Overview of Process Improvement

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People never seem to have enough time to do things right, but they always have time to do things over. This does not make sense on the surface, but it is what I have observed over time working with many organizations. It is true that performance improvement activities take time, which is precious to the small business, but that time can be found by simplifying systems and processes.

A process improvement activity has three elements, simplify, improve, and sustain.

Simplify

The performance improvement objective is to reduce waste, rework, and redundancy. The first step is to take an overview of the organization and draw a chart of the main systems, starting with the entering to your organization of the goods from your suppliers to the exiting of your goods/services going out the door to your customers. You may have parallel paths of product lines A, B, C or services A, B, and retail. Examine the chart yourself, observe how it works in the actual work area, share it with employees actually working in the systems, and look for ways to reduce cost, minimize time, and improve the quality of the system. Eliminate unnecessary steps, distance traveled, redundancy, wait time, obsolescence, and stockpiles of inventory.

When you are satisfied you have done what you can to simplify the overview, go down to the next layer of detail until you get to the detail of individual items for each worker in their work processes. The more you streamline your systems, the more time you and your workers will have to further improve the operation. Eliminate rework by doing it right the first time. Improve processes to the point that they cannot make defective products/services.

Improve

Two types of activities are needed, solve problems and improve processes. In both cases, workers need to be trained and given authority to act. Problems should be identified and resolved and not allowed to hang over the heads of the workers. Processes should continually be improved; there is always a better way. Collect data to show the problem is real or the process is improved and make decision on facts whenever possible. Tools and methods are available for conditions, where data is available and where it is not. Involve all the employees in the performance improvement quest.

Sustain

Not to be overlooked is the importance of sustaining improvement progress. Changes should be documented and communicated throughout the areas affected. Follow-up by observing adherence to the new ways and not allow backsliding into the comfortable way of “that is the way we have always done it”.

In order to be ahead, you have to get ahead. Keep reducing waste, rework, and redundancy as a way of life. Organizational performance improvement effort must be continued relentlessly forever in order to survive and prosper.

Introducing Process Improvement

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Business is tough and necessary performance improvement is a never-ending quest.  We cannot ever rest on our laurels and stand still; we are either continually improving or we are losing ground to competitors.

When introducing a process improvement program into an organization, there are many do’s and don’ts. This type of program begins and ends with leadership. There is no point in introducing performance improvement measures where the top leader does not lead. No one else can do, it must be the top person leading the way, setting the example, and motivating others to the cause. Leaders cannot merely stand on the sidelines and cheer on the employees. They must have more zeal and enthusiasm than any other employee and lead the way. The manager’s enthusiasm for work should never be less than subordinates.

The leader must then work on obtaining the same excitement for process improvement in each employee. This improvement activity requires a new way of thinking for the entire organization so that everyone is aligned in his/her thought processes. Simply driving it from the top will not get the desired results; in a one-man autocratic organization, the people will only do what they are told. The organization needs the combined knowledge, experience, and creativity of all employees. This will require a humanistic type of management that builds mutual trust and respect throughout the organization. Employees treat each other as equals in true teamwork.

Lip service or good intentions at all levels do not get results. Implementing measures to improve processes does. First, everyone must understand his/her work processes and then seek to simplify and improve them.

The leader should attend seminars and then teach lessons learned to the employees. Armed with this new knowledge, the leader should improve his/her own processes and then lead improvement teams personally to work on other key processes. The leaders need to be familiar with the true state of the organization. By observing the way employees answer questions and examine data, managers can see the real problems.

Employees sometimes hesitate to have leaders in the same training or on their improvement team because they are reluctant to state problems in front of them. This is indicative of management problems that need to be addressed before the improvement results are optimum. People need to feel secure stating the truth about conditions.

No company, system, or process is perfect and problems always exist. From the top leader to the most recent hire, all need to work together to improve the work processes and solve problems, little by little, better and better. Enthusiasm and excitement for this new journey, coupled with training and teamwork, make the work more satisfying, productive, and even enjoyable.

Quality-Centered Management

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There is no great secret to success; it is simply the supply of quality products and services at a reasonable cost that consumers will buy. Successful companies have a quality-oriented management approach which results in survival and growth in a competitive world full of problems. Without a systematic approach, fatal problems will invariably arise. As stated by Dr. W. Edward Deming in his famous four-day seminars, we are in a new age of economic competition. Those who cannot continuously improve their quality and productivity will fall by the wayside.

A quality-centered management approach encompasses a customer-oriented management philosophy and a set of specific objectives, systematic methodologies, and management practices.

Management has the responsibility of clearly stating the aim of the organization and setting specific objectives. They need to understand the true needs of the customers, not just their wants, and to anticipate future needs.

Internally, management needs to understand quality tools and methods in order to lead the way to quality improvement throughout the organization. They are the role model for quality improvement and should lead the improvement activities. Managers also have processes of their own and can demonstrate their achievements with their own work.

Many systematic methodologies exist to improve work processes like Company Wide Quality Control, Total Quality Control, Total Quality Management, Six Sigma, Reengineering, and Lean Thinking. Toyota refers to their methodology as, “Just the way we do business.” These application methods are useful in advanced situations, but it is best to start with the basics.

The first step is to understand the work processes. Just follow the trail from the time the supplies are received to the time the product is handed off to the customers and chart or list the activities step by step. The more detailed you make the list or chart, the better. Then, take a close look at the chart and opportunities will invariably jump out at you to simplify your processes. The goal is to reduce waste, rework, and redundancy in your system.

A seven-step system, The Improvement Journal, is useful to solve problems or improve processes. The steps are to identify the process or problem, examine the current situation, analyze the causes, take a corrective action, check the results, standardize the changes, and draw conclusions.

All employees have experience and knowledge and play a role in quality-centered management. They need to be enabled to take quality improvement action, which means training in not only their job skills but also in the quality tools and methods. They need to be enabled to take action because they are closest to the work and also want to perform better. Some organizations use methods like Quality Circles or Improvement Teams to allow workers work as a team to solve problems or improve their work processes. This might sound like extra work for all involved but it will eventually result in simpler and easier work.

Quality-centered management will, in the long term, lead to lower cost, better on-time delivery, higher productivity, more business and a higher standard of living.