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1 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Chapter 7Chapter 7
Process Management
2 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”
3 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Scope of Process ManagementScope 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
4 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
5 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Control vs. ImprovementControl vs. Improvement
Controlled process
Improvement
Time
New zoneof control
Out-of-control
6 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Leading Practices (1 of 2)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
7 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Leading Practices (2 of 2)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
8 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Product Development ParadigmsProduct Development Paradigms
Traditional Approach• Design the product• Make the product• Sell the product
Deming’s Approach• Design the product• Make it with
appropriate tests• Put it on the market• Conduct consumer
research• Redesign with
improvements
9 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Product Development ProcessProduct Development Process
Ideageneration
Ideageneration
Conceptdevelopment
Conceptdevelopment
Product &process design
Full-scaleproduction
Full-scaleproduction
Productintroduction
Productintroduction
Marketevaluation
Marketevaluation
10 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Quality EngineeringQuality Engineering
• System Design– Functional performance
• Parameter Design– Nominal dimensions
• Tolerance Design– Tolerances
11 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Loss Functions
loss lossno loss
nominaltolerance
loss loss
Traditional View
Taguchi’s View
12 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Taguchi Loss Function Calculations
L(x) = k(x - T)2
Example: Specification = .500 .020Failure 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.
13 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Design ObjectivesDesign Objectives
• Cost, Manufacturability, Quality, Public Concerns
• Tools and Approaches– Design for Manufacturability
– Design for Environment
14 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Streamlining Product DevelopmentStreamlining 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
15 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
House of Quality
Technical requirements
Voice of the customer
Relationship matrix
Technical requirement priorities
Customerrequirement priorities
Competitive evaluation
Interrelationships
16 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Quality Function Deployment
technicalrequirements
componentcharacteristics
processoperations quality plan
17 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Motorola’s Approach to Process Design
• 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.
18 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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?
19 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
20 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Basic Components of ServicesBasic Components of Services
• Physical facilities, processes, and procedures
• Employee behavior
• Employee professional
judgment
21 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Key Service DimensionsKey Service Dimensions
Customer contact and interaction
Labor intensity
Customization
22 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
ControlControl
• 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
23 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
After Action Review
1. What was supposed to happen?
2. What actually happened?
3. Why was there a difference?
4. What can we learn?
24 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
Supplier and Partnering ProcessesSupplier and Partnering Processes
• Recognize the strategic importance of suppliers
• Develop win-win relationships through partnerships
• Establish trust through openness and honesty
25 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
26 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
27 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
28 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
29 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
30 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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
31 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