Best Practices 101-PT 1
In the global economy that is today’s business environment, there are no guarantees as indeed, survival is not mandatory! The need for best practices is present in every industry, but mandatory in both high technology industries and commercial manufacturing operations. Over the course of the next few weeks I will try to present some of the personal knowledge gained through my intimate manufacturing involvement in over 1,000 companies that has allowed me the unique perspective of truly understanding best practices by seeing both the “best of the best” and the “worst of the worst”.
Best Practice – n. In business, a technique or methodology that, through practical experience has proven to consistently lead to superior results over other means. Applied as a system, it combines all the collective experience, knowledge and technology at one’s disposal. – Williams Business Dictionary 2014
Process Analysis
One could argue, actually I would argue, that before any improvement to a process can be made, the current state of the processes must be understood. Process analysis is just a fancy way to say this. If we consider waste to be anything in a process that is not adding value, then the question becomes “How do I identify waste in my process? The most effective method of identifying wastes is by process mapping; from simple basic process flowcharting to advanced value stream mapping. These two powerful tools will help any organization take the first step in identifying the value, and non-value, activities in their processes. As my esteemed high school classmate Dr. Shigeo Shingo once famously said, “The most dangerous kind of waste is the waste we do not recognize.”
Process improvement is the key to achieving both short- and long-term gains, resulting in a significant increase in overall operational performance. By analyzing your current processes you can determine which steps add value, as well as where and when defects occur. Process analysis is a careful evaluation of each step of the process from the input’s perspective as it is transformed into the output. Each step needs to be questioned on both why and how it is being performed. Just because “we have always done it this way” does not mean that it is the best way, and this is the part most organizations struggle with the most. Quantum improvement sometimes requires quantum change, and the willingness to approach process analysis with an open mind is critical to the degree of success that can be achieved. Process analysis involves utilizing a team approach to map each of the processes at the appropriate level, and then analyzing each step for its value from the customer’s perspective.
Most organizations have many processes that work together to bring a specific product from the point of a customer purchase order through the conversion process and ending with order fulfillment at the customer. The conversion process is simply turning (converting) inputs into outputs. From a big picture perspective, raw materials are turned into finished goods, but within this macro process there are many conversion cycles taking place as each process hands off a partially completed product to the next process. And again, remember that this could be one office function handing off to another just as easily as two manufacturing processes. The entire enterprise must be evaluated, from the problem-solving activity of taking a concept through engineering, the information management activity involving order-taking and scheduling, to the physical transformation of converting raw materials into finished product delivered to the customer.