Process Management

Quick reference

• 00:05 Hi, this is Ray Sheen.
• 00:07 Throughout the Lean Six Sigma project,
• 00:09 we'll be talking about improving our process.
• 00:11 But just so we all understand what I mean,
• 00:14 let's take a moment and discuss process management.
• 00:18 >> When discussing process management,
• 00:20 we must first understand the characteristics of a process.
• 00:23 The formal definition of a process is that it is a particular method of doing
• 00:27 something, generally involving a number of steps or operations.
• 00:31 But what are the implications of that definition?
• 00:34 Well, first we see that since it is a series of steps,
• 00:37 we need to recognize that there are actions at each step.
• 00:40 Something is happening.
• 00:42 We don't map a process by just showing where the product or information goes.
• 00:47 We map it by showing what happens to it when it gets to where it goes.
• 00:51 The actions are the keys to understanding whether the activity is value added
• 00:56 or not.
• 00:57 Since we said it is a method of doing something,
• 00:59 that means the actions are related.
• 01:01 There is a relationship between the actions.
• 01:03 What happens in one step can affect other steps.
• 01:06 These steps all work together to achieve some end goal or objective.
• 01:11 There is a purpose to the activities, and
• 01:13 that purpose is the desired process output.
• 01:16 While the process has a beginning and an end point,
• 01:19 the process is repeated again and again.
• 01:21 In fact,
• 01:22 there may be multiple items moving through the process steps simultaneously.
• 01:28 In Lean Six Sigma, we use a project to improve a process.
• 01:32 Now this can sometimes be confusing, so
• 01:34 let's look at the difference between projects and processes.
• 01:37 First, we'll consider the objective.
• 01:39 A process strives for repeated excellence.
• 01:42 The process executes the steps again and again and again.
• 01:45 But this is different from a project, which is normally trying to change things.
• 01:50 So the goal when managing a project is to create a new capability or change,
• 01:55 while when managing a process, we want no variation or changes.
• 01:59 When considering the time period of interest then
• 02:02 a process runs continuously over and over again.
• 02:06 A process needs to be managed to sustain this performance.
• 02:09 But a project is a constrained time period,
• 02:12 it's usually being managed to a deadline, and then it's done.
• 02:16 The staffing for a process is permanent and stable.
• 02:19 We can expect the process operators to become highly experienced in
• 02:22 the process steps.
• 02:24 A project, because it is for a short time and for a one-time change,
• 02:28 the personnel are often assigned to a project temporarily and
• 02:31 then they're on to the next project.
• 02:34 The measurements for the process and projects are similar, but
• 02:37 still slightly different.
• 02:39 Processes seek to hit specific target performance and then minimize variation.
• 02:44 Projects also seek to hit specific target performance, but
• 02:48 they only have to reach it once, and then the project is over.
• 02:51 Processes track the cost of each unit as it works its way through the process,
• 02:56 but projects look at the total project cost.
• 02:59 This makes sense for
• 03:00 the project because they are often spending money on one-time activities.
• 03:05 Finally, with respect to managing schedules,
• 03:07 processes are measuring the cycle time for each unit to flow through the process,
• 03:12 where projects are measuring the start to finish time of the project.
• 03:16 The major risks to efficient process performance is process variation and
• 03:20 waste, the things we're targeting in Lean Six Sigma.
• 03:23 The major risk with a project is associated with the unique or
• 03:26 special items that are related to the nature of the project change.
• 03:31 And finally, when we consider the impact of the business, the process impact is
• 03:35 immediate for the business while the project impact is in the future.
• 03:39 Once the new capability is completed,
• 03:41 it will then start to have the impact on the business.
• 03:45 Let's take a look at the concept of as-is and to-be process.
• 03:49 In a Lean Six Sigma project, we start in the measure phase mapping the current or
• 03:54 as-is process.
• 03:55 This is to ensure that we understand, at least as best we can,
• 03:59 what is really going on.
• 04:01 Many times the as-is process looks something like this.
• 04:04 The flow is tangled badly.
• 04:06 Lots of things are going on at the same time, but
• 04:09 they're not coordinated steps and we're looping back on each other, and
• 04:12 it's very difficult to know what the current status is.
• 04:16 This may be due to poor procedures, but it is more often due to poor process design.
• 04:21 There are numerous loopbacks and decision points.
• 04:25 I'll contrast that with this to-be process map.
• 04:28 After analyzing the as-is process, I identified the critical steps and
• 04:32 the key value stream.
• 04:33 The main flow can then be optimized and
• 04:35 other parallel activities can be managed so as to support these main activities.
• 04:40 It should not be a surprise that the to-be map is much easier to manage and optimize.
• 04:45 When we apply the process flow improvement tools of Lean Six Sigma,
• 04:49 we try to change the process flow from the top diagram to the bottom one.
• 04:56 >> Process flow optimization will be one of the ways that we can
• 04:59 eliminate waste and reduce variation.
• 05:02 We will strive to manage our process for smooth, uninterrupted process flow.

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