9 Process Analysis & Improvement

Question 1

Why chart the flow of customers, information and/or products through the stages of the conversion process? (2)

Answer 1

1. Easier to understand (communication & training)
2. Helps identify improvement opportunities

Question 2

What is an example of process analysis?

Answer 2

Toyota went and helped Canadian Blood Services. Toyota rearranged the workplace so each blood pack moved in a circle from beginning to end cutting the number of steps by 30% and saving 40% in packing time.

Question 3

*Slides 6-10
Canadian Blood Service Study
(Could be a short answer)

Question 4

What were the solutions to solve the problem of people waiting and not being told they weren’t eligible to donate? (2)

Answer 4

1. Interactive questionnaire on website
2. Signage of possible reasons for ineligibility

Question 5

*Slides 11-13
Bakery process analysis
(Could be a short answer)

Question 6

What are the three stages of process improvement?

Answer 6

1. Recognize the need for change
2. Research “best practices” (benchmarking)
3. Determine how to change (tinker or tear-down)

Question 7

How does an organization realize there is a need for change?

Answer 7

There are many “warning signs” that the business processes at your organization may need improvement

Question 8

Define benchmarking.

Answer 8

the formal process of comparing an organization’s processes and performance measures against top performers.

Question 9

What are the kinds of “warning signs” (2) and give one example of each.

Answer 9

1. Internal or External
2. Leading (immediate feedback) or Lagging (delayed feedback)

Internal & immediate: Idle staff and excessive delays

Internal & delayed: Excessive overtime and turnover

External & delayed: Loss of market share

External & immediate: Customer complaints

Question 10

What can the results of benchmarking be used for?

Answer 10

The results can be used as targets for process improvement

Question 11

What are the categories of benchmarking? (3)

Answer 11

1. Internal
   - Appropriate for organizations with multiple locations
2. Competitive
3. Functional

Question 12

What are the approaches to process improvement and explain each? (2)

Answer 12

1. Continuous process improvement (CPI) “tinker”
   - Never-ending process of achieving incremental improvements
2. Business Process Reengineering (BPR) “tear-down”
   - short-term radical process improvement

Question 13

What causes the need for BPR? (3)

Answer 13

Typically a combination of:
- Technological advancements (Disruptive Technologies)
- Drastic improvement at a competitor
- Changing customer desires

Question 14

What is reengineering?

Answer 14

Reengineering is the process of rethinking and restructuring. It requires discontinuous thinking.

Question 15

What are Disruptive technologies? (3)

Answer 15

1. new technological innovation, product, or service that eventually overturns the existing dominant technology in the market
2. disruptive technology is both radically different than the leading technology
3. often initially performs worse than the leading technology according to existing measures of performance

Question 16

What does the organization need to implement CPI? (3)

Answer 16

1. Collaborative, cross-functional teams
2. Need for training in problem/opportunity identification and resolution
3. Adequate time to be creative

Question 16

What are some examples of disruptive technologies?

Answer 16

Cell phone
Digital Music
Electric cars
Streaming services

Question 17

What is the company culture to implement CPI? (3)

Answer 17

1. Willingness to invest in employees
2. Willingness to delegate decision-making
3. Disciplined approach to managing change

Question 18

Define Just In Time / Lean production, what is it, and what does it assume?

Answer 18

A coordinated approach that continuously reduces waste while also improving quality.

Management Philosophy and a “pull” system through the plant

Stable environment (production linearity)
AKA High volume

Question 19

What does Just In Time / Lean production try to minimize?

Answer 19

unnecessary transportation, duplication, defective service or goods, inspections, waiting, bureaucracy, “overcontrol”, idle workers, etc.

Question 20

Explain the Just In Time “Pull” (Kanban) System

Answer 20

A manual, self-regulating system for controlling the flow of material. Workers produce only when the Kanban ahead of them is empty, thereby creating a “pull” system through the factory

Question 21

What does the Just In Time “Pull” (Kanban) System minimize?

Answer 21

“Pull” system minimizes unnecessary inventory that would accumulate in a “push” system

Question 22

Slide 23
“Expose the rock” philosophy

Question 23

What kind of markets do BPR and CPI work best in?

Answer 23

BPR: “Dynamic” Markets
CPI: “Stable” Markets

Question 24

Comparison of BPR and CPI - Mode

Answer 24

BPR: Scrap and rebuild
CPI: Maintenance and improvement

Question 25

Comparison of BPR and CPI - Pace

Answer 25

BPR: One Big Step
CPI: Many Small steps

Question 26

Comparison of BPR and CPI - Effect

Answer 26

BPR: Dramatic
CPI: Gradual

Question 27

Comparison of BPR and CPI - Involvement

Answer 27

BPR: Individual “champions”
CPI: Collectivism, group efforts, systems approach

Question 28

Comparison of BPR and CPI - Implementation

Answer 28

BPR: Large investment, Little effort to maintain
CPI: Small investment, Great effort to maintain

Question 29

What are the five Comparisons of BPR and CPI?

Answer 29

Mode
Pace
Effect
Involvement
Implementation