Process improvement

From CEOpedia

Process improvement is the systematic approach to analyzing and enhancing existing business processes to reduce waste, increase efficiency, improve quality, and better meet customer needs, using methodologies such as Lean and Six Sigma (George M.L. 2002, p.23)[1]. The order fulfillment process takes 12 days. Customers complain. A team maps the current workflow, identifies three handoff delays and two redundant approval steps, redesigns the process, and cuts delivery time to 5 days. That's process improvement in action—making work flow better.

Two major traditions dominate the field. Lean, derived from Toyota's production system, focuses on eliminating waste—any activity that consumes resources without adding customer value. Six Sigma, developed at Motorola in the 1980s, focuses on reducing variation and defects using statistical methods. Many organizations combine both approaches. Chevron developed the "Chevron Way" based on Six Sigma principles, saving hundreds of millions of dollars. Adidas implemented Six Sigma in production, reducing manufacturing time by 30%.

Core methodologies

Major approaches include:

Lean

Waste elimination. Lean identifies eight types of waste: defects, overproduction, waiting, non-utilized talent, transportation, inventory, motion, and extra processing[2].

Key tools. Value stream mapping, 5S workplace organization, Kanban systems, Just-in-Time production.

Philosophy. Continuous incremental improvement through employee engagement.

Six Sigma

Variation reduction. Six Sigma aims for 3.4 defects per million opportunities—near-perfect quality[3].

DMAIC. The structured approach: Define the problem, Measure current performance, Analyze root causes, Improve the process, Control to sustain gains.

Statistical tools. Control charts, design of experiments, process capability analysis.

Lean Six Sigma

Combined approach. Integrates Lean's speed and waste focus with Six Sigma's rigor and quality focus[4].

Synergy. Lean identifies what to improve; Six Sigma provides tools to achieve and sustain improvement.

Key tools

Common improvement tools include:

Process mapping. Visual representation of workflow to identify inefficiencies and bottlenecks.

Root cause analysis. Tools like the 5 Whys and fishbone diagrams to understand why problems occur[5].

Pareto analysis. Identifying the vital few causes that produce most problems.

Control charts. Monitoring process variation over time.

PDCA cycle. Plan-Do-Check-Act for iterative improvement.

Implementation approach

Successful improvement requires:

Problem selection. Focus on processes with significant impact on customer satisfaction, cost, or quality.

Current state analysis. Understand how the process actually works—not how it's supposed to work[6].

Root cause identification. Don't just treat symptoms; understand underlying causes.

Solution design. Develop improvements based on analysis, not assumptions.

Pilot testing. Test changes on small scale before full implementation.

Standardization. Document new procedures and train people to sustain gains.

Benefits

Improvement delivers value:

Cost reduction. Eliminating waste and rework reduces operating expenses.

Quality improvement. Fewer defects mean higher customer satisfaction[7].

Speed. Streamlined processes deliver faster.

Employee engagement. Involving workers in improvement builds ownership and morale.

Challenges

Organizations struggle with:

Sustaining gains. Initial improvements often erode without ongoing attention.

Cultural resistance. People resist changing established ways of working[8].

Over-engineering. Applying complex methods to simple problems.

Tool focus. Emphasizing techniques over actual results.


Process improvementrecommended articles
Lean manufacturingSix SigmaQuality managementOperations management

References

Footnotes

  1. George M.L. (2002), Lean Six Sigma, p.23
  2. Womack J.P., Jones D.T. (2003), Lean Thinking, pp.34-48
  3. Pyzdek T., Keller P. (2018), Six Sigma Handbook, pp.67-82
  4. ASQ (2024), Six Sigma
  5. George M.L. (2002), Lean Six Sigma, pp.112-128
  6. Womack J.P., Jones D.T. (2003), Lean Thinking, pp.178-192
  7. Pyzdek T., Keller P. (2018), Six Sigma Handbook, pp.234-248
  8. ASQ (2024), Six Sigma

Author: Sławomir Wawak