THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning

TM

Process Management
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Wisdom from Texas
Instruments
Unless you change the process, why
would you expect the results to change
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Scope of Process Management
Process Management: planning and
administering the activities design,
control, and improvement
necessary to achieve a high level of
performance
Two categories of processes
Value Creation processes
Design Processes
Production/delivery processes
Support processes

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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AT&T Process
Management Principles
Focus on end-to-end process
Mindset of prevention and continuous
improvement
Everyone manages a process at some level
and is a customer and a supplier
Customer needs drive the process
Corrective action focuses on root cause
Process simplification reduces errors
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Control vs. Improvement
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Controlled
process
Improvement
Time
New zone
of control
Out-of-control
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM

Leading Practices (1 of 2)

Translate customer requirements and internal
capabilities into product and service design
requirements early in the process

Ensure that quality is built into products and
services and use appropriate tools during
development

Manage product development process to enhance
communication, reduce time, and ensure quality

Define, document, and manage important
production/delivery and support processes
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Leading Practices (2 of 2)
Define performance requirements for suppliers and ensure
that they are met.
Control the quality and operational performance of key
processes and use systematic methods to identify
variations, determine root causes, and make corrections.
Continuously improve processes to achieve better quality,
cycle time, and overall operational performance.
Innovate to achieve breakthrough performance using
benchmarking and reengineering.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Product Development Paradigms
Traditional Approach
Design the product
Make the product
Sell the product
Demings Approach
Design the product
Make it with
appropriate tests
Put it on the market
Conduct consumer
research
Redesign with
improvements
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Product Development Process
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Idea
generation
Concept
development
Product &
process design
Full-scale
production
Product
introduction
Market
evaluation
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Quality Engineering
System Design
Functional performance
Parameter Design
Nominal dimensions
Tolerance Design
Tolerances
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Design Objectives
Cost, Manufacturability, Quality,
Public Concerns
Tools and Approaches
Design for Manufacturability
Design for Environment

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Streamlining Product Development
Competitive need for rapid product
development
Concurrent engineering - a process
in which all major functions involved
with bringing a product to market are
continuously involved with the
product development from
conception through sales
Design reviews
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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House of Quality
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Technical requirements
Voice of
the
customer
Relationship
matrix
Technical requirement
priorities
Customer
requirement
priorities
Competitive
evaluation
Interrelationships
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Quality Function
Deployment
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technical
requirements
component
characteristics
process
operations
quality plan
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Motorolas Approach
to Process Design
1. Identify the product or service
2. Identify the customer
3. Identify the supplier
4. Identify the process
5. Mistake-proof the process
6. Develop measurements and control, and
improvement goals.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Evaluating a Process
Are steps arranged in logical sequence?
Do all steps add value? Can some be
eliminated or added? Can some be
combined? Should some be reordered?
Are capacities in balance?
What skills, equipment, and tools are
required at each step?
At which points might errors occur and how
can they be corrected?
At which points should quality be measured?
What procedures should employees follow
where customer interaction occurs?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Projects
Project initiation direction, priorities,
limitations, and constraints
Project plan blueprint and resources
needed
Execution produce deliverables
Close out evaluate customer satisfaction
and provide learning for future projects
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Basic Components of Services
Physical facilities, processes, and
procedures
Employee behavior
Employee professional
judgment
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Key Service Dimensions
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Customer contact and interaction
Labor intensity
Customization
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Process Control
The continuing process of evaluating process
performance and taking corrective action when
necessary
Components of control systems
Standard or goal
Means of measuring accomplishment
Comparison of results with the standard as a basis
for corrective action
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A well-controlled system is predictable
Example: Golf Ball
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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After Action Review
1. What was supposed to happen?
2. What actually happened?
3. Why was there a difference?
4. What can we learn?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Supplier and Partnering
Processes
Recognize the strategic importance
of suppliers
Develop win-win relationships
through partnerships
Establish trust through openness
and honesty
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Supplier Certification Systems
Certified supplier one that,
after extensive investigation, is
found to supply material of such
quality that routine testing on
each lot received is unnecessary

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Benefits of Effective Supplier
Process Management
Reduced costs
Faster time to market
Increased access to technology
Reduced supplier risk
Improved quality
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM

Process Improvement
Improvement Should be proactive and be
viewed as an opportunity not simply as a
reaction to problems and competitive
Threats

Example:
DELL
Microsoft

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Process Improvement
Productivity improvement
Work simplification
Planned methods change

Kaizen
Breakthrough
Benchmarking
Reengineering
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Traditional
Industrial
Engineering
New approaches from
the total quality
movement
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM

Kaizen
Gradual and orderly continuous
improvement
Minimal financial investment
Involvement of all employees
Exploit the knowledge and
experience of workers
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Agility
Flexibility the ability to adapt
quickly and effectively to changing
requirements
Cycle time the time it takes to
accomplish one cycle of a process
Benefits
Improve customer response
Force process streamlining and
simplification

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Breakthrough Improvement
Discontinuous change resulting from
innovative and creative thinking
Benchmarking the search of industry best
practices that lead to superior performance
Competitive benchmarking
Process benchmarking
Strategic benchmarking
Reengineering radical redesign of processes
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
TM

Process Management
in the Baldrige Award Criteria
The Process Management Category examines the key
aspects of an organizations process management,
including customer-focused design, product and service
delivery, key business, and support processes. This
Category encompasses all key processes and all work
units.
6.1 Product and Service Processes
a. Design Processes
b. Production/Delivery Processes
6.2 Business Processes
6.3 Support Processes
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