This activity will consist of a Continuous Improvement project carried on jointly by two (or three) class members, entirely over the Internet. This will simulate a real-life assignment that you might get working in two different locations, in different states, or different nations. It is expected that the entire project, will be completed in the three week timeframe, with a fourth week allocated to Peer-Review activities. Hardship cases will be discussed with the individuals involved.
The following section discusses the process of selection of project teams for this activity. Look it over carefully and begin to think about how the activity will flow. Then, read the material on Continuous Improvement. This comes from the Quality literature. Many of you will have seen much of the material before, it will be completely new to others. Some of the material has been adapted from the booklet I used for a one-hour class on Continuous Improvement and it is also very similar to the material used in my Operations Management class. Become familiar with the various tools and processes. You will want to use a set of them for your project.
The next section discusses the reporting process for the project team, followed by the peer-review process we will use on the projects.
The first part of this project is to do a sorting out to match up people for the projects. By this time, hopefully, we will all have gotten to know a little about each other. Probably, some of you will have had private discussion by e-mail, or otherwise. Some of you know each other from before the start of class...others do not, of course.
I encourage you to think about the benefits and detractions from working with someone familiar and someone not so familiar. It would be best if we could develop common interests around which to form the Project Teams.
One source of information on other class members is the WebQuest pages and the other is the Assignment 1-3 comments (this page also has the e-mail links for all class members). Use each of these to your advantage.
If you have a project and partners in mind, based on the above, you are ready to make a proposal.
Send me an e-mail message suggesting your project, in about a paragraph (including justification, if you feel that is appropriate), cc the other partner(s). It may be accepted, it may be modified, as to either content, direction, or participants.
Continuous Improvement Concepts
This section is adapted from a booklet used in a One-Hour Course and also in workshops conducted by the Center for Business and Economic Development.
Continuous improvement is a management philosophy that approaches the challenge of product and process improvement as a never-ending process of achieving wins, both small and large. It can accurately be stated that continuous improvement is as much an attitude as it is a management philosophy. This certainly is true where continuous improvement processes are successful. Some pundits of continuous improvement approaches do not include the "breakthrough" type of "improvements" in their systems. Here, however, all types of improvements are sought. If they are "breakthroughs," as long as they are improvements, they are sought and positive. Small, steady improvements are the primarily goal, however.
In this booklet, I have chosen to segregate benchmarking for emphasis. Often benchmarking is included as just another method or tool of continuous improvement. I believe benchmarking can now be used by many more companies in many more situations. Therefore, I would recommend that all companies include benchmarking as a source of ideas for their continuous improvement programs on a regular basis.
Finally, this booklet is not intended to be comprehensive. Rather, it
is a guide to many of the essential elements of a continuous improvement
approach. Some more comprehensive references are included in the resources
recommended and from other sources. Happy improvement hunting!
This booklet will direct your focus on continuous improvement processes, methods and tools. There are three sections to this booklet on continuous improvement:
In Definitions we will look at definitions for both the terms "continuous improvement" and "benchmarking." The second section of the booklet will look at continuous improvement processes, particularly those first suggested by Edward Deming, along with a number of methods and tools to use in your program. In the last section of the booklet, we will examine the process called "benchmarking" in more detail.A. Continuous Improvement
The following definition of continuous improvement has been adapted from the award criteria used for the top quality award made in the United States, the The Malcolm Baldridge National Quality Award:
Achieving the highest levels of quality and competitiveness requires a well-defined and well-executed approach to continuous improvement. The term continuous improvement refers to both incremental and "breakthrough" improvement. The approach to improvement needs to be "embedded" in the way the company functions. Embedded means that:
Notice that this definition places an emphasis on the continuous improvement process being "embedded" in your work life. Embedded means that:
Too often, we treat symptoms, not the real problem. Continuous improvement processes are directed at identifying the source of problems and providing solutions with long-term as well as short-term benefits. It is important to take notice that improvement is driven by opportunities to do better, as well as by problems that must be corrected. This means that you must seek out opportunities for improvements not just deal with problems to solve as they show up, and they will, of course. Again, you can see that attitude is very important in this process. It takes a strong, positive attitude to continuously be on the alert for opportunities to make improvements.
The next part of the definition suggests that there are opportunities for improvement from four major sources:
Employees ideas should be incorporated in the continuous improvement process, of course, because they are the closest to the processes of whatever business you are in. The key here is to assure that the ideas that employees to have are aired, discussed, considered, and supported wherever they can be shown to generate improvements. Many employees will not volunteer their good ideas. A critical part of a successful continuous improvement process is to enact activities and incentives to draw out their ideas and find a way to implement the ones that provide improvement to the operation.
Research and development activities must include consideration of improvements to existing products and services as well as new product and service development. Special programs and incentives may need to be developed in order for this to occur. For instance, it may be appropriate to invite a member of the R & D staff to attend meetings of a quality circle in your department or of a task force of representatives from several departments organized to seek solutions to a particular problem or opportunity.
Customer input should always be considered in continuous improvement processes. Sometimes the customer should be consulted directly by use of interview, survey or focus group. Other times, customer information is available through normal routines of the organization. The key is to use the data that will generate the improvement sought.
Our definition of continuous improvement states that improvements may be of several types, such as these five, specifically:
B. Benchmarking
- is the search for industry "best practices" that lead to superior
business performance. This technique is based on the idea that companies
with superior business processes will manufacture, deliver, and service
products better than the competition will. In benchmarking, a company identifies
processes that are important to its competitive position and then attempts
to identify other companies or areas within the same company that are known
for superior performance in this process.
Continuous Improvement Processes, Methods and Tools
The improvement process will consist of a number of phases in which various methods and tools are used. Various theorists and practitioners may recommend six, seven or eight steps.
The following is an outline of an eight-step process:
Some of the method and tools that can be used in the improvement process include the the following:
A. The Deming Wheel -the Plan, Do, Check, Act cycle
A1. The Deming Wheel - the PDCA cycle: Plan
Before making any changes be sure everything is documented and standardized. This requires that the current process be studied carefully and recorded using appropriate methods and tools. Then use appropriate tools to identify problems and opportunities for improvement. Analyze the data and develop a plan for improvement. Specify measures for evaluating the plan.
A2. The Deming Wheel - the PDCA cycle: Do
Implement the plan, on a small scale if possible. Document any changes made during this phase. Collect data systematically for evaluation.
A3. The Deming Wheel - the PDCA cycle: Check
Evaluate the data collected during the Do phase. Analyze the data to determine if the revised process has achieved results which match the original goals of the Plan phase.
A4. The Deming Wheel - the PDCA cycle: Act
If the goals have been achieved, standardize and document the changes
and the new methods used. Communicate the new method to all others who
could benefit from similar changes. Implement training for the new method.
If the goals have not been achieved, determine why not and proceed accordingly.
This may mean a repeat of the process or abandoning the project.
B. The 5W2H Model
Asking questions about the current process can lead to important insights
about why the current process isn't working as well as it could, as well
as potential ways to improve it. See the table on the next page for details
of this approach.
C. Flowcharts
Word descriptions of the current process and of proposed revisions are
essential. However, in terms of visualizing the process, a graphic depiction
can be extremely useful. A flowchart is a visual representation of the
key steps in a process. The process might be a physical process, such as
the movement of materials through a production operation, or it might be
a decision process, portraying the decisions that are made about a certain
activity.
D. Check Sheets
One of the most widely used tools of process improvement is the check
sheet. Many of us use check sheets every day but do not think about it.
Simple grocery lists and invitation lists are examples of check sheets.
Most often, people use check sheets for collecting data about a process.
For example, after brainstorming and flowcharting (sometimes also called
process mapping) to understand the process, it may be useful to collect
certain data by using check sheets. For instance, if the process involves
an office where the telephone rings constantly, it may be useful to develop
check sheets to determine frequency, source, and person being called. If
the check sheet data shows that many calls are for persons in another office
and must be transferred, the telephone process would become subject of
an improvement project.
E. Pareto Analysis
- is a technique for focusing attention on the most important problem
areas. The Pareto concept, named after the 19th-century Italian economist
Vilfredo Pareto, is that a relatively few factors generally account for
a large percentage of the total cases (e.g., complaints, defects, problems).
The idea is to classify the cases according to degree of importance, and
focus on resolving the most important, leaving the less important. Often
referred to as the 80-20 rule, the Pareto concept states that approximately
80 percent of the problems come from 20 percent of the items. For instance,
80 percent of the machine breakdowns come from 20 percent of the machines,
and 80 percent of the product defects come from 20 percent of the causes
of defects. Pareto analysis is a problem identification and problem-solving
tool that is often used by problem-solving teams. The idea is to separate
the "vital few" from the "trivial many." Usually Pareto analysis is based
on organizing the data into a diagram, called a Pareto chart, so that the
major problems or problem causes can be identified.
F. Quality Circles
The circles comprise a number of workers who get together periodically
to discuss ways of improving products and processes. Quality circles are
usually less structured and more informal than teams involved in continuous
improvement. In some organizations, however, quality circles created to
seek solutions to a specific problem evolve into continuous improvement
teams.
G. Cause-and-Effect Diagrams
Among the most useful tools for analyzing data and problem solving are
cause-and-effect diagrams, also referred to as fishbone diagrams, because
of their shape. They are also sometimes called Ishikawa diagrams after
Kaoru Ishikawa, the Japanese professor who developed the approach to help
workers overwhelmed in problem solving by the number of factors that needed
to be examined. The diagrams help organize problem-solving efforts by providing
several layers of categories that may be factors in causing problems. Often,
cause-and-effect diagrams are used after brainstorming sessions to organize
the ideas generated. A common set of categories used include Methods, Materials,
Equipment, and Personnel. The Head of the fish is the effect, or problem.
Each factor listed under each category is considered a potential source
of the problem under investigation. Each of these must be examined in more
detail, then, to determine whether it is a source of the problem that can
be solved by the improvement process.
H. Scatter Diagrams
A Scatter Diagram is another form of graph. However, a scatter diagram is most useful when variations in one factor are the direct result of variations in another variable. For example, assume there is a problem of medication errors in a hospital. Suppose we want to determine whether the number of medication errors is related to the number of patients assigned to each nurse. A scatter diagram will likely indicate if there is a relationship by demonstrating a trend line-like plot.
I. Process Control Charts
- involves selecting a demonstrated standard of performance that represents the very best performance for processes or activities that are similar to yours. The benchmark partner may not even be in the same industry, it need only be superior at the given process. Develop a target at which to shoot and then a standard or benchmark against which to compare your performance. Steps for developing benchmarks:
Ten Step, Five Stage, Benchmarking Process
Planning Stage:
Step 1 - Identify what is to be benchmarked
Step 2 - Identify competitive companies
Step 3 - Determine data collection methods; collect data Analysis Stage
Step 4 - Determine current performance gap
Step 5 - Project future performance levels Integration Stage
Step 6 - Communicate benchmarking findings; gain acceptance
Step 7 - Establish process improvement goals Action Stage
Step 8 - Develop action plans
Step 9 - Implement specific actions and monitor progress
Step 10 - Recalibrate benchmarks; return to 1
Maturity Stage: Leadership position attained Benchmarking practices
are fully integrated into organization
"Benchmarking World-Class Performance," McKinsey Quarterly, 1991, No. 1, p. 7, Steven Walleck, David O'Halloran, Charles Leader
Competing in World-Class Manufacturing: American's 21st-Century Challenge, Irwin, Ted Olson, Craig Giffi, Aleda V. Roth, Gregory M. Seal
Modern Approaches to Manufacturing Improvement: The Shingo System, Productivity Press, Alan Robinson
Operations Management: Concepts in Manufacturing and Services, West Publishing, Robert E. Markland, Shawnee K. Vickery, Robert A. Davis
Operations Management: Concepts, Methods, and Strategies, Third Edition, West Publishing, Mark A. Vonderembse, Gregory P. White
Production / Operations Management, Fifth Edition, Irwin, William J. Stevenson
Production & Operations Management: A Life Cycle Approach, Sixth Edition, Irwin, Richard Chase, Nicholas J. Aquilano
Production and Operations Management: Strategic and Tactical Decisions, Fourth Edition, Prentice-Hall, Jay Heizer, Barry Render
The Benchmarking Book, AMACOM, Michael J. Spendolini
Total Quality Management: Three Steps to Continuous Improvement, Addison-
Wesley, Arthur R. Tenner, Irving J. DeToro
Deming's 14 Points for Implementing Quality Improvement
1. Create consistency of purpose.
2. Lead to promote change.
3. Build quality into the product; stop depending on inspections to catch problems.
4. Build long-term relationships based on performance instead of awarding business on the basis of price.
5. Continuously improve product, quality, and service.
6. Start training.
7. Emphasize leadership.
8. Drive out fear.
9. Break down barriers between departments.
10. Stop haranguing workers.
11. Support, help, and improve.
12. Remove barriers to pride in work.
13. Institute a vigorous program of education and self- improvement.
14. Put everybody in the company to work on the transformation.
CI Team Project Reporting Criteria
Each Project should include at least one model and one tool with each process. More may be used as appropriate for your team project. KEEP IT SIMPLE. The objectcive is to IMPROVE A PROCESS. Show how it was before. Show what improvement you are making, why, on what basis, and how. Show how it is after your improvement.
Each Project Team will have a unique project which will likely call for a unique presentation of the project to the class as a whole. The presentation should be in the form of a (or a set of) web page(s), prepared by the Project Team, with only minimal assistance from the instructor. The ability and/or accessability of web page construction capabilities may have a small role in team member selection. We do not want anything too fancy. It must be reasonably simple, yet meaningful.
Provide the output of the Project Team Project, with a Project Name, in the form of a (or a set of) web page(s), to the instructor, or, if already loaded on a server, the URL, to share with the class.
Activity Two-3 - to be done by each individual, not by the team. (Alternate to EJA review)
Please choose two Projects, by Name, at random (not your own!), to review, near the end of the Activity 2, when you are near completion of the Learning Modules. Write a brief set of positive comments and improvement suggestions on the two projects, doing a brief compare and contrast analysis. These Peer-Reviews will be published on a web page for all to see. Be constructive and realistic.
Send your review to smithwil@emporia.edu
Be sure to specify MG 476, Activity Two-3, as the subject of your e-mail.
William
L. Smith Teacher Home Page
Service Management
Home Page
Emporia State UniversityIf you have comments or suggestions, email me at smithwil@emporia.edu