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DownloadWant to generate the most business values with the least amount of time and cost? Even a thriving business can always find ways to make its processes leaner, faster, and more efficient.
This Process Optimization (Part 2) presentation includes templates for tried-and-true methods to help trim the fat. It includes slides for root cause analysis, risk identification, complexity and uncertainty matrix, Kaizen, 4M checklist, Andon board, Toyota Product System, Deming Cycle, PDCA, and many more that can be customized for various team environments. Let's review how these methods can be used to improve existing operations.
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DownloadBefore we get into individual methodologies, let's review ways that a project team can triage and plan process improvement efforts. To begin with, it's important to identify the main problem and the root of it first. In many cases, there are deeper causes to a problem than what the surface suggests.
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The Fishbone Diagram, also known as Ishikawa Diagram, presents the observed problem on the right hand side. (Slide 15)
Another way to conduct a root cause analysis is the 5 Why's framework. Unlike the fishbone diagram, the 5 Why's uses a more top-down approach. (Slide 16)
Start with the big question by asking the first Why. Then, continue until five Why's have been asked to get to the finer points of the problem that weren't obvious to you at first.
With any plans for change, there are risks that are already associated with the current process, and also risks that could come up with the new changes.
Whether the goal is to reduce the existing risks or to defend the business against potential future risks, it's important to lay out the possibilities to set a feasible expectation. (Slide 6)
This also brings up the question of: what's a worthy trade-off? Does the business align with more of a "high risk, high reward" approach? Or does it want to play it safe?
Related to risk management, map out any complexity and uncertainty implied by your process improvement plan on this matrix. (Slide 5)
For example, for an organization that's looking for low risk and fast results, it could be worth starting with procedures in the lower-left quadrant. These are the low-hanging fruits that are not too complicated to implement and are fairly predictable. With that combination, you can see the results quickly after implementation.
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Now, let's get into the individual tools that can be used throughout the process optimization exercise.
Kaizen is one of the most common tools when it comes to process improvement, and for good reasons. It's the framework that's brought great success to companies from Toyota to Nestle.
Kaizen can be visualized as an ever-revolving wheel. The key word here is "continuous". This means that improvement doesn't simply stop at step number 7. It continues to refine and redefine to achieve even better results. (Slide 21)
If a team has a well-defined process improvement schedule, it can edit these steps to show specific dates or durations that correspond each step of the Kaizen process.
Under the Kaizen framework, the 4M checklist can be used to highlight and track detailed tasks on the ground. The 4 M's stand for: Man, Machine, Material, and Method. They allow a project team to be aware of all critical components with better clarity and organization. (Slide 22)
Note that the 4M checklist doesn't discriminate against the finer details. When it comes to process improvement, even a small detail can lead to significant cost and time savings. These small improvements can also add up when they happen in a high-volume production setting.
The tools we just mentioned can all be aggregated into the Toyota Production System, or TPS. This is the main ideology that process optimization is founded upon. (Slide 29)
In this powerhouse, we have the business goals at the top of the house, supported by pillars that are made of individual process optimization methods, and followed by the final successful results.
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Need an easy way to stay on top of your tasks? Use our Task Tracker presentation to record what you've accomplished and set better goals for what's to come, in daily, weekly, or monthly views. Even better, use these checklists for the whole team and facilitate a more productive and collaborative culture.
Comparisons to a top performer or industry leader not only examine the current business performance of your organization, but could also inspire new possibilities for improvements. Use our Business Benchmarking presentation to brainstorm the best implementations and develop new opportunities for growth.
How do you cut costs and streamline workflows that are vital to your organization? Consider business process re-engineering, a systematic overhaul to rethink and redesign business processes from the ground up and dramatically improve performance. Use this management framework to transform your organization from purely functional to lean, process-oriented, and collaborative.
Have you ever wondered if effort or time is being wasted on outdated processes? Are you struggling to balance production demand with clunky workflows that slow down your team? Our Process Optimization framework includes the top tools every business needs to optimize its workflows.
