How to plan a Process Improvement Project

When planning a process improvement project the most important question you have to ask is, “What problem are we trying to solve?” This question relates directly to the first step in DMAIC ( a Lean Six Sigma problem solving tool), which is to define the problem. After you answer this question you are ready to outline the criteria for an effective process improvement plan. Projects are usually one time occurrences created to fulfill specific goals for the organization.

Essentially, Lean Six Sigma projects must have the following 3 critical characteristics to be effective: performance, cost and time.  The performance criteria allows us to understand what the project seeks to accomplish. Project expectations and goals should be written clearly, be realistic, made available to all project team members, and team members should also be held accountable for achieving them.

The second criteria, cost, provides insights into the resources needed to complete a project. Usually, money belts which are financial auditors provide an objective independent evaluation of the potential financial benefits of a project as well as the actual results achieved by the Lean Six Sigma project.

Finally, the third criteria, time, assures that team members are aware of the time-frame for the starting and ending of the project. Gantt Charts are excellent tools for monitoring all the activities associated with a project coupled with checkpoints which are smaller points throughout a project that are used to judge how far the project is toward completion.

It is imperative that all team members in a process improvement project understand the top 3 inter-related objectives of the project which are meeting the budget, finishing on schedule and meeting the performance specifications.

 

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E.O.W (End of the Week) Notable Tip: Aligning product success metrics with customer priorities and strategic goals

Happy Friday!

I hope you had a great week. This week’s Notable Tip is focused on the development of valuable and critical product KPI metrics. If you are not measuring and monitoring the most important metrics of your product’s performance progress then you are missing valuable insights that can help you optimize your product. Below I end this post with a short message on how to ensure product success with well-developed measures of performance.

As always, “Success is continuous improvement.”

“Properly designed measures of performance are aligned with strategic goals of a company as well as with its customers’ priorities. They should be to the point, clearly written, focused and measure what is of value to the customer (product/service attributes).”

Lean Wednesday Tip: Issuing Section 1244 Stock

“Small C Corporations benefit from issuing Section 1244 Stock as it offers shareholders better tax treatment if they lose money on the disposition of their C corporation stock. It is best to create a written corporate resolution that specifically states that the shares are Section 1244 stock. Also, make sure to authorize more shares than you’ll sell.”

Preventing Process Failure with FMEA (Failure Modes & Effects Analysis)

FMEA (Failure Modes & Effects Analysis) is a Lean Six Sigma technique for identifying both the ways that a product, part, process or service can fail and the effects of those failures.Once these failure modes are identified, they are rated by the severity of their effects and failure probability. This is critical to the design of any system, process, service or product.

FMEA-Round-1
Sample FMEA GRID

There are 3 types of FMEA’s; system, process and design. However in this post I will only touch upon the Process FMEA. Process FMEA’s identify the different ways that a process could fail and the effects of those failures. They are often used to identify and rank process improvement opportunities. For the lower risk failure modes preventative plans are put in place to ensure minimal impact to productivity, costs, and delivery.

For example, say a Health Tech Startup, creates an app for patient on-boarding with a plethora of functionalities that they consider to be in the “cool factor”. However, this overload of features could overwhelm the user and miss the value curve completely.  With an FMEA analysis they would be able to identify the most critical features, risks, and problems with the product before they take it to market, in turn, significantly reducing rework, product, and process costs.

Contact us now to learn more about how to minimize rework costs and identify problems in processes, systems or products before they are used or put into production.

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