Page 268 - The Handbook for Quality Management a Complete Guide to Operational Excellence

254 C o n t i n u o u s I m p r o v e m e n t e f f e c t i v e C h a n g e M a n a g e m e n t 255

Initially problems create “pain signals,” such as sched ule disruptions
and customer complaints. Often these symptoms are treated rather than
their underlying causes. For example, if quality problems cause schedule
slippages that lead to customer complaints, the “solution” might be to
keep a large inventory and sort the good from the bad. The result is that
the schedule is met and customers stop complaining, but at huge cost.
These opportunities are often greater than those causing more visible
problems, but they are built into the process and difficult to see. One
solution to the hidden problem phenomenon is reengineering, which is
focused on processes rather than symptoms. Some guidelines for identi-
fying dysfunctional processes for potential improvement are shown in
Table 12.1 (Hammer and Champy, 1993).
The “symptom” column is useful in identifying problems and setting
pri orities. The “disease” column focuses attention on the underlying
causes of the problem, and the “cure” column is helpful in chartering
quality improvement project teams and preparing mission statements.

Pareto Prioritization Index
After a serious search for improvement opportunities, the organization’s
leaders will probably find themselves with more projects to pursue than
they have resources. The Pareto priority index (PPI) is a simple way of

Symptom Disease Cure
Extensive information Arbitrary Discover why people
exchange, data redundancy, fragmentation of a need to communicate
rekeying natural process with each other so often
Inventory, buffers, and other System slack to cope Remove the uncertainty
assets stockpiled with uncertainty
High ratio of checking and Fragmentation Eliminate the
control to value-added work fragmentation, integrate
(internal controls, audits, processes
etc.)
Rework and iteration Inadequate feedback Process control
in a long work
process
Complexity, exceptions, and Accretion onto a Uncover original “clean”
special causes simple base process and create
new process(es) for
special situations;
eliminate excessive
standardization of
processes

Table 12.1 Dysfunctional Process Symptoms and Diseases

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