1. TRAIN ADVENTURE ANALOGY
April 12, 2002
TRAIN ADVENTURE ANALOGY
DESTINATION: BUSINESS MISSION / VISION
ENGINE: CUSTOMER’S SATISFACTION
FUEL: CONTINUOUS IMPROVEMENT
TRACKS: PROCESS MANAGEMENT
CREW: BUSINESS PERSONNEL
TICKET: DOCUMENTED MANAGEMENT SYSTEM
April 12, 2002

2. Process Management It is the means whereby an
April 12, 2002
Process Management
It is the means whereby an
Integrated Management System
Achieves its Mission of Meeting
Customer Expectations
Purdy’s
DICTIONARY
April 12, 2002

3. April 12, 2002
Process Management
ACHIEVED HOW?
Identifying those Processes that are Core to the Business
Assigning Process Owners VIA The Responsibility Matrix
Process Owners Map Their Process
Owners Walk-Thru Their Process
Owners Document and Issue Their Procedure
April 12, 2002

4. WHAT IS ACHIEVED? 05 BUSINESS PROCESSES ANALYZED FOR ...
April 12, 2002
WHAT IS ACHIEVED?
BUSINESS PROCESSES ANALYZED FOR ...
... Compliance to Company & Industry Standards (e.g. ISO-9000)
... Continuous Improvement
... Simplify, Combine, and/or Eliminate Steps
... Reduce Waste
Process Management
April 12, 2002 05

5. EXCESS & WASTE RAILROAD
April 12, 2002
Seven Waste
E & W
THE
EXCESS & WASTE RAILROAD
Over-
Production
Waiting
Time
Waste of
Movement
Production
Defects
Waste of
Motion
Waste
Inventory
Processing
Waste
April 12, 2002

6. HOW TO MEASURE ACHIEVEMENT
April 12, 2002
Process Management
HOW TO MEASURE ACHIEVEMENT
Customer Satisfaction & Complaints
Business Plan & System Measures
Continuous Improvement
Internal Audits
Corrective & Preventive Action
Management Review
April 12, 2002

7. TYPICAL BUSINESS MEASURES
April 12, 2002
TYPICAL BUSINESS MEASURES
On-Time Delivery
Cycle Time
Product Quality (e.g. PPM Defects)
Yields
Utilization / Capacity Analysis
Customer Rejects
Safety
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8. HEALTHY & COMPETITIVE PROCESS
April 12, 2002
VITAL SIGNS
HEALTHY & COMPETITIVE PROCESS
FLEXIBLE in allowing the process to adapt to customer changes
EFFECTIVE in meeting customer’s expectations
EFFICIENT in producing the desired results while minimizing business resources
CONTROLLABLE by eliminating variations in the process
April 12, 2002

9. HAZARDS Applying too many Bandaids No Future Planning
April 12, 2002
HAZARDS
Applying too many Bandaids
No Future Planning
Process Requirements NOT Routinely Reassessed
Process Measures NOT Effectively Utilized
Emphasis on Output Only, Ignoring the Whole Process
April 12, 2002

10. Process measures analyzed
April 12, 2002
ESTABLISH
MANAGEMENT SYSTEM
BUSINESS MISSION
Process measures analyzed
SYSTEM
REFINED
THE PROCESS
IMPROVEMENT
SPIRAL
April 12, 2002

11. WHAT IS A PROCESS? Input Output ACTIVITY “Value Added”
April 12, 2002
WHAT IS A PROCESS?
A Sequence of Tasks directed at accomplishing a desired outcome
An Activity that “adds value” to a given input to produce the designated output
A Series of Activities designed to deliver customer satisfaction
ACTIVITY
“Value Added”
Output
Input
April 12, 2002

12. April 12, 2002
ALL WORK
IS A
PROCESS!
April 12, 2002

13. April 12, 2002
Core Process
Those conceptually and/or logistically related activities, which achieve the business mission by adding value to inputs provided by external suppliers and produces output for external customers.
Purdy’s
DICTIONARY
April 12, 2002

14. Back-Up Documentation
April 12, 2002
IS THIS A CORE PROCESS?
ACTIVITY
“Value Added”
Input
Output
KEY INPUT
SUPPLIER
RFQ -
NEW PRODUCT
SALES DEPT.
ENG. DRAWING
&
SPECIFICATIONS
KEY OUTPUT
CUSTOMER
RFQ -
COMPLETED
SALES DEPT.
ENG. DRAWING,
SPECIFICATIONS, PRICING , & SCHEDULING
& IDENTIFIES ANY MFG / ENG
ESTIMATING COMMITTEE
DETERMINES IF TO QUOTE,
CONCERNS
CUSTOMER
ACTIVITY
SUPPLIED OUTPUT
QUOTE DECISION
& FEASIBILITY
SUBMITTED TO
SALES
ENGINEERING
DESIGN ANALYSIS
Can We Produce It?
Complete RFQ
Eng Drwg &
Back-Up Documentation
ESTIMATING COMMITTEE
REVIEWS & COORDINATES RESPONSE
RFQ FOLDER
With Eng Drwg &
Specifications
April 12, 2002

15. IS THIS A CORE PROCESS? INPUT OUTPUT FUNCTION B FUNCTION C FUNCTION D
April 12, 2002
IS THIS A CORE PROCESS?
INPUT
FUNCTION A
FUNCTION B
FUNCTION C
FUNCTION D
OUTPUT
RECEPTION
REGISTRATION
ACCOUNTING
MEDICAL CARE
PATIENT
Proper
Care
and
Accurate
Billing
PATIENT
Cared
for
and
Billed
Properly
ACTIVITY A1
ACTIVITY B1 -
TASK 1a: Enter Patient's
Name into Computer
ACTIVITY C3
TASK 1a: Greet Patient
TASK 3a: Generates &
Mails Patient’s Billing
to both the Insurance
and the Patient
TASK 1b: Have Patient
Sign In
TASK 1c: Refer Patient
to Registration NO
Is Name in
Computer?
ACTIVITY C2
YES
TASK 2a: Obtains
Correct Information
form Insurance or
Patient
ACTIVITY B2
ACTIVITY D2
TASK 2a: Verify
Patient's Name In
Computer
TASK 2b: Updates
Hard & Soft Copies
TASK 2a: Releases
Patient
TASK 2c: Ensures
Accuracy of Patient’s
Account
ACTIVITY B3
TASK 3a: Complete an Account Face Sheet on Patient NO
TASK 3b: Copy
Patient's Insurance
Card
YES
ACTIVITY D1
Information
TASK 1a: Accounts
for Services & Materials
Provided the Patient
Correct?
TASK 3c: Obtain
Patient’s Signature
on Form
ACTIVITY B4
ACTIVITY C1
TASK 4a: Admits
Patient & Submits
Forms to Acct.
TASK 1a: Verifies Hard
& Soft Copy of Patient
Information
April 12, 2002

16. April 12, 2002
Process Mapping
That activity performed by the Process Management Team assigned to Analyze where the process is and then determine where the process needs to improve in meeting Customer Requirements & Expectations.
Purdy’s
DICTIONARY
April 12, 2002

17. TOOLS FOR MAPPING Input - Output Modeling Inputs & Outputs
April 12, 2002
TOOLS FOR MAPPING
Input - Output Modeling
Identifies Beginning & Ending of Process
Inputs & Outputs
Control Measures for KEY Inputs & Outputs
Identifies the Supplier & Customer Relationships Both Internally & Externally
Identifies the “Value Added” Activities
April 12, 2002

18. April 12, 2002

19. April 12, 2002

20. TOOLS FOR MAPPING Flow Charting Identifies the Detailed Activities
April 12, 2002
TOOLS FOR MAPPING
Flow Charting
Identifies the Detailed Activities
Categorizes the Process Elements (e.g. Operations, Ques, Inspections, Reporting, etc.)
Quantifies the Process Parameters (e.g. Cycle Time, Transportation, & Waste)
Comparative Analysis of what is and what could be
April 12, 2002

21. TRADITIONAL FLOWCHART SYMBOLS
April 12, 2002
TRADITIONAL
FLOWCHART SYMBOLS
CARD
DISPLAY
TRANSMIT
TAPE
DRUM
CARD DECK
TERMINAL
INPUT
OUTPUT
DOCUMENT
MANUAL
OPERATION
DISK
PREPARATION
OFF PAGE
SORT
COLLATE
MANUAL
MERGE
EXTRACT
DECISION
ONLINE
April 12, 2002

22. April 12, 2002
FLOWCHART
FROM
I/O MODELING
April 12, 2002