Process Improvement and Re-design Workshop (excerpts)

1. Process Improvement and Re-design Workshop (excerpts) Presenter: Bruce Berger (386) 852-9054BergerConsulting@aol.com

2. Agenda Day 2 1. Review ‘Day 1’ Key Points 2. Process Stability: Control Chart Overview 3. Process Capability: Histograms and Specification Limits Break 4. Value Added Matrix 5. Qualitative Analysis 6. Identify Process Improvements (Exercise) Lunch 7. Evaluate Process Improvements (Exercise) 8. Process Control System (PCS) Break 9. Implement Process and Identified Improvements (Exercise) 10. Lessons Learned / Assignments 2

3. Value Added Matrix First: Quantify each process step's relative cost and benefits and plot each step on the matrix. Next: Use matrix to help identify improvement activity that may be most effective in increasing the "value added" of the process step. Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 3

4. Qualitative Analysis Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 4

5. Qualitative Analysis (continued) • First, identify potential sources of unwanted variation… • Qualitative Analysis provides quick wins that are within the team’s control and can be easy, fast and cheap to implement and reversible. • Second, brainstorm potential solutions to address the identified unwantedvariations • Last, evaluate and select best solutions for quick wins Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 5

6. Qualitative Analysis Example (continued) The team identified several sources of unwanted variation . . . Rework Loop causes delay Idle time waiting on Acct # This Rework Loop causes severe delay Idle time waiting on Key Setup Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 6

7. Qualitative Analysis Example (continued) The team identified several Quick Wins . . . A Checklist of required items was given to Sales 10 Acct#s provided in advance from originating Dept Now, Standard (or pre-approved) Accounts can be setup without review Requests for Keys now will be done during Request Set-up Step above Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 7

8. To identify and address unwanted variation Qualitative Analysis Exercise Purpose: Agenda: 1. Using the list of “potential sources of unwanted variation” analyze your process flowchart 2. Identify unwanted variation(s) 3.Identify potential process improvements to address each unwanted variation Limit: In teams (or full group): 30 Minutes Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 8

9. Evaluate Potential Process Improvements Evaluate each potential process improvement using the following matrix. Develop Checklist for Staff Construct Process Flowchart Improve Process Identify Indicators Implement PCS Monitor PCS Standardize Process Select Process 9