1. Alex@Coman.org Tel:(972)3-510-1768 -1- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Classical Management: Machine Metaphor No Quality: Caveat Emptor Quality Control: Statistical Lot Tolerance Percent Defective Acceptable Outgoing Quality Level Quality Assurance Lot Tolerance Percent Defective Acceptable Outgoing Quality Level QA Quality Management Lot Tolerance Percent Defective Acceptable Outgoing Quality Level Total Quality Management Just-In-Time/Place Robust design Acceptable Outgoing Quality Level

2. Alex@Coman.org Tel:(972)3-510-1768 -2- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Juran, J.M., Planning for Quality Minimal Cost 0f Quality Curve 100% Good Defect Rate 100% Defective Costs per good unit of Product Prevention & Appraisal Costs Failure Costs Internal + External Total quality Costs Minimal Cost of Quality Optimal Conformance Level

3. Alex@Coman.org Tel:(972)3-510-1768 -3- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Deming: In god we trust, all others must bring data The Patriot Missile in Operation Desert Storm: General Schwartzkopf: 33/33 = 100% President George Bush: 41/42 Air-defense General Jaygarner: Saudi Arabia: 80% Israel:50% Air-defense General Jaygarner Later: Saudi Arabia: 70% Israel:40% Army after Congressional inquiry: 10 hits. Congressional expert: 1 confirmed hit. Independent research tank: ?/47 scuds were destroyed by Patriot MIT researcher: just from CNN footage, definitive misses were classified as hits. F117 A Stealth Bomber hits in Desert storm: 90%. F117 A Stealth Bomber hits in Desert storm Later: 60%. Tomahawk missile hits (288 fired): 85% Tomahawk missile hits (288 fired) Later:50%

4. Alex@Coman.org Tel:(972)3-510-1768 -4- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman 250%: 380% Spec 100% Code 70% Use 75% Test 47% None Cost of [Lack of] Quality: X10 Law 240 Exposed 1 Complaint 24 Damaged

5. Alex@Coman.org Tel:(972)3-510-1768 -5- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Classical Operations Paradigm: Machine Metaphor Master Schedule Scientific Management: Unfreeze, change, freeze Operations Managers Quality Controllers C3I, MRP, MRPII, ERP, ERM Arena Pattern: Push. Division: Management vs. Operation Focus: Efficiency-Utilization, AOQL Action: Scientific Management, Capacity Balancing Resource A Resource B Quality Control Functional Arena: Assembly Line: Navy Multiple suppliers Push methodology LTPD β Multiple Suppliers: SCM (Eur:800-2,000 Ford: 1,600) Process Definition & Improvement Demand Forecast Resource C AOQL α Customers CRM Buffer

6. Alex@Coman.org Tel:(972)3-510-1768 -6- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Total Quality Paradigm: Organic Metaphor Resource A Functional Arena: Group Technology Lean, Balanced Process Production: Pull/Kanban methodology, Focus on Setup Reduction Quality: Kaizen, Taguchi, Group technology, Circles, QFD, Ringii, Robust Design Strategy: Promotion, expansion, Zeibatsu, Hoshin Kanri WIP Buffer Resource B WIP Buffer Supplier (160-300) Buffer JIT, JIP Poka Yoke Kanban Pull: Local Control Kareitsu Kanban Keizen Customers Finished Goods Buffer Resource C QFD Keizen Arena Pattern: Pull. Group technology. Focus: Process, perfection Action: Continuous improvement.

7. Alex@Coman.org Tel:(972)3-510-1768 -7- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Management-By-Constraints Paradigm: Mixed Strategy QA Drum-Buffer-Rope: Pull & Push Gating: Kit,WIP C Components: Auction Rope: PullPush Functional Arena: Lean Process Drum-Buffer-Rope Complete Kit Customers Constraint Definition Constraint B : Drum A Components: 2-3 Suppliers JIT, JIP QFD WIP Buffer Control Cycle Resource A Control Cycle Resource C Constraint Management Cycle Define the Goal Identify proper Measures: 6 Identify the systems constraint Arena Pattern: DBR = Push + Pull Focus: Throughput/Constraint Unit. Action: Managed constraint, Distributed quality.

8. Alex@Coman.org Tel:(972)3-510-1768 -8- WWW.Coman.org Process Management Copyright 2002 Dr.Alex Coman Management-By-Constraints: Elta Warehouse Kit Preparation Supervisor Processing Lacquering Electronic Testing Lab Customer Quality Inspection Quality Assurance Shipping Warehouse Kit Preparation Processing Kit Preparation Processing Electronic Testing Lab Customer Quality Inspection Shipping