When there is a need to identify efforts for operational excellence, which approach or methodology is appropriate? Well first, we may need to ask, what are the various types of projects and methodologies for operational excellence?
- Let’s start with process management of value stream management. If employees do not know how to perform their work or know when to intervene to take action, or what actions to take when running a process, or if there is no effective monitoring and follow-up, or if there’s a lack of process metrics, discipline, or protocol, then that process requires process management of value stream management.
- Lean projects. If the drivers of performance are known or easily determined using the collective knowledge and experience of the right people, then identify and select lean projects. Lean projects are usually executed as kaizen events or workouts. The primary focus of lean projects is efficiency, speed, and flow. Processes with redundant and wasteful activities are streamlined.
- In other cases, the root causes of problems or drivers of performance are unknown. For this, select six sigma D-M-A-I-C, or DMAIC, projects. DMAIC is an acronym for the five phases of the project methodology. It stands for define, measure, analyse, improve, and control. DMAIC is used for improvement projects where data-driven analysis is done to determine the key drivers of performance.
- If a new product, service, or process is required, or if an existing product, service, or process is so broken that it needs to be redesigned, then design projects using design for six sigma, or D-M-A-D-V, should be identified and selected. D-M-A-D-V, or DMADV, is an acronym for the five phases of define, measure, analyse, design, and verify.
- For design or improvement efforts, use projects. Projects are very focused on planned efforts with a start and end date to achieve stated goals. These are launched as needed, and they do end when project goals are achieved. They are not endless.
Selecting the correct methodology for each type of project is important. When projects are selected, project scope and process boundaries, should be defined. Project scope spells out what’s included and what’s excluded. Process boundaries spell out the start and end points of relevant processesUsually these processes are cross-functional processes. The project team has the challenge of getting buy in and support from process owners and other stakeholders from across multiple functions, departments, or groups.
A tool that is useful for scoping process boundaries and for identifying stakeholders is the S-I-P-O-C, or SIPOC, diagram. SIPOC is short for supplier, input, process, output, customers. The use of the SIPOC diagram helps a project team identify key process inputs and outputs, as well as suppliers to and customers of the process.
To summarise, depending on your goals, identify and select the right processes and projects and choose the correct methodology. Define project scope and process boundaries inputs and outputs. And finally, identify process owners and other stakeholders who can drive project success.