AC omparison of Continual Improvement Models

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					A Comparison of Continual
     Improvement Models
     Continual Improvement Models


•   ISO 9001:2000 Based Management Systems
•   Lean
•   Six Sigma
•   Malcolm Baldrige Award Criteria
           ISO 9001:2000
Based Management System
 ISO 9001:2000


Objective Of ISO 9001:2000
  – Development of a quality management
    system that provides for:
    •   Customer satisfaction
    •   Definition of processes and their interaction
    •   Control of processes
    •   Continual Improvement
 ISO 9001:2000


Based on 8 Principles
  –   Customer Focus
  –   Process Approach
  –   Leadership
  –   Systematic Approach to Management
  –   Fact-Based Decision Making
  –   Involvement of People
  –   Continual Improvement
  –   Mutually Beneficial Supplier Relationships
      ISO 9001:2000
      A Process-Based Model
                Continual Improvement of the Quality
                       Management System

Current &                                                                 Customers
                                 Management                                (and other
 Potential
                                 Responsibility
Customers
                    Plan
                           COMPANY                                         interested
                                                                             parties)
 (and other                                          Act
 interested
   parties)                COMPANY
                     Resource
                                Measurement,
                                                   Analysis &              Satisfaction
                    Management
                                                  Improvement
                           COMPANY
                       Do                           Check
 Requirements
                           COMPANY
                             Product
                                                                Product
                                  Realization
Lean
      Lean
    Lean = Eliminating the Wastes
 Waiting

 Transportation of parts/materials/tooling
 Non Value-added processing
                                                  5%
 Excess inventory                            Value-added
 Overproduction

 Defects
                                  95%
 Excess motion              Nonvalue-added

 Underutilized people


                .05% to 5% Rule
  Lean – Eight Wastes
OVERPRODUCTION OR                   WAITING
CAPACITY                              Idle time that keeps people
Producing more than necessary         from doing something of
based on customer demand.             value
Having more resources than
needed.                              OVER-PROCESSING
                                      Operations that are more than
EXCESSIVE INVENTORY                  required vs. what customer
Extra anything that is not needed     wants
now
                                     DEFECTS
TRANSPORTATION                       Additional work created by
Extra transportation, movement,       machine or human error
handling beyond what is
absolutely required
                                     UNDER-UTILIZING HUMAN
EXCESSIVE MOTION                     RESOURCE
Machine movements: Speed,             Failing to use the good ideas
Feed, Travel distance                 and skills of people



                                                 9
Lean

Waste Is A Symptom Of An
Underlying Problem!
 Waste is the way the workplace or
     process is telling you that
         something is wrong.

          Lean is:
The relentless prosecution
        of WASTE.”
Six Sigma
  Six Sigma



The Six Sigma Philosophy
  – Every human activity is a process
  – Processes can be studied and
    improved
  – Stable and highly capable processes
    yield the best results
  Six Sigma

What Is Six Sigma?
  – Philosophy
     • Focus on improving processes
     • Target for “Six Sigma” process capability
     • Apply statistical tools to study and improve processes
     • Apply to all processes – “From booking the order to
       collecting the cash”
  – Objectives:
     • Waste reduction
     • Streamlining
     • Gains in quality & productivity
  Six Sigma

Two Distinct Categories
  – Six Sigma Quality
     • Six standard deviations between the distribution average
       and the nearest specification limit (Cpk = 2)
  – Six Sigma Methods - DMAIC
     • Define
     • Measure
     • Analyze
     • Improve
     • Control
       Six Sigma

DEFINE &                              Cause &
             Project      Process                  Preliminary
                                       Effect                           MSA
MEASURE    Description      Map                      FMEA
                                       Matrix


           Capability    Multi–Vari                               Opinion of
ANALYZE     Studies       Studies                                the Experts
                                           Study the “As
                                           Is Condition”

IMPROVE       DOE                                        Actively
                                                        Manipulate

                                                                        Final
            Control      Hand–off       Final        Owner
CONTROL                                                                Project
             Plan        Training     Capability    Sign–off
                                                                       Report
    Six Sigma

What Six Sigma Is             What Six Sigma Is Not
A systematic approach        The exclusive province of
 to improving processes        “experts”
A set of statistical tools   Something that requires a
                               PhD to understand
Tools for each step of
 DMAIC                        Only for giant corporations
An organized, team-
 based path for
 improvement
Malcolm Baldrige Award Criteria
    The Baldrige Criteria


•   Dynamic system
•   Proven long-term business results
•   Customizable for all organizations
•   Best practice focused
•   Real-world application
     The Baldrige Criteria


Criteria for Performance Excellence
• Framework for a “systems view” of
  performance management
• Set of expectations or requirements that
  characterize good management practices
• Common language for diagnosis and
  improvement
• Reviewed and modified regularly for
  improvement
      The Baldrige Criteria

Baldrige Framework – A Systems Perspective
                               Organizational Profile
                            Environment, Relationships,
                                   Challenges
                                                    5
                              2
                                                  Human
                          Strategic              Resource
                          Planning                Focus

          1                                                             7
      Leadership                                                     Business
                                                                     Results
                              3
                                                  6
                         Customer &
                           Market              Process
                           Focus              Management

                                            4
                   Measurement, Analysis, and Knowledge Management
Comparison of CI Models
     Comparison of CI Models


CI Model        Purpose/Goal      Methods

ISO 9001:2000   Defined,          • Define system
                controlled, and       Processes
                continually           Controls
                improving         • Management of system
                management            Set Objectives
                system                Review Performance
                                  • Measure, Analyze, Improve
       Comparison of CI Models


CI Model    Purpose/Goal    Methods
Lean        Waste Reduction •   Value Stream
                            •   Flow
                            •   Pull
                            •   Perfection
                            •   Visual control
     Comparison of CI Models


CI Model    Purpose/Goal      Methods
Six Sigma   Achievement of    • DMAIC
            strategic goals       Define
            through               Measure
            improvement of        Analyze
            processes             Improve
                                  Control
                              • 6 Sigma capability
      Comparison of CI Models


CI Model          Purpose/Goal     Methods
Baldrige National Organizational   • Criteria-based assessment of
Quality Program excellence             Leadership
                                       Strategic Planning
                                       Customer and Market
                                        Focus
                                       Measurement, Analysis &
                                        Knowledge Management
                                       Human Resource Focus
                                       Process Management
                                       Business Results
Application Examples
       Application Examples
CI Model            Application in Healthcare
ISO 9001:2000       • Entire facility:
                        Middletown Regional, St. Luke’s – Maumee
                    • Functional groups within facility:
                        Laboratory, Information systems

Lean                • Operational processes
                        Admissions, Housekeeping
                        Laboratory, Emergency department

Six Sigma           • Strategic Plan deployment
                    • All processes – operational and transactional
                        Admissions and Accounting
                        Housekeeping
                        Laboratory, Emergency department
                        Purchasing

Baldrige National   • Highest level of management
Quality Program     • Systems view - all processes
       Application Examples
CI Model            Application in Manufacturing
ISO 9001:2000       •All units and processes
                    •Value Creation processes such as:
                         Design/Engineering/R&D
                         Manufacturing
                    •Support processes such as:
                         Purchasing/Supplier Management
                         Quality Control       Information Systems
Lean                •Operational processes such as:
                         Workflow Design
                         Production and Maintenance
                         Inventory Management
Six Sigma           •Strategic Plan deployment
                    •All processes including:
                         Design/Engineering/R&D
                         Production and Maintenance
                         Inventory Management, Customer Service/Support
                         Information Technology, Purchasing, Accounting
Baldrige National   •Organizational “system” performance
Quality Program     •Integration of processes aligned with organizational goals
                    •Leadership role/performance
       Application Examples
CI Model                    Application in Service Organizations
ISO 9001:2000               •All units and processes
                            •Value Creation processes
                                 Design and Delivery
                                 Customer Service
                            •Support processes such as
                                 Accounting, Maintenance
                                 Partner/Supplier Management
Lean                        •Standardized processes such as:
                                 Order Processing, Order Fulfillment
                                 Benefits Processing, Accounts Payable
Six Sigma                   •Strategic Plan deployment
                            •Mass-customized processes such as:
                                  Customer Service/Support
                                  Information Technology, Sales/Marketing
Baldrige National Quality   •Organizational “system” performance
Program                     •Integration of processes aligned with organizational goals
                            •Leadership role/performance
                  Malcolm Baldrige National Quality Award
                Criteria based system for organizational excellence &
                                    performance




                               Lean and Six Sigma
             Continual improvement of process outcomes and efficiencies




                                 ISO Certification
Foundation and structural framework for "non-prescriptive management system quality”




              Industry Certification, Accreditation, Compliance
                         Prescribed minimum requirements
             Malcolm Baldrige National
                  Quality Award
               Criteria based system for
              organizational excellence &
                      performance




                 Lean and Six Sigma
           Continual improvement of process
              outcomes and efficiencies




                   ISO Certification
Foundation and structural framework for "non-prescriptive
             management system quality”


Industry Certification, Accreditation, Compliance
           Prescribed minimum requirements

				
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posted:9/14/2012
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