PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-1
Implementing Improvements
Video 4-1.1
Lesson Objectives
MODULE OBJECTIVES

In this lesson you will learn how to:

Complete the Improve and Control phases of DMAIC
Conduct Failure Mode Effects Analysis (FMEA) to
continually assess effectiveness of changes
Use pilot cells and simulations as verification
mechanisms
Develop standard work and visual metrics
Implement 5S for systematizing work places and
processes
Use mistake proofing as a way of sustaining standard
work
Assess enthusiasm and opposition when making
changes in processes
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-1
Implementing Improvements
Video 4-1.2
Techniques
IMPROVE PHASE IN DMAIC

Objectives
Determine settings of Xs that optimize critical to quality
characteristics (CTQs or Ys)
Identify challenges in achieving intended settings of Xs
Run pilot studies and/or simulations
Get process employees involved in setting work
procedures
SOME TECHNIQUES FOR
IMPLEMENTING IMPROVEMENTS
(Liker, 2006; Pyzdek and Keller, 2003; Tague, 2005)

Failure Mode Effects Analysis (FMEA)

Simulation

Pilot cell

Standard work

Visual workplace
FAILURE MODE EFFECTS ANALYSIS
(FMEA)

Applying root cause relationships based on analysis of past

data …

… to address how things could happen in the future

Basic Idea
Identify ways in which the process can fail
Reduce the chances of failure
Moderate the severity of consequences
Prioritize the actions that should be taken to reduce risk
Evaluate control plans
Continually assess failure modes
INFORMATION FOR CONDUCTING
FMEA

Process map

Cause and effects matrix

Past process performance

Standard operating procedures

PROCESS FAILURE EFFECTS

Process Step/Input Potential Failure Mode Potential Failure Effects Severity (SEV)

What is the process What is the impact on the

In what ways does the key How severe is the effect to
step/input being key output variables (process
step/input go wrong? the process customer?
examined? customer requirements)?
PROCESS FAILURE OCCURRENCE AND DETECTION

Potential Causes Occurrence (OCC) Current Controls Detection (DET)

What are the existing How well can cause or

What causes the key How often does cause or
controls for preventing the failure mode be
step/input to go wrong? failure mode occur?
cause or the failure mode? detected?
RISK PRIORITY NUMBER (RPN)
Severity (SEV) of effect on process customer
requirements – includes effect of safety and other
risks if failure occurs
1 = Not severe to 10 = Very severe
Occurrence (OCC) – frequency with which a given
cause occurs and creates failure mode
1 = Not likely to 10 = Very likely OR
1 = Once every year to 10 = Twice a day
Detection (DET) – capability of current controls to
detect or prevent
The causes before causing failure mode
The failure modes before causing effect
1=Likely to detect, 10=Not likely at all to detect
RPN = Severity * Occurrence * Detection
BEFORE AND AFTER RPN

Actions
RPN Actions Responsibility SEV OCC DET RPN
Taken
For reducing the
severity and For the
occurrence of the recommended And when?
cause or improving action
detection
FMEA EXAMPLE
MEDICINE LABELS

Failure
Causes Effects SEV OCC DET RPN Actions
Modes
Improved
Wrong
entry
Error in Error in dose,
3 3 3 27 process,
label order entry wrong
error
route
detection
Missed Printer and
Printer or
Label not dose, computer
computer 3 3 1 9
printed disrupted testing and
failure
treatment maintenance
SIMULATIONS

Experiment with a detailed model

Use random numbers to model processes

Involve repeated sampling from probability

distributions of model inputs …
… To characterize distributions of model outputs

(flikr.com/Idaho National Laboratory, 2011)

SIMULATION EXAMPLE
CALL CENTER

Process Y
“Abandon Rate" – the rate at which callers hang up

Potential causes
Numbers of calls
Number of call center agents

Different options of Xs
PILOT CELLS

Small scale tests of revised processes

Aim is to validate results from newly identified

treatment levels of Xs on CTQs (Ys)

Also facilitate stakeholder buy-in of revised

method

(flickr.com/Dave Gray, 2011)

STANDARD WORK

Benefits
Tighter controls of output quality
Meaningful comparisons with customer expectations
Minimized process variation
Consistent achievement of customer demand (takt time)
Facilitate further improvements
Efficiencies from repetition

(Wikipedia.com/Tasma3197, 2011)
VISUAL WORKPLACE

Labels
Color codes

Lines on floor or table

Kanban

Warning signs
Andon

Mistake prevention
Poka yoke

Top: (Wikipedia/Jeff.lasovski, 2011) Bottom: (Wikimedia.org/lexcie, 2012)

REFERENCE

Academic Citations
Liker, J. K. (2006). The toyota way. Esensi.
Pyzdek, T., & Keller, P. A. (2003). The six sigma handbook (Vol. 486). New York, NY: McGraw-Hill.
Tague, N. R. (2005). The quality toolbox (Vol. 600). Milwaukee, WI: ASQ Quality Press.

Image Credits
Gray, D. (2011). Process [Online image]. Retrieved November 11, 2015 from https://flic.kr/p/9zyRqn
Idaho National Laboratory. (2011). Advanced test reactor control room simulator [Online image]. Retrieved November
11, 2015 from https://flic.kr/p/f1puSR
Lasovski, J. (2011). A Scrum board suggesting to use Kanban [Online image]. Retrieved November 11, 2015 from
https://commons.wikimedia.org/wiki/File:Simple-kanban-board-.jpg
Lexcie. (2012). Solari board at NJ Transit Hoboken Terminal [Online image]. Retrieved November 11, 2015 from
https://commons.wikimedia.org/wiki/File%3AHoboken_Terminal_Departure_Board.JPG
Time study stopwatch with 100 HM scale. [Online image]. Retrieved November 11, 2015 from
https://commons.wikimedia.org/wiki/File:Time_study_stopwatch.JPG
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-1
Implementing Improvements
Video 4-1.3
5S
STANDARDIZED WORK AREAS

Common sense approach

A place for everything and everything in it’s place, clean
and ready to use

Sort, Set-in-order, Shine, Standardize, Sustain

Contexts
Physical process steps and areas of work
Information transactions – paper and electronic
SORT (SEIRI)
SEGREGATE AND ELIMINATE

Arrange
Often-used items at the work area
Infrequently used items away from the work area

Dispose of items that are not needed

Steps
Start in one area, then sort through everything
Discuss removal of items with all persons involved
Items that cannot be removed immediately should be
red tagged

Top: (flickr/Cynthia Donovan, 2006) Bottom: (pixbay.com, 2013)

STABILIZE (SEITON)
SET IN ORDER

Put essential items in order so that there is easy and

ready access

Have a designated place for everything

Use labels, tape, floor markings, signs, shadow

boards

Shared items (eliminate excess) should be kept at a

central location

(wikipedia.org/Tasma3197, 2011)
SHINE (SEISO)
CLEANUP REGULARLY

Equipment, work surfaces, and displays

(pixabay.com/tpsdave, 2013)
STANDARDIZE (SEIKETSU)
SET UP STANDARD PRACTICES

Standardize similar work areas

Uncover and make problems obvious in all areas

(wikipedia.org/J-E Nystrom, 1981)

SUSTAIN (SHITSUKE)
USE SELF-DISCIPLINE

Level 5 100% 100% 100% 100% 100%

Make 5S a part of daily work
Level 4 75% 75% 75% 75% 75%

Practice to make it a way of life

Level 3 50% 50% 50% 50% 50%

Level 2 25% 25% 25% 25% 25%

Level 1 None None None None None

Standardize
Simplify

Sustain
Sweep
Sort
(flikr.com/Jurgen Appelo, 2012)
VISION OF 5S

Clean

Organized

Easy to work in

Safe

Efficient

Pleasant

Employee-owned
5S – EXERCISE (1 OF 8)

Adopted from exercise available at www.lean.org

On the next slide is a jumble of numbers. Your task is

to find the numbers 1 to 49 in the right sequence
(starting with 1 and finding the numbers sequentially).

Complete the task accurately, and time yourself to try

and finish it in 90 seconds.

(flickr.com/taymazvalley, 2010)
5S – EXERCISE (2 OF 8)

62
23

47

27
40
10
30
51 58 7913
5S – EXERCISE (3 OF 8)

On the next slide is a jumble of numbers from 1 to 49

(the numbers 50 and above have been deleted).

Your task is to find the numbers 1 to 49 in the right

sequence (starting with 1 and finding the numbers
sequentially).

Complete the task accurately, and time yourself.

(flickr.com/taymazvalley, 2010)
5S – EXERCISE (4 OF 8)

30

27
23

47
40
10
13
5S – EXERCISE (5 OF 8)

Now the numbers 1 to 49 have been set in order in

“shelves” so that the sequence goes from left bottom,
to left middle, to left top, to middle bottom, and so on,
ending with right top.

Repeat the same exercise and time yourself.

(flickr.com/taymazvalley, 2010)
5S – EXERCISE (6 OF 8)

27
30

23
47
40
10 13
5S – EXERCISE (7 OF 8)

With placement of numbers 1 to 49 “standardized,”

repeat the same exercise.

(flickr.com/taymazvalley, 2010)
5S – EXERCISE (8 OF 8)

10
13

23 27 30
40

47
REFERENCE

Image Credits
5S tools drawer [Online image]. Retrieved November 11, 2015 from
https://commons.wikimedia.org/wiki/File:5S_Tools_drawer.jpg
Appelo, J. (2012). PDCA-check [Online image]. Retrieved November 11, 2015 from
https://www.flickr.com/photos/jurgenappelo/6943419093
Donovan, C. (2006). Salem visitor center recycle bin [Online image]. Retrieved November 11, 2015 from
https://flic.kr/p/erKzF
Fire truck [Online image]. Retrieved November 11, 2015 from https://pixabay.com/en/fire-engine-truck-vehicle-station-
69210/
Janke. (2010). A pilot of a DC-10 consulting his checklist [Online image]. Retrieved November 11, 2015 from
https://en.wikipedia.org/wiki/File:DC10Checklist.jpg
Red label [Online image]. Retrieved November 11, 2015 from https://pixabay.com/en/sale-label-red-157276/
Valley, T. (2010). Think [Online image]. Retrieved November 11, 2015 from
https://www.flickr.com/photos/taymazvalley/5209251530/
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-1
Implementing Improvements
Video 4-1.4
Confirming Process Improvements
CONTROL STAGE IN DMAIC

Objectives
Make sure that the intended Xs stay in place
Ensure the stability of standardized procedures
Rollout the new procedures throughout the organization
Complete the handoff of the changes to process owners
Set up review schedule and responsibilities for checking
maintenance of improvements
INSPECTION EXERCISE

On the next slide is a sentence – your product

for inspection.

The letter F is considered a defect.

Please count how many Fs you see in the

sentence.

You have 10 seconds to manually find the

defects. Please time yourself.
SENTENCE FOR INSPECTION

FINISHED FILES ARE OFTEN THE

RESULT OF YEARS OF SCIENTIFIC

STUDY COMBINED WITH THE

EXPERIENCE OF YEARS

(flickr.com/taymazvalley, 2010)
INSPECTION EXERCISE
IMPLICATION

There are seven Fs in the sentence.

Inspection is an imperfect control mechanism.

MISTAKE PROOFING
(POKA YOKE)

Using automatic devices or methods to avoid simple

human or machine errors

Guard against sources of errors

Forgetfulness, absentmindedness, fatigue
Misunderstanding, misidentification
Malfunction

Range in effectiveness from elimination of error

possibility to minimizing the effect of error
Top: (wikipedia.org/GeographBot, 2008) Bottom: (wikipedia.org/Karl Gruber, 2005)
ACTION PLANS FOR
IMPLEMENTING IMPROVEMENTS

Action

Who

Effort

Date
ASSESSING SUPPORT FOR CHANGES
Enthusiastic support
Will work hard to make it happen
Help it work
Will lend suitable support
Hesitant
Holds reservations; will not take initiative
Indifferent
Will not help but will be an obstruction
Uncooperative
Will need coaxing
Opposed
Will not agree with changes
Hostile
Will block changes
REFERENCE

Image Credits
Bridge, A. (2008). The black arch near Larne [Online image]. Retrieved November 11, 2015 from
https://upload.wikimedia.org/wikipedia/commons/3/38/The_Black_Arch_near_Larne_%282%29_-_geograph.org.uk_-
_851820.jpg
Gruber, K. (2005). British plug [Online image]. Retrieved November 11, 2015 from
https://commons.wikimedia.org/wiki/File:British_plug.jpg
Valley, T. (2010). Think [Online image]. Retrieved November 11, 2015 from
https://www.flickr.com/photos/taymazvalley/5209251530/
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-1
Implementing Improvements
Video 4-1.5
Lesson Recap
LESSON RECAP

In this lesson you learned about:

Transitioning from project execution techniques to
standard operating procedures
Transferring responsibilities from project leader and
team to process owner and frontline employees
Using techniques such as FMEA, standard work, and
pilot cells to implement changes
Implementing 5S as a technique to stabilize processes
and prepare for further improvements
Using mistake proofing to prevent deterioration of
processes
Assessing the enthusiasm of employees related to
changed processes
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-2
Sustaining Process Improvement Initiatives
Video 4-2.1
Lesson Objectives
LESSON OBJECTIVES

In this lesson you will learn about:

Managing process improvement initiatives
Being an effective leader for process improvement
initiatives
Applying Lean in a transactions-focused service
environment
Instituting continuous improvement as iterative cycles of
Control and improvement
Conversions of knowledge from tacit to explicit to tacit
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-2
Sustaining Organizational Initiatives
Video 4-2.2
Leadership for Continuous Improvement
LEADERSHIP

“Ability to positively influence people and

systems to have a meaningful impact and
achieve important results”
(Evans and Lindsay, 2012; p. 637)

For Process Improvement

Organizational initiative
Project teams
Day-to-day work
MANAGEMENT AND LEADERSHIP

Management
Control and coordinate activities

Leadership
Produce change and movement
(Kotter, 1990)

Managers and leaders are not necessarily

different persons
(Yukl, 1997)
TENSIONS IN MANAGING PROCESS
IMPROVEMENT

Too fast and too slow

Too big and too small

Top-down and bottom-up

Delegated and imposed

Informal and structured

Control and creativity

MANAGEMENT PRACTICES THAT
SUPPORT LEAN LEADERSHIP
(Mann, 2005)

Leader standard work

Gemba walks and review of performance measures

Visual controls
Quick ready indicators to help understand conditions

Daily accountability processes

Structured meetings with standard agendas to follow up
on problems and improvements

Discipline
Executing the three activities following a cadence and as
designed
TYPES OF LEADERSHIP

Transactional leadership
“... occurs when one person takes the initiative in
making contact with others for the purpose of an
exchange of valued things”
(Burns, 1978; p. 19)

Transformational leadership
“… occurs when one or more persons engage with
others in such a way that leaders and followers raise
one another to higher levels of motivation and morality”
(Burns, 1978; p. 20)
LEAN LEADERSHIP

(Liker and Convis, 2011; Spear, 2004)

Helping frontline employees understand the

responsibility of improving their own work

Providing necessary resources and guidance to

enable improvement work

Encouraging employees to continually learn and

contribute ideas

Supporting teamwork
LEADERSHIP WITH HUMILITY

(Shook, 2014)

Mentorship – Leader and subordinate

discovering things together

In contrast with
Command and control
Autonomy
REFERENCE
Academic Citations
Burns, J. M. (1978). Leadership. New York. NY: Harper and Row Publishers.
Evans, J. R., & Lindsay, W. M. (2012). The management and control of quality. Retrieved from http://tocs.ulb.tu-darmstadt.de/179836862.pdf
Kotter, J. P. (1990). A Force for change: How leadership differs from management. New York, NY: Free Press.
Liker, J. & G. L., Convis. (2011). The Toyota way to lean leadership: Achieving and sustaining excellence through leadership development. New York, NY:
McGraw-Hill.
Mann, D. (2005). Creating a lean culture: Tools to sustain lean conversions. Portland, OR: Productivity Press.
Spear, S. J. (2004). Learning to lead at Toyota. Harvard business review, 82(5), 78-91. Retrieved from http://progressivedge.com/wp-
content/uploads/2014/11/Learning_to_Lead_at_Toyota.pdf
Shook, J. (2014). Transformational lean leadership [PowerPoint slides]. Retrieved from http://slidegur.com/doc/1424140/keynote-3-by-john-shook---lean-
management-institute-of-india
Yukl, G. (1997). Effective leadership behavior: A new taxonomy and model. Paper presented at the Eastern Academy of Management International
Conference, Dublin, Ireland.
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-2
Sustaining Organizational Initiatives
Video 4-2.3
Illustration of Lean Implementation
JEFFERSON PILOT FINANCIAL
(Swank, 2003)

US provider of life insurance, annuity, retirement

income, group benefits, and investment products
and services

April 2006 merger with Lincoln Financial Group

(JPFinancial.com, n.d.)
MULTIPLE LEVEL VALUE STREAMS
(Swank, 2014)

Agent New Business

Product Agent
Marketing Processing and
Development Development
Support Underwriting

Applications/ Payment of
Underwriting Issue
Modifications Commissions

Sort forms Receive pending Issue policy Credit

requirements commissions
System entry Collect payment
Assess risk Send payment
Order requirements Process
Determine policy and statement
payment
disposition
CASCADING PROCESS METRICS FROM CEO GOALS

Acquisition
CEO Expense Per
Paid Premium

Underwriter Underwriter
Senior Vice Expenses Per
President Paid Premium

Underwriter
Vice Productivity by
President Job Function

Input Team Rate of

Applications
Supervisor
Input

Individual Rate of
Input Clerk
Applications Input
PROBLEMS

New policy applications requiring physician

statements took one to two months

Variable turnaround times for policies not

requiring statements (>35% SD)

Errors and rework (10%)

Cost per application differential

IMPROVEMENT OBJECTIVES

Increase turnaround speed and predictability

Enhance customer focus

Reduce process complexity

Increase quality/eliminate errors

Eliminate cost differentiation

Ultimately leading to higher total annual premiums

LEAN CONCEPTS APPLIED (1 OF 2)

Flow processing
Speed applications by removing kinks

Load balancing
Make sure individuals processing forms shoulder
comparable burdens

Work leveling
Synchronize process-step workloads with incoming
demand
LEAN CONCEPTS APPLIED (2 OF 2)

Standard operations
Establish best practices in cells and then spread through
entire organization

Segregating complexity
Form separate channels for complicated activities so
that simple ones are not held up
REFERENCE
Academic Citations
Swank, C. (2014). Insuring lean operations – How JPF learned to be lean [PowerPoint slides]. Retrieved from http://www.slideshare.net/LeanUK/insuring-lean-
operations-how-jpf-learned-to-be-lean-cynthia-swank-jefferson-pilot-financial-lss-230604-ppt
Swank, C. K. (2003). The lean service machine. Harvard business review, 81(10), 123-130. Retrieved from https://hbr.org/2003/10/the-lean-service-machine

Image Credits
Jefferson pilot financial. [Online image]. Retrieved November 2, 2015 from www.JPFinancial.com
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-2
Sustaining Process Improvement Initiatives
Video 4-2.4
Cycles of Knowledge Creation
JURAN’S CONTINUOUS
IMPROVEMENT TRILOGY

Quality Planning

Identify customers and determine their needs

Develop products to fulfill customer needs
Quality Control

Produce the product under operating conditions

with minimal inspection
Quality Improvement

Optimize the processes

Juran, (1986)
JURAN TRILOGY

Juran, (1986)
PROJECTS AS AVENUES OF
KNOWLEDGE CREATION
Conversion
Function
Mechanism
Socialization Share knowledge that cannot be
written or represented in pictures
Tacit  Tacit and diagrams
Externalization Convert uncoded knowledge into
written descriptions or pictures
Tacit  Explicit and diagrams
Combination
Combine explicit knowledge by
Explicit  sorting, combining, and analyzing
Explicit
Internalization Translate explicit knowledge to
actions through observation &
Explicit  Tacit practice
(Anand et al., 2010; Nonaka, 1994)
 INDIVIDUAL TO TEAM TO
ORGANIZATIONAL KNOWLEDGE

To Tacit Knowledge To Explicit Knowledge

Socialization Externalization
Knowledge
From Tacit

Brainstorming Work breakdown structure

Nominal group technique Fishbone diagram
“Five why” analysis Value stream map
Discovery phase for surveys Failure modes and effects
analysis
Internalization Combination
From Explicit
Knowledge

Error-proofing Design of experiments

Control charts in the control Multiple regression
phase Simulation
Training for frontline Quality function deployment
operators (QFD)
Job rotation
(Anand et al., 2010; Nonaka, 1994)
REFERENCE
Academic Citations
Anand, G., Ward, P. T., & Tatikonda, M. V. (2010). Role of explicit and tacit knowledge in Six Sigma projects: An empirical examination of differential project
success. Journal of Operations Management, 28(4), 303-315. doi:10.1016/j.jom.2009.10.003
Juran, J. M. (1986). The quality trilogy. Quality Progress 19(8), 19-24. Retrieved from http://www.juran.com/elifeline/elifefiles/2009/11/TheQualityTrilogy.pdf
Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization science, 5(1), 14-37. doi: 10.1287/orsc.5.1.14
PROCESS IMPROVEMENT

With Gopesh Anand

MODULE 4
Achieving and Sustaining Improvements
Lesson 4-2
Sustaining Process Improvement Initiatives
Video 4-2.4
Lesson Recap
LESSON RECAP

In this lesson you learned about:

Managing and leading process improvement initiatives
Achieving organizational success through a systematic
deployment of Lean
Knowledge creation as the underlying basis for team
projects for continuous improvement of processes