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Module 2 : Process design and improvement - Coggle Diagram

- - - - Example: The accounting manager could use project management skills to plan and execute a project to transfer the work from the existing team to their team in a way that minimizes disruption and ensures a smooth transition.
  - - - Example: The accounting manager could use change management skills to communicate with the existing team about the changes, involve them in the transition process, and address their concerns to ensure they remain motivated and committed to the task.
  - - - Example: The accounting manager could use process improvement skills to analyze the existing process, identify areas for improvement, and implement changes to streamline the process and increase efficiency.
  - - - The accounting manager could use business management competencies to develop a long-term strategy for the new business unit, manage the budget, communicate with stakeholders, and lead their team effectively.
- - - - Suppliers:
        
        The people, departments, or organizations that provide the inputs needed to start the process.
        
        Your suppliers would be the farmers who provide the wheat for the flour, the manufacturers who make the yeast and other ingredients, and the delivery companies who transport the supplies to your bakery.
      - Inputs:
        
        The resources, materials, data, or information needed to perform the process.
        
        : Your inputs would include the flour, yeast, water, and other ingredients you need to make bread.
      - Process:
        
        The steps involved in converting the inputs into outputs.
        
        Your process would involve mixing the ingredients, letting the dough rise, shaping the bread, baking it in the oven, and cooling it.
      - Outputs:
        
        The results or outcomes of the process.
        
        Your outputs would be the freshly baked bread, ready to sell to customers.
      - Customers:
        
        The people or groups who receive or use the process outputs.
        
        Your customers would be the people who buy your bread, whether they're individuals, restaurants, or supermarkets.
    - - Defining the process boundaries (start and end points): SIPOC helps to clearly define where the process starts and ends, which helps to avoid confusion and ensure that everyone involved in the process is on the same page.
      - Avoiding scope creep: By clearly defining the process boundaries, SIPOC helps to prevent scope creep, which is when the process expands beyond its original scope.
      - Identifying the customers of a process: SIPOC helps to identify the customers of the process and their requirements, which is important for ensuring that the process delivers value to the customers.
      - Breaking down the process into simpler, more manageable sub-processes: SIPOC helps to break down the process into smaller, more manageable sub-processes, which makes it easier to understand and improve the process.
      - Helping ensure the process is focused on the right outputs to deliver value: SIPOC helps to ensure that the process is focused on delivering the right outputs to the customers and delivering value to the organization
  - - - A square box represents a process step,
      - the diamond shape indicates a decision point,
      - a circle is a connector,
      - a rounded box is a terminator and
      - a parallelogram is for data.
    - - Start
      - Gather ingredients (parallelogram shape)
      - Place bread on a plate (square shape)
      - Add condiments (square shape)
      - Add meat (square shape)
      - Add cheese (square shape)
      - Add vegetables (square shape)
      - Place other slice of bread on top (square shape)
      - Cut sandwich in half (square shape)
      - End
  - - - In the supplier lane, the process starts with the supplier submitting an invoice. In the GBS lane, the process continues with the GBS team scanning the invoice to check if it matches the purchase order (PO). If it does match, the GBS team creates an invoice record and sends it for payment. In the business lane, the payment is released once the invoice is approved.
      - However, if the invoice doesn't match the PO, it needs to be manually approved before payment can be released. This is indicated in the flowchart by a decision point, where the process diverges depending on whether the invoice matches the PO or not.
  - - - Next, you'd evaluate each step to determine whether it adds value or not. Mixing the batter and baking the cupcakes would be considered value-adding steps because they directly contribute to the final product. However, waiting for the cupcakes to cool would be a non-value-adding step because it doesn't contribute to the final product and just adds time to the process.
- - - - Identify customer value: This involves understanding what the customer wants and needs, and what they are willing to pay for. For example, a customer may want a high-quality product that is delivered quickly.
        
        Your customer is the person, department, or organization that receives the output of your process. So, if you work in a restaurant, your customers are the people who eat the food you make.
        
        Once you know who your customers are, you need to find out what they really need. This is where Voice of the Customer (VoC) comes in. VoC is just a fancy way of saying that you need to gather information directly from your customers.
        
        There are three main ways to do this
        
        interviews
        
        are good for getting detailed feedback from a small number of customers
        
        focus groups
        
        are good for getting feedback from a larger number of customers, but the feedback might be less detailed
        
        surveys
        
        are good for getting feedback from a lot of customers quickly, but the feedback might not be as detailed as with interviews or focus groups
        
        Kano analysis
        
        helps you figure out how important different product or service features are to your customers
        
        ask customers how they would feel if a certain feature was present, and how they would feel if it was not present
        
        This allows you to categorize the features as satisfiers, dissatisfiers, or delighters.
        
        Satisfiers
        
        are features that customers expect as normal, but which can increase or decrease satisfaction depending on how well they are delivered
        
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        Dissatisfiers
        
        are basic needs that do not increase satisfaction, but can only lead to dissatisfaction if not delivered as expected.
        
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        Delighters
        
        are features that are not normally expected, but which can increase satisfaction
        
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      - Understand current state: This step involves analyzing the current processes and identifying any inefficiencies or waste. For example, a company may find that they have a lot of excess inventory or unnecessary steps in their production process.
        
        To do this, a tool called a Value Stream Map (VSM) is used.
        
        like a diagram that shows the steps involved in a process, from start to finish
        
        Map the initial process steps. The diagram shows the initial process steps starting with the supplier and then the process of scanning invoices, entering and matching the PO, preparing the payment run and finally issuing the payment.
        
        Add the flow of information. The diagram builds on the previous process to show the intermediate objects in the process, such as the invoice before the scanning process, the PO before the entering process and the bank transfer before the payment issuance.
        
        It also shows that the enterprise resource planning (ERP) is aligned to the PO processing.
        
        Walk the process and collect data on volumes, resources, process time, waiting time, batch sizes and accuracy.
        
        Add the data to the VSM and calculate overall data. In the last phase, the diagram builds in the time required for each of these processes and maps it down to seconds.
      - Determine ideal state: In this step, the company determines what the ideal process would look like. This includes identifying any changes that need to be made to eliminate waste and provide value to the customer.
      - Determine future state: This involves creating a plan to transition from the current state to the ideal state. This plan may involve changes to the process, equipment, or personnel.
        
        can start with the identification of waste
        
        types of waste
        
        Transportation: This refers to the movement of materials or products from one place to another. For example, if a company has to transport raw materials from a warehouse to a manufacturing plant, this could be considered waste because it doesn't add any value for the customer.
        
        Inventory: This refers to excess materials or products that are not needed or used immediately. For example, if a company produces too much inventory that ends up sitting in a warehouse for a long time, this could be considered waste because it takes up space and ties up resources.
        
        Motion: This refers to unnecessary movements or actions within a process. For example, if a worker has to repeatedly bend down to pick up a tool, this could be considered waste because it's inefficient and could lead to fatigue or injury.
        
        Waiting: This refers to idle time when a resource is not being used productively. For example, if a worker is waiting for a machine to finish a task before they can start the next step in a process, this could be considered waste because it's not adding value.
        
        Over-production: This refers to producing more than is needed by the customer. For example, if a company produces too many products that end up not being sold, this could be considered waste because it ties up resources and creates excess inventory.
        
        Over-processing: This refers to doing more work than is necessary to achieve the desired outcome. For example, if a company adds extra features to a product that the customer doesn't want or need, this could be considered waste because it takes up resources without adding value.
        
        Defects: This refers to mistakes or errors that require rework or cause customer dissatisfaction. For example, if a company produces a product with a defect that requires it to be returned or repaired, this could be considered waste because it ties up resources and damages the company's reputation.
      - Validate with stakeholders: It's important to get input and feedback from stakeholders, including customers, employees, and suppliers. This helps to ensure that the changes will be effective and sustainable.
      - Implement change: This step involves putting the plan into action and making the necessary changes to the process.
      - Continuous improvement: Finally, it's important to continually monitor and improve the process. This may involve collecting data, analyzing results, and making further changes as needed.
        
        Various techniques can be used in continuous improvement, such as Kaizen or 5S or Six Sigma
        
        Kaizen
        
        Kaizen is a Japanese term that means "improvement" or "change for the better." It involves making small, continuous improvements to processes, products, or services to eliminate waste and improve efficiency over time.
        
        Some typical activities involved in Kaizen include involving all workers in the improvement process, reducing waste, encouraging a scientific approach to identifying problems, and rewarding employees for participating in Kaizen activities.
        
        example of Kaizen is the PDCA cycle, which stands for plan, do, check, and adjust.
        
        This involves standardizing a process, measuring its performance, comparing the results to requirements, innovating to improve performance, standardizing the new process, and repeating the cycle continuously.
        
        For instance, imagine a restaurant owner who wants to implement Kaizen in their kitchen to reduce waste and improve efficiency. They involve all kitchen staff in the process, encouraging them to suggest ways to eliminate waste and streamline processes. They implement the PDCA cycle, starting by standardizing their food preparation process, measuring its performance, comparing the results to requirements, and innovating to improve efficiency. They standardize the new process, train their staff to follow it, and continue to repeat the cycle to identify and solve further problems. By implementing Kaizen in this way, the restaurant can improve its operations over time, reducing waste and improving customer satisfaction.
        
        5S
        
        is a method for making your workspace clean, organised, and efficient
        
        Sort: Get rid of anything that is not needed in your workspace. For example, if you have papers or tools that you don't need, put them away or throw them out.
        
        Set in order: Arrange the remaining items in a way that makes sense and is easy to use. For example, put tools and materials that you use frequently within easy reach and organize them by type.
        
        Shine: Clean your workspace regularly. This includes sweeping the floors, wiping down surfaces, and keeping things tidy.
        
        Standardize: Create a set of procedures and guidelines for how to use your workspace. This helps everyone know what is expected of them and how things should be done.
        
        Sustain: Make the 5S method a habit. Everyone who uses the workspace should follow the procedures and guidelines consistently.
        
        For example, let's say you work in a restaurant kitchen. Using the 5S method, you would start by getting rid of any expired food, old utensils, or broken equipment. Then you would arrange your remaining utensils and ingredients in a way that makes sense for the type of cooking you do. You would clean the kitchen every day, following a set of procedures that everyone in the kitchen is familiar with. Finally, everyone in the kitchen would make following these procedures a habit so that the kitchen remains clean, organized, and efficient over time.
        
        Six Sigma
        
        is a method used by companies to improve their processes and reduce defects. It involves measuring how many defects occur in a process and finding ways to systematically eliminate them.
        
        DMAIC
        
        stands for Define, Measure, Analyse, Improve, and Control
        
        This means that a company would start by defining the problem, measuring the current process, analysing the data to find the root cause of the problem, improving the process by implementing solutions, and controlling the process to ensure it continues to perform well.
        
        For example, let's say a company is having a problem with a high error rate in their order processing system. They could use the DMAIC method to reduce the error rate. They would start by defining the problem (high error rate), measuring the current process (how many errors are occurring), analysing the data (to find the root cause of the errors), improving the process (by implementing solutions to reduce errors), and controlling the process (to ensure errors are consistently reduced over time).
        
        improve existing processes
        
        DMADV
        
        stands for Define, Measure, Analyse, Design and Verify
        
        is used to design new processes. This method involves defining the requirements of the new process, measuring the current process capabilities, analysing the data to design the new process, verifying the design to ensure it meets the requirements, and implementing the new process.
        
        For example, a company might use DMADV to design a new product assembly line. They would start by defining the requirements for the new assembly line (speed, efficiency, quality), measuring the current capabilities of the existing assembly line, analysing the data to design the new assembly line, verifying that the new design meets the requirements, and then implementing the new assembly line.
        
        is used to design new processes.
        
        Six Sigma tools
        
        FMEA
        
        is a method used to identify potential failures in a process and estimate the risk of those failures occurring. It involves brainstorming potential ways that a process could fail, identifying the causes of those failures, and determining the impact and likelihood of each failure. A risk priority number (RPN) is calculated by multiplying the severity, occurrence, and detectability ratings. The purpose of FMEA is to identify ways to prevent failures or detect them if they do occur.
        
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        Fishbone
        
        also called an Ishikawa diagram,
        
        is used to identify the potential root causes of a problem. The diagram looks like a fishbone with the problem at the head of the fish and the potential causes as the bones. The categories assessed are often the 6Ms: man, machine, method, material, measurement, and mother nature. The purpose of the fishbone diagram is to brainstorm and validate potential causes of a problem so that appropriate solutions can be identified and implemented.
        
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        Pareto Chart
        
        is used to prioritize errors or defects so that improvement efforts can be focused on the most critical issues. The chart shows the frequency of different types of errors or defects and is sorted in descending order. The purpose of the Pareto chart is to visually display which errors or defects are occurring most frequently so that improvement efforts can be directed towards the most significant issues.
        
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- - - - outside of an organization
        
        External drivers are factors that are not within the control of the organization, such as political, economic, social, technological, environmental, and legal factors.
        
        For example, a change in government regulations or a new technology can be external drivers of change.
        
        are harder to control, but organizations can adapt their strategies to deal with them
      - inside of an organization
        
        are factors that can be controlled or managed by the organization's decision-makers and management.
        
        For instance, introducing a new product or restructuring the organization can be internal drivers of change.
        
        can be managed by implementing new policies, procedures, or structures within the organization.
  - - - Some people embrace the change and see it as an opportunity for growth and development.
      - Others may resist the change, finding it difficult to adapt to new ways of doing things.
    - - Supporters can help move the organization forward by being enthusiastic and optimistic about the opportunities the change presents,
      - while resistors can hinder progress by being negative and resistant to new ideas.
      - For example, when a company decides to implement a new software system, some employees may be excited about the potential benefits and eager to learn how to use it. Others may feel overwhelmed and intimidated by the new technology and may resist learning how to use it, causing delays and setbacks in the implementation process.
  - - - unfreeze
        
        In this stage, the organization shows that the current way of doing things is not working, and change is necessary. The organization communicates to the employees about the changes, why they are needed, and how they will benefit the organization and its employees.
        
        An organization might show that its current way of producing a product is not cost-effective and that a new method is required to increase profits.
      - implement change
        
        This is when the actual change takes place. The organization might change its processes, products, and even culture. Employees will have to learn new skills, and some may struggle with the new ways of doing things. It is the manager's responsibility to support and reassure employees during this stage.
        
        The organization might change the software it uses to manage projects and train its employees to use the new software.
      - refreeze
        
        In this stage, the organization stabilizes and solidifies the changes that have been made. The changes are accepted, and the organization works to prevent any return to the old ways of doing things. Employees are encouraged to participate in decision making, and their efforts are rewarded.
        
        The organization might reward employees who have adapted well to the new software and encourage them to come up with ideas to improve it further.
  - - - This tool helps teams identify the need for change by looking at short-term and long-term threats and opportunities.
        
        For example, a team might identify a short-term threat of losing customers to competitors, and a long-term opportunity to expand into a new market. They can use this tool to prioritize the changes they need to make and develop a clear statement of what they want to achieve.
    - - ARMI stands for Approval, Resource, Member, and Interested party. This tool helps teams understand who is involved in each phase of a project, what their role is, and how they can support the change.
        
        For example, a project team might identify an expert in marketing as a Resource for the Design phase, a finance manager as a Member of the Implementation phase, and the CEO as an Interested party for the Review phase.
    - - TPC stands for Technical, Political, and Cultural. This tool helps teams identify potential sources of resistance to change and develop strategies to overcome them.
        
        For example, a team might identify that technical issues such as lack of training are causing resistance from employees, political issues such as fear of losing power are causing resistance from managers, and cultural issues such as resistance to new ideas are causing resistance from the organization as a whole. The team can then develop specific actions to address each type of resistance, such as providing more training, involving managers in the change process, and promoting the benefits of the change to the entire organization.
- - - - Example: A company wants to launch a new product within the next six months. The objective of the project is to have the product ready for launch and meet the required quality standards.
    - - Example: The company has set a deadline of six months to complete the project and launch the new product.
    - - Example: The company has allocated a budget for the project, hired a project team, and purchased necessary equipment.
    - - Example: The company has formed a steering committee made up of senior executives to oversee the project.
    - - Example: The company has appointed a project manager to lead the project team and ensure the project is completed on time and within budget.
  - - - Example: Imagine a company is building a new software system. The steering committee might include the CEO, the head of IT, and representatives from different departments who will use the new system.
    - - Example: In the software system project, the project sponsor might be the head of IT, who has championed the project and secured funding for it.
    - - Example: The project manager for the software system project would be responsible for making sure the project is completed on time, within budget, and meets the requirements of the steering committee and end users.
    - - Example: The project team for the software system project might include developers, testers, and user experience designers.
    - - Example: In the software system project, the end users might be employees who will use the system to manage customer data. Their feedback and input would be important to make sure the system is designed to meet their needs.
  - - - Identification of needs: This is where the organization identifies a business need or set of needs that a project can fulfill. For example, a company may need to develop a new product or service to meet customer demand.
      - Development of solutions: At this stage, the organization decides on the best way to address the identified needs. They may consider different options, such as developing a product in-house or outsourcing the work. Once they have decided on a solution, they may create a project initiation document to outline the project's goals, scope, and resources.
      - Implementation: This is when the organization puts the plan into action. They mobilize resources, such as personnel and equipment, to complete the project.
      - Completion: Once the project is finished, the organization evaluates the end results against the planned outcomes. They may conduct a post-implementation audit and review to identify areas for improvement and learn from their experience.