Continuous Improvement Models

1. The Certified Quality Process HandbookChapter 6: Continuous Improvement Models (2nd edition) Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor and Chair Dept. of Industrial Engineering and Industrial Management Mercer University Chapter 10: Continuous Improvement Models (1st edition) contains most of this material.

2. Continuous Improvement Models “Quality programs that focus on continuous improvement are vital in providing incremental improvement of processes, products, and services…These programs view quality as being measurable in some quantitative way.” (CQPA Handbook, 2nd edition, page 67) • Incremental Improvement on a Continuous Basis • Plan-Do-Check-Act • Kaizen • Breakthrough Improvement • Reengineering • Six Sigma (discussed in detail in Ch. 7 -Process Improvement Techniques) Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

3. Plan-Do-Check-Act (PDCA) • Developed by Walter Shewhart • Adapted by W. Edwards Deming as Plan Do Study Act (PDSA) • Most widely known methodology for continuous improvement • See Figure 6.1 on page 65. • Plan • Study the situation • Determine what needs to be done • Develop a plan and measurement process for what needs to be done • Do – Implement the plan • Check • Determine whether the plan worked • Study the results • Act • If it worked, institutionalize/standardize the change. • If it didn’t, try something else • Continue the cycle Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

4. Kaizen • Kai + zen (Incremental and orderly continuous improvement) Note that there are other translations for this term. • “When there is a focus on improvement in all aspects of the workplace, problems are not looked at as mistakes, but as opportunities.” (CQPA Handbook, 1st edition, page 68) • Kaizen events or Kaizen blitzes • Generate enthusiasm for rapid results • Requires substantial planning Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

5. Reengineering • “When an organization undergoes reengineering, they are seeking drastic improvement results, which often means a paradigm shift has to happen within the organization.” (CQPA Handbook, 2nd edition, page 67 ,1st edition page 72) • Process reengineering is more common than the total organization reengineering described above. Your text describes steps in reengineering as follows: • Map out structure and functions of a process • Identify value-added (VA) and non-value-added (NVA) activities • Eliminate NVA activities (yields less waste and reduced costs) • Results in a new and less costly process that performs the same functions Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

6. Introduction to Six Sigma • Description: A collection of tools and techniques for reducing variation (CQPA Handbook, 1st edition, page 370) • A Six Sigma process produces less than 3.4 defects per million opportunities (DPMO) • Six Sigma levels (1 through 6) • 3 sigma – 66,800 DPMO • 6 sigma – 3.4 DPMO • When you decrease the amount of variation, the process Six Sigma level will increase. Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering

7. Six Sigma Methodology (Refer to course handout for more details on Six Sigma. • DMAIC: Define, Measure, Analyze, Improve, Control • DMADV: Define, Measure, Analyze, Design, Verify • DMAIC applies to existing processes and DMADV applies to design phase in an organization that practices Design for Six Sigma (DFSS) • Six Sigma project personnel • Champions • Master Black Belts • Black Belts • Green Belts Dr. Joan Burtner, Assoc. Prof. and Chair, Dept. of Industrial Engineering