Process Improvement - Introduction

In an earlier blog, I had extolled the benefits of PI or Process Improvement, especially in the current economic environment of sluggish top line growth and the need to maintain margin commitments. In that same blog, I had offered a PI road map or a framework that can help organizations become more efficient.

No matter what approach you decide to take and no matter what you call it, Six Sigma or TQM or Lean, what’s most important is that it be practiced in a disciplined fashion and communicated in a well understood manner.

Besides becoming more efficient, PI offers many benefits, including enhancing customer satisfaction, leading to increased revenues, which leads to increased profits. PI also reduces process variability, which makes the employees engaged in the business less stressed, leading to a happy and a more productive workforce.

The benefits of PI cut across all functions; sales, marketing, operations, finance and accounting, etc. They also cut across functions whether performed in a captive environment or in an outsourced environment. The bottom line is that PI, when practiced in a disciplined way, will allow any organization to delight its customers; whether it be an internal customer (internal to the organization) or an external customer. And that should be the goal – Delight your Customer. A delighted customer is a repeat customer; not once but many times over.

The road map presented below identifies the actual step in the dark blue box, with the specific “tool” identified directly below in the light blue box.

A typical Process Improvement Road-map

Click on the process-map above to view larger image

However, I would first like to remind my readers that for PI to be successful; at the very foundation it must possess the following ten characteristics:

1. Supportive, engaged and active leadership
2. Common unifying PI language that is a way of life
3. A built-in PI culture, where PI is built-in to the organization’s process culture and not bolted on
4. Recognize PI as a key strategic weapon
5. “Cultural” readiness to adopt the appropriate PI model
6. Simple message with grass roots involvement
7. Implementation across the entire value or process stream
8. Dedicated network of PI champions to promote the cause of PI
9. Data driven, customer focused and employee engaged approach
10. Relentless focus on cost, quality, delivery and customer satisfaction

For maximum impact and the greatest benefit, the PI process map should be implemented in an integrated way as one step will build on the previous step. However, many of the tools associated with each step can also be implemented in a standalone fashion; however, the users will appreciate the impact of the tool when the PI process steps are implemented in an integrated fashion.

In the subsequent blogs, which I plan on writing once every week or two, I will build on each step of the PI road map. Please come and visit this site again and often.

Until then, enjoy your weekend and the upcoming week. If you have any questions, or comments, please contact me.

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