Chapter 7
Process Management
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Wisdom from Texas Instruments
“Unless you change the process, why would
you expect the results to change”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
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–
–
–
Design processes
Production/delivery processes
Support processes
Supplier processes
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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 LearningTM
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Control vs. Improvement
Out-of-control
Controlled
process
Improvement
New zone
of control
Time
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Product Development Paradigms
Traditional Approach
• Design the product
• Make the product
• Sell the product
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•
•
•
•
Deming’s Approach
Design the product
Make it with
appropriate tests
Put it on the market
Conduct consumer
research
Redesign with
improvements
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Product Development Process
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 LearningTM
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Quality Engineering
• System Design
– Functional performance
• Parameter Design
– Nominal dimensions
• Tolerance Design
– Tolerances
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Loss Functions
Traditional
View
loss
no loss
loss
nominal
tolerance
Taguchi’s
View
loss
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
loss
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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 + D2) where D is the deviation
from the target.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Design Objectives
• Cost, Manufacturability, Quality,
Public Concerns
• Tools and Approaches
– Design for Manufacturability
– Design for Environment
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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House of Quality
Interrelationships
Technical requirements
Voice of
the
customer
Customer
requirement
priorities
Relationship
matrix
Technical requirement
priorities
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Competitive
evaluation
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Quality Function Deployment
technical
requirements
component
characteristics
process
operations
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
quality plan
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Motorola’s Approach
to Process Design
1.
2.
3.
4.
5.
6.
Identify the product or service
Identify the customer
Identify the supplier
Identify the process
Mistake-proof the process
Develop measurements and control, and
improvement goals.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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?
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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 LearningTM
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Basic Components of Services
• Physical facilities, processes, and
procedures
• Employee behavior
• Employee professional
judgment
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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After Action Review
1.
2.
3.
4.
What was supposed to happen?
What actually happened?
Why was there a difference?
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Benefits of Effective Supplier
Process Management
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•
•
•
•
Reduced costs
Faster time to market
Increased access to technology
Reduced supplier risk
Improved quality
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Kaizen
• Gradual and orderly continuous
improvement
• Minimal financial investment
• Involvement of all employees
• Exploit the knowledge and experience
of workers
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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 LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Process Management
in the Baldrige Award Criteria
The Process Management Category examines the key
aspects of an organization’s 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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