How do you define and measure process optimization goals?

There are a few ways to do this: 1. Compare your plant performance with other plants of similar size. 2. Independent firms define best practices and best performance KPIs. Example, Solomon associates. 3. Trust your SMEs. Ask them to develop the performance metrics for different domains like operational performance, equipment performance, safety performance, etc. People who spend 20+ years in their domain happily develop these (if the management can learn to trust it’s own internal personnel). 4. Understand that Optimization is different from Maximization or Minimization. Develop the KPIs with optimization in mind.

1. Understand Your Current State: Analyze existing processes, identify inputs/outputs, and map material and information flows. Use tools like Value Stream Mapping (VSM) for visualization and document performance metrics such as cycle time, throughput, yield, defect rate, waste, and customer satisfaction. 2. Select a Product Family: Focus on a specific product or family. 3. Map the Current State: Gather a team, walk through the process, and document steps and metrics. 4. Analyze the Current State: Identify waste, bottlenecks, and non-value-added activities. 5. Define Takt Time: Calculate the rate needed to meet customer demand. 6. Create the Future State Map: Design an improved process, focusing on waste elimination and best workflow.

Defining and measuring goals for process optimization involves setting clear, specific, and achievable objectives. These objectives should be aligned with the overall business strategy and focus on improving efficiency, reducing costs, and enhancing quality. To measure these goals, key performance indicators (KPIs) such as cycle time, error rates, and customer satisfaction can be utilized. Regular monitoring and analysis of these KPIs allow for the assessment of progress and identification of areas needing further improvement. The current state should be thoroughly analyzed to establish a baseline from which improvements can be measured.

It is important to segregate the idea of optimising process and recovering process efficiency. The former is referring to optimising current system design to achieve better performance, e.g. using a higher CoP chiller, more effective heat exchange network. As for recovering process efficiency, more focus will be on comparing existing performance and design performance. Examples include replacing a fouled steam generator coil to recover your deteriorating boiler efficiency.

O mapeamento do fluxo de valor é essencial para entender como os materiais e informa??es fluem nos processos. Isso revela áreas de desperdício e gargalos, facilitando a identifica??o de oportunidades de melhoria. Além disso, é importante identificar claramente as entradas e saídas de cada processo, incluindo matérias-primas, recursos humanos, equipamentos, informa??es e produtos acabados.

Use Value Stream Mapping (VSM) to create a visual representation of your entire process, from start to finish. This tool allows you to see the flow of materials and information, helping you identify bottlenecks, delays, and non-value-added activities. By mapping out each step, you can pinpoint areas of waste—such as excess inventory, waiting times, or unnecessary movements—and inefficiencies that are slowing down the process. VSM also helps in visualizing the current state and designing a more efficient future state, making it easier to target specific areas for improvement.

To identify improvement opportunities start with organizing a workshop that will bring together directors and managers It's always good to know the deviations from the company's core goals and the pains of senior executives. Identify the key topics there and then dig deep them with root cause analysis tools.

Para identificar oportunidades de melhoria, é essencial encontrar lacunas, gargalos, ineficiências e problemas nos processos atuais que impactam o desempenho e o valor para o cliente. Ferramentas como análise de causa raiz, gráficos de Pareto, diagramas espinha de peixe e análise SWOT s?o úteis para esse fim. Além disso, é importante envolver as partes interessadas, como funcionários, clientes, fornecedores e gerentes, para obter feedback e insights adicionais. Mas principalmente daquele colaborador que realiza a atividade na prática e conhece como ninguém o que é feito. N?o é um momento de julgar, nem falar se estar certo ou errado, mas pensar em melhorias e oportunidades.

Typically there is a cascade from the business regarding the needs, whether this includes on time delivery, returns (dppm), working capital, return on investment, inventory turns etc. These can be cascaded using tools such as A3, policy deployment etc.. If the team is tackling what is important to the business then it’s a win. However along the journey don’t forget to celebrate the low hanging fruit the team will typically identify that doesn’t specifically focus on the business focus.. it’s all good

Setting clear, achievable optimization goals is essential for driving meaningful improvements. In construction, these goals might include reducing project completion times, minimizing material waste, or improving team productivity. Goals should be specific, measurable, achievable, relevant, and time-bound (SMART) to ensure they provide clear direction and can be accurately assessed. Aligning these goals with overall business objectives ensures that optimization efforts contribute to broader organizational success.

There is no ‘or’ in 5s - it is fundamental to seeing the issues at the measure stage. Whether physical, the place where the real work being done ‘GEMBA’ or in the information flows such as SOPs, TIs, product specs etc.. If you want to reduce process variation then DMAIC, If you want to remove wastes then LEAN. A Benefit vs. Effort review will focus the team on the low hanging fruit to go after..

Sustainment, a simple word but the most difficult to set in stone Rigour is needed through routine monitoring before the future state is fully accepted by the all in the business 12 weekly reviews are typical, with the full team identifying roadblocks and issues to be counter-measured. Sustainment requires full engagement by all stakeholders throughout the business and requires courage when difficult conflicts occur.. eg a typical event is Quality vs numbers

Excellent summary! From my experience : (1) engaging the workers from the beginning will uncover some amazing processes improvements. Workers closest to the work know what’s wrong and often know how to improve work flow. (2) With global manufacturing sites evaluate supply transport and local warehousing costs to evaluate reducing production sites. If feasible increase production shifts at the selected site. Amazing how many chemical manufacturing sites work only one shift when two or three are possible. Closing some sites and increasing production at others can significantly improve profitability.

Defining and measuring process optimization goals involves a methodical approach. I begin by aligning goals with overall business objectives, ensuring a clear connection between process improvements and organizational success. Key performance indicators (KPIs) are meticulously selected to quantify the impact of optimizations on efficiency, quality, and cost-effectiveness. Continuous monitoring, using tools like Six Sigma or Lean methodologies, facilitates real-time assessment. Regular feedback loops and performance reviews enable agile adjustments to goals based on evolving business needs and market dynamics.

It is extremely important to plan and execute the new performance sustainability activities so that when the optimization project is finished, the performance does not deteriorate over time. That actually can have a big implication on the best team (internal/external) and tools for the project and post-project.