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

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Chapter 7
Process Management
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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Scope of Process Management
Process Management: planning and
administering the activities design,
control, and improvement necessary to
achieve a high level of performance
Four types of key processes
Design processes
Production/delivery processes
Support processes
Supplier processes
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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
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Control vs. Improvement
Controlled
process
Improvement
Time
New zone
of control
Out-of-control
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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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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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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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Product Development Process
Idea
generation
Concept
development
Product &
process design
Full-scale
production
Product
introduction
Market
evaluation
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Quality Engineering
System Design
Functional performance
Parameter Design
Nominal dimensions
Tolerance Design
Tolerances
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Loss Functions
loss loss no loss
nominal
tolerance
loss loss
Traditional
View
Taguchis
View
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Taguchi Loss Function Calculations
L(x) = k(x - T)
2
Example: Specification = .500 .020
Failure outside of the tolerance range costs $50
to repair. Thus, 50 = k(.020)
2
. Solving for k
yields k = 125,000. The loss function is:

L(x) = 125,000(x - .500)
2

Expected loss = k(
2
+ D
2
) where D is the deviation
from the target.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning
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Taguchi Loss Function Calculations
The equation used to describe the loss function of one unit of product:
L = k(y-m)^2\qquad
Where:
L = Loss in Dollars
y = Output Value
m = Target Value of Output
k = Proportionality Constant
The proportionality constant (k) for nominal-the-best characteristics can
be defined as:
k = \frac {A_0} {\Delta_0^2}
Where:
A0 = Consumer Loss (in Dollars)
0 = Maximum Deviation from Target Allowed by Consumer
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Design Objectives
Cost, Manufacturability, Quality,
Public Concerns
Tools and Approaches
Design for Manufacturability
Design for Environment

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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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House of Quality
Technical requirements
Voice of
the
customer
Relationship
matrix
Technical requirement
priorities
Customer
requirement
priorities
Competitive
evaluation
Interrelationships
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Quality Function Deployment
technical
requirements
component
characteristics
process
operations
quality plan
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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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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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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
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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Key Service Dimensions
Customer contact and interaction
Labor intensity
Customization
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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
A well-controlled system is predictable
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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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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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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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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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Process Improvement
Productivity improvement
Work simplification
Planned methods change

Kaizen
Stretch goals
Benchmarking
Reengineering
Traditional
Industrial
Engineering
New approaches from
the total quality
movement
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Kaizen
Gradual and orderly continuous
improvement
Minimal financial investment
Involvement of all employees
Exploit the knowledge and experience
of workers
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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

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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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