Ch.3 Introduction to Process Improvement - Operations Management - Dr. Katia Saliba 2024 PDF

Introduction to Process Improvement 3 1 Chapter 3: Introduction to Process Improvement INTRODUCTION Bake a Victoria Sponge Dr...

Introduction to Process Improvement 3 1 Chapter 3: Introduction to Process Improvement INTRODUCTION Bake a Victoria Sponge Dr. Katia Saliba - Faculty of Medical Sciences - LU 2 Chapter 3: Introduction to Process Improvement INTRODUCTION Medication Administration Errors INTRODUCTION Issue: A hospital faces frequent medication administration errors, leading to patient harm and increased healthcare costs. Now that you know more about what processes are, let’s Root Cause: The errors stem from a faulty process in take a deeper look at what is meant by the term process medication administration: improvement. Manual Transcription Errors: Nurses manually transcribe Process improvement refers to making a process more medication orders from doctors' handwritten notes to patient effective, efficient, or transparent. charts, leading to mistakes. Process improvement is relevant to all areas of a company Communication Breakdown: Poor communication between doctors, pharmacists, and nurses about medication changes. because processes naturally degrade over time for any number of reasons. Solution: But because business processes are generally invisible, Implement Electronic Prescribing: Introduce an electronic prescribing system to eliminate manual transcription. process mapping aside, many people don’t consciously think about them or realize the impact they have on Standardize Communication Protocols: Establish clear performance. communication protocols for medication changes, ensuring all relevant staff are informed in real-time. Instead, when problems gather up, people often look for Outcome: someone to blame or try to implement a new technology to overcome the problem; however, these solutions don’t Reduced Errors: Significant reduction in medication errors. usually solve the root cause of issues. Improved Patient Safety: Enhanced overall patient safety and care quality. Instead, most organizational difficulties stem from faulty processes. This example shows how addressing faulty processes can resolve organizational difficulties in healthcare. Dr. Katia Saliba - Faculty of Medical Sciences - LU 3 Chapter 3: Introduction to Process Improvement INTRODUCTION An organization that conducts process improvement focuses on proactive problem resolution in order to avoid misdiagnosis of problems, or even operating in crisis management mode when process degradation occurs. Process improvement uses a set of disciplined tools, methods, and techniques that employees can use to enhance their company’s operating environment. A common misconception about process improvement is that it focuses mainly on process redesign. In fact, although the ideas underpinning process improvement ultimately originated in manufacturing, they encompass far more than just reengineering. Fundamentally, process improvement seeks to refine a company’s basic systems to meet changing customer needs more effectively. More broadly, it can be classified as a set of basic management principles that focus on delivering value efficiently to the customer, enabling people to lead and contribute to their fullest potential, discovering better ways of working, and connecting strategy, goals, and meaningful purpose. Dr. Katia Saliba - Faculty of Medical Sciences - LU 4 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT DEFINED Process Improvement provides a framework that will PROCESS IMPROVEMENT DEFINED facilitate − continuous improvement, Process Improvement is an ongoing effort to improve − process design, and processes, products, and/or services in order to meet new − performance measurement goals and objectives such as increasing profits and performance, reducing costs, or accelerating schedules. activities that ultimately drive the fulfillment of important organizational goals. These efforts can strive for incremental improvement over time or rapid improvement in a very short period and It can be applied to all industries and is relevant to all areas often follow a specific methodology or approach to of an organization because processes naturally degrade encourage and ultimately create successful results. over time for any number of reasons. There are several widely used methods model of Process In addition, the act of continuously monitoring and Improvement such as Kaizen (Plan-Do-Check-Act), Lean improving these processes helps proactively resolve issues and Six Sigma. in order to avoid operating in a crisis management These methods emphasize employee involvement and environment when process degradation occurs. teamwork by: Process Improvement efforts will almost always result in − measuring and organizing processes; dramatic, positive returns on investment that affect the − reducing variation, defects, and cycle times; and organization and its people, practices, and products in a positive way. − eliminating process waste to better service customers and deliver value faster and more effectively. Example: A hospital's emergency department (ED) is struggling with long patient wait times, leading to patient dissatisfaction and staff burnout. Dr. Katia Saliba - Faculty of Medical Sciences - LU 5 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT DEFINED The primary objective of Process Improvement is to The benefits of a structured process improvement continually improve process productivity. program can include any or all of the following: Since process productivity is measured in terms of Happier customers effectiveness, efficiency, and quality, an effective process Streamlined operations is one that produces the right results consistently. Consistent quality Process Improvement enables organizations to: Less waste Increase customer satisfaction Lower costs Reduce unnecessary business costs More sales and market share Produce higher-quality products Improved communication Eliminate wasteful activities Higher employee morale Improve employee morale Reduce interdepartmental conflict Improve efficiency and effectiveness of operations Process Improvement is the act of making Reduce cycle time and variation any business process or procedure more Break down process silos effective, efficient, or transparent. Design more robust solutions Dr. Katia Saliba - Faculty of Medical Sciences - LU 6 Chapter 3: Introduction to Process Improvement WHAT ARE THE BENEFITS OF PROCESS IMPROVEMENT? WHAT ARE THE BENEFITS OF PROCESS IMPROVEMENT? Increased accountability One of the primary goals of instituting a process Business process improvement provides many benefits to improvement program is to provide greater accountability organizations that undertake it, regardless of the process for departmental functions and ensuring deliverables are improvement methodology they adopt. met. The real key to gathering benefits from process By documenting all business processes and working to improvement efforts is ensuring that the entire optimize each one, a company can achieve a system of organization, including senior leadership, is behind the checks and balances, minimizing the potential for fraud, efforts and understands the reasons for taking on ongoing errors, or loss, and affirming that all employees are aware improvements. of their responsibilities. In the short term, process improvement helps Improved reliability organizations decrease costs and increase efficiency. Effective process improvement can enhance the reliability This can mean more revenue and growth for companies, of information and ensure timely dissemination. It is critical as well as increased speed, organization, and efficiency. for executives to receive accurate information when In the long run, process improvement helps create ‫المرونة‬ needed in order to make important and time-sensitive competitive advantage by improving organizational agility. business decisions. Other key objectives and benefits associated with process When processes are properly documented and monitored, improvement include the following: it is easy to locate the necessary information and quickly produce relevant reports. Dr. Katia Saliba - Faculty of Medical Sciences - LU 7 Chapter 3: Introduction to Process Improvement WHAT ARE THE BENEFITS OF PROCESS IMPROVEMENT? Simplified regulatory compliance Enhanced safety and security From complying with labor laws to submitting mandated Process improvement can also help enforce safety and financial reports, there are numerous local, state, and security measures. By documenting processes and federal rules and regulations companies must follow. mandating full compliance with them, organizations can help ensure the safety of their employees and protect the Process improvement practices help organizations keep company from various other threats, including theft of track of their obligations, and ensure that they are in company assets such as physical resources and compliance with applicable standards and legislation. By confidential information. following clearly outlined processes and staying up-to-date on changing laws, companies can avoid the potentially costly repercussions of noncompliance. Waste avoidance Since process improvement involves assigning and tracking resources and performance. There is generally less waste than in companies that do not actively monitor their processes. Organizations that follow best practices will find that they can dramatically reduce waste, enhance efficiency, and ultimately, boost profitability. Continuous monitoring and improvement can help to address future issues as well. Dr. Katia Saliba - Faculty of Medical Sciences - LU 8 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT ORGANIZATION Responsibilities can range from → PROCESS IMPROVEMENT →directly managing Process Improvement Projects, ORGANIZATION →to implementing and modeling business process architectures, In today’s economy, processes are constantly developing →to simply providing Process Improvement support to as organizations seek new ways to functional managers by way of guidance and education. reduce costs, The function provides organizations with skilled Process improve operations, Improvement Professionals who provide oversight and increase productivity, and leadership services throughout improvement activities, eliminate waste. either in a consulting arrangement or as dedicated delivery Managing these diverse efforts along with the people, managers or subject matter experts. resources, technology, and communication that go along They deliver the necessary with them is often a challenging endeavor. architectures, An effective solution, one that is created to establish a procedures, more centralized management structure for Process systems, and Improvement efforts, is the Process Improvement tools Organization. necessary to achieve effective Process Improvement by A Process Improvement Organization is assigned various leveraging various methodologies and standards, allocating responsibilities associated with the centralized and resources, establishing consistent performance criteria, coordinated management of Process Improvement efforts and reducing duplication of efforts within an organization. and projects across an enterprise. Dr. Katia Saliba - Faculty of Medical Sciences - LU 9 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT ORGANIZATION How a Process Improvement Organization is staffed or structured depends on a variety of organizational factors including targeted goals, traditional strengths, and the cultural imperatives of the organization or enterprise it supports. Process Improvement projects managed by the organization are not necessarily related to one another. However, they must provide some form of value or improvement to the organization and must consider the overarching business process architecture, as well as any customer who might benefit from the endeavor. In general, the Process Improvement Organization provides the framework for the construction and maintenance of an organization’s business process landscape and the execution of major Process Improvement projects. It is recommended that all Process Improvement activities be coordinated through this department to sure the stability and sustainability of organizational processes. Dr. Katia Saliba - Faculty of Medical Sciences - LU 10 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT ORGANIZATION Managing and facilitating Process Improvement Responsibilities of workshops a Process Improvement Organization Designing and building business processes and overseeing the enterprise process ecosystem The Process Improvement Organization has many Administering and maintaining organizational process responsibilities including: models and repositories − capturing and documenting processes, Coaching, mentoring, and training business partners and − managing and facilitating workshops, management staff − gathering performance data for management review, Ensuring alignment of process improvements with − capturing improvement requests, and strategic business goals and priorities − keeping an up-to-date repository of all processes and Monitoring performance of processes for opportunities of related documentation. improvement and areas of risk Other responsibilities include: Identifying and implementing appropriate Process Improvement methodologies, best practices, and standards tailored to a corporation’s needs Developing and managing project checklists, guidelines, templates, and other best practices Managing Process Improvement activities and projects throughout the entire Process Improvement life cycle Dr. Katia Saliba - Faculty of Medical Sciences - LU 11 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? Buying leading edge rather than best fit. The latest WHAT ARE THE CORE VALUES OF and greatest technology on the market might be impressive, but it may not be what your business needs. PROCESS IMPROVEMENT? Selling process improvement as a way to lower costs. This is a shortsighted approach that curtails human Delivering value efficiently to the customer, enabling involvement and forces initiatives onto employees instead people to lead and contribute to their fullest potential, of creating an ongoing mindset of improvement. discovering better ways of working, and connecting strategy, goals, and meaningful purpose are all critical Misdiagnosing the scope of the organizational components in creating a process improvement mindset. change either in magnitude or by initiating only technological- or organizational-based initiatives. This All members of an organization must work together to frequently leads to solving only part of a larger systemic combat waste and redundancy, while also working to problem. prevent the growing number of errors and missteps plaguing true organizational excellence, such as Not securing management buy-in for process improvement initiatives or failure to link project goals with Leaders not willing to develop themselves or change strategic imperatives. This can lead to wasted cycles or their mindsets, behavior, or style to overtly model the effort focusing on nonissues or priorities. changes they are asking of the organization. Not considering processes in the development of Not adequately or proactively attending to the technology or product or system implementation, leading emotional side of change, such as not designing actions to superficial change and extrapolations of conclusions to minimize negative emotional reactions or not and wrong decisions based on inductive information. attending to them in constructive ways once they occur. Optimizing part of an organization or process at the suboptimization of the whole. Dr. Katia Saliba - Faculty of Medical Sciences - LU 12 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? Running organizational transformation through In order to assist professionals in combating the common multiple separate or competing projects instead of pitfalls associated with making this leap, we created the aligning all initiatives into one unified effort and ensuring process improvement manifesto, a listing of core values, the integration of plans, resources, and timelines. originally published in Not creating adequate capacity for the organizational Process Improvement Handbook: A Blueprint for change—setting unrealistic, crisis-producing timelines Managing Change and Increasing Organizational and then laying the change on top of people’s already Performance (McGraw-Hill Professional, 2014), excessive workloads. that serve as a guiding approach that can help transform Not adequately addressing the organization’s the entire organization, from the front line to the executive culture as a major force directly influencing the success suite, allowing it to renew itself continuously for lasting of organizational change. value. Not adequately engaging and communicating with stakeholders, particularly in the early stages of the organizational change process; relying too heavily on one-way or top-down communication and engaging stakeholders only after an improvement is completed. Dr. Katia Saliba - Faculty of Medical Sciences - LU 13 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? The 10 tenants of the manifesto are as follows (Figure 3.1): 4. Communication: Process improvement values open communication and participative decision making 1. Agility: Process improvement values agile and iterative throughout improvement efforts. improvement. An organization that recognizes that everyone has a Because change is inevitable, organizations that wish point of view and should have the opportunity to voice to continually improve must be able to nimbly adjust to opinions, ideas, and experiences is generally more and take advantage of emerging opportunities. This innovative in its improvement designs. involves focusing on flexible work and planning practices tailored toward incremental improvement. 5. Respect: Process improvement values collegial working relationships throughout process improvement 2. Quality: Process improvement values quality in all activities. An organization’s success depends aspects of process improvement, from process creation increasingly on an engaged workforce that has a safe, to retirement, including process, people, and trusting, and cooperative work environment. Successful technology changes. Organizations that understand organizations capitalize on the diverse backgrounds, and focus their attention on all facets of quality, from knowledge, skills, creativity, and motivation of their the beginning of transformation initiatives to the end, workforce and partners. experience superior results. 6. Discipline: Process improvement values organizational 3. Leadership: Process improvement values leadership discipline and maturity. Companies with high that is proactive and open to ideas for improving all organizational discipline and that perform business aspects of an organization. Leaders who communicate processes in a standard, repetitive fashion are more and inspire a clear and compelling vision for the future competitive and usually leaders in their markets. have teams that are more engaged and open to Ensuring a disciplined approach to all process improvement opportunities. improvement activities helps ensure thorough and robust solutions are implemented. Dr. Katia Saliba - Faculty of Medical Sciences - LU 14 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? 7. Enterprise perspective: Process improvement values organization’s operations. This practice enables the consideration of what is best for the organization as continuous learning within the organization and a whole rather than specific departments, focus areas, promotes improvement and process-oriented thinking. geographies, or individuals when making decisions and conducting day-to-day work. 10. Human-centered design: Process improvement values the consideration of what is best for customers Ensuring process improvements meet not only the of a process (operators and end consumers) when needs of those involved with the activities in question, designing and implementing process solutions and but also the larger enterprise ensures time and money improvements. Ensuring processes are user-friendly for are not wasted deploying and redeploying solutions. those executing their activities helps maintain positive 8. Service orientation: Process improvement values the morale. notion that process improvement activities provide a service to companies, departments, sponsors, individuals, the community, the consumer, and the profession. This involves doing what is right for the customer in question and endlessly providing expertise for their benefit. 9. Continuous learning: Process improvement values training and educating those involved in process improvement efforts. The primary objective of training is to provide all personnel, suppliers, and customers with the skills to effectively perform quality process activities, and to build this concept directly into an Dr. Katia Saliba - Faculty of Medical Sciences - LU 15 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? Process improvement organizations that embrace these core values are capable of: Quickly adapting to changing requirements or market factors Significantly reducing the risk associated with continuous improvements Accelerating the delivery of business value to customers Ensuring that value is continually being maximized throughout the continuous improvement process Meeting customer requirements faster and more efficiently Building innovation and best practices that help reach new maturity levels Discovering hidden knowledge and expertise within their workforce Improving performance and motivation across all areas of the business Dr. Katia Saliba - Faculty of Medical Sciences - LU 16 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? FIGURE 3.1 Process improvement manifesto. (to be continued) Dr. Katia Saliba - Faculty of Medical Sciences - LU 17 Chapter 3: Introduction to Process Improvement WHAT ARE THE CORE VALUES OF PROCESS IMPROVEMENT? FIGURE 3.1 Process improvement manifesto. (continued) Dr. Katia Saliba - Faculty of Medical Sciences - LU 18 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT AND OPERATIONS MANAGEMENT PROCESS IMPROVEMENT AND business or an operational issue, define and analyze OPERATIONS MANAGEMENT current performance of activities related to the issue, implement improvements that rectify the issue, and ensure that appropriate operational transition and monitoring An Operational or Functional Department is any group of occurs. individuals that carries out a set of repetitive tasks or processes to satisfy mission critical requirements or to Process Improvement projects are temporary in nature, produce products or services. have a definitive start and end point, and conclude when projects achieve their improvement objectives or are These are the day-to-day activities that are required in terminated. order to sustain the business and are permanent in nature. Improvement efforts are undertaken to produce specific Process Improvement is the ongoing effort to improve an outcomes such as a reduction in order cycle times, a organization’s processes and activities. reduction in unnecessary shipping costs, production of When operational processes or tasks require higher quality products, or elimination of redundant improvements in order to achieve better results or meet activities. particular strategic objectives, unique and temporary Once the improvement initiative delivers its output, it is business initiatives or projects are formed. concluded and deployed back into business operations. These efforts require the expertise and knowledge of a Although Process Improvement involves continually dedicated Process Improvement professional to ensure examining processes for efficiencies and making alignment and disciplined and structured delivery. improvements to enhance the business, an operational unit A Process Improvement Project is an individual or often initiates these activities when issues or concerns collaborative initiative designed to determine the cause of a relating to operational performance are identified. Dr. Katia Saliba - Faculty of Medical Sciences - LU 19 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT AND OPERATIONS MANAGEMENT The efforts to improve or rectify these issues are then led and managed by a Process Improvement Manager. There is generally significant interaction between an organization’s operations department and Process Improvement teams. Process Improvement efforts intersect with operations at many points in time including when Performance issues arise in the execution of a process and Root Cause Analysis (RCA) is required Activities are not shared or visible, and mapping activities are required Processes are not consistent, and operational activities require standardization Changes or improvements to an operational process are required Direct oversight is required to manage improvements throughout each phase of the Process Improvement life cycle Lessons learned or other facilitation is required to discover, change, or discuss better ways of operating Dr. Katia Saliba - Faculty of Medical Sciences - LU 20 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT AND OPERATIONS MANAGEMENT Differences A Project concludes when its specific improvement goals or results have been attained, whereas Operations takes Key differences between Process Improvement Projects over any newly designed activities and continues their and Operations are: execution. Improvement Projects are temporary and unique, while Operations are ongoing activities with repetitive output. Process Improvement requires project management or facilitation of activities, whereas Operations require Similarities ongoing functional management. Improvement efforts and Operational activities are Projects are executed to start a new business objective Performed by people and terminated when the objective is achieved, while Operational work is performed to keep an organization Constrained by limited resources functioning and to be able to able to sustain the Planned, executed, and controlled business. Executed to achieve particular objectives Projects have a definitive beginning and end, while Operations are ongoing. Projects conclude when a unique improvement or result has been attained, while Operations produce the same product service or result on an ongoing basis. Dr. Katia Saliba - Faculty of Medical Sciences - LU 21 Chapter 3: Introduction to Process Improvement ROLE OF PROCESS IMPROVEMENT MANAGER ROLE OF PROCESS IMPROVEMENT MANAGER manager is responsible for facilitating the improvement of operational processes throughout the temporary nature of A Process Improvement Manager is responsible for the a formal project. development of an organization’s capabilities. Depending on the organizational structure, a Process This is done by teaching Process Improvement skills and Improvement Manager may report to a functional manager managing any Process Improvement projects or related or into a centralized Process Improvement Organization. endeavors. The recommended approach is to keep separation of duty They demonstrate best practices associated with the in place and have all Process Improvement professionals Process Improvement discipline and inspect business report into a centralized organization. processes for areas that could be improved while creating However, in many cases, organizational cultures, finances, a positive learning environment for the various or resources do not permit this. stakeholders involved with an organization’s processes. If that is the case, it is still ideal to ensure that the Process They support the delivery of new processes and solutions Improvement Manager’s role is a distinctive role even when that are more robust, customer centric, and lean in design. inserted into a functional or core operations division. The role of a Process Improvement Manager is distinct Process Improvement Managers facilitate change to the from a functional manager or operations manager. various process areas such as cycle time, waste reduction, The operations manager is typically focused on providing quality improvement, increased awareness of risk, management oversight to a facet of the core business on a mitigation of risk, effective communication, and increased permanent basis, whereas a Process Improvement customer and business satisfaction. Dr. Katia Saliba - Faculty of Medical Sciences - LU 22 Chapter 3: Introduction to Process Improvement ROLE OF PROCESS IMPROVEMENT MANAGER They must be highly skilled in the identification and Process Improvement Managers ensure that any resolution of strategic challenges and tactical execution and improvement effort is managed in a disciplined and be able to demonstrate these skills in order to mentor other structured fashion and that all efforts align to an Process Improvement professionals or business organization’s strategic objectives. stakeholders. The role is typically highly visible in the organization as it is engaged in meaningful corporate change activities at the strategic level. Process Improvement Managers act as advisors and coaches to business owners. In this capacity, they typically do not take on direct responsibility for business team members because it is necessary to ensure that the purity of their purpose is maintained and the integrity of proposed solutions is upheld. Process Improvement Managers should always be collegial and act as a helping hand rather than as a control point. Although operations managers are responsible for managing the day-to-day activities of a process, Process Improvement Managers focus on improving those activities in order to sustain business competitiveness and performance. Dr. Katia Saliba - Faculty of Medical Sciences - LU 23 Chapter 3: Introduction to Process Improvement PROCESS IMPROVEMENT ORGANIZATION Increased agility: Strategic planning combined with Benefits of disciplined Process Improvement enables flexibility a Process Improvement Organization through structured processes that are designed to continually adapt to changing organizational conditions. There are many benefits to establishing an effective Broader context: Improvement conducted through a Process Improvement Organization including: centralized governing body allows all changes to be analyzed for downstream effects or potential business Increased efficiency when delivering improvements: conflicts. Methods used by Process Improvement Organizations provide a roadmap that is easily followed and help guide Mature service delivery: A structured delivery approach stakeholders to project completion. ensures proper standards are in place and provides more mature management of Process Improvement Heightened customer satisfaction: Formal Process projects. Improvement efforts that are completed to satisfaction, that are kept to a defined schedule, and that deliver valuable results increase customer satisfaction. Service predictability: Improvement efforts managed out of a central organization provide predictable service and bring a sense of comfort to customers. Increased process focus: Positive improvement results that are carried out by project teams often inspire functional employees to look for ways to perform activities more efficiently. Dr. Katia Saliba - Faculty of Medical Sciences - LU 24