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Five Simple Steps for Continuous
 Improvement of South Carolina
      Business Processes




          (C) Quality Minds Inc. July 2009
South Carolina Business
              Processes
• A process is a collection of activities that convert
  inputs into outputs. Each output has a customer
  and every input has a supplier.
• Arguably, every South Carolina organization
  uses processes to produce and deliver products
  and services to customers.
• The South Carolina industries where continuous
  improvement of business processes is needed
  include manufacturing, healthcare, hospitality,
  municipal government, and education.

                  (C) Quality Minds Inc. July 2009
Step One: Define the South Carolina
    Business Opportunity for Improvement
•    What are your customers saying about your product or service?
•    Complete a Project Charter:
      – Project information: Pick a team leader, a team mentor, and a start and end date
        for the project
      – Team Members: Pick five to six team members making sure the membership is
        cross functional
      – Process Start/Stop: Where does the business process (to be improved) start and
        stop?
      – Process Importance: Why is this business process important to your business?
      – Process Improvement Opportunities: What needs to improve? This may come
        from your customer or from within your organization
      – Process Goals: What are your goals for this business process? What do you
        want to achieve in the project?
      – Process Measurements: How will you know if you reached the goals? How will
        you track progress?
      – Project time frame: List the key steps of your project with dates. Make sure the
        dates fit within the start and end dates for the project.




                               (C) Quality Minds Inc. July 2009
Project:
Project Information                     Process Importance
 Leader:
 Mentor:
 Project Start:
 Project End:
 Cost of Poor Quality:

 Team Members                  Process Improvement Opportunities
 Mentor:
 Leader:


 Team Members:


                                         Project Goals



Process Start/Stop
 Start Point:                         Process Measurements

 Stop Point:


Project Time-Frame
 Milestone:
 Date:                   (C) Quality Minds Inc. July 2009
Step Two: Measure the South
        Carolina Business Process
•   Understand the process as it exists today. You are painting a “before
    picture”
•   Basic Techniques for Measuring a Process:
     – Time the business process at work
     – Videotape the business process at work
     – Talk to the people that work within the business process
•   Create a SIPOC Diagram of the Process:
     – S (Suppliers): Who supplies each input?
     – I (Inputs): What are the key inputs for this process? These are the ingredients
       needed to make the process happen.
     – P(Process): Write out the general steps of the process. Look at the process
       from a satellite view. This is the recipe for the output
     – O (Output): What are the key outputs of the process? These are what the
       customer is paying for
     – C (Customer): List your customers. You have external customers (those that
       pay you for your product and/or service) and internal customers (internal
       departments that receive output from this process)
•   Collect performance data for the different areas of the SIPOC diagram:
    Supplier, Inputs, Process, Output, Customers
                              (C) Quality Minds Inc. July 2009
SIPOC Diagram of Process and Information
               to Collect in the Measure Phase
            Supplier                 Inputs              Process               Output            Customer




          Supplier Quality       Incoming Inspection   Process Audits       SPC                  Customer
          Supplier Delivery      Process Audits        Scrap                Inspection and       Satisfaction
          Quality System Audit                         First Time Quality   Testing              Customer
          Process Audits                               Changeover           Process Capability   Complaints
                                                                                                 Returned product
                                                       Cycle Time
Metrics




                                                                                                 On time delivery




                                                (C) Quality Minds Inc. July 2009
Step Three: Analyze the South
     Carolina Business Process
• Once you have measured the process and
  understand how it is performing, analyze the
  process to understand the specific areas that
  need to be improved
• Basic Techniques for Analyzing a Process:
  – Fishbone Diagram
  – Brainstorming
  – Nominal Technique
• Issue a root cause statement for the process
  opportunity for improvement

                 (C) Quality Minds Inc. July 2009
Root Cause Statement for the Process
    Opportunity for Improvement
• Be specific on what must improve in the
  process
• The statement of improvement should be
  simple and concise but worded such that
  the call to improvement is obvious.




              (C) Quality Minds Inc. July 2009
Step Four: Improve the South
     Carolina Business Process
• Using the root cause statement and the results
  of the analysis, take actions to improve the
  process
• Use the plan/do/check/act approach to
  implement improvement actions for the process:
  – PLAN Plan the action: List the action along with a
    responsibility and due date
  – DO Carry out or do the action
  – CHECK Verify or check that the action worked
  – ACT Take action based on what you learned from
    your check
                   (C) Quality Minds Inc. July 2009
Change in the Process
        Before                                           After



What was the state of the                    What is the state of the
process before the                           process after the
improvement?                                 improvement?


Try to make an objective                     Try to make an objective
statement                                    statement




                      (C) Quality Minds Inc. July 2009
Step Five: Control the South
      Carolina Business Process
• Implement controls to sustain the process
  improvement
• Develop a control plan to document the process
  controls
• Basic Techniques for Controlling a Process:
  –   Statistical Process Control
  –   Process Audits
  –   5s Audits
  –   Standard Operating Procedures
  –   Work Instructions

                   (C) Quality Minds Inc. July 2009
Contact Quality Minds Inc for a Free
 Initial Consultation for South Carolina
     Business Process Improvement
• Stephen Deas President Quality Minds Inc
  Charleston SC
  – Stephen is a certified six sigma black belt with a
    Bachelors of Industrial Engineering (Georgia Tech)
    and a Masters of Industrial Statistics (University of
    South Carolina)
• sd@qualitymindsinc.com
  – Business email
• (843) 814 3864
  – My cell phone
• www.qualitymindsinc.com
  – Overview of Quality Minds Inc.
                    (C) Quality Minds Inc. July 2009

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Five Steps For Continuous Improvement of a South Carolina Business Process

  • 1. Five Simple Steps for Continuous Improvement of South Carolina Business Processes (C) Quality Minds Inc. July 2009
  • 2. South Carolina Business Processes • A process is a collection of activities that convert inputs into outputs. Each output has a customer and every input has a supplier. • Arguably, every South Carolina organization uses processes to produce and deliver products and services to customers. • The South Carolina industries where continuous improvement of business processes is needed include manufacturing, healthcare, hospitality, municipal government, and education. (C) Quality Minds Inc. July 2009
  • 3. Step One: Define the South Carolina Business Opportunity for Improvement • What are your customers saying about your product or service? • Complete a Project Charter: – Project information: Pick a team leader, a team mentor, and a start and end date for the project – Team Members: Pick five to six team members making sure the membership is cross functional – Process Start/Stop: Where does the business process (to be improved) start and stop? – Process Importance: Why is this business process important to your business? – Process Improvement Opportunities: What needs to improve? This may come from your customer or from within your organization – Process Goals: What are your goals for this business process? What do you want to achieve in the project? – Process Measurements: How will you know if you reached the goals? How will you track progress? – Project time frame: List the key steps of your project with dates. Make sure the dates fit within the start and end dates for the project. (C) Quality Minds Inc. July 2009
  • 4. Project: Project Information Process Importance Leader: Mentor: Project Start: Project End: Cost of Poor Quality: Team Members Process Improvement Opportunities Mentor: Leader: Team Members: Project Goals Process Start/Stop Start Point: Process Measurements Stop Point: Project Time-Frame Milestone: Date: (C) Quality Minds Inc. July 2009
  • 5. Step Two: Measure the South Carolina Business Process • Understand the process as it exists today. You are painting a “before picture” • Basic Techniques for Measuring a Process: – Time the business process at work – Videotape the business process at work – Talk to the people that work within the business process • Create a SIPOC Diagram of the Process: – S (Suppliers): Who supplies each input? – I (Inputs): What are the key inputs for this process? These are the ingredients needed to make the process happen. – P(Process): Write out the general steps of the process. Look at the process from a satellite view. This is the recipe for the output – O (Output): What are the key outputs of the process? These are what the customer is paying for – C (Customer): List your customers. You have external customers (those that pay you for your product and/or service) and internal customers (internal departments that receive output from this process) • Collect performance data for the different areas of the SIPOC diagram: Supplier, Inputs, Process, Output, Customers (C) Quality Minds Inc. July 2009
  • 6. SIPOC Diagram of Process and Information to Collect in the Measure Phase Supplier Inputs Process Output Customer Supplier Quality Incoming Inspection Process Audits SPC Customer Supplier Delivery Process Audits Scrap Inspection and Satisfaction Quality System Audit First Time Quality Testing Customer Process Audits Changeover Process Capability Complaints Returned product Cycle Time Metrics On time delivery (C) Quality Minds Inc. July 2009
  • 7. Step Three: Analyze the South Carolina Business Process • Once you have measured the process and understand how it is performing, analyze the process to understand the specific areas that need to be improved • Basic Techniques for Analyzing a Process: – Fishbone Diagram – Brainstorming – Nominal Technique • Issue a root cause statement for the process opportunity for improvement (C) Quality Minds Inc. July 2009
  • 8. Root Cause Statement for the Process Opportunity for Improvement • Be specific on what must improve in the process • The statement of improvement should be simple and concise but worded such that the call to improvement is obvious. (C) Quality Minds Inc. July 2009
  • 9. Step Four: Improve the South Carolina Business Process • Using the root cause statement and the results of the analysis, take actions to improve the process • Use the plan/do/check/act approach to implement improvement actions for the process: – PLAN Plan the action: List the action along with a responsibility and due date – DO Carry out or do the action – CHECK Verify or check that the action worked – ACT Take action based on what you learned from your check (C) Quality Minds Inc. July 2009
  • 10. Change in the Process Before After What was the state of the What is the state of the process before the process after the improvement? improvement? Try to make an objective Try to make an objective statement statement (C) Quality Minds Inc. July 2009
  • 11. Step Five: Control the South Carolina Business Process • Implement controls to sustain the process improvement • Develop a control plan to document the process controls • Basic Techniques for Controlling a Process: – Statistical Process Control – Process Audits – 5s Audits – Standard Operating Procedures – Work Instructions (C) Quality Minds Inc. July 2009
  • 12. Contact Quality Minds Inc for a Free Initial Consultation for South Carolina Business Process Improvement • Stephen Deas President Quality Minds Inc Charleston SC – Stephen is a certified six sigma black belt with a Bachelors of Industrial Engineering (Georgia Tech) and a Masters of Industrial Statistics (University of South Carolina) • sd@qualitymindsinc.com – Business email • (843) 814 3864 – My cell phone • www.qualitymindsinc.com – Overview of Quality Minds Inc. (C) Quality Minds Inc. July 2009