Posted on 06/03/14 at 12:00:00 AM
In one of our earlier blog posts, we discussed the first four steps that play key roles in improving the overall performance of an organization.
However, process improvement is an extensive system where the middle and finishing steps are as important as the initial one. So, here stress will be provided on the middle stage that will carry forward the good work that an organization performed at the initial stage of process improvement.
1. Process Redesign
The Process Redesign method was developed in the early 1980s by H. James Harrington. The main purpose of this method is removing the waste of current business process and streamlining the necessary activities. Once the streamlining is done, then it uses the IT infrastructure to maintain the regularity of activities involved. Process redesign is effective for cost controlling, reducing the time for product development cycle and quality improvement. There are generally five different phases that constitute the overall process redesign The Process Redesign methodology consists of five phases, namely:
2. Goal-Question-Metric (GQM)
GQM (Goal-Question-Metric) was initiated and promoted by Victor Basili of the University of Maryland. It targets the software metrics that an organization uses to monitor and control its overall production. GQM is absolutely essential for keeping a track over the production measurement of an organization.
In order to deliver the desired results, GQM takes into account three different levels of production, namely:
3. HoshinKanri
Hoshinkanri, a Japanese term that means management compass, is a methodology created to encapsulate strategic achievements and traits of futuristic goal in one place. The encompassing attribute of the term is realized better as it also takes into account the possibilities of materializing the goals into reality.
There are other terms that are also used for referring Hoshimkanri, such as, policy deployment, hoshin planning, or simply hoshin (as in “FY12 Hoshin”). For the first time in the 1950s, this method received popularity in Japan under the supervision of Professor Kaoru Ishikawa, who elaborated it as, – “Each person is the expert in his or her own job, and Japanese TQC (Total Quality Control) is designed to use the collective thinking power of all employees to make their organization the best in its field.” Many consider this saying as the core principle of Hoshinkanri.
Professor Ishikawa, in his book, What Is Total Quality Control, has future reflected: “Top managers and middle managers must be bold enough to delegate as much authority as possible. That is the way to establish respect for humanity as your management philosophy. It is a management system in which all employees participate, from the top down and from the bottom up, and humanity is fully respected.” After Professor Ishikawa several other scholar have adapted the concept. Dr. YojiAkao is one of the most renowned figures of them all. He has successfully fused Hoshinkanri with a Shewhart cycle (Plan-Do-Check-Act) for goal creation, choosing the points of control and linking daily objectives with the overall strategy of an organization. The output is aimed at keeping daily controls and performance measures in a single place.
Hoshinkanri, as a leading management methodology, is intended complement an organization in the following ways:
4. Capability Maturity Model Integration/Capability Maturity Model
One of the most effective process improvement approach is Capability Maturity Model Integration (CMMI). Thus system is widely popular for process improvement not only for a particular project or a division in an organization but functionality of the entire organization can be brought under its purview. According to the level of maturity, processes are various, such as – Initial, Repeatable, Defined, Quantitatively Managed, Optimizing. Currently, maturity of each of these stages is supported under CMMI Version 1.3. The U.S. Patent and Trademark Office by Carnegie Mellon University has takes CMMI within its scope.
The process areas for functioning may vary, depending on the main CMMI areas of interest. The term ‘Process areas’ refers the domains that functioning of an organization will cover. In the following table, you will find the list of core process areas that are of much interest for the CMMI professionals:
5. ISO 9000
The list of ISO 9000 standards is associated with the vast management of quality standards in production. It is designed to help customers with the assurance of the best quality in terms of meeting both statutory and regulatory requirements related to the product. The standards are published by ISO or the International Organization for Standardization, and are available through National standards bodies. ISO 9000 deals with the very basics of quality management, which include the eight management principles. The successor, ISO 9001, deals with the standard parameters that organizations, aspiring for ISO 9000 mark, are required to fulfill.
Organizations need to rely on 3rd party certification bodies when it comes to finding whether or not an organization is eligible for ISO 9001 certification. As per the latest finding, more than a million companies all over the world are certified in this manner as of now and in this way they have made ISO 9001 one of the most frequently used management tolls of all.
The growth in ISO 9001 certification is shown in the table below. The worldwide total of ISO 9001 certificates can be found in the ISO Survey of 9001 :
In recent years there has been a rapid growth in China, which now accounts for approximately a quarter of the global certifications.
6. Just In Time
Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban (看板, Kanban) between different points in the process, which tell production when to make the next part. Kanban are usually ‘tickets’ but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization’s return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality.
Quick notice that requires personnel to order new stock once existing stock is depleting is critical to the inventory reduction at the center of the JIT policy, which saves warehouse space and costs. However, JIT relies on other elements in the inventory chain as well. For instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can “end up with the opposite of the desired result.” In recent years manufacturers have continued to try to hone forecasting methods such as applying a trailing 13-week average as a better predictor for JIT planning; however, some research demonstrates that basing JIT on the presumption of stability is inherently flawed.
JIT implicitly assumes that input parts quality remains constant over time. If not, firms may hoard high-quality inputs. As with price volatility, a solution is to work with selected suppliers to help them improve their processes to reduce variation and costs. Longer term price agreements can then be negotiated and agreed-on quality standards made the responsibility of the supplier.