1. Chapter 7 – Process Management
Leading practices, Quality engineering, Product design and development, Process evaluation, Projects, Services, Suppliers, Kaizen, Baldrige criteria
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2. Wisdom from Texas Instruments
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Wisdom from Texas Instruments
“Unless you change the process, why would you expect the results to change”
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3. Scope of Process Management
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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5. Control vs. Improvement
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Control vs. Improvement
Controlled
process
Improvement
Time
New zone
of control
Out-of-control
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6. Leading Practices (1 of 2)
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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7. Leading Practices (2 of 2)
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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8. Product Developm’t Paradigms
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Product Developm’t Paradigms
Deming’s Approach
Design the product
Make it with appropriate tests
Put it on the market
Conduct consumer research
Redesign with improvements
Traditional Approach
Design the product
Make the product
Sell the product
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9. Product Development Process
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Product Development Process
Idea
generation
Concept
development
Product &
process design
Full-scale
production
Product
introduction
Market
evaluation
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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 LearningTM
Design Objectives
Customer Requirements
Quality
Manufacturability
Cost
Public Concerns
Rev. 02/24/06
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12. Product Design Concepts
Product life cycles – may be short
Manufacturability & serviceability tools
DFM/DFA/DFS/DFR/DFD/DFE = “DFX”
Concurrent engineering Vs. Over-the-wall (slide # 18)
Design guidelines (following slides)
Rev. 09/26/06
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13. Product Design Guidelines
From Richard Schonberger:
General Guidelines
Quality Guidelines
Operability Guidelines
Rev. 02/24/06
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14. General Guidelines (Schonberger)
Design to target markets and target costs.
Minimize number of parts and number of operations
11/21/02
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15. Quality Guidelines (Schonberger)
Ensure that customer requirements are known and design to those requirements
Ensure that process capabilities are known (those in your firm and of your suppliers) and design to those
Use standard procedures, materials, and processes with already known and proven quality
11/21/02
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16. Operability Guidelines - 1 (Schonberger)
Design multifunctional / multiuse components and service elements and modules
Design for ease of joining, separating, rejoining (goods) and ease of coupling / uncoupling (services)
Design for one-way assembly, one-way travel (avoid backtracking and return visits)
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17. Operability Guidelines - 2 (Schonberger)
Avoid special fasteners and connectors (goods) and off-line or misfit service elements
Avoid fragile designs requiring extraordinary effort or attentiveness – or that otherwise tempt substandard or unsafe performance
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18. Streamlining Product Development
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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 (vs. “over-the-wall”)
Design reviews
Rev. 02/24/06
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19. Motorola Approach to Process Design (process owner)
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Motorola Approach to Process Design (process owner)
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.
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20. SJSU Bus. 142 - David Bentley
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Evaluating a Process - 1
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?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Evaluating a Process - 2
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 LearningTM
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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23. Basic Components of Services
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Basic Components of Services
Physical facilities, processes, and procedures
Employee behavior
Employee professional
judgment
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24. Key Service Dimensions
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Key Service Dimensions
Customer contact and interaction
Labor intensity
Customization
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
After Action Review
What was supposed to happen?
What actually happened?
Why was there a difference?
What can we learn?
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27. Supplier and Partnering Processes
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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28. Supplier Certification Systems
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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29. Benefits of Effective Supplier Process Management
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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 LearningTM
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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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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 LearningTM
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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33. Breakthrough Improvement
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Breakthrough Improvement
Hoshin – 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
Rev. 02/24/06
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34. Process Management in the Baldrige Award Criteria
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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
11/10/02
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