Using SWOT Analysis for Process Improvement

I have used SWOT Analysis for years when doing strategic planning but with a couple of minor tweaks, I have found that a SWOT can easily be applied to improving processes. 

SWOT is a four quadrant diagram that represents Strengths, Weaknesses, Opportunities, and Threats.  Wikipedia defines a SWOT analysis as a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. 

Wikipedia further goes on to say that a SWOT analysis must starts with defining a desired end state or objective:

• Strengths:  attributes of the person or company that are helpful to achieving the objective.
• Weaknesses: attributes of the person or company that are harmful to achieving the objective.
• Opportunities: external conditions that are helpful to achieving the objective.
• Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
 
First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

Look how quickly the above can map to Process Improvement:

1. SWOT helps identify the strategic objectives we hope to achieve with the new process and helps us determine if the objective is attainable
2. Strengths: identifies the current strengths of the existing process (if any) or what the existing strengths of the new process should be
3. Weaknesses: identifies the current weaknesses of the existing process or the weaknesses caused by not having an existing process
4. Opportunities: identifies external conditions that are helpful to achieving the objective.  An example may be the development of new technology, better access to information, etc.
5. Threats: identifies external show stoppers that could block our ability to achieve our objective. An example may be the fact that an valued supplier does not have access to the new technology or information.
   

The bottom line is that executives identify with SWOT and it can quickly bring focus to the initial planning meetings.

I have included a link to a SAMPLE SWOT in EXCEL format  for those of you that may be interested in exploring this idea further.

Regards,

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

An Introduction to Lean Six Sigma

Most executives intuitively know that some (if not many) of their service processes are inefficient.  Yet, service process improvements are a barely touched frontier in the relentless corporate drive to lower costs and improve quality. One reason for this is the lack of objective process controls such as those developed for manufacturing over the last 50 years.

Everyone knows the prime directive of business: faster, better, cheaper.  Of course, the directive applies to service processes as well. Yet, when pressed for an explanation most can say only that it means the most work in the least time with the fewest people and fewest mistakes. 

What are the roadblocks to achieving the prime directive in services?

Responses to that question are varied but predictable: We need more people. The computer systems are lousy. The customer’s demands are excessive, etc.

If our experiences in manufacturing tell us anything, it is that objective measurements and controlled improvements create a finely tuned process with the fewest non-value-added steps.

And here’s the news: a new method, Lean Six Sigma for Services, is moving into the forefront to provide just that.

Like its industrial-strength manufacturing counterpart, Lean Six Sigma for Services uses objective, repeatable data to identify waste and complexity thus removing subjectivity from the equation.

Yet, mention “Lean Six Sigma for Services” and the response is likely a blank stare followed by a few quick responses: “Isn’t that used in manufacturing or TQM?”  “Don’t see how it applies to a service business.”  Or, worse, out pops the inevitable horror story: “I know a guy that spent a million dollars on Full Factorial Experiments. What is a Full Factorial Experiment?”

I have created an Introduction to Lean Six Sigma for Services.  This paper helps decision makers seeking a methodology best suited for service process improvement.  It is a compendium of experience, personal notes and the readings of noted authors (described in the reference section).  Inside you will find a description of Lean Six Sigma for Services – in general terms – along with a survey of the benefits, characteristics, approach, and tools.   

I hope that the information herein will clear up some of the mysteries and misconceptions surrounding this excellent approach.

Regards,

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

SIPOC Diagramming for SOPs

We, as Six Sigma professionals, often assist our customers in developing Standard Operating Procedures (SOPs).  The process for gathering the needed information to develop these procedures can be tricky.  Users have difficulty in articulating procedure triggers, required inputs, procedure activity, outputs, receivers, exceptions, and inter procedure touch points.   They need a guide to help facilitate the process.

I have found it very useful to use SIPOC diagramming to solve many of these problems I face when helping customers developing SOPs.   SIPOC diagramming is a technique used by Six Sigma Black Belts for years in process improvement.   The literal translation of SIPOC is Supplier, Input, Process, Output, and Customer.
 
The beauty behind the SIPOC is that it is easy for the user to understand and helps to keep the team focused.  A procedure can be represented in one page versus the seven to ten pages in a typically written procedure.  I use the SIPOC to articulate and gain approval on the actual procedure steps.  The SOP is then drafted from the SIPOC by business writers.  The SOP is simply a representation of the SIPOC.  Therefore the document approval process is dramatically reduced.

To maximize the benefits of the SIPOC, I had to modify it slightly to include sections I refer to as “Critical Prerequisites (CPR)”, “Points of Interest (POI)” and “Inter Procedure Touch Points (IPTP).”  CPRs are used to identify what triggers the procedure and what critical prerequisites must be met before the procedure can begin.  POIs highlight information that is of a special interest.  Spending authority, warnings, special considerations, are put into POIs.  If the output of a procedure step touches another procedure, I note the output and the receiving procedure name in the IPTP.

My motto is “Always be prepared.” Therefore, based on my previous experiences, I pre-fill the SIPOC with procedure steps that normally should be followed.  I have found that the best format for preparing and publishing SIPOCS is through Microsoft Excel.  Everyone knows how to use EXCEL.   I have also found that SIPOCs simplify the development and the delivery of the training because the answer the questions that students normally ask.

I have included in this blog a SAMPLE SIPOC in Microsoft Excel format.  It is formatted for legal size paper that is easier to read in case I have to print them.  Also I always print the SIPOC with line numbers.


Regards

Jim Pickens


Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

Is Now the Time to Get a Six Sigma "Black Belt" Degree?

As we come out of this recession, companies are a lot leaner than they have been in the past, they have cut their costs down to barebones, and laid-off many employees. The remaining employees are doing two to three jobs each, as their coworkers are no longer with the company. All this restructuring forces companies into a highly productive state, and it means that they must very much watch their efficiency and processes.

Now then, if you are laid-off, and you know right now you can't get a job, then perhaps, you need to go back to school and get additional degrees. But before you do that, one of the ways you can make yourself most valuable is to learn all about Six Sigma and get your Six Sigma certification. In fact, they have what they call "black belt degrees" which means you know all about business processes, and understand quality control, manufacturing, project management, and thus, you will be a valuable commodity as the job market returns.

Having a Six Sigma Black Belt certification is like having an MBA on your resume. In some regards it is worth even more in getting the job that you deserve in corporate America. Now then, this is not going to be a walk in the park for you, there's a lot of studying and it's a lot of hard work, but as long as you are sitting at home unemployed, perhaps, this is the best use of your time, and the smartest certification you could have.

It was estimated by the American Management Association or AMA that business unit executives with this degree earned $30,000 more than their counter parts. Upper executives, often earn 25% more after receiving the certification. And consultants with these degrees stay quite busy, whereas, their competitors are passed over. Indeed, I'd like you to please consider all this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes efficiency in business.
Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Six Sigma Blog Sites

I have been doing some research on Six Sigma Blog sites. The following is a list I have gleaned from that research. Please reply to this blog if you have a favorite you wish to share and I will update the post.

Six Sigma Blog

Discover 6Sigma

ASQ Lean Six Sigma 2009

Six Sigma IQ

Using MindManager Software to Brainstorm

Brainstorming is probably the most important event that occurs during a six sigma engagement. However it is often hampered by the inability of the facilitator to quickly change direction as ideas unfold. The sad truth is that more time is spent reorganizing the information that paying attention to what is being said and what needs to be done.

For the past two years, the DMAIC.COM team has used MindManager from Mindjet to conduct brainstorming sessions. It is by far the best software for visualizing activities and it adapts itself easily to a variety of scenarios.

To visit the Mindjet site, please click this link MindManager.

To visit the Mindmanager blog, please click this link MindManagerBlog.

Regards,

Jim Pickens

Jim Pickens is the the managing partner for DMAIC.com. http://www.dmaic.com is the complete online resource for Six Sigma consulting, training, software, books, and events.

What is the Difference Between 8D and DMAIC?

One of the most frequent questions we get from people new to Quality Improvement: What in the heck is the difference between 8-D and DMAIC problem-solving methods?

First let's talk about what the similarities are between 8D and DMAIC. Both are step-by-step problem-solving methods. The 8-D Problem-Solving approach has...you guessed it...8 steps! DMAIC has just five phases, but they happen to make up the acronym DMAIC - Define, Measure, Analyze, Improve, and Control.

OK, so what are the differences between 8D and DMAIC? There are probably people who would argue that there are LOTS of differences between the two. But, as we see it, the biggest difference is in Step 3 of the 8D process: Implement and Verify Interim Containment. There is not a comparable explicit step in the DMAIC process. One downside to Interim Containment is that it can give you a false sense that the problem is solved and that you can move onto the next problem. Interim Containment is typically a quick and dirty band aid approach to addressing the symptoms of a problem and not the root cause. But, the reality is that if a business problem is serious enough, it merits a band aid to "stop the bleeding." Then it is up to the team to complete the rest of the 8-D process including removing the "band-aid" once the root cause is found and addressed.

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