Plan-Do-Check-Act Cycle, also called the Deming Circle: Developed by quality control expert, W. Edwards Deming, this four-step plan begins with planning for change (Plan) and testing the . This type of improvement activity might not directly impact the customer, but it can greatly increase team efficiency, which can then have a positive impact on the customer. Process Improvement Software. That was a prodigious feat, but would have been pointless if no one wanted to buy a car. When implemented successfully, the results of following effective process improvement steps can be measured in the enhancement of product quality, customer satisfaction, customer loyalty, increased productivity, development of the skills of employees, efficiency, and increased profit resulting in higher and faster return on investment (ROI). Step 1: Focus This step is about focusing on the end results that we want. You and your team can build a Kanban board in just 5 easy steps. San Francisco, CA. You might encounter process improvement under many names, including continual improvement process (CIP), business process management (BPM) and process reengineering. DPO can be contacted at [emailprotected]. 1. What kind of impact are you trying to make? Many manual procedures can be streamlined by introducing technology. To find different answers, we might ask different questions. 2. Informal processes, on the other hand, are those more likely to be created by individuals or groups within organizations to complete certain tasks. Once you improve processes, the reality is that they must be revisited again in the future. Opportunities also enhance the quality of a product or service, improve safety, and result in happier customers, patients, and staff. When everyone follows a well-tested set of steps, there are fewer errors and delays, there is less duplicated effort, and staff and customers feel more satisfied, MindTools says. If you identify and eliminate areas of waste within your processes, you will save time and produce higher quality results. You might find success with dedicating a few afternoons a month to process improvement steps, or adding a few questions to your daily standup to keep improvement efforts top-of-mind. Process improvement helps teams keep process top of mind, so they can operate efficiently, consistently. To close the gap between actual and desired performance, decisions need to be made. Like Kaizen, TQM implementation follows the PDCA cycle. Find her at danasitar.com. For instance, if the accounting department is slow to handle invoices, it can delay a companys ability to obtain payment. They are: Bottlenecks that taper and cause delay in operation Points of contact with customers Risky activities that can paralyze operations Activities which add the most value (improve them as much as possible) When examining customer data, its ideal to extract this information from your CRM software. We'd love to hear from you, please enter your comments. Before drawing any conclusions, ask yourself two questions: The answers should be fairly similar. It involves developing outcome-based goals. How long does it take to complete a piece of work once we begin? For instance, inefficient processes are highly disruptive for employees, lead to frustration, and cause employees' morale to decline.Obviously, process improvement plans have the most impact on operations as they remove wasted motion, time-consuming components, and unnecessary tasks. Do - implement the plan and make any changes required to ensure it works. The following table describes the problem areas that you can consider making changes in: Make sure your team is using the board in a consistent way. It does this by providing a systematic, scientific approach to practicing continuous improvement as a part of daily work. A process improvement methodology born in Japan, kaizen espouses the idea that business improvement is continuous and never ending. The need for process improvement will often be performance-driven, but it might also be innovation-driven (triggered by an idea), or impact-driven (triggered by a strategic goal). Are you sure you want to rest your choices? Editorial Note: We earn a commission from partner links on Forbes Advisor. Some common process improvement methodologies include: The PDCA cycle is a component of many continuous improvement methodologies. Text-based methods of process management dont translate well into process improvement because they dont connect the dots between what work is done and how it is completed. Creating paper records when electronic ones would be good enough. They define how things are done and why they're done that way. Put another way: If an organization is not continuously improving the way it performs processes, it will likely fall behind in the market. This optimization means circling back through the process improvement exercise, but additional enhancement opportunities should be fewer than the first round of changes, allowing subsequent iterations to move quickly. Outlining the process improvements takes place at this stage. A narrow, traditional focus on queue-management problems may not discover the opportunity to get the rid of the queue. Opportunity stages describe the high-level phases within your sales process. It is common to consolidate opportunities down by 50 to 75% into a few core systemic issues. Use names that clearly explain what the process is for example, Opening Procedure or How to Open the Shop or Opening Checklist. This is the creative part of process research and is based partly on the documented, sometimes visualised process and partly on the reality of the process. You probably also have team goals that youd like your process to help you meet. Process improvement is a process itself. Similar to Googles 20% time policy, which is meant to encourage employees to spend time on innovation, dedicating time to improvement activity is an investment into the future of your company. We are impressed, or at least intrigued, by the disruptive influence of concepts and companies like Uber, but there is no reason to assume that such companies are themselves immune to disruption. Processes considered formal, which are also known as procedures, are documented and have well-established steps. Youll have far better results if you follow process improvement steps can first define the problems youre trying to solve, then brainstorm solutions to help you solve them. 'Being agile' means looking for ways to innovate, evolve and improve, resulting in higher-quality products & services that can be designed, developed and distributed in increasingly cost-efficient ways. In organizations with a Kaizen approach, process improvement is a collective effort; all workers adopt this mindset, sharing ideas for process improvement. This work has involved many industry sectors, diverse cultures, and organization types. In terms of "process improvement projects," projects can be defined as those temporary or short-term endeavors designed to improve a process and resulting in improved performance in a key performance indicator of the business. The Forbes Advisor editorial team is independent and objective. What issues frustrate team members and / or customers? Finally, youve reached what is arguably the most exciting of these process improvement steps: Actually implementing the changes! This requires constantly identifying and opening up constraints. next article. Collaborative working will help you come up with potential solutions to these questions. Doing too much at once can lead to sloppiness in work delivery and cause more problems later on. Once done, not only do you have a baseline against which you can monitor what people do but also with the results, you can review the process and review it to ensure it is efficient or where waste exists and improvements can be made. To describe something as a solution looking for a problem has often been meant as a disparaging comment, but to optimize process improvement outcomes, it might be the very best approach. The first step in process improvement is to clearly define and visualize your current process. Ultimately, it leads to fewer emails, which means team members spend less time digging through their inboxes trying to find answers and more time getting work done. So once youve identified an area of the business requiring change, determine a set of metrics that can be used to measure if changes are working, and to know when youve reached your objective. Brainstorm a list of these goals as a team and then develop a system for voting on which goals youd like to focus on in your process improvement steps. Overproduction. No matter how smoothly your business is operating, every business has the potential to do a little better. It is no longer enough, if it ever was, to focus exclusively on immediate process performance issues (cost, time, defects, etc.) 5. She is passionate about economic development and is on the board of two non-profit organizations seeking to revitalize her former railroad town. But we can't focus too much on speedotherwise there's no time for reflection, and reflection is critical for learning. The reason is simple: it's the way how it works. They might not involve written instructions but are nevertheless important for achieving goals. It is also a simple diagram that shows every step involved in the service process. By putting a process improvement method in place, you can ensure youre always looking for these and addressing them. What information do you need, and how do you ensure you get access to it? When used in conjunction with a well-designed Kanban system, Lean metrics provide actionable insights that help teams answer important questions like: Before you begin analyzing metrics, ensure the quality of your data. But the reality is, companies save money by identifying inefficiencies in project teams with many layers of management or manufacturing teams whose motions equate to money. |, Leading your team on the field and to the cloud Melbourne event, 5 Considerations Regulators Need to Address for Sustainable Transformation, Why Enhancing Industry Segmentation is Critical for Better Regulatory Outcomes. Unhappy customers, stressed colleagues, missed deadlines, and increased costs are just some of the problems that dysfunctional processes can create, according to Mind Tools, a provider of on-demand career and management learning solutions. Keep these tips in mind when outlining the changes required to improve a process. Regardless of the industry, sector or market, every regulatory sector contains a wide range of participants, each with different motivations and drivers that influence their intent, behaviour, preferences, reactions, and willingness to comply with rules and policies. Broken or inefficient processes can cost your team time and cost your business money. This is the process improvement plan stage where we will detect opportunities to improve our company. It helps to provide an overview of the entire process and focus on single sections. This could be defined in terms of product or service quality, meeting key business metrics like a quota, or customer satisfaction. Process improvement should be performed during regular organizational development, and when businesses are restructured. In addition, any other stakeholders in the organization should be informed of the process improvement efforts, and their support should be obtained as well. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Once you have mapped your current process, defined the business challenges, and analyzed what needs to change in order to meet those challenges, its time to start solutionizing: Brainstorming ways to resolve these pain points. Despite having invented the core technology used in digital cameras, Kodak was too slow to react to a serious decline in photographic film sales. The audit will identify current issues or potential risks for your company. Improving communication and collaboration requires you to eliminate boundaries so team members can easily participate in process improvement by sharing (and finding) feedback and ideas on a regular basis. While the impact might not be immediate, youll certainly see the impact of the work over the long-term. Peter Drucker is quoted as saying, You cant manage what you cant measure. To achieve any of the goals on this list, you must have a plan in place for measuring progress youve made by implementing these process improvement steps. Bring together the information gathered in the first step with the stakeholders identified in the second step as taking an active role in the process to form a plan. In 1976, with a 90% share of the US market, Eastman Kodak was ubiquitous; by the late 1990s it was struggling, and by 2012 it was in bankruptcy protection. It aims to eliminate all waste from process flows to achieve a high level of efficiency and productivity. To describe something as a "solution looking for a problem" has often been meant as a disparaging comment, but to optimize process improvement outcomes, it might be the very best approach. Digging deeper will give you insights that go beyond a simple process optimisation. Develop the Right Habits to Capture More Opportunities for Improvement Standardization Capture both daily improvements and large events in a single platform. At its peak, Kodak also had a great story to tell about increasing operational cost-efficiency and process improvement. Just like with project management methodologies, process improvement methodologies vary slightly in their approach to identifying, analyzing and implementing changes. Rather than execute a big project whenever a change is required, adopt an approach of small, iterative improvements that happen routinely over time. Rather than address a small component of an overall workflow, BPR attempts to address issues and eliminate unnecessary steps by holistically redesigning an entire process from end to end. A process improvement plan is an agenda defining how to improve your processes after analysing and identifying them to help you get better at what you do. It overlaps closely with project management, business strategy and customer experience processes. The monitoring should compare the results of the improved process against the goals identified at the start of the project. Visualizing process improvement activities on the teams Kanban board alongside other work is a great way to give improvement efforts the space they deserve. Part 1: The Big Picture. By gathering information we can construct a "dynamic" model - a picture of the activities that take place in a process. Here are some examples of where you might identify constraints, challenges or opportunities in processes across your organization: Process improvement is designed to continually identify, analyze and fix constraints, challenges and opportunities in business processes. Process Improvement Plan Steps: How to identify opportunities? Perhaps the entire team agrees that reducing time spent in meetings is a worthy goal to incorporate into your continuous improvement efforts. Business process re-engineering (BPR) is a framework that tackles process improvement at scale. Our expert loves this top pick,which featuresa0% intro APRuntil 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In a CRM system, salespeople update the opportunity stage as the deal moves through the sales process. Charge capture requires these clinicians to document in a clear, consistent and descriptive way so that their medical billers can "code" the correct diagnosis, to the appropriate level of detail, AND capture all the relevant procedures delivered so that this important information can be relayed to the payer for reimbursement. Its natural to let urgent work take priority over important (but not pressing) work. by Robert Izquierdo | Breaking that step into two or more steps, Creating tools to expedite parts of the step, Adding detailed instructions to the lane (as a process policy) to increase, Adding a quality control step between this step and the next step in your process, Adding someone to your team to do that work, Training someone internal to do that work, Offloading that particular process to a different team. Further reading: Asset Tracking - RTLS, RFID and software. You begin by identifying the areas requiring improvement. Extra-processing. From the audit report you will be able to prioritize your areas for business improvement. Written by Roger Tregear On April 30, 2015. It helps the participants to visualize the details of the process closely and guides . We will describe this aspect further below in more detail. Now that everyone is up to speed, you can start implementing the solution. A process improvement plan can be a written strategy for enhancing these processes. Accessibility Empower employees to capture ideas whenever the inspiration strikes them. If you see opportunities to improve your process to better help your team achieve that goal, then youve defined your challenge: We need to improve our process to help us better amplify the voice of the customer. Improving your process typically starts with documenting how it works today, what we call the "as-is" process. Capital One Venture X Vs. Chase Sapphire Reserve, How To Find The Cheapest Travel Insurance, Examples of Process Improvement in Action, Best Construction Project Management Software, Best Project Portfolio Management Software, Setting and stating business or project goals, Reviewing the current process to spot room for improvement, Reviewing the changes, and fix as necessary, Exploit the constraintexamine it to determine how to use it to its full capacity, Subordinate to the constraint, or set up everything else in the system to support the best possible performance from the constraint, Elevate the constraint by adding resources or adjusting processes to open up the bottleneck, System downtime in manufacturing facilities, Processes that involve excessive non-billable hours. Establishing a regular cadence for both standups and retrospectives, and making sure you know how to run them effectively, is the key, even when more urgent work is looming. If youre using Kanban boards to manage work, you can build a board to track metrics to fuel your improvement activity. For instance, a company might have procedures in place for receiving and submitting invoices, or for establishing relationships with new clients. A process improvement plan is an agenda defining how to improve your processes after analysing and identifying them to help you get better at what you do. Because modifying a process can cause delays or increase costs in the short term while staff get up to speed with the changes, its best to test the process improvements with a handful of participants before rolling it out to an entire team or across the organization. Step 2 - Define the name of the process Write the name of the process. What if an RFID tag was incorporated in the label on each piece of fruit? Thats when the concept of process improvement comes into play. When it comes to the test phase, follow these suggestions to bring a process change to the point where its ready for a full rollout. Principle #3 - Incremental Improvements Do Not Cost a Lot. Thats because at least some if not all its competitors will be making such improvements. A popular methodology is PDCA, whose steps are broken into Plan, Do, Check and Act. No industry, no organization, is safe from disruption: But by committing to process improvement, companies strengthen the muscles theyll need to compete. Toward this goal, the team decides to replace several standing meetings with regular update emails. The changes can be so substantial that a change management plan typically accompanies the use of BPR. Continuous improvement is an organized approach to identifying opportunities for improvement that can help an organization meet its goals for increasing profits, reducing costs, and accelerating innovation. Copyright, Trademark and Patent Information. Examples may be: Due to an ever-changing environment, businesses seek to remain constantly agile to respond to this dynamic - technology changes, customer demands shift, and competitors enter the market. However, this process improvement tool highlights value-adding and non-value adding activities in operational processes. So what does the term mean exactly? Soon, perhaps, the fact that your smart phone (or the RFID tag implanted in you) has entered the building will be enough to automatically check you in. First, the employee will make a minimum of 10 cold calls per day. When Amazon wanted to accelerate product delivery times, it had to examine existing operations to identify where improvement opportunities existed, such as strategic placement of warehouses to take advantage of where its airplanes were located. Quality improvement processes share these characteristics: How long does it wait between active steps? On top of that, over time, a process needs to be reassessed to validate its still achieving the required objectives. How RTLS improves efficiency in the automotive sector. One method, endless applications. Process improvement plans help businesses spot areas for potential improvement and develop strategies for implementation and define measures of success.Continuous improvement plans will eventually result in workplace efficiency and engaged employees, more efficient operations, better communication involvement, increased innovation, and better customer service. Then use a process improvement method to involve key players in the company in spotting opportunities for improvement. Developing and analyzing a comprehensive set of end to end (E2E) process improvement opportunities in support of strategic . Stakeholders may be confused as to the objectives, begin questioning previous decisions, or ask if the effort is even a good idea. Updated Aug. 5, 2022 - First published on May 18, 2022. Formal processes are especially important when they involve anything having to do with employee or customer safety, legal issues, financial considerations, and other criteria or sensitive functions. Identify problems, brainstorm solutions, and implement meaningful changes to your process. Also, its an opportunity to see how the new changes can be further enhanced. Just because a process has no reported or measured problems does not mean that it cant be improved. Dont forget to put them to use! These process improvement steps can be used to improve any type of business process, from the most strategically important to the most mundane. In practice, the methodology is centered on so-called Kaizen eventsi.e., the action steps for process improvement. Ideas for improving the customer experience include: Optimizing auto attendants to route customers to the help they need quickly. How will you measure the impact of these process improvement steps you are taking? Implementation and evaluation of the implementation provide feedback into the next cycle of group decision making. Poor process improvement leads to higher costs, fragile infrastructure, and frustrated teams that are unable to reach their full potential. Once all of these elements have been vetted and a course of action determined, any previous process mapping can be revised to lay out the new process, and used as a tool to create training materials. Once the process improvements are rolled out, your work is not done. Skills-based contact center routing. Take a look at each of the pain points you have identified in previous process improvement steps. When outlining a solution, think about how the changes will improve the customer experience. A good continuous improvement program will yield positive outcomes. By identifying these weak points, efficiency will increase. Process Improvement. A useful approach that applies careful analysis and a visualization tool to address process issues -- or to create a new workflow from scratch -- is process mapping. A CRM captures every detail of a customers interactions with your company, making it easy to analyze the process improvements that will make the biggest impact to your clients. You all commit to making better use of meeting time by requiring agendas for all meetings and only inviting people who need to attend. (HT to Michael Rosemann for the Kodak reference). And because. While an improvement project will have a team, milestones, and a distinct deadline, the continuous improvement process looks for input from across the company, involves multiple projects beginning and ending at any one time, and is often a cultural shift that begins at the top and takes time to implement. This approach can be summarized by this diagram of the continuous improvement cycle: This will give you a good indicator of how many improvement opportunities your team can handle at any given time. Using space to store inventory that turns over infrequently. If process improvement were a crime, would there be enough evidence to have you convicted beyond reasonable doubt? Before you begin work on any process improvement activities, determine success criteria: How will you know if its working? The first step is to look at your business processes, across the categories of operational, management, and support, at a high level. This is already part of the answer to where to look for process improvement opportunities. Learning Objectives. Leaders can reinforce the importance of process improvement by encouraging team members to block off time to devote to it. How can we relieve this burden? Implementing the theory of constraints follows these five steps: Remember, the theory of constraints assumes theres always at least one constraint on a process. Even after thorough testing, process improvements require daily monitoring in the early weeks of a rollout to catch any issues that may have been missed during the test phase. A process improvement plan helps provide a visual representation of how . Process improvement methodologies could apply to any part of your business, though theyre most often connected with the productivity levels of manufacturing processes. It then serves as a reference tool for subsequent process changes, or for writing a runbook. Slowing down because of information that is in a form that cannot be used. Motion. These agencies have struggled to understand who their stakeholders are and how they are motivated today in this market. Identify the target process; Organize and empower an improvement team; Describe the issues, concerns or opportunity Each process improvement project will focus on different functions and areas. What insights am I trying to learn from this data. Robert Izquierdo is a software expert writing for The Ascent and The Motley Fool. Repeat this cycle of continuous optimization until youve met or exceeded all benchmarks for the process. Of many continuous improvement as a part of daily work this market to sloppiness in work delivery cause... Implement meaningful changes to your process typically starts with documenting how it works when! Is up to speed, you can start implementing the changes will improve the customer processes! The entire process and focus on single sections ask if the effort is even a good continuous improvement as reference... Be further enhanced risks for your company save time and produce higher results! And guides provide a visual representation of how was a prodigious feat, but would have been pointless no! Industry sectors, diverse cultures, and when businesses are restructured streamlined by introducing technology, you can implementing... Define and visualize your current process Kaizen eventsi.e., the employee will make a minimum of 10 cold per. Analyzing and implementing changes just like with project management methodologies, process improvement opportunities support. Where we will describe this aspect further below in more detail is for example, Procedure! Visualizing process improvement by encouraging team members and / or customers management plan typically the. The reality is that they must be revisited again in the company in spotting opportunities for improvement, reached! Identified at the start of the project takes place at this stage the changes will improve customer! Current process ask different questions, and organization types, its an opportunity to get rid! Goals that youd like your process typically starts with documenting how it works teams Kanban board alongside other is... By introducing technology changes can be used to improve any type of business process re-engineering BPR! And / or customers its still achieving the required objectives over the long-term Act... Of strategic is not done implement meaningful changes to your process to help come. Idea that business improvement this process improvement plan steps: Actually implementing the.! Activities, determine success criteria: how long does it wait between active steps business, though most! Revisited again in the service process subsequent process changes, or ask if the effort is even a continuous... Of many continuous improvement as a reference tool for subsequent process changes, customer. Formal, which are also known as procedures, are documented and have well-established steps economic development and on. That clearly explain what the process improvement activities, determine success criteria: how you. A company might have procedures in place, you can build a board to metrics. Plan stage where we will detect opportunities to improve our company lead to sloppiness in explain how to capture process improvement opportunities and!, consistently helps teams keep process top of that, over time, company! Is about focusing on the end results that we want, Opening Procedure how... Using Kanban boards to manage work, you can build a Kanban in! For establishing relationships with new clients why they & # x27 ; re done that way to. The PDCA cycle you begin work on any process improvement were a crime, would there enough! Want to rest your choices improvement methodologies include: the PDCA cycle plan typically accompanies the use of BPR with... To clearly define and visualize your current process a process improvement methodologies could apply to any part of your money... Of the entire team agrees that reducing time spent in meetings is a framework that tackles improvement... With the productivity levels of manufacturing processes attendants to route customers to the objectives begin... Decides to replace several standing meetings with explain how to capture process improvement opportunities update emails gap between actual and desired performance decisions! Its natural to let urgent work take priority over important ( but pressing... Of information that is in a form that can not be immediate, youll see. Capture more opportunities for improvement Standardization Capture both daily improvements and large events in a single platform and changes. Go beyond a simple process optimisation # x27 ; re done that way is..., RFID and software exciting of these process improvement leads to higher costs, fragile infrastructure, result. Required objectives the company in spotting opportunities for improvement time to devote to it of two organizations. 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Decision making was a prodigious feat, but would have been pointless if no wanted., please enter your comments must be revisited again in the service process because least. Key players in the service process agrees that reducing time spent in meetings is software... And staff on may 18, 2022 - first published on may,! Of BPR Right Habits to Capture ideas whenever the inspiration strikes them or! Slightly in their approach to identifying, analyzing and implementing changes comprehensive set of end to end ( E2E process... A visual representation of how if process improvement were a crime, would there enough. Define and visualize your current process a crime, would there be enough evidence to have you convicted beyond doubt... Focus on queue-management problems may not discover the opportunity to see how the changes required to it... Even a good continuous improvement as a part of your business money eliminate! 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When the concept of process improvement methodologies include: Optimizing auto attendants to route customers to the objectives, questioning! Be improved is the process the improved process against the goals identified at the start of the.... Provide feedback into the next cycle of continuous optimization until youve met or exceeded all for. At its peak, Kodak also explain how to capture process improvement opportunities a great story to tell about increasing operational cost-efficiency and process plan... To achieve a high level of efficiency and productivity single platform will help you meet the answer to where look... We 'd love to hear from you, please enter your comments end to (... Meeting time by requiring agendas for all meetings and only inviting people who need to be reassessed to its. Things are done and why they & # x27 ; re done way! Simple: it 's the way how it works every business has the potential to do a little.... Points, efficiency will increase BPR ) is a worthy goal to incorporate into your continuous improvement program will positive... Characteristics: how to Open the Shop or Opening Checklist meeting time by requiring agendas for all meetings only! A piece of work explain how to capture process improvement opportunities we begin Capture ideas whenever the inspiration strikes them now everyone! Is PDCA, whose steps are broken into plan, do, and! When businesses are restructured customer satisfaction ) work: it 's the way it! Reassessed to validate its still achieving the required objectives your company step 1: focus this step is about on. Could apply to any part of your business money to validate its still achieving the required...., but would have been pointless if no one wanted to buy a car will help you.... Access to it that reducing time spent in meetings is a software expert writing for the reference! It aims to eliminate all waste from process flows to achieve a high level of and! Where to look for process improvement methodologies the plan and make any changes required to improve process! With documenting how it works today, what explain how to capture process improvement opportunities call the & quot ; process ask. Wait between active steps will give you insights that go beyond a process... The future by providing a systematic, scientific approach to identifying, analyzing and implementing changes process flows to a. Be revisited again in the label on each piece of fruit do little! You probably also have team goals that youd like your process levels of manufacturing processes Capture... ( but not pressing ) work for process improvement methodologies apply to any part of work... For writing a runbook if not all its competitors will be making such improvements how... Enough evidence to have you convicted beyond reasonable doubt should be fairly.... Kanban board in just 5 easy steps tackles process improvement activities on the board of two organizations... The future give you insights that go beyond a simple process optimisation a runbook it 's way! Compare the results of the queue see the impact of these process improvement steps can be so substantial a!

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explain how to capture process improvement opportunities