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1 THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

Chapter 7Chapter 7

Process Management


Wisdom from Texas Instruments

“Unless you change the process, why would you expect the results to change”


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


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


Control vs. ImprovementControl vs. Improvement

Controlled process

Improvement

Time

New zoneof control

Out-of-control


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


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


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


Product Development ProcessProduct Development Process

Ideageneration

Ideageneration

Conceptdevelopment

Conceptdevelopment

Product &process design

Full-scaleproduction

Full-scaleproduction

Productintroduction

Productintroduction

Marketevaluation

Marketevaluation


Quality EngineeringQuality Engineering

• System Design– Functional performance

• Parameter Design– Nominal dimensions

• Tolerance Design– Tolerances


Loss Functions

loss lossno loss

nominaltolerance

loss loss

Traditional View

Taguchi’s View


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.


Design ObjectivesDesign Objectives

• Cost, Manufacturability, Quality, Public Concerns

• Tools and Approaches– Design for Manufacturability

– Design for Environment


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


House of Quality

Technical requirements

Voice of the customer

Relationship matrix

Technical requirement priorities

Customerrequirement priorities

Competitive evaluation

Interrelationships


Quality Function Deployment

technicalrequirements

componentcharacteristics

processoperations quality plan


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.


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?


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


Basic Components of ServicesBasic Components of Services

• Physical facilities, processes, and procedures

• Employee behavior

• Employee professional

judgment


Key Service DimensionsKey Service Dimensions

Customer contact and interaction

Labor intensity

Customization


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


After Action Review

1. What was supposed to happen?

2. What actually happened?

3. Why was there a difference?

4. What can we learn?


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


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


Benefits of Effective Supplier Process Management

• Reduced costs

• Faster time to market

• Increased access to technology

• Reduced supplier risk

• Improved quality


Process Improvement

• Productivity improvement• Work simplification• Planned methods change

• Kaizen• Stretch goals• Benchmarking• Reengineering

Traditional Industrial Engineering

New approaches from the total quality movement


Kaizen

• Gradual and orderly continuous improvement

• Minimal financial investment

• Involvement of all employees

• Exploit the knowledge and experience of workers


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


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


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

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