OPERATION

MANAGEMENT
Mahr Irfan Ahmad Tahir B.Sc., ACFMA, MIPA, AFA
OM-Strategies for change
 Six Sigma Process Improvement Model
 Define. The scope and boundaries of the process to be analyzed are first established. Is it a broad
process that stretches across the whole organization, involving many steps and many employees,
or is it a more narrowly bracketed nested sub process that is just part of one person’s job? A
process’s scope can be too narrow or too broad.
 Measure. It is important to have good performance measures to evaluate a process for clues on
how to improve it. Metrics are performance measures for the process and the steps within it. A
good place to start is with competitive priorities, but they need to be specific.
 Analyze. Use the data on measures to perform process analysis to determine where improvements
are necessary. A careful analysis of the process and its performance on the selected metrics should
uncover disconnects, or gaps, between actual and desired performance.
 Improve. Using analytical and creative thinking, the design team generates a long list of ideas for
improvements. These ideas are then sifted and analyzed. Ideas that are justifiable, where benefits
outweigh costs, are reflected in a new process design that can meet the new performance
objectives.
 Control. After the implementation, monitor the process to make sure that high performance levels
are maintained. Once again, data analysis tools can be used to control the process. Implementation
is more than developing a plan and carrying it out.
OM-Strategies for change
 Documenting and Evaluating the Process
 Three major techniques for effectively documenting and evaluating processes are (1)
flowcharts,(2) work measurement techniques, and (3) process charts.
 A flowchart traces the flow of information, customers, equipment, or materials through
the various steps of a process. Flowcharts are also known as flow diagrams, process maps,
relationship maps, or blueprints. Flowcharts have no precise format and typically are
drawn with boxes.
 work measurement techniques-Process documentation would not be complete without
estimates of the average time each step in the process would take. Time estimates are
needed not just for process-improvement efforts but for capacity planning, constraint
management, performance appraisal, and scheduling. Estimating task times can be as
simple as making a reasoned guess, asking a knowledgeable person, or taking notes while
observing the process.
 A process chart is an organized way of documenting all the activities performed by a person or
group of people at a workstation, with a customer, or working with certain materials. It analyzes a
process using a table, and provides information about each step in the process.