Quality Improvement Using Model-Based and Integrated Process Improvement (MIPI) Methodology

T. Yuri Zagloela, M. Dachyarb and Febi Nur Arfiyantoc

a Faculty of Engineering University of Indonesia, Depok 16424 Tel: (021) 7270011 ext 51. Fax: (021) 7270077 E-mail: [email protected] b Faculty of Engineering University of Indonesia, Depok 16424 Tel: (021) 7270011 ext 51. Fax: (021) 7270077 E-mail: [email protected]

Faculty of Engineering University of Indonesia, Depok 16424 Tel: (021) 7270011 ext 51. Fax: (021) 7270077 E-mail: [email protected]

ABSTRACT
This study using a method created by Sola Adesola and Tim Baines called Model-Based and Integrated Process Improvement. This method is a doctoral research in Cranfield University on year 2005. In this research, a team consist few PT.X staffs created. Data collection conducted by understands the hatchery flow process and brainstorming from team member. Analysis conducted by using techniques written in related journal and generic analysis techniques used as process improvement tools. The focus of this study is in order to operate effectively, efficient and able to face dynamic business changes. Hence, PT.X tried to identify things to be concerned as business needs. From identification result, the study is focus to customer complaints. Keywords Business Process Improvement, brainstorming, Process Improvement Matrix

1. INTRODUCTION
Growing and competitive industries creating high quality product or services as a compulsory requirement. While in the other side, company also requires to effectively and efficient in order to face dynamic business changes. In order to survive in such environment, reviewing, evaluating and develop plans for improving business process performance is a must thing to do. These activities called Business Process Improvement (BPI).

Business Process Improvement (BPI) can be recognizing as an organized and planned business activity improvement methodology. A definition of Business Process Improvement, Harrington, 1997: A methodology that is designed to bring about step-function improvements in administrative and support processes using approaches such as process benchmarking, process redesign and process re-engineering. Business Process Improvement is a structural approach to analyze and continuously improve company activity by focusing on waste elimination and bureaucratic. Under big BPI umbrella there are three common strategy and activity adopted by organization: Continuous Process Improvement (CPI), Business Process ReEngineering (BPR) and Business Process Benchmarking. Although there are many method of BPI has been developed, practitioner still found difficulties when implement the methods. MIPI (Model-based and Integrated Process Improvement), a BPI method created by Sola Adesola and Tim Baines as a result from doctorate research showed a holistic, structured and procedural guidance for improving business processes. Research conducted resulting on identifying companys criteria and target to improve its business process performance.

2. RESEARCH METHODOLOGY
Model-Based and Integrated Process Improvement (MIPI) methodology is a Business Process Improvement (BPI) methodology from a research program by Sola

Adesola and Tim Baines on Cranfield University, 2005. MIPI is a generic model of BPI consists of seven procedural steps as guidance for action and decision. MIPI methodology can be use for improvement process and engineering process initiative. This methodology describe what to do and how to make it happen. The structure for this methodology contains a hierarchical structure includes: aim, actions, people involved, outcome/exit, checklists, hints and tips, and relevant tolls and techniques
Step Understand business needs

Model-Based and Integrated Process Improvement (MIPI) was developed from literature and discussion from practitioners. This methodology has been tested in two steps. First, a single case study was carried out which the researcher participated to nurse the newly formed BPI methodology through assessment. The second step by conducting case studies without direct involvement from researcher. Detail of BPI steps is shown in Table 1 below.

Understand the process

Step Description Develop vision and strategic objectives Perform competitor analysis Develop organizational model Evaluate current practices, prioritize objectives Scope change Establish measurable targets Develop process objectives and asses readiness Obtain approval and initial project resource Benchmark the process Identify the business process architecture Scope and define the process Capture and model AS IS process information Model the process

Techniques Organization model SWOT analysis Force field analysis Readiness assessment Stakeholder analysis Process prioritization matrix Pareto analysis Process performance table

Model analyze process Redesign process

and the

Verify and validate the model Measure the existing process performance Analyze the business process Benchmark the process Identify performance criteria for re-design process Identify focus of re-design activity Model and validate new TO BE process model Identify IT requirements Estimate performance of re-designed process

Xpat process IDEFO Walkthrough Process flowchart ABC Cause and effect analysis Value added analysis

Benchmarking Creative silent workshop Brainstorming

Implement new process

Assess new process and methodology

Plan the implementation Obtain implementation approval Review change management plan Communicate the change Technological development Make new process operational Train staff Roll-out changes Conduct process deployment performance data reflections Revise organizational approach

and

Review process

new

Develop strategic view of the business Set process targets and performance Develop a plan to meet targets Implement
Tabel 1: BPI steps and techniques

Action plan Evaluation report Customer survey Process matrix

measurement measurement improvement

3. RESULT
Data collection gathers by conducting interview and company documents. Data collected are: company vision & mission, strategy and organization structure; performance indicator; process flow; production capacity & location; product specification & quality; technology; resources & infrastructure; others.

associated with the right side of an IDEF0 box. (3) Control: the class of arrows that express IDEF0 Control, i.e.: condition required to produce correct output. Data or objects modeled as controls may be transformed by the function, creating output. Control arrows are associated with the top side of an IDEF0 box. (4) Mechanism: the class of arrow that express IDEF0 mechanism, i.e.: the mean used to perform a function; includes the special case of Call Arrow. Mechanism arrowa are associated with the bottom side of an IDEF0 box.

3.1. Understand Business Needs

From data collection and interview with it was observed that company want to improve customer satisfaction and improving existing process performance. Process Improvement Team (PIT) consists of representative from each department also created to conduct business process improvement.

3.2. Understand the Processes

Deep understanding of business goals is very important in business process improvement program. Many efforts will be useless and program will not appropriately execute if improvement program not align with organization goals. This research continues by understanding existing processes after knowing company needs. Understanding processes is conducted by mapping existing process, method used was IDEF0 (Integrated Computer Aided Manufacturing Definition), one of modeling tools being use in business process improvement activity. IDEF0 format consist of diagram describing process or system. Using box connected by arrow line to show direction. Process, function or activity represent by boxes inside diagram while arrow line connected to box represent specific data such as object, information or data required or produced by a specific activity. Type of arrow line used in IDEF0: (1) Input: class of arrow that express IDEF0 input. Input arrows are associated with the left side of an IDEF0 box. This arrow describe object or information which cab use as activity. (2) Output: the class of arrows that express IDEF0 output, i.e.: the data or object produced by a function. Output arrows are

Figure 1. IDEF0 diagram

Below are IDEF0 diagrams for hatchery process PT. X:

Figure 2. Top Level Diagram PT.X

Figure 4. Pareto Chart of Customer Complaint Figure 3. Child Diagram Operational Activity PT.X

3.3. Problem Area Identification

From brainstorming result, PIT team will focus on customer complaint. PIT team using Pareto Chart to identify the most frequent causes of customer complaint. From diagram created showed that the major problem was small and week DOC (days of chicks).

From Pareto Chart result, PIT team continue the research by develop a cause and effect diagram to identify root cause from small and weak DOC problem. Through discussion and brainstorming, PIT team develop probability from each nonconformance. Below is the cause and effect diagram from small and weak DOC (Figure 5). As the result from the diagram, PIT team can identify type of problems and each causes (Table 2.)

Figure 5. Cause and Effect Diagram from Small and Weak DOC

Factor Man

Problems Not following procedure Pre-Heat process was not conducted Over stay Holding Room Chicken not god health in in

Causes Employee doing their job as their own experience Focusing to achieve production target Wrong placement Lack of control of farm sanitation Traffic Jam Limited truck with good standard T/H Limited of good quantity eggs from supplier Inappropriate setting, calibration not conducted as per schedule No electricity

Method

2 3 4

Material

5 6

Over time during travel T/H inside truck was not meet standard Small grade eggs T/H control not meet standard (too cold of to hot) Machine shutdown

Machine

Table 2. List of Problem Causes Small and Week DOC

3.4. Analysis and Corrective Action Plan

During this step, FMEA or Failure Mode and Effect Analysis is as an improvement tool used to make prioritation of each failure mode from Small and Weak DOC. Severity, Occurrence and Detection criteria are created to identify the highest risk of failure modes and prepare the corrective action. Several failure modes with the highest risk selected as action plan. In this research, action plans selected is detailed into matrix called Process Improvement Matrix (PIM). PIM is a tool created to monitor the progress of process improvement activities. Each action plan are clearly described its progress using rating and Color Coding. Three Color Coding (Red/Yellow/Green) is use to describe its status againt deadline target. Detail of process improvement matrix from Small and Weak DOC problem can be found in below table:
Table 3. Process Improvement Matrix of Small and Weak DOC

4. CONCLUSION
From the business process improvement research using Model-Based and Integrated Process Improvement, criterias and target shall executed by company has been identified. Several quality improvement plans created to ensure company to meet with the business needs. Small and Weak DOC was identify as the highest customer complaint and by using cause and effect diagram several causes has been identified, i.e.: wrong setting; sick chicken; machine problem; temperature and humidity not meet with standard; over stay in holding room; pre-heat process was not conducted; long time delivery process; small grade eggs; not following procedure. As per Risk Priority Number from FMEA, it was observed that the Wrong Setting has the highest RPN. To easily monitor the progress of action plan taken, the Process Improvement Matrix is being used. REFERENCES [1] Sola Adesola and Tim Baines (2005). Developing and evaluating a methodology

for business process improvement. Business Process Management Journal, Vol. 11 No. 1. pp. 37-46 [2] K.T. Lee and K.B. Chuah (2001). A SUPER methodology for business process improvement. International Journal of Operations & Production Management. Vol. 21 No. 5/6, pp. 687-706 [3] Barry Povey (1998). The development of a best practice business process improvement methodology. Benchmarking for Quality Management & Technology.Vol. 5 No. 1. pp. 27-44 [4] Kettinger, W., Teng, J. and Guha, S (1997). Business Process Change: a study of methodologies, techniques, and tools Appendices MISQ Archivist. [5] Nancy R. Tague (2005). The Quality Tool Box Second Edition. ASQ Quality Press. [6] Harrington, H.J. (1991). Business Process Improvement The Breakthrough Strategy for Total Quality, Productivity and Competitiveness, McGraw-Hill, New York, NY [7] Bjorn Andersen (1999). Business Process Improvement Toolbox. ASQ Quality Press [8] Tinnila, M. (1995). Strategic perspectives to business process redesign. Business Process Reengineering & Management Journal, Vol. 1 No.1, pp. 44-50. [9] CEI/IEC 60812:2006, Analysis techniques for system reliability Procedure for failure mode and effects analysis (FMEA), [10] Chandrasa Sedyalaksana (2006). Introduction to Failure Mode and Effect Analysis. Indonesia Production Operations Management Society.