3. For process improvement, one of the best approaches is
developed by Dr. Joseph Juran. It has three components:
It is based loosely on financial processes such as
expense measurement (control)
cost reduction (improvement)
4. 1. Determine customers
Planning begins with external customers. Marketing determines the
Organizational personnel (managers, members of multifunctional teams,
or work groups) determine the internal customers.
2. Determine customer needs
After determining customers, their needs are discovered. This activity
requires the customers to state needs in their own words and from
their own viewpoint. Needs can be defined in two ways,
• stated needs (what is stated by customer? - automobile)
• real needs (what does customer actually need? - status)
5. It is difficult to find real needs for following reasons
1. Customer do not tell real needs as they think it is not necessary.
2. Customers may not tell real needs due to fear of consequences.
Company might discover these needs by,
(1) Being a user of the product or service
(2) getting information about customer satisfaction and dissatisfaction
about the product or service
(3) Simulation in the laboratory
6. 3. Developing product/service features
The next step is to develop product or service features that
respond to customer needs
meet the needs of the organization and its suppliers
optimize the costs of all stakeholders
Quality function deployment, Taguchi's quality engineering, and quality
by design are some of the approaches that can be used.
It is important that the design team, rather than a single department,
approve the final design. The team should be composed of all functional
areas within an organization as well as customers and suppliers.
7. 4. Develop the processes
The fourth step is to develop the processes which is able to produce
the product or service features.
This step is also performed by a multifunctional team with a liaison
to the design team.
determining the necessary facilities
control, and maintenance of the facilities
Most important activities are related to "scaling up" from the lab or
prototype environment to the real process environment.
8. 5. Transferring plans to operations
It is the final step of the planning process. A
multifunctional team with a liaison to the other teams is
When training is necessary, it should be performed by
members of the process planning team.
Process validation and reliability check are necessary to
ensure that a process will consistently produce a product or
service while meeting the requirements.
9. Control is used to help meet the product, process, and service
It consists of the following steps:
1. Determine items/subjects to be controlled and their units of
2. Set goals for the controls and determine what sensors need to
be put in place to measure the product, process, or service.
3. Measure actual performance.
4. Compare actual performance to goals.
5. Act on the difference.
10. Statistical process control (SPC) is the primary technique
for achieving control. The basic SPC tools are,
11. Purpose of improvement is to attain those levels of performance that
are higher than current levels.
It begin with the establishment of an effective infrastructure such as
the quality council.
Some of the duties of the council are to,
1. identify the improvement projects
2. establish the project teams with a project owner
3. provide the teams with the resources to determine the causes,
create solutions, and establish controls to hold the gains
4. ensure that improvement is continuous and never-ending.
12. Process improvement can be incremental or breakthrough.
1. Incremental Improvement
Incremental improvement is focused on improving existing elements of
product/service or system by
2. Breakthrough Improvement
It takes place across the boundaries of what is known or acceptable.
It is all about disruption. If you want a breakthrough, something needs
It has the power to transform an entire business or market sector.
14. This figure shows how the three continuous improvement
In this figure, Juran provides a distinction between sporadic
waste and chronic waste.
1. Sporadic waste
This waste can be identified and corrected through quality control.
2. Chronic waste
This waste requires an improvement process.
As a solution is found through the improvement process,
lessons learned are brought back to the quality planning
process so that new goals for the organization may be
16. The basic Plan-Do-Study-Act
(PDSA) cycle was first developed
by Shewhart and then modified by
It is an effective improvement
17. The four steps in the cycle are,
1. Plan: Plan carefully what is to be done.
2. Do: Carry out the plan (do it).
3. Study: Study the results. Did the plan work as planned, or
were the results different?
4. Act: Finally, act on the results by identifying what worked as
planned and what didn't. Using the knowledge learned,
develop an improved plan and repeat the cycle.
19. Kaizen is a Japanese word for the philosophy that defines management's
role in encouraging and implementing small improvements involving
It is the process of continuous improvement in small increments that
make the process more efficient, effective, under control, and adaptable.
Kaizen relies heavily on a culture that encourages suggestions by
employees who continually try to incrementally improve their job or
Improvements are usually accomplished at little or no expense, without
sophisticated techniques or expensive equipment.
It focuses on simplification by breaking down complex processes into their
sub-processes and then improving them.
20. The Kaizen improvement focuses on the use of:
1. Value-added and non-value-added work activities.
2. Muda, which refers to the seven classes of waste.
6) Wasted motion
7) Defective parts
21. 3. Principles of motion study and the use of cell technology.
4. Principles of materials handling and use of one-piece flow.
5. Documentation of standard operating procedures.
6. The five S's for workplace organization, which are five
1) Seiko (proper arrangement)
2) Seiton (orderliness)
3) Seiketso (personal cleanliness)
4) Seiso (cleanup)
5) Shitsuke (discipline)
22. 7. Visual management by means of visual displays that
everyone in the plant can use for better communications.
8. Just-in-time principles to produce only the units in the
right quantities, at the right time, and with the right
9. Poka-yoke (mistake proofing) to prevent or detect errors.
10.Team dynamics, which include problem solving,
communication skills, and conflict resolution.
24. According to Hammer and Champy, reengineering is the
fundamental rethinking and radical redesign of business processes
to achieve dramatic improvements in critical measures of
Opposite to kaizen, re-engineering is breakthrough improvement.
The Japanese have not only relied on kaizen (incremental
improvement) but have also developed policy management (hoshin
kanri) and policy deployment (hoshin tenkai) to produce large-scale
breakthroughs that Hammer and Champy promote.
26. Six Sigma is a methodology for eliminating defects in any processes.
It helps us focus on developing and delivering near-perfect products
Originally introduced by the Motorola Corporation in 1986, it has
evolved to become the most successful business improvement
strategies. It is attributed with reducing the number of defects to less
than 3.4 per 1 million units.
A Six Sigma defect is defined as anything outside of customer
A Six Sigma opportunity is the total quantity of chances for a defect.
27. The word is a statistical term that measures how much a
given process deviates from perfection. The central idea
behind Six Sigma is that if you can measure how many
“defects” you have in a process, you can figure out how to
eliminate them and get as close to “zero defects” as
28. The fundamental objective of the Six Sigma methodology
is the implementation of a measurement based strategy that
focuses on process improvement and variation reduction.
This is accomplished through the use of two Six Sigma
29. The Six Sigma DMAIC process is an improvement system for existing
processes which need incremental improvement. It is a process for
continued improvement. This process eliminates unproductive steps and
applies technology for improvement.
• DMAIC includes these project stages:
Define - identification of specific processes to be examined
Measure - record data and use metrics to track effectiveness and evaluate
Analyze - utilize critical thinking skills to review data and clarify goals
Improve - create changes in business processes for improvement
Control - build a system of checks and adjustments for ongoing improvement
in production processes
30. The Six Sigma DMADV process is an improvement system used to develop new
processes or products at Six Sigma quality levels. It can also be employed if a
current process requires breakthrough improvement.
DMADV includes these project stages:
Define - address customer needs in relation to a product or service
Measure - involve use of electronic data collection to measure customer needs, response to
product, or review of services
Analyze - utilize metrics to evaluate areas where product or service can be better aligned to
customer goals and needs
Design - use the improvement of business processes that organize corporate goals to meet
client and customer needs
Verify - build a system of tests and models to check that customer specifications are being
met through on-going improvements
31. Six Sigma professionals exist at every level – each with a different role
to play. Here is a basic guide to who does what.
Company executives who lead Six Sigma Projects.
Individuals who receive instructions regarding the basic principles of
Six Sigma and its methodology.
Responsible for choosing employees to be “Belts” and mentoring
Those who implement and back the introduction of Six Sigma within
32. Master Black Belts
Aligned with the Champion to offer support.
Professionals with widespread project management knowledge.
Masters of Six Sigma Methodologies with proven track records.
Individuals with an advanced understanding of the Statistical
Tools used within Six Sigma.
They advise and instruct Green Belts and Black Belts.
33. Black Belts
They receive four weeks of instruction that focus on the Six Sigma road map. This
training will include an extensive look at statistical methodologies.
Successful Black Belts are project leaders whose job requires at least 75% of their
time dedicated to completing four to six month Six Sigma Projects.
They receive two weeks of class time which will cover the important aspects of the
statistical methods needed to complete Six Sigma projects, while learning the Six
Sigma road map.
Green Belts spend up to 50% of their time working on Six Sigma projects that last
for four to six months each.