Process Analysis and Improvement Flashcards
why do we record the flow of customer/info/products in process analysis
- easier to understand the flows (communication and training purposes)
- helps identify improvment opportunities
what are the important symbols
rectangle: task
upside down triangle: any wait time (even things like inventory waiting on a shelf)
diamond: decision points
who should be doing process improvement
the people direclty invovled in the process!
identify shapes (make to order process)
raw materials
cook-customer place order
assemble
deliver
triangle
rectangles
identify shapes (make to stock process)
raw materials
cook
assemble
finished goods
deliver-customer places order
triangle
rectangle
rectangle
triangle
rectangle
rectangle
how did toyota use process improvement in blood services
does blood have a long shelf life
no!!!! very perishable
what did toyota do in canadian blood services
3 improvements
-improved the blood supply chain by applying the toyota production system
- improvement #1: standardized work
-making flow of work a circle (Walk less, minimize time) - improvement #2: reduce burden on team
-less time in freezers - improvement #3: reduce wasteful motion
-gained an additional 1 hour per day
how many canadiands donate blood? out of 12 million
only 4%
are there suppliers in th eblood supply chain? can they be paid?
no!!!! only 4% of people do so you cannot dissapoint suppliers
is there certain supply or demand in the blood supply chain?
no!!!! supply ucertain (depends on donors) and demand can fluctuare
canadian blood services case summary
this describes the process flow, but the process is basically inefficient, as sometimes customers can spend 1 hour before being turned away
how could we make the blood donation process better?
move the fill out questionaire and checking it to the start iin the process!! before even pricking
-improved donor service (less time waiting)
-saves iron test supplies and labour
-only enter the complex info if they will donate
could the blood donation processs be improved even further?
yes!! have a questionaire on the website for people to do before they even come
-or have signs up that will tell you ou are ineleigible
note about process analyssi visuals
ALWAYS DRAW OUT THE INGREDIENTS/INPUTS
this is triangle
also DRAW OUT THE FINISHED GOODS THAT ARE UNSOL
also triangle
how to do process analysis
- draw the visual out!!! take care to note all inputs ccarefully and all steps
- now identify each stage#, and do the capacity per hour calculations
- along the y axis have all the stages, and the x acis has capcity per hour, capacity per week, demand per week, excess/short
- identify the stage with the lowest capacity (this is the stage that is the bottleneck)
- analysis, if we ease the bottleneck stage, what becoes our next bottleneck?
synonym for bottleneck
capcacity of the prcoess
3 parts of the process improvement
1) recognize need for change
2. resarch best practices (benchmarking)
3- determine how to change (tinker/teardown)
How do you recognize the need for change?
look at the warning signs that the business process may need improvement
what are the 4 types of warning signs (prcoess improvement step1)
Internal Leading
Internal Lagging
External Leading
External Lagging
what does leading and lagging mean
leading is something that is giving you immediate feedback that the process is ass
lagging is something that will give you delayed feedback that the process is asss
internal leading warning signs (4)
-excess delays or having really high inventory
Why is this the case?
-high rework/scrap costs
Why are a lot of things going to scrap?
-emploee frustration
Look at their faces, why are they upset
-Idle staff/equipment
paid to work!! so not wokring is bad sign
what is internal laggining warning signs
-excess overtime (what are we making up for???)
-employee turnover
-declining kpis!!!
what are external leading warning signs
-cusotmer complaints (why are people complaiing)
-product returns (are their problems)
-negative media
what are external lagging warning signs
declining market share
declining financial performance
are leading warning signs better or lagging
leading is better cuz u address them before signifcatn issues arise!!
what is the second step in process improvement
what are others doing? benchmark them
what is benchmarking
formal process of comparing an organizations processes and performance measures against top performers!!!!!
how are they doing it?
what can benchmarking results be used for
they can be used for targets in processs improvements
3 categories of bench marking
- internal (approporaite for orgs w multiple locations!!! compare with ur own branches)
- competiive (hard to get info, think about the airlines case) westjet andair canada
- functional (compare to companies in different industries!!!! more willing to share)
step 3 o process imprvement (what are the two approaches)
- tinkering (Continutous process imrppvoement) CPI
- tear down (business process reinginering)
what is CPI
never ending process of acheiving incremental improvements
what is BPR
short term radical process improvement
-process of rethinking and restructing, it requires DISCONTIUOUS THINKING (think from the bottom up)
does anyoen truly choose BPR
no! they have to cuz back against the wall
what causes BPR
1) tech advancements (disruptive tech)
2. draastic improvement at competitors
3. changing customer desires
or essentially, entire market changes
what are disruptive technologies
any new tech that eventually becomes bigger than existing dom tech, this tech is
RAADICALLY DIFFERENT
and willinitially perform WORSE than leading tech but eventually will win
what are examples of disruptive tech
cell phone
digital music
cameras
streaming
evs
what is CPI
its the incremental changes!!!
how do you implement CPI
1) employee involvement (Collaborative cross ufnctional teams)
2. they need to be trained in problem ideitnficaiton, ANDDD opportunity identification
they need time!!
how can a company culture be conducive to cpi?
company must invest in employees (give them money), give them power (delegate decision making), and should be open to managing new changes
biggest example of CPI
JJUST IN TIME PRODUCTION/LEAN PRODUCTION
how did we implement six sigma at water utilities
1, field people gathered together, they drew out the process
2, made a list of all materials they needed for work
3, met ona regular basis to improve the work week to week
reduced useless things, labelled, drawers, they made a warehouse replenishment form to track part usage
made things organized :3
what is just in time/lean production
-goal
-what does it reduce
-what does it expose
GOAL: reduce waste, while improving quality
this reduces uncessary transportation, duplicaiton, defective services goods etc, idle workers, waiting
bottlenecks and problems
how is JIT a pull system (kanban system)
a customer order pulls the process along as opposed to push
“workers produce only when the kanabn ahead of them is emplty”
MATERIAL IS PULLED THROUHG THE SYSTEM WHEN THERE IS DEMAND
restock only what is consumed
what does JIT require
1) employee participation (to catch those empty spaces oon sheves)
2) CPI
3) total quality control
4) small lot sizes
what are the two aspects of the environment you need for JIT
- high volume of orders
- stable environment (production is linear and demand doesnt change)
what does pull system minimize
uncessary invenotry that would accumulate in a push system
metaphor for sea and ocean and rocks,
what is inventory?
what is productivity problems?
what is comany?
cpi philosophy
water!!! it is hiding th eproblem of the rocks cuz if we have inventory we dont feel rocks
rocks!! these are the problems like machine downtime, scrap, inspection backlog
ship!!!
once rock exposed: problems can be fixed
IF U WANA CPI, THEN LOWER THE WATER
what is the attitude of the push system vs the pull system
“just grab anotehr one” isntead of we need to fix this problem
compare BPR and CPI in
MODE
PACE
EFFECT
INVOLVEMENT
IMPLEMENTATION (how much money, an dhow much effort)
scrap and rebuild|||maintain an dimprove
one big step|||small steps
dramatics|||gradual
individual champions|||collectivism
large investment, low effort to keep goign||| low investment but large effort
in blood case what happened to the desi prof
spent 2 hours in line to be told he couldnt donate
what is the proposed give life process that places adopting
-problems? alt?
Complete the questionnarie online
Come into the office and give blood
Eat cookies and then book next appointment
-> need a lot of IT!!!! smaller solution is adopting signage
when drawing process flow diagrams, what word is ringing alarm bells for u
ORRRRRRRRRRRRRRRRRR
IF U SEE OR THEN YOU WILL HAVE DECISION (DIAMOND) THEN TWO ARROWS OR MORE LEADING TO RECTANGLES OR TRIANGLES
WHENEVER U HAVE A RECTANGLE IN PROCESS FLOW DIAGRAM U SHOUDL HAVE WHAT?
NUMEBRS ASSOCIATED THAT U CAN USE TO WRITE
what is the first feedback you get? order?
internal leading
internal lagging
external leading
external lagging
why is lagging feedback bad
causes a lot of long term problems
Functional benchmarking: When companies that are not threates to one another work together very often; so if you want to do benchmarking because you are experiencing a problem- go ourside of your industry and see how the problem is being addressed!!!
what is the ebst practice for continouous process innovation in companies
BEST PRACTICE COMPANIES: Embed the process improvement into the 35 hour work week so it is part of your job, these companies will also evaluate you to your process improvement ocntirbution (given time, resourcesand then you can create more process change)
Companies will often have controlled head counts and cost limits so they can just create the solution and implement it independantly!!!
