MGT 6421
Quality Management II
Defining a Process

A process is the transformation of inputs into outputs which involves the
addition or creation of value. Processes exist in all aspects of an
organization, including manufacturing, administration, maintenance,
interdepartmental communication, etc.
Inputs
Process
Output
Feedback

Processes are characterized by suppliers and customers, both internal and
external to the organization.
Documenting a Process

We need to answer the following questions about the process:
1. Who owns the process?
2. What are the boundaries of the process?
3. What are the objectives of the process?
4. What is the flow of the process?

The last question can be answered with the use of a flowchart or flow
sheet.
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MGT 6421
Quality Management II
Process Flowcharts

There are two types of flow charts:
1. A systems flowchart is a pictorial summary of the sequence of
operations.
2. A layout flowchart depicts the "floor plan" of an area, and usually shows
the flow of material.

Flowcharts should be made to show how the process is currently working,
not just how it was designed to function.

There are a number of ways to draw the flow chart. I will give one set of
symbols which can be used.
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MGT 6421
Quality Management II
Example:
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MGT 6421
Quality Management II
Diagnosing a Process

There are a number of very simple, but effective techniques to diagnose a
process. Process diagnosis leads to the elimination of common causes of
variation, and eventually to process improvement.

We will discuss the following process diagnosis techniques:
1. Brainstorming
2. Cause-and-Effect diagrams
3. Check sheets
4. Pareto Analysis.
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MGT 6421
Quality Management II
Brainstorming

Brainstorming is used to elicit ideas from a group of people in a short
period of time. It is usually done in groups of 3-12 people. The group
members do not have to be experts, but should be familiar with the process.
Variety in the group membership is very useful.

Steps:
1. Select the topic (problem) to be discussed.
2. Participants write their ideas in about 10 minutes.
3. Each person reads one idea at a time until all ideas are exhausted.
4. The leader asks each member for any additional ideas they have after
hearing the other ideas.
5. If members reach an impasse, the leader asks the participants for their
"wildest" ideas.

Rules:
1. Do not criticize (by word or gesture).
2. Do not discuss ideas, except for clarification.
3. Do not hesitate to give ideas.
4. Only one idea at a time from each member.
5. Do not let the group be dominated by 1 or 2 members.
6. Do not let the brainstorming turn into a gripe session.
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MGT 6421
Quality Management II
Cause and Effect Diagram

This is also referred to as an Ishikawa diagram or a fishbone diagram.

This method is often used to organize the ideas of a brainstorming session.

Construction Steps:
1. State the problem or "effect." Draw the effect on the right hand side
with an arrow going into it.
2. Identify the main causes. The most commonly used main causes are
"the 4 M's." These are machines, manpower, methods, and materials. The
main causes become the main branches of the diagram.
3. Identify subcauses.
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MGT 6421
Quality Management II
4. Evaluate the causes and circle the most likely causes.
5. Verify the cause (through measurement).

Example
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MGT 6421
Quality Management II
Check Sheets

Check sheets are a simple and effective way for collecting and analyzing
data in a logical format.

There are a number of different types of check sheets:
1. Tally
2. Location
3. Clustering by type
4. Traveling
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MGT 6421
Quality Management II
Example1
1From Wadsworth, Stephens and Godfrey (1986). Modern Methods for Quality Control and Improvement, New
York: John Wiley and Sons, 300.
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MGT 6421
Quality Management II
Pareto Analysis

Used to determine what problems to solve rather than how to solve them.

The Pareto Principle: Relatively few factors account for a large
percentage of the total cases.

Constructing the Diagram:
1. Establish categories for the data being analyzed.
2. Construct a frequency table showing the number of observations for
each category identified.
3. Draw a bar chart from the frequency table, ordering the bars in the order
of the most frequently occurring category to the least.
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