Process Improvement in Business - Assignment Example

Process Improvement Application Assignment Process Improvement Application Assignment In every business and general life, there is a need for improvement on how things are done. The purpose of improvement is to make work easier and faster to do. It is also to address issues, which make the process of doing things difficult. The main aim is to ensure customers get the best for what they pay for. It assists in development of systems, which make the delivery of goods or services effective and efficient. Every organization aims at cutting on costs of production and operations (Joyce, 2005, p.120). It can better be achieve through process improvement. If the process has been improved upon, then it is appropriate application is required. Application of an improved process requires the participation of all stakeholders in a given system. This paper, assumes that there is an existing functional system, which need improvement in the applications of its processes. Process improvement application uses the following key elements:  Systematic Problem Solving,  Continuous Improvement,  Data Structuring and  Data Analysis These elements will be explained later in this paper in connection with Quality Improvement (QI) philosophy. This will help us in the understanding and appreciation of Process Improvement Application Assignment (PIAA) in any system, for total quality management (TQM). Resources many be looked at in terms of; employees, energy, machines, time, and money among many others. This resources need to be used to convert inputs into outputs. Inputs could be in the form of materials, data, parts and many more. It is important to note here that, inputs could be outputs to another process, depending on the intended use until the final goal is reached. A process ensures that things are done systematically without overlooking any necessary step. Processes need to be improved from time to time, for better application and improved results in whatever system it is assigned to. A Systematic Problem Solving This element of process improvement application follows the seven steps of QI story. To address any problem or issue adequately it is necessary that a defined method is followed. The steps are: Identification of the problem or issue It is important that a problem is well identified and defined. MAS Ltd is a company supplying agricultural products to other suppliers who sell them to farmers. There was a problem of customers’ complain of quality of service, which needed to be addressed urgently because of increased competition in the market (IIT Research Institute, 2001). It was necessary to follow a systematic process. The CEO of the company hired services of a consultant, to help in identifying the main problem. The consultant worked with a team of member of staff chosen by the CEO. Observation and Identification of the cause of the problem After forming a team, there work was to observe and identify the cause of the customers complain. The team with the help of the consultant identified that the staff were not trained on work ethics and customer satisfaction. Analysis and Identification of the root cause of the problem Systematically the team analyzed the problem, which led to identification of the root cause as lack of proper training of staff on proper customer handling and satisfaction. Continuous Improvement To ensure a continuous quality improvement it was necessary to undertake the following steps Planning of quality service improvement action There team came up with a plan on how to improve on quality service delivery and prevent the same problem from occurring again in the future. The team recommended that all staff be trained on a continuous basis; with realization that customers are dynamic in their demands. The organization realized that there is need to train all staff on total quality management especially on lean principles. The lean principle emphasizes on how to eliminate waste, add customer value, and improve performance. The company hired the consultant to undertake the training. Checking on the effectiveness of action taken To ensure that the action taken (that is the training of staff) was effective systems were put in place to have a customer satisfaction survey yearly. This was to assess the level of satisfaction of the customers as far as service delivery is concerned. Data Structuring In order to have a standardized process there is a need to have a proper data structure in place. The data obtained from customer survey formed part of the required data, which was to be structured to meet the requirements of quality improvement story of this company. Standardization of process improvement To ensure a harmonized quality service delivery the company management put in formulated a five-year strategic plan. All stakeholders participated in the formulation of the plan. This standardized the operation of the company. Since the strategic plan was all-inclusive, (every stakeholder participated) it was easy to implement the standards, because everyone believed it can be achieved. Data Analysis Data collected from the survey was analyzed; the company used the results to improve on its quality service delivery based on lean principles. Cost leadership was applied in order to have a balanced effect between customer satisfaction and profit maximization. This led to a clearer focus into the future. Determination of future cause of action By engaging in the strategic plan formulation, it was a clear way of mapping and totally committing to the future success of the company, even in a competitive environment. By using QI story, every team member understood the process, thus, they walked the talk, which led to the successful implementation of the process. The team, which MAS Ltd formed, identified one of the best ways to demonstrate the importance of the problem to management is through PDCA model. They saw the need to plan by identifying, observing, and analyzing the problem. After the plan phase, the team then went to the next step of suggesting what is necessary to eliminate the problem. This is actually the implementation of the plan. This was to be done through training its staff. To ensure that the process is effective it had to put in place checking system. This phase quantifies the degree of changes made to improve on the process implementation and application of the assignment. Through continuous customer satisfaction survey, the company is able to check on the degree of improvement. On checking therefore, the company can take necessary action to correct any abnormality, in accordance with to the strategic plan; putting into consideration the dynamics of the market environment. There are two actions, which can be taken after following the seven steps of QI story namely: I. Implementation of the changes identified by checking if the cause of the problem has been eliminated or not. If it has been eliminated then go to step II below. If not then go back to reanalyze the process again. II. Update of the standards. The basic requirements of a QI story are:  All team members work together as one. They are expected to read from the same script at all times if the problem is to be solved.  The QI storyboard should be hanged where the problem is or were it is being solved forever one to see. Other sources have ten steps of the Quality Improvement Story, which are:  Develop theme- this is actually a definition of the problem identified or the opportunity to be exploited (Natalie & Bruce, 2007, P.120). The definition should be specific, for example in MAS Ltd it was necessary to reduce the number of defects found in quality service delivery to the customers.  Schedule - there is need to have a time-phased plan to complete all the steps in the process.  Assess Current Condition – to be able to address the issues adequately it is important to determine the effectiveness and efficiency of the current process based on facts orb data available now. To achieve this there is a need to measure the process. This requires a creation of appropriate metrics to be used to measure the effectiveness and efficiency of the process. Effectiveness aims at considering how well the process meets the customers’ expected needs for example measurements of rate of failure, number of defects, process capability, warranty claims, and many others; on the other hand, efficiency is the consideration of costs involved. Examples of efficiency measures may include, overhead cost, scrap costs and rework ratio.  Perform Cause-Effect Analysis – this tries to seek factors which must be changed if the situation is to improve.  Verify Cause – in this step it is important to prove that the identified factors are truly the causes of the present conditions of events in the organization (George, 1991, P.130). The use of appropriate statistical design of experiments could be an important tool to be used in order to establish the relative importance of each factor.  Formulate Countermeasures – after identifying the problem or issue to be addressed then there is need of formulation of changes necessary to act on the factors to improve the process. They formulation could include changes to inputs from suppliers or changes to process parameters and changes to the steps of processes.  Assess Countermeasure Effectiveness – this is a test of the measures to ensure that the expected improvement really happens. This helps in saving on time and resources before the process are on the final step. Any deviation from the expected results is addressed before getting to the next step.  Consider Total Evaluation – this is aimed at considering possible effects the countermeasures may have. This kind of evaluation seeks to ensure that, in any promising countermeasure will not create a future problem.  Standardize – this is the implementation or adoption of the countermeasures as part of the process. The changes are documented appropriately and personnel are trained on how to use the revised process to achieve the required results.  Recommend Future Actions –here the team makes a list of recommended actions for an improvement of the system. This may include further improvements to the process just changed, or required improvements to other processes that came to mind during the effort of process improvement and application of the assignment. References Natalie, J. S. & Bruce, W. (2007). Lean For Dummmies. Hoboken, NJ: Wiley publishing, Inc. George, A. R. (1991). Continuous process Improvement: Simplifying Work Flow System, New York, NY: Free press MacMillan Inc. IIT Research Institute (2001). Reliability Toolkit: Commercial Practices Edition: RAC Publication, CPE, Rome, NY System Reliability Center Joyce, S. (2005). Measurement for Process Improvement: Technical Report, v.1.0. Read More