Long-term business survival requires constantly re-assessing and improving business processes. Continuous process improvement allows for businesses to become more agile, efficient, and innovative. Continuous improvement is one of the common traits of successful modern companies.
What is Continuous Process Improvement?
Continuous process improvement is the practice of implementing improvements to a product, service, or process. These improvements can either be incremental (implemented in small steps over time) or breakthrough (implemented all at once).
It is essential to remember that process improvement isn’t an event. It isn’t about optimizing a particular process once and then leaving it alone. Instead, CPI means that once you have a successful improvement event, you collect the results and begin the improvement cycle again.
Process Improvement Frameworks
Several popular process improvement frameworks have been developed to help organizations manage and maximize positive change. Two of the most widely used are Six Sigma and Lean.
Six Sigma
The Six Sigma improvement framework started at Motorola and eventually became a central part of the strategy at General Electic. It is widely used in manufacturing but applies to many other business processes. The approach helps organizations measure and minimize defects or variations in processes allowing them to deliver near-perfect products and services.
Six Sigma is most often supported with the DMAIC improvement cycle. The DMAIC steps are:
Define the opportunity for improvement.
Measure the performance of the current process.
Analyze the process to find defects and identify their root causes.
Improve the process by resolving the root causes.
Control the improved process and future performance to address any variations before they result in defects.
Lean Manufacturing
As is implied by the name, the Lean framework aims to reduce costs and streamline customer value by eliminating waste. Although it started in the manufacturing sector, Lean principles can be applied in every industry.
Lean practitioners focus on a process’s value stream. It consists of activities that add value for which the customer is willing to pay and non-value activities that are sometimes necessary to complete the product. Any action that doesn’t add value or isn’t required for logistical or regulatory purposes is considered waste.
Lean wastes include:
Transportation: The movement of items unnecessary for the process
Inventory: Materials that aren’t needed to process current orders
Motion: The movement of people or equipment that isn’t necessary to complete the process
Waiting: Periods of inactivity and interruptions in the production flow
Overproduction: Production of products or components ahead of demand
Overprocessing: Unnecessary work due to poor design
Defects: Rework due to errors or defects in process results
Human Potential: The waste of underutilizing employee knowledge and skills
Lean Six Sigma is a combination of both approaches. It borrows from the data-driven nature of Six Sigma but also emphasizes collaboration and daily incremental improvement.
![[Watch Now] The Why, How, and What of Continuous Improvement](https://no-cache.hubspot.com/cta/default/326641/060c8cc9-44ad-4fd1-ad7b-7b4ab71c7632.png)
Continuous Process Improvement Techniques
Whether you choose to leverage one of these frameworks or not, many process improvement techniques can be leveraged together or independently to provide structure for your improvement efforts. Some of the most impactful are:
Value Stream Mapping
A value stream map documents each step for delivering a product or service to the customer from the beginning of production to delivery. The map includes a timeline and lists all value-added, and non-value added activities. Assessing the map allows you to identify wasteful activities that can be removed from the process.
PDSA Cycle
PDSA stands for Plan, Do, Study, Act. It goes by other names, such as the Deming cycle and the control cycle. During the cycle, improvement team members create a clear definition of the problem and a plan for addressing the root cause (Plan). Next, they implement the proposed solution (Do) and measure the results (Study). Finally, if the solution has indeed resulted in a successful implementation, the standard work is adjusted (Act), and a new cycle can begin.
Business Process Maps
Business process maps are a visual tool for looking at the entire business process, including functional roles, responsibilities, and goals. They offer a holistic view of the business and help leaders assess the organization’s activities to identify opportunities to improve productivity.
Fishbone Diagrams
Also known as Ishikawa or cause-and-effect diagrams, these visual tools can help teams brainstorm potential causes of a defect. Resembling the bones of a fish, the head of the diagram contains the problem statement, and the lines branch out into different categories of potential causes. The possible cause groups can vary based on the process, but they generally include people, processes, equipment, materials, management, and the environment.
X-Matrix
The X-matrix is a strategy deployment tool that helps organizations achieve incremental and breakthrough goals by aligning the organization around key objectives. The design of the matrix includes:
- Long-range breakthrough objectives
- Annual objectives
- Annual improvement opportunities and priorities
- Metrics to measure
- Teams and ownership
Using the X-matrix helps keep everyone working toward the same end and using a consistent definition of success.
A3 Reports
A3 is a process mapping methodology that was first used by Toyota in the 1960s and subsequently adopted by leaders in other industries. Using the A3 process mapping format, improvement teams create a one-page PDSA improvement project report. By keeping the report to one page, team members are forced to be concise and include only relevant information necessary for problem-solving.
Rapid Improvement Events
While continuous improvement should be a daily effort, some problems or opportunities demand the full attention of stakeholders. In that case, a rapid improvement or Kaizen event may be in order. During a rapid improvement event, a team, often a cross-functional one, is assembled. They set aside other duties for a three to five-day period to focus on the problem or targeted process.
Gemba Walks
Gemba Walks are a technique borrowed from Lean, in which supervisors or leaders go to the workplace to observe, show respect, and look for potential opportunities for improvement. Process operators are encouraged to explain why they do things the way they do. After the walk is complete, the supervisor compiles their observation and potentially begins a PDSA or DMAIC cycle.
These continuous process methodologies help ensure the successful implementation of improvement projects. Every business, no matter the industry or size, can benefit from structured improvement management.
.svg)
Add a Comment