Chapter 6

Process Improvement

Faculty of Industrial Management

Universiti Malaysia Pahang
26300 Gambang, Pahang Darul Makmur
Tel: +609 549 2166 Fax: +609 549 2167
www.fim.ump.edu.my
Learning Outcomes
• Understand the basic concept of continuous improvement.
• Describe 5 basic ways to improve.
• Explain approaches of process continuous improvement.
✓ Juran’s Trilogy
✓ Shewhart’s PDSA Cycle
✓ Kaizen
✓ Reengineering
✓ Six Sigma
Continuous Improvement
“If you put your mind to it, water can be
wrung even from a dry towel”
Eiji Toyoda
Former president of TMC
Process…
A series of actions or steps taken in order to achieve a particular
end.
Refers to business & production
activities of an organization.

Example of Business Process:

Purchasing, producing,
engineering, accounting,
marketing, etc.
 Men (People)

Materials
Process…
Is the interaction of Machines (and Equipment)
some combination Methods
of 5M1E
Measurements

Environment
A Good Process…
Must be value-added, effective, efficient, under control & adaptable.
Must abide certain conditions imposed by policies, constraints &
regulations.
Which one is more effective & more efficient?
Correctness, accuracy & Time, cost, & resources
Effective: Doing the right things used are critical to be
quality attributes are
critical to be effective Efficient: Doing things right efficient
Effectiveness vs Efficiency
Efficiency Effectiveness
Definition Doing things right – are we Doing the right things – are we
performing activities the best producing the most
possible way? suitable/relevant product?
Focus Process – Is the project/ Output/Outcome/Impact – Are
organization performing these products with the highest
optimally? demand?
Orientation Objectives Results
Targets Organization’s internal Customer requirements – products
operational requirements – cost meet or exceed them & have no
& other resources utilization deficiencies.
Complementari Doing the right things right – Efficiency & effectiveness are mutually
ty reinforcing
5 Basic Ways to Improve the Process
(1) Reduce Resources
Using more resources is wasteful.

(2) Reduce Errors

Errors are a sign of poor quality.

(3) Meet or exceed expectations of

downstream customers
Ex: The better the weld, the lesser the grinding
required. Thus, appearance of a finish paint is
more pleasing.
5 Basic Ways to Improve the Process

(4) Make the workplace safer

A safer workplace is more productive, with fewer
lost time accidents, & less worker’s compensation
claims.

(5) Make the process more satisfying to the

workers
Little changes can make a substantial change in
person’s attitude towards their work.
Approaches of Process Improvement

Juran’s Approach of quality improvement

Trilogy from a cost-oriented perspective
The fundamental radical
Re-
redesign of business processes
Engineering
to achieve dramatic
PDSA Engineering scientific method
improvements
Cycle applied to continuous improvement
& quality A data-driven approach &
methodology to eliminate Six-Sigma
Approach focuses on making small defects
Kaizen incremental improvements
 The Juran’s Trilogy
Planning Controlling Improvement
Juran’s Trilogy

Quality Quality Quality

Planning Control Improvement
Activities of developing The process is for obtaining
products & processes to breakthrough in quality
Deals with the execution of
meet customers' needs. performance.
plans & monitoring
operations to detect
It deals with setting goals & Aims at ensuring the level
differences between actual
establishing the means of performance are higher
performance & goals.
required to reach the goals. than the current level.
Juran’s Trilogy
Juran’s Trilogy: Quality Planning

1. Establish quality 2. Identify the 3. Discover the real

goals customers customer’s needs

4. Develop
6. Transfer the
processes that are
resulting plans to 5. Establish process
able to produce
the operating controls
those product
forces
features
Juran’s Trilogy: Quality Control

Aim:
to meet the process, product, & services
requirements.
Tools:
SPC: Pareto diagrams, flow diagrams, cause & effect
diagrams, check sheets, histograms, control charts,
scatter diagrams.
Juran’s Trilogy: Act on the difference

Quality Control
4
Set goals for the controls
Compare actual
performance to goals
3 1 & determine the sensors
to measure the product,
process or service.

2
Measure actual quality
performance
Juran’s Trilogy: Quality Improvement
Begins with the establishment of an effective infrastructure to secure quality
improvement (e.g., quality council, quality circle, etc.).

Duties of quality council:

1. Identify the specific needs for improvement.
2. Establish the project teams, with clear
responsibility.
3. Provide teams with resources to determine causes,
create solutions, & establish controls to hold the
gains.
4. Ensure that improvement is continuous & never
ending (incremental breakthrough).
PDSA Cycle
The basic PDSA was first
developed by Shewhart, then
modified by Deming to become
PDCA (Plan-Do-Check-Act).
Deming’s
PDCA Cycle
Shewhart’s PDSA Cycle
Phase 1: Identify the Opportunity (P)
Aims:
To identify & prioritize opportunities of improvement.

Activities:
(1) Identify the potential problems.
(2) Form the team.
(3) Define the scope.
Phase 2: Analyze the Current Process (P)

Aims:
To know the current process, and how it is
performed.

Activities:
(1) Define process boundaries, outputs &
customers, inputs & suppliers, & process flow.
(2) Assess current performance (e.g., customer
satisfaction levels).
(3) Gather data.
(4) Identify root causes of problem.
Phase 3: Develop Optimal Solutions (P)
Aims:
To establish potential & feasible solutions &
recommend the best solution to improve
the process.

Activities:
(1) Determine possible solutions
(2) Evaluate & test the solutions
Phase 4: Implement Changes (D)
Aims:
(1) To prepare the implementation plan, (2)
obtain approval, & (3) implement the
improvement, & (4) monitor the
implementation.

Important:
Answer the Questions: 4W1H.
Implementation plan: 4W1H to do?
Monitoring: 4W1H to measure?
Phase 5: Study the Results (S)
Aims:
To monitor & evaluate the changes by
tracking & studying the effectiveness of
improvement effort through data collection
& review the progress.

Activities:
(1) Know that the problem has been solved.
(2) Ensure that there is no unexpected
problems as a results of the changes.
Phase 6: Standardize the Solutions (A)
Aims:
To institutionalize the changes by positive
control of the process, process certification, &
operator certification.

Activities:
(1) Establish new process & quality standards.
(2) Certify process & operators.
Phase 7: Plan for the Future
Aims:
(1) To achieve the desired performance level
(2) To plan the next improvements.

Activities:
Identifying the next possible improvements.
Kaizen
 Kaizen
Everyone, everywhere, & everyday continuous
improvement
~Masaaki Imai~
Main Characteristics of Kaizen

Continuous By breaking down

Without complex processes
improvement that makes
sophisticated into sub-processes &
the process more
techniques or then improving them
efficient, effective,
expensive equipment
under control &
adaptable Accomplished at
Focuses on
Small increments little or no
1 expense 2 simplification 3
 Muda/Waste Motion Study Material Handling Visual JIT Principles
Value added & Non-value Analysis of the motion of an Including the use of one-piece Management To produce only the units
Added activities operator or work flow required (in the right
Andon, Jidoka, Pokayoke, etc.
quantities, time, and quality)
Main Areas of Kaizen
1. Value-added & non-value added activities.
2. Muda (waste): Transportation, Inventory,
Motion/Movement, Waiting, Over-production,
Over-processing, Defect (TIMWOOD).
3. Principles of motion study.
4. Principles of material handling, & use of one-
piece flow.
5. Documentation of SOP.
Main Areas of Kaizen

6. 5S for workplace organization.

7. Visual management by means of visual displays
that everyone in the plant can use better
communication.
8. JIT principles to produce only the units required
(in the right quantities, time, and quality).
9. Pokayoke to prevent human errors.
10. Team dynamics including problem solving,
communication skills, & conflict resolution.
Muda/Waste in Operations
Muda/Waste in Operations
Muda/Waste in Operations
Visual Management
Pokayoke
5S

Seiri Seiton Seiso Seiketsu Shitsuke

Sort, Clearing, Set in order, Sweep, Clean & Standardize, Sustain, self
Classify Simplify, Check stabilize, discipline, custom &
Configure conformity practice
Reengineering
Fundamental rethinking & radical redesign of business process in
order to achieve dramatic improvements in critical measures of
performance.
It is expensive, & requires large number of resources.
Reengineering Steps
Six Sigma (6σ)

A data-driven approach & methodology for eliminating defects (driving

toward 6 standard deviations between the mean and the nearest
specification limit) in any process – from manufacturing to
transactional & from product to service.

The statistical aspects tell us that…

We should reduce the process variability & try to keep the process
centered on the target
Six Sigma (6σ)
Six Sigma (6σ)
The smaller the deviation value, the lesser the variability in the process.
Steps of Six Sigma (6σ)
 Faculty of Industrial Management
Universiti Malaysia Pahang
26300 Gambang, Pahang Darul Makmur
Tel: +609 549 2166 Fax: +609 549 2167
www.fim.ump.edu.my