4th Issue: Processes // Challenge 3

Process Management Tools

“Quality is everyone’s responsibility.“
— W. Edwards Deming

Here are three process management tools that help you to control and manage the processes you are running in your company. These tools are aimed at improving business processes continuously and preventing failure.

The PDCA-Cycle

When you have used the Business Model Canvas to map out all the features of your business and want to control and improve the processes in, between and outside these fields, you can use the PDCA-cycle.

PDCA is a method controlling and developing processes, service or products. The model is designed as a cycle to depict that the process is repeated continuously to ensure ongoing improvement.

PLAN — DO — CHECK — ACT

  1. Plan
     
    Firstly, the current state of facts has to be analyzed. Potentials for improvements are then found and planned.
  2. Do
     
    The planned improvements are implemented.
  3. Check
     
    To check the success of the process, a new analysis of the current state is done.
  4. Act
     
    Lastly, the new standards can be executed.

Lean Process Management

Lean process management improves processes and maximizes customer value by decreasing all kinds of unnecessary efforts that do not produce extra profit. Moreover, lean management encourages the employees to engage in a continuous learning process. Lean implementation leads to increased productivity and then to increased profitability. It can be used in any kind of business and is more of a mindset than a program.

Goals of Lean Process Management

  • Improving the quality of the service or good.
  • Decreasing waste — actual waste but also wasted time or money.
  • Reducing time expenses — the time that is needed to run through a process should be decreased.
  • Reducing costs.

The Lean Process

  1. Define
  2. Measure
  3. Analyse
  4. Improve
  5. Control

The FMEA-Analysis

The FMEA-analysis functions as a preventive quality assurance that identifies potential failure and evaluates risks. Based on these findings, it develops preventive actions. In order to assure quality it conducts research on failure modes and effects and does a criticality analysis. To achieve the best results, the analysis should be done by cross-functional teams involving the knowledge of experts from different fields.

The FMEA-analysis can be conducted in different ways. It is best displayed in a chart that features the following elements:

  • Potential failure mode
  • Potential effect of failure
  • Potential causes or mechanisms of failure
  • Current process control
  • Recommended actions
  • Responsibility and target complete date

Based on the identification of failure modes, effects and causes, the associated risks can be assessed and prioritized. The focus should then be put on developing corrective actions for the highest risks.

THE CHALLENGE

Now it is time to fetch the list of processes you generated throughout the previous challenges of this #ManagerChallenge issue. Since you will not be able to apply all the tools presented above during the next two weeks, this challenge will only be about the PDCA Cycle.

To learn the application of the PDCA cycle, start with one process that is not too complex. It will be best to choose one of the „in-field“ processes you identified in your BMC since they do not involve too many different stakeholders. Now, start with analyzing the status quo of the selected process and detect improvement potentials. Plan for improving actions and implement them. In the next step, the results of the changes need to be analyzed and evaluated. If the improvement was successful integrate it fully within your business, otherwise start the PDCA cycle again and further optimize your process.

Although it will not be possible to optimize all your process within the 14 days of this challenge, you will learn how to apply the model and can now apply it continuously to optimize your processes steadily.


Post your results:

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You missed the last part of our #ManagerChallenge Processes? Click here, to accept the previous challenge about the Business Model Canvas.

Stay tuned for the next issue of the #ManagerChallenge concerned with people coming out in two weeks.

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