All modern organizations depend on intricate web of business processes to transform inputs into valuable products and services. However, ever-changing market dynamics quickly render systems outdated that once operated at peak performance. Sustaining excellence requires continuously evolving operational capabilities to meet emerging challenges.
While leaders recognize the imperative, two-thirds still rely on gut instinct instead of data to guide process decisions. This white paper provides a research-backed framework so you can join the analytical elite achieving transformational improvement powered by both proven methodologies and latest technological advancements.
The Evolution of Process Improvement
For centuries, entrepreneurs intuitively tweaked production methods through trial-and-error to incrementally enhance outputs. However, as operations scaled in size and complexity, more structured approaches emerged.
The Origins of Statistical Quality Control
Walter A. Shewhart pioneered using statistical control charts in the 1920s to reduce variation in telephone hardware manufacturing at Bell Labs. W. Edwards Deming later applied Shewhart’s techniques even more extensively while working in Japanese industry after WWII, helping firms there achieve tremendous quality and efficiency gains.
Total Quality Management (TQM)
TQM appeared as early as the 1940s, systemizing the cultural mindsets, management principles, and programmatic infrastructure required for continual enhancement across entire enterprises. Core concepts included organization-wide engagement, customer-centricity, and building quality into processes.
Kaizen & Lean
Kaizen, translated from Japanese as "change for the better," crystallized as a pillar of the Toyota Production System in the 1970s. The system, which eliminated waste via just-in-time flow and automation (known as Jidoka), later became internationally recognized as Lean methodology.
Six Sigma
In 1986, Motorola engineers defined Six Sigma as minimizing defects to <6 DPMO level. GE’s Jack Welch subsequently championed the data-intensive DMAIC (Define, Measure, Analyze, Improve, Control) project structure. Near perfection quality drove higher customer loyalty and profits.
Agile
Emerging from software development, Agile provided greater nimbleness. Instead of rigid process recipes, self-organizing cross-functional teams rapidly incorporate user feedback to deliver maximum value. Hundreds of industries now apply Agile frameworks like Scrum.
Today’s leading process professionals synthesize concepts from these methodologies and augment them with 21st century digital capabilities for unprecedented improvement.
Selecting The Right Framework
With so many flavors of process enhancement methodology, how do you choose? Start by considering key differentiating factors:
1. Statistical Expertise
- Basic: Lean, Kaizen
- Intermediate: Six Sigma, Agile
- Advanced: Lean Six Sigma
2. Project Duration
- Short sprints: Kaizen events (days), Agile scrums
- Focused: Six Sigma (weeks/months)
- Extended: Lean transformations (multi-year)
3. Approach
- Prescriptive: defines fixed sequence of steps
- Adaptive:ITERATIVE
4. Key Outputs
- Waste reduction: Lean
- Variation decrease: Six Sigma
- Process velocity: Agile
- All combined: Lean Six Sigma
||Statistical Expertise|Timeframe|Style|Output Focus|
|-|:-:|:-:|:-:|:-:|
|Lean|:|Extended|Prescriptive |Waste Reduction|
|Six Sigma|:|Focused|Prescriptive|Reducing Variation|
|Agile|:|:|Adaptive|Velocity / Flexibility|
|Lean Six Sigma|:|Extended|Prescriptive|Waste + Variation Reduction|
Beyond these, also assess organizational culture fit, cost, and staff skill alignments.
Just 10% apply only pure forms of Lean, Six Sigma, or related frameworks. The vast majority creatively blend techniques from multiple sources into tailored hybrid models uniquely fitted to their environment and objectives.
Core Tenets of Popular Process Improvement Frameworks
Despite uniquely distinct elements, all major disciplines share foundational principles:
- Leadership commitment
- Focus on customer
- Data-driven analysis
- Process focus
- Waste elimination
- Continuous improvement
With this common grounding, we can dive deeper into what uniquely characterizes the most prominent approaches.
Lean Methodology
Created by the legendary Taiichi Ohno as the Toyota Production System, Lean aims to maximize value delivered to customers while eliminating anything that doesn’t contribute to this goal as waste (or “muda” in Japanese).
Key techniques include:
- Defining value from the customer’s perspective
- Value stream mapping of end-to-end flows
- Establishing continuous one-piece flow
- Implementing pull systems based on actual demand
- Reducing changeover times via SMED
- Standardizing stable processes
- 5S workplace organization
- Visual controls and workplace transparency
Outcomes:
||Before|After|Improvement|
|-|:-:|:-:|:-:|
|Defect Rate|2.3%|0.4%|83%|
|Cycle Time|52 days|14 days|73% faster|
|Cost |$4,325|$1,958|$2,367 saved per order|
Six Sigma
Obsessively focused on slashing defects, Six Sigma methodology employs rigorous technical statistical tools facilitated via structured DMAIC project sequences.
Tools include:
- Process mapping
- Statistical process control (SPC) charts
- Root cause analysis
- Failure mode and effects analysis
- ANOVA analysis
- Hypothesis testing
- Control plans
Sample Six Sigma process improvement results:
||Before|After|Improvement|
|-|:-:|:-:|:-:|
|Call Wait Times|152 seconds |38 seconds|75% reduction|
|Billing Errors|220 per month|44 per month|80% cut|
|Part Defect Rate |410 DPMO | 35 DPMO|92% improvement|
Agile Methodology
Emerging from software development environments requiring rapid adaptation to dynamic requirements, Agile provides speed and flexibility.
Elements that characterize Agile success include:
- Cross-functional teams with autonomy
- Iterative delivery of working functionality
- Continuous integration and deployment
- Just-in-time planning
- Daily standups and retrospectives
- Servant leadership principles
- Customer collaboration
Benefits gained from Agile process improvement:
||Before|After|Improvement|
|-|:-:|:-:|:-:|
|Release Cycles| Biannual |Weekly|6x faster delivery|
|Defect Resolution| 45 days | 24 hours|98% quicker|
|Adaptability| Fixed scope| Scope change allowed|High flexibility|
Lean Six Sigma
Lean Six Sigma combines elements from both methodologies into an extremely rigorous data-driven approach eliminating waste while also minimizing process variation.
After conducting over 300 process improvement projects, financial services giant American Express found using Lean Six Sigma delivered:
- 50% faster processing
- 60% defect reduction
- 53% cost decrease
Augmenting Frameworks with New Technologies
While traditional process excellence frameworks provide a strong foundation, rapidly advancing digital capabilities offer ways to accelerate and enhance results.
Process Mining
Leverage process mining to automatically map workflows by extracting event log data from underlying IT systems in days instead of months. Gain visibility into actual processes vs outdated assumed models. Identify steps adding value vs waste.
Intelligent Automation
Automate repetitive human tasks with software robots (RPA) injecting artificial intelligence to handle unstructured data. Machines perform consistently without fatigue or distraction.
Advanced Analytics
Apply predictive algorithms, multivariate regressions, and other advanced analytics techniques to guide data-driven decisions and future state process modeling scenarios.
Blockchain
With multiple parties collaborating across fragmented systems, blockchain establishes one shared immutable distributed ledger enhancing transparency, provenance tracking, and trust throughout end-to-end workflows.
While reasonable to still manually map simple workflows, processes exceeding 15 steps with multiple actors quickly grow complex. New tools now allow capturing hundreds of process permutations across global operations in granular detail once impossible.
||Manual Techniques|Digital Enabled|
|-|:-:|:-:|
|Process Maps|Limited visibility beyond own group input|Entire end-to-end system view across silos|
|Scale|10s of processes|1000s of processes|
|Accuracy|Assumptions that often misrepresent reality|Precisely reflects actual flows|
|Cycle Time| Months|Weeks
|Adaptability| Static snapshots go obsolete quickly| Dynamic updating as processes change|
A Six Step Systematic Methodology to Process Improvement
While specifics vary between Lean, Six Sigma, and other frameworks, we can condense transformation sequence into six core stages as follows:
Step 1: Define Future State Vision
The most successful initiatives connect directly to strategic business priorities. Frame the challenge in relation to larger objectives around customer satisfaction, cost, growth targets, or cycle time reductions.
Step 2: Map As-Is State
Visually depict existing processes at appropriately detailed resolution level where improvement opportunities likely reside. Clearly define internal customers and outputs. Attach relevant performance metrics. dwarf traditional manual approach capabilities:
Step 3: Identify Pain Points
Quantify waste and constraints. Gather observational data from stakeholders. Analyze process architectural weaknesses. Prioritize address sequence based on:
- Customer impact
- Cost/profit leverage
- Implementation complexity
Step 4: Develop To-Be Future State
Envision an ideal future state eliminating root causes of identified dysfunction while maximizing smooth flow. Pilot proposed changes on small scale prior to full solution rollout.
Step 5: Implement Redesigned Processes
Broadly implement newly optimized workflows across the organization. Provide extensive communication on “why” matched with skill training.
Step 6: Continuously Improve
Conduct periodic assessment of improvement solution efficacy. Enhance metrics and reporting to sustain gains. Continually seek new areas for improvement cycles.
Sustaining a Culture of Continuous Improvement
To fully bake continual enhancement into the organization’s cultural fabric:
Lead by Example
When senior executives visibly prioritize improvement initiatives, employees throughout the company emulate these behaviors.
Empower Frontline Innovation
Those closest to actual processes often spot obstacles and waste first. Facilitate feedback sharing from all levels.
Incentivize Suggestions
Consider idea submission programs where frontline staff can be rewarded for proposing solutions that demonstrably enrich outcomes.
Keep Score with Metrics
Establish standard reporting reflecting enhancement KPIs. Quantify progress through control charts.
Celebrate Small Wins
A journey of a thousand miles begins with a single step. Recognize both tiny daily advancements along with celebrating major milestones.
Allow Experimentation Without Blame
New methodologies often require testing various approaches where some will inevitably fail. Enable a culture allowing evidence-based risks without repercussions.
The Bottom Line
Whether a long-time Lean or Six Sigma disciple or just starting your journey toward process excellence,Hopefully this guide provides both conceptual and practical tools to advance your operational capabilities to new heights by leveraging leading process improvement frameworks combined emerging digital change agents. Please reach out with any additional questions!
