Process Management

Quick reference

• 00:05 Hi, this is Ray Sheen.
• 00:06 Throughout the Lean Six Sigma project,
• 00:08 we'll be talking about improving our process.
• 00:11 But, just so
• 00:12 we all understand what I mean, let's take a moment and discuss process management.
• 00:19 When discussing process management,
• 00:21 we must first understand the characteristics of a process.
• 00:24 The formal definition of a process is that it is a particular method of doing
• 00:27 something.
• 00:28 Generally involving a number of steps or operations.
• 00:32 But what are the implications of that definition?
• 00:35 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.
• 00:41 Something is happening.
• 00:43 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.
• 00:52 The actions are the keys to understanding
• 00:54 whether the activity is value added or not.
• 00:58 Since we said it is a method of doing something,
• 01:00 that means the actions are related.
• 01:02 There is a relationship between the actions.
• 01:04 What happens in one step can affect other steps.
• 01:07 These steps all work together to achieve some end goal or objective.
• 01:11 There's a purpose to the activities and
• 01:14 that purpose is the desired process output.
• 01:16 While the process has a beginning and
• 01:18 an end point the process is repeated again and again.
• 01:22 In fact 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.
• 01:33 Now this can sometimes be confusing, so
• 01:35 let's look at the difference between projects and processes.
• 01:38 First we'll consider the objective.
• 01:39 A process strives for repeated excellence.
• 01:42 A process executes the steps again and again and again.
• 01:46 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.
• 02:00 When considering the time period of interest in a process runs continuously,
• 02:04 over and over again.
• 02:06 A process needs to be managed to sustain this performance but
• 02:10 a project is a constrained time period.
• 02:13 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
• 02:23 the process steps.
• 02:25 A project, because it is for a short time and for a one time change,
• 02:28 the personnel are often assigned to project temporarily.
• 02:31 And then they're on to the next project.
• 02:35 The measurements for the process of projects are similar, but
• 02:38 still slightly different.
• 02:39 Processes seek to hit specific target performance, and then minimize variation.
• 02:45 Projects also seek to hit specific target performance, but
• 02:48 they only have to reach it once and then the project is over.
• 02:52 Processes track the cost of each unit as it works its way through the process.
• 02:57 But projects look at the total project cost.
• 03:00 This makes sense for
• 03:01 the project because they're often spending money on one time activities.
• 03:06 Finally, with respect to managing schedules,
• 03:08 processes are measuring the cycle time for each unit to flow through the process.
• 03:13 But projects are measuring the start to finish time of the project.
• 03:17 The major risks to efficient process performance is process variation and
• 03:21 waste, the things we are targeting in Lean Six Sigma.
• 03:24 The major risk with a project is associated with the unique or
• 03:27 special items that are related to the nature of the project change.
• 03:32 And finally, when we consider the impact of the business,
• 03:34 the process impact is immediate for the business.
• 03:37 While the project impact is in the future.
• 03:40 Once the new capability is completed,
• 03:42 it will then start to have the impact on the business.
• 03:46 Let's take a look at the concept of "as-is" and "to-be" process.
• 03:50 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 as we can,
• 04:00 what is really going on.
• 04:02 Many times the "as-is" process looks something like this.
• 04:05 The flow is tangled badly, lots of things are going on at the same time.
• 04:09 But they're not coordinated steps and we're looping back on each other.
• 04:13 And it's very difficult to know what the current status is.
• 04:17 This may be due to poor procedures but is more often due to poor process design.
• 04:22 There are numerous loop backs and decision points.
• 04:25 I'll contrast that with this "to-be" process map.
• 04:29 After analyzing the "as-is" process, identify the critical steps and
• 04:33 the key value stream.
• 04:35 The main flow can then be optimized and
• 04:36 other parallel activities can be managed so as to support these main activities.
• 04:41 It should not be a surprise that the "to-be" map is much easier to manage and
• 04:45 optimize.
• 04:46 When we apply the process flow improvement tools of Lean Six Sigma,
• 04:50 we try to change the process flow from the top diagram to the bottom one.
• 04:57 Process flow optimization will be one of the ways that we can eliminate waste
• 05:01 and reduce variation.
• 05:03 We will strive to manage our process for smooth, uninterrupted process flow.

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