How do you manage risks when improving processes?

In order to identify most relevant and critical aspects , one should conduct a value stream mapping which will identify activities/ processes that are providing/ adding value to internal or external customer. Having a clear cut design basis and a clear achievable goal which is acceptable to all stakeholders is essential.

It is important to understand the scope and boundaries of the system, before aiming to improve the process. There are few tools that could be used to effectively understand this step. 1- SIPOC diagram - (Suppliers, Inputs, Process, Outputs and Customers) This tool is mainly used for process mapping and process optimization. 2- Project charter Project charter is commonly used in companies. A typical project charter defines project scope, restrictions, assumption, risks and milestones.

Managing risks during process improvement ensures its success and quality. Common steps include: 1. Identify potential risks, like technical, operational, or financial threats. Tools like risk breakdown structure or SWOT analysis can assist. 2. Analyze each risk's likelihood and impact, then prioritize them. Use tools like risk matrix or risk heat map. 3. Plan responses for each risk, such as avoiding or reducing them. Employ tools like risk response matrix or risk mitigation strategies. 4. Monitor risk responses' progress and effectiveness. Tools like risk dashboards can help. Adhering to these steps ensures proactive risk management, paving the way for successful process enhancement while minimizing negative impacts.

As a first step in managing risk while (re)designing processes I assess the desired outcome and work to be done of the process against trust, complexity, risk. The level and type of risk may dictate a strong process; however, if risks and complexity are lower we can lean into trusting teams with a lighter process.

Scope definition, most of the times is undermined, when it comes to details. But clearer the scope with details, better is the project managed and the value addition that is planned is realized to a maximum.

Yes, few more scientific tools and techniques exist other than SWOT analysis. Which will help to identify the risk for mitigations. Gap analysis of the current state is quite important to define the target for process improvement.

Current state analysis can be supported by using quantitative data and by measuring process throughput. Throughput can be measured per day, per week, per month, quarterly or over a given iteration time depending on the nature of the work. Putting some numbers around the current state will also help in identifying root causes and can provide valuable insights.

I personally prefer this step prior to scope definition, as it will go into the feasibility and alternate finding process, and the scope or the whole project can be much more clearly defined.

It is often very useful to create a so-called Value Stream Map (VSM) to analyze the current state. A VSM helps you to understand what happens in real life, rather than the process as it was designed or documented. A VSM should document not only the subsequent steps in the value stream but also data like processing time, waiting time and number of FTE's involved in the steps.

Gathering existing artifacts around processes e.g. any existing process documents that contain operating instructions or process guidelines will make it easier to map the existing process. Approaches such as utilizing a day in the life approach will help in understanding the pain points that the teams face in the current state. These pain points can then be addressed in the proposed future state.

Utilizing computer based simulation tools plays a major role on validating the new augmented process parameters. By testing the new control schemes through various scenarios one can mathematically reduce the failure probability to acceptable levels. This is a firm base anyone can stand upon.

Design validation is key before scaling up any design change or process optimization. Depending on the process there are mainly two methods to validate the design. 1. Pilot testing: Before scaling up the design could be tested on the pilot scale i.e., smaller scale, this is a very common practice in industries. 2. Digital simulations: Risk can also be identified through digital simulation of design and testing in different parameters provide a better picture of the process. It is an effective tool for design validation that also helps identifying bottlenecks. In principle, digital simulation is cost-effective than pilot testing tool for validation. However, depending on the industry one tool could be more suitable than other.

Make sure you can switch the improvement on and off with the team that performs the task, this way sustainment of the change has a better chance of surviving.

Continuous improvement of process and product is significant for any company to survive in the market. A well-planned improvement mitigates risks. Planning should involve all stakeholder from downstream and upstream of process. Following are some of the risk assessment techniques that could be used during planning any improvement for your process or product. 1. FTA -Fault tree analysis 2. FEMA -Failure mode and effects analysis 3. What-if analysis 4. HAZOP -Hazard and operability analysis 5. Fishbone diagram 6. Cause and effect analysis

Empower the team that performs the task to take ownership. Easily said but vital to success / sustainment. If you haven’t brought the team along with you on the journey it won’t matter what tools you use.

Daily management at Gemba with a SQDIP review against KPI. Focus by exception and not that went well. Start to define what is the next item by criticality to meeting customer requirements (internal and external)

Deploy a Management of Change (MOC) process regardless of the magnitude of change. Avoid the “replacement in kind” trap. Use the process improvement as an opportunity to review and update your hazard assessments (PHA / JHA), process documentation and training. Supplement your MOC with a multidisciplinary Pre startup safety review (PSSR).

The importance of optimum stakeholders involvement can not be overemphasized. Stakeholder involvement is vital for successful process improvement due to several reasons: it gains buy-in and support, offers diverse perspectives, reduces resistance, improves decision-making, identifies risks, customizes solutions, enhances communication, ensures sustainability, and fosters transparency. Ultimately, involving stakeholders leads to better-informed, well-rounded, and more successful improvements.

The level of granularity, meaning the extent to which processes are broken down into smaller processes, evolves over time. It helps to identify all possible risk scenarios and create a mitigation and back up plan. There are a number of software tools that can help organizations do this work and make risk management much more easier to handle.

Implementation is the step from where a project cannot go back. It is better to spend more time on prior stages, like feasibility, design and control philosophy, hazard identiication and mitigation etc. This will help inclusion of stakeholders from sponsors to operators at various stages of project and get a overall customized output.