Process Analysis, Process Improvement

Process Analysis
Process Improvement

Improvements in cost, quality, flexibility, and speed are commonly sought. The following lists some of the ways that processes can be improved.

· Reduce work-in-process inventory - reduces lead time.

· Add additional resources to increase capacity of the bottleneck. For example, an additional machine can be added in parallel to increase the capacity.

· Improve the efficiency of the bottleneck activity - increases process capacity.

· Move work away from bottleneck resources where possible - increases process capacity.

· Increase availability of bottleneck resources, for example, by adding an additional shift - increases process capacity.

· Minimize non-value adding activities - decreases cost, reduces lead time. Non-value adding activities include transport, rework, waiting, testing and inspecting, and support activities.

· Redesign the product for better manufacturability - can improve several or all process performance measures.

· Flexibility can be improved by outsourcing certain activities. Flexibility also can be enhanced by postponement, which shifts customizing activities to the end of the process.

In some cases, dramatic improvements can be made at minimal cost when the bottleneck activity is severely limiting the process capacity. On the other hand, in well-optimized processes, significant investment may be required to achieve a marginal operational improvement. Because of the large investment, the operational gain may not generate a sufficient rate of return. A cost-benefit analysis should be performed to determine if a process change is worth the investment. Ultimately, net present value will determine whether a process "improvement" really is an improvement.