the article, you should be able to:
• Explain the idea of LSS quality focus on the organization’s processes
• Explain the need for PI
• Describe the objectives of PI
• Explain the advantages of PI
• Explain what a business process is
• Explain how the owner of a business process is selected
• Describe the authority and responsibilities of a business process owner
• Describe the composition and function of the Process Management Committee (PMC) and the Process Improvement Team (PIT) [the Six Sigma Team (SST)]
A management approach known as process improvement (PI). PI emphasizes both quality and excellence. It looks at the function of business management on the basis of processes rather than organizational structure.
AN LSS QUALITY FOCUS ON THE BUSINESS PROCESS
LSS seeks to focus management attention on the fundamental processes that, when taken together, actually drive the organization.
Definition: A business process is the organization of people, equipment, energy, procedures, and material into the work activities needed to produce a specified end result (work product). It is a sequence of repeatable activities that have measurable inputs, value-added activities, and measurable outputs.
OBJECTIVES OF PROCESS IMPROVEMENT
Process improvement is a disciplined management approach. It applies prevention methodologies to implement and improve business processes in order to achieve the process management objectives of effectiveness, efficiency, and adaptability.
• An effective process produces output that conforms to customer requirements (the basic definition of quality). The lack of process effectiveness is measured by by the output’s degree of defect. This is LSS’s first aim—to develop processes that are effective. [Effectiveness first. Efficiency Next. Narayana Rao].
• An efficient process produces the required output at the lowest possible (minimum) cost. That is, the process avoids waste or loss of resources in producing the required output. Process efficiency is measured by the ratio of required output to the cost of producing that output. This cost is expressed in units of applied resources (dollars, hours, energy, etc.). This is LSS’s second aim—to increase process efficiency without loss of effectiveness.
• An adaptable process is designed to maintain effectiveness and efficiency as customer requirements and the environment change. The process is deemed adaptable when there is agreement among the suppliers, owners, and customers that the process will meet requirements throughout the strategic (3- to 5-year outlook) period. This is LSS’s third aim—to develop processes that can adapt to change without loss of effectiveness and efficiency.
CRITICAL SUCCESS FACTORS
The concept of critical success factors plays an important role in the LSS approach. Critical success factors are those few key areas of activity in which favorable results are absolutely necessary for the process to achieve its objectives.
NATURE OF LSS PROCESS IMPROVEMENT
In addition to the key concepts just introduced, LSS uses many accepted standards of management and professional excellence.
Advantages of LSS Process Improvement
LSS is more efficient than other methods in that it can be implemented process by process. It does not require simultaneous examination and analysis of all of a corporation’s processes.
DETERMINING PROCESS OWNERSHIP
Process ownership is intended not as a replacement of the traditional organizational structure, but as a complement to it, a complement with a specific goal.
PROCESS OWNERSHIP
Definition
A process owner is a manager within the process who has responsibility and authority for the overall process result.
Normally, the term process owner is used in connection with major business processes, either corporate-wide (for example, the general manager of a plant owns the process of manufacturing a particular product).
The Process Management Committee
Headed by the focus owner, the PMC is a group of managers who collectively share the responsibilities related to the committee’s mission.
The Process Quality Team
Headed by the functional owner, the Process Improvement Team (PIT) is made up of lower-level managers. Preferably, they are peers of the functional owner and work for members of the PMC.
SELECTION, RESPONSIBILITIES, AND AUTHORITY OF THE PROCESS OWNER
Selection of the Process Owner
The process owner is defined, in part, as a manager within the process. The process owner continues in his or her current position, and simply takes on additional duties as head of the overall process. The other managers within the process become members of the PMC. Top management normally appoints the process owner.
Responsibilities of the Process Owner
In general, the process owner is responsible for making sure that the process
is effective, efficient, and adaptable
Process Owner responsibilities.
1. Determine and document process requirements and secure customer concurrence.
2. Define the sub-processes, including information used by the process.
3. Designate owners over each sub-process.
4. Identify implementers and assure application of quality management principles.
5. Ensure documentation of task-level procedures.
6. Identify critical success factors and key dependencies in order to meet the needs of the business during the tactical and strategic timeframe.
7. Establish measurements and set targets to monitor and continuously improve process effectiveness and efficiency.
8. Rate the process/sub-process against defined quality standards and control criteria.
9. Report process status and results.
10. Identify and implement changes to the process to meet the needs of the business.
11. Ensure that information integrity exists throughout the process, including integrity of measurements at all levels.
12. Resolve or escalate cross-functional issues.
Authority of the Process Owner
PROCESS DEFINITION AND THE PROCESS MODEL
A process model is a detailed representation of the process as it currently exists. The model may be written, graphic, or mathematical. The preferable, recommended form is a process flow chart. Whatever form is used, the model must contain supporting textual documentation, such as a manual or a set of job descriptions.
Definition of Process Mission and Scope
The first thing to be done, once ownership has been established, is to define the mission, or purpose, of the process, and to identify the process scope.
Chapter of the book 2. Process Improvement and Lean Six Sigma
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