Monday, August 24, 2015

Understand the Work Process

Basic Business Cents

Some years ago, I was studying a Japanese process to solve problems and I thought I could improve upon it. I added a flow chart of the process involved as it is before the improvement work began and another after the process is improved to solve the problem, comparing the before and after. I was quite proud when I later showed it to a Japanese friend and he said, “We just assume you know what is going on in the process before you attempt to make any changes.” That may be a good assumption in Japan where they have grown up with process thinking, but I don’t think it is a good assumption here.
A very useful tool in understanding a work process is an Integrated Flow Chart. This not only lists the steps in the process, it places each step under the person/persons responsible for the step. The purpose is to show how the work flows and who is responsible for each step along the way. It will reveal inefficiencies, gaps, delays, and other streamlining opportunities. It will also show internal customer/supplier relationships.
To start, list each of the participants in the process, either individuals or groups across the top of a large sheet of paper. Draw a column for each participant or group in which all activities will be displayed. An example might be a Direct Employee Acquisition process with the headings of the columns Hiring Manager/Team, Recruiter, HR/Other Management, HR Administration, Applicant, and Outside Providers or Other.
Establish a beginning and ending process point. Use Post-it-Notes to add items or steps in the process. It is best to do this in a group of individuals with individuals from each column represented, as often there is conflict as to how the process actually works. In this case, discuss it until consensus, not compromise, is reached. People actually doing the work are key to be involved because often they are doing something different than what management believes they are doing. Sometimes they do not follow their work instructions because they do what they have to do to make the process work.
The name of the step is written inside a symbol on the flowchart in the proper columns with the keys being:
·      A rectangle for an action step
·      A diamond for a decision with a yes or no output
·      A circle for information purposes or cooperation
Arrows are filled in from one step to another, or laterally to information circles.
Do not edit the process at this time; the objective is to see how things are being done now in order to establish a baseline.
Then the group can begin to brainstorm better ways. It is interesting when people see the process on paper staring back at them, ideas will inevitably pop out on how to improve.
Process quality concerns are:
·      Anything which causes extra work or rework
·      Excessive dead time or movement
·      An apparent inefficiency in the process
·      An activity causing dissatisfaction to a customer, internal or external
·      More than one method of performing the activity
·      Anything causing dissatisfaction or pride of workmanship of the employee
When the group is satisfied they have removed rework, waste, redundancy, and streamlined the process, they can document the new, improved process.
The Integrated Flow Chart is simple and effective to use, It is also satisfying to those involved because they have a voice on low their work is to be done and will continue to discover other opportunities to improve in the future.


Friday, August 21, 2015

Defect Diagnosis

Basic Business Cents

No product is perfect. No service is perfect. That is because the process that produces them is not perfect. Only about 20% of the time can people be blamed, the rest of the defects or poor services are system or process problems. Unfortunately, defects become routine, and people become callous and accept them until a competitor proves they have fewer defects, better products or services.
In order to reduce defects, people need to believe defects can be reduced, and they initiate action to discover and remove causes. The main cause is variation. If the same method prescribed is not followed, applied differently, or is incorrect, defects will occur. Experience and intuition can sometimes remove causes of variation but they can also cause increased variation. An example is, “I know from my experience or I think it is better or easier to do it my way.”
Another cause of variation is materials. A leader in the field of quality once said, “Any two things not the same are different.” He was implying that nothing is exactly identical. A chicken soup manufacturer has to adjust equipment when the supply of chickens changes from one grower to the next. Maybe they were fed differently, had larger growing area for more exercise, were of different age, etc. Clothing size varies from manufacturer to manufacturer. Food delivered to a restaurant varies in texture, taste, and age. Nothing is exactly the same.
A third cause of variation is machines. Condition, tool wear, age, manufacturer, temperature, and humidity are all causes of variation in the output of machines.
The worker cause of variation should also be investigated. They may be trying to do their best but do they have the same energy in the afternoon as the forenoon, is there a difference between shifts. Is there a difference in physical characteristics, have they slept well the night before, is there a difference in mental conditions, and are they receiving different directions from supervision.
Methods, materials, machines, and workers are all causes of variation in work processes that need to be reduced. Variation can never be eliminated; it can only be reduced!
The first action is to correctly diagnose the principal causes of variation. If the true causes are not properly identified, corrective action may be carried out on a minor cause and the major causes overlooked. An analysis of the “vital few versus trivial many” will provide direction to action where the best results are attained. Data should be collected on causes of defects and grouped in like types. In this way, a priority of where to focus attention will appear.
When the most important causes are identified, then data should be collected to prove they are the main problem. Then investigate remedies and try them out on an experimental basis. Collect data again to prove they have significantly reduced defects and, if so, standardize on the new process. If this proves not to be the main solution, then restart the process to detect the main cause of defects.
As stated earlier, defects will always occur, no process is perfect, variation always exists, and process improvement action needs to be sustained forever.