●“Learning is nor compulsory..

…neither is survival ”
Quality management
Session 3

Evolution of Total Quality – Frameworks for Quality – Baldridge Award, Deming

Award, European Award,
ISO 9000 – Comparison of Various Frameworks

Issues of Quality:  Quality Cost - Customer Supplier relationships – Designing

Organisations for Quality – Process Design – Process Improvement – Process
Control – Process Managemen

Vision
A statement about what an organisation ultimately wants to accomplish; it
captures the company’s aspiration

Mission
Description of what an organisation actually does—the products and
services it plans to provide, and the markets in which it will compete

Core values
Statement of principles to guide an organisation as it works to achieve its
vision and ful ll its mission, for both internal conduct and external
interactions;
it often includes explicit ethical considerations.

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Core competencies
Unique strengths, embedded deep within a rm, that are critical to
gaining and sustaining competitive advantage

Competitive advantage
Superior performance relative to other competitors in the same industry
or the industry average
Which helps to win in the market place …

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 Competitive advantage o

Googl
Ube
IKE
Faceboo
Amazo
Hond
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Competitive advantage of ….

Googl
Superior in creating proprietary algorithms based on large amounts of
data collected online
Online search, Android mobile operating system, Chrome OS, Chrome
web browser, Google Play, AdWords, AdSense, Google docs, Gmail, et

Ube
Superior mobile-app–based transportation and logistics expertise
focused on cities, but on global scale.
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Competitive advantage of ….

IKE

• Superior in designing modern functional home furnishings at low cost

Modularity in design
• Superior retail experience

Faceboo

Superior IT capabilities to provide reliable social network services globally

on a large scale.Superior algorithms to offer targeted online ads
Connecting 1.5 billion social media users worldwide.News feed, timeline,
and graph search.
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Competitive advantage of ….

Amazon.co
Superior IT capabilities
Superior customer service
Online retailing: Largest selection of items online
Cloud computing: Largest provider through Amazon Web Services (AWS)

Hond
Superior engineering of small but powerful and highly reliable internal
combustion engines
Motorcycles, cars, ATVs, sporting boats, snowmobiles, lawn mowers, small
aircraft, etc.
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HYUNDAI:Approach to quality

When Hyundai Motor Co. Chairman Chung Mong Koo said his company could increase the
quality of its cars to “Toyota levels,” few took him seriously.
After all, Hyundai was the butt of talk-show jokes and a target of industry disdain for tiny
cars that were about as reliable as a go-kart.

“We still have a long way to go,” says Suh Byung Kee, the senior executive vice-president
heading Hyundai’s quality-control team. “But we have completed the rst phase of our task.

The second phase could well be tougher.

The eye-opening survey measured initial quality—the number of complaints customers had
in the rst 90 days of ownership.
Hyundai owners reported just 102 problems per 100 cars sold—earning a tie with Honda
as the second-best carmaker on the list and falling just below Toyota’s tally of 101.
And its Sonata sedan was the top ranked car in the “entry mid-sized” category.
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 On longer-term measures, though, Hyundai remains a laggard: In a later Power’s Vehicle

Dependability Study, Hyundai tallied 342 problems per 100 vehicles after three years of
ownership, versus an industry average of 273. Hyundai execs counter that it will take
time before the recent improvement shows up in the longer-term statistics

There’s reason to agree with Hyundai’s optimism.

First wooed by the company’s generous warranty—10 years for the drive train and
ve years for everything else—U.S. consumers are starting to believe that Hyundai is a
changed brand.

Sales have increased steadily. . . . Jeff Ball, a pharmacist from Laurence Harbor, N.J., has
four of them: He and his wife share a Santa Fe SUV and a Sonata sedan (“I call it my
Jaguar without the cat,” he says), an
he has bought smaller models for his sons.
Sales like that are helping Hyundai’s bottom line
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A Team with Teeth Hyundai’s focus on quality comes straight from the top.
Since 1999, Chairman Chung has boosted the quality team to 865 workers
from 100, and virtually all employees have had to attend special seminars on
improving Hyundai’s cars.

Chung presides over twice-monthly quality meetings in a special conference

room and an adjacent workshop, with vehicle lifts and high-intensity spotlights
for comparing Hyundais head-to-head with rivals.
And this team has teeth: In the past year, the introduction of three new models
was delayed by months as engineers scrambled to boost quality in response to
problems found by the team.

The focus is on the details.

When customers reported faulty warning lights and dif culty starting engines,
Chung set up a $30 million computer center where 71 engineers simulate harsh
conditions to test electronics and pinpoint defects.
The result: In a Power’s initial quality survey, Hyundai had only 9.6 problems in these
areas per 100 vehicles, versus an industry average of 13.8. Three years ago Hyundai
had 23.4 problems, versus the industry’s 17.9.
“This is not a shotgun approach,” says Robert Cosmai, president of the company’s
U.S. af liate, Hyundai Motor America

The big test came when Hyundai began building redesigned Santa Fes and Sonatas in
Alabama.
One encouraging sign: DaimlerChrysler and Mitsubishi Motors Corp. planned to use
a Hyundai designed four-cylinder engine in their own small and midsize cars. “This is
a vote of con dence for Hyundai’s engine quality,” says Ahn Soo Woong, an auto
analyst at Han-wha Securities Co.
Now it’s up to consumers to decide whether Hyundai really makes the grade.
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 Deming’s
Chain Reaction

Genichi Taguchi.

Taguchi is best known for the Taguchi loss function, which involves a
formula for determining the cost of poor quality.
The idea is that the deviation of a part from a standard causes a loss, and
the combined effect of deviations of all parts from their standards can be
large, even though each individual deviation is small
An important part of his philosophy is the cost to society of poor quality.
Robust design concept .

 Product speci cation

40
35- 4
40
40
39 - 4
40 0.
39.5-40.
40 0.
39.9 -40.
Interchangeability is achieved by close tolerance
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 9
8-10 is accepted

How good is 8.1

And how bad is 9.1
1

 Traditional view

8 9 10
How good is 8.1 and how bad is 7.9 ?

Taguchi’s view
Taiichi Ohno and Shigeo Shingo.

Taiichi Ohno and Shigeo Shingo both developed the philosophy and methods of
kaizen, a Japanese term for continuous improvement at Toyota.

Continuous improvement is one of the hallmarks of successful quality

management.

One common notion of quality, often used by consumers, is that it is synonymous

with superiority or excellence.

Walter Shewhart, de ned quality as the goodness of a product.

This view is referred to as the transcendent (transcend, “to rise above or extend
notably beyond ordinary limits”), or judgmental, de nition of quality.

In this sense, quality is “both absolute and universally recognisable, a mark of

uncompromising standards and high achievement.
Rolex watches, Ritz-Carlton hotels, and Lexus automobiles.

From this perspective, quality cannot be de ned precisely—you just know it when
you see it. It is sometimes related to the aesthetic characteristics of products that
are promoted by marketing and advertising.
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Product excellence is also often associated with higher prices.

However, high quality is not necessarily correlated with price.

Just consider the case of a Florida man who purchased a $262,000 Lamborghini
only to nd a leaky roof, a battery that quit without notice, a sunroof that
detached when the car hit a bump, and doors that jammed
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CONTRIBUTOR KEY CONTRIBUTIONS

Shewhart Control charts; variance reduction

Deming 14 points; special versus common causes of variation

Juran Quality is tness-for-use; quality trilogy

Feigenbaum Quality is a total eld; the customer de nes quality
Crosby Quality is free; zero defects
Ishikawa Cause-and-effect diagrams; quality circles

Taguchi Taguchi loss function

Ohnoand Shingo Continuous improvement

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The common de nitions of quality …….

1. Conformance to requirements & zero defects —-Crosby

2. Fitness for use—- Jura

3. Continual improvement—- Deming,

4. As de ned by the customers——For

5. Loss to society ——-Taguch

6. Six Sigma ——-Motorola,

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 Cost-of-Quality Measurement

Cost of quality: Costs associated with avoiding poor quality

or those incurred as a result of poor quality
Helps operations managers
Communicate better between operations managers and senior-
level manager
Identify and justify major improvement opportunitie
Evaluate the importance of quality and improvement in
operations
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 Categories of Quality Costs,

Prevention costs: Expended to keep nonconforming

goods and services from being made and reaching the
customer
Quality planning cost
Process-control cost
Information-systems cost
Training and general management costs

 Categories of Quality Costs, Part 2

Appraisal costs: Help ascertain quality levels through

measurement and data analysis to detect and correct
problems
Test and inspection cost
Instrument maintenance cost
Process-measurement and process-control costs

 Categories of Quality Costs,

Internal failure costs: Incurred as a result of

unsatisfactory quality that is found before the delivery of a
good or service
Scrap and rework cost
Costs of corrective actio
Downgrading cost
Process failures

 Categories of Quality Costs,

External failure costs: Incurred after poor-quality goods

or services reach the customer
Costs due to customer complaints and return
Goods and services recall costs and warranty and service
guarantee claim
Product-liability costs
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 COSTS OF QUALITY EXAMPLES

Costs Incurred In The Process Quality Improvement Programs,

PREVENTION Of Preventing Poor Quality Training
COSTS Costs Of Preparing & Monitoring, Data Collection And
Implementing Quality Plans Analysis, And Design Costs
Costs incurred in the process
Inspection equipment, testing, labs,
APPRAISAL of uncovering defect
inspectors, and the interruption of
COSTS Includes Testing evaluating
production to take samples
inspecting quality
Costs of defects before
Rework costs, problem solving,
INTERNAL reaching customer
FAILURE COSTS Includes scrap, rework ,
material and product losses, scrap, and
downtime
material losses

Costs of failure at customer

Returned goods, reworking costs,
EXTERNAL sit
warranty costs, loss of goodwill,
FAILUR COSTS Includes returns, repairs,
liability claims, and penalties
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recalls
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Assumptions traditional quality managemen

Failure costs reduce as the money spent on appraisal and prevention increases.
There is an optimum amount of quality effort to be applied in any situation, which
minimises the total costs of quality.

The argument is that there must be a point beyond which diminishing returns set in –
that is, the cost of improving quality gets larger than the benefits which it brings.

As quality effort is increased, the costs of providing the effort – through extra quality
controllers, inspection procedures, and so on – increases proportionally.

At the same time, however, the cost of errors, faulty products, and so on, decreases
because there are fewer of them.

TQM believe that this logic is flawed.

Firstly, it implies that failure and poor quality are acceptable.
Why, should any operation accept errors?
We need a zero-defect standard.
it assumes that costs are known and measurable and failure costs in the traditional model
are greatly underestimated.
It implies that prevention costs are inevitably high because it involves expensive
inspection.

But why shouldn’t quality be an integral part of everyone’s work rather than employing
extra people to inspect.
Finally, the ‘optimum-quality level’ approach, by accepting compromise, does little to
challenge operations managers and staff to find ways of improving quality.

If there is an ‘optimum’, it is a lot further to the right, in the direction of putting more
effort (but not necessarily cost) into quality.

The Consequences of Poor Quality

1. Loss of business
2. Liability
3. Productivity
4. Costs





 The Consequences of Poor Quality

Poor designs or defective products or services or Failure to devote adequate
attention to quality can result in loss of business

Damage a pro t-oriented organisation’s reputation and lead to a Decreased

share of the market, or it can lead to
Increased criticism and/or controls for a government agency or nonpro t
organisation.
In the retail sector, managers might not be fully aware of poor product or
service quality because customers do not always report their dissatisfaction.
Dissatis ed customers may voice their dissatisfaction to friends and relatives,
which can have negative implications for customer perceptions and future
business.

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Organisations must pay special attention to their potential

liability due to damages or injuries resulting from either faulty
design or poor workmanship.
This applies to both products and services.

Liability for poor quality has been well established in the courts
Think of a poorly designed steering wheel in a car.

 Productivity and Quality are often closely related.

Poor quality can adversely affect productivity during the manufacturing
process if parts are defective and have to be reworked or if an assembler
has to try a number of parts before nding one that ts properly.
Also, poor quality in tools and equipment can lead to injuries and defective
output, which must be reworked or scrapped, thereby reducing the amount
of usable output for a given amount of input.
Similarly, poor service can mean having to redo the service and reduce
service productivity.
The cost to x a problem at the customer end has been estimated at about
ve times the cost to x a problem at the design or production stages.
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Quality awards have been established to generate improvement in quality.

The Malcolm Baldrige Award,
the European Quality Award, and the
Deming Prize are well-known awards given annually to recognise rms that
have integrated quality management into their operations.

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The Baldrige Award

Named after the late Malcolm Baldrige, an industrialist and former secretary of
commerce, the annual Baldrige Award is administered by the National Institute of
Standards and Technology.
This award stimulate efforts to improve quality,
To recognise quality achievements, and to publicise successful programs.
When the award was rst presented in 1988, the award categories were Manufacturing
and Small business.
Later service industries ,education and health care were added
The earliest winners included Motorola, Globe Metallurgical, Xerox Corporation, and
Milliken & Company.
Since then, many companies have been added to the list.

Applicants are evaluated in seven main areas: leadership, information and analysis,
strate- gic planning, human resource management, customer and market focus, process
management, and business results.

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Examiners check the extent to which top management incorporates quality values in
daily management;

Products or services are at least as good as those of competitors;

whether employees receive training in quality techniques;
if the business works with suppliers to improve quality;
and if customers are satis ed.
Even organisations that don’t win bene t from applying for the award

All applicants receive a written summary of the strengths and weaknesses of their
quality management and suggestions for improvement.
Most states have quality award programs based on the Baldrige criteria.
These award programs can serve as an entry point for organisations that want to
eventually apply for the national award.
For more information, visit www.nist.gov/baldrige.

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 CATEGORIES POINTS

Leadership 120

Strategic Planning 85

Customer and Market Focus 85

Information and Analysis 90

Human Resource Focus 85

Process Management 85

Business Results 450

Total 1000
Leadership 120Measurement, Analysis, and 90 Results 450
Knowledge Management Product and Process
Senior Leadership 70 120
Measurement, Analysis, and Outcomes
Governance and Societal
50 Improvement of Customer-Focused
Responsibilities 45 90
Outcomes
Strategic Planning 85 Organizational Workforce-Focused
Strategy Development 40 Performance 80
Management of 45 Outcomes
Strategy Implementation 45 Workforce Focus 85 Leadership and
80
Governance Outcomes
Workforce Environment 40
Customer Focus 85
Workforce Engagement 45 Financial and Market
80
Voice of the Customer 45 Operations Focus 85 Outcomes

Customer Engagement 40 Work Systems 45

TOTAL POINTS 1,000
Work Processes 40
For a complete listing of current and former winners visi

www.patapsco.nist.gov/Award_Recipients.
visit www.nist.gov/baldrige.

The European Quality Award

The European Quality Award is Europe’s most prestigious award for

organisational excellence.
The European Quality Award sits at the top of regional and national quality
awards, and applicants have often won one or more of those awards prior to
applying for the European Quality Award.

The Deming Prize

The Deming Prize, named in honor of the late W. Edwards Deming, is Japan’s highly
coveted award recognizing successful quality efforts.
It is given annually to any company that meets the award’s standards.
Although typically given to Japanese rms, in 1989, Florida Power and Light became
the rst U.S. company to win the award.
The major focus of the judging is on statistical quality control, making it much
narrower in scope than the Baldrige Award, which focuses more on customer
satisfaction.
Companies that win the Deming Prize tend to have quality programs that are
detailed and well-communicated throughout the company.
Their quality improvement programs also re ect the involvement of senior
management and employees, customer satisfaction, and training.
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ISO 9000, 14000, and 24700

Many rms that do business internationally recognize the importance of quality
certi cation.

The International Organization for Standardization (ISO) promotes worldwide

standards for the improvement of quality, productivity, and operating ef ciency
through a series of standards and guidelines.

Used by industrial and business organizations, regulatory agencies, governments, and

trade organisations, the standards have important economic and social bene ts.
Not only are they tremendously important for designers, manufacturers, suppliers,
service providers, and customers, but the standards make a tremendous
contribution to society in general
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Two of the most well-known of these are ISO 9000 and ISO 14000.

ISO 9000
pertains to quality management. It concerns what an organisation does to ensure that its
products or services conform to its customers’ requirements.

ISO 14000
concerns what an organization does to minimise harmful effects to the environment caused
by its operations.

Both ISO 9000 and ISO 14000 relate to an organisation’s processes rather than its
products and services, and both stress continual improvement.

More than 40,000 companies are registered worldwide; three-fourths of them are located
in Europe.

ISO 9000:2000 Quality Management Principle

Eight quality management principles form the basis of the latest
version of ISO 9000:

● Customer Focu
● Leadershi
● Involvement of Peopl
● Process Approac
● System Approach to Managemen
● Continual Improvemen
● Factual Approach to Decision Makin
● Mutually Bene cial Supplier Relationships
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• The standards for ISO 14000 certi cation bear upon three major areas:
• Management systems—systems development and integration of
environmental responsibilities into business planning
• Operations—consumption of natural resources and energy

• Environmental systems—measuring, assessing, and managing

emissions, ef uents, and other waste streams
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• ISO 24700
• Pertains to the quality and performance of of ce equipment
that contains reused components.
• To demonstrate that a marketed product that contains reused
components performs equivalent to new, meeting equivalent-
to-new component speci cations and performance criteria, and
continues to meet all the safety and environmental criteria
required by responsibly built products.

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Inspection
Quality contro
Quality assurance

 Total Quality

● Principles – foundation of the philosophy

● Practices – activities by which principles are
implemented
● Techniques – tools and approaches to make
practices effective
Core Quality Management Principles

● Customer focu
● Teamwor
● Continuous improvement
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Customer Focus Practices

● Researching and understanding customer needs and

expectations.
● Ensuring that the objectives of the organization are linked to
customer needs and expectations.
● Communicating customer needs and expectations throughout
the organization.
● Measuring customer satisfaction and acting on the results.
● Systematically managing customer relationships.
● Ensuring a balanced approach between satisfying customers
and other interested parties (such as owners, employees,
suppliers, nanciers, local communities and society as a whole).
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The rm quality is concerned with trying to meet customer expectations.
The customer’s view of quality is what he or she perceives the service or product
to be.
Quality can be defined as the degree of fit between customers’ expectations and
customer perception of the service or product.

customers’ view of quality of the service or product is therefore

the result of the customers comparing their expectations of performance with their
perception of performance.
If the service or product experience was better than expected then the customer is
satisfied and quality is perceived to be high.
If the service or product was less than his or her expectations then quality is low
and the customer may be dissatisfied. If the service or product matches
expectations then the perceived quality of the product or service is seen to be
acceptable.
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A customer’s view of quality is shaped by the gap

between perception and expectation

Quality is one of the most important factors for companies in their relationship
between suppliers and customers.

In fact, quality is so critical that today's executives question whether their

companies should be participating in global sourcing as many global suppliers are
not able to meet quality requirements

LET US TAKE A SIMPLE PRODUCT —THE SUPPLY CHAIN ASPECT

Of Lee Cooper jeans
Customers located world wide
(accessed via agents, wholesalers and retailers, online ),
from a factory in Tunisia, that gets supplies of

• Denim cloth from Italy, who use dye from West Germany and cotton from Benin,
West Africa and Pakistan
• Zips from West Germany, who use wire for the teeth from Japan and polyester tape
from France
• Thread from Northern Ireland, who use dye from Spain and fibre from Japan
• Rivets and buttons from the USA, who use zinc from Australia and copper from
Namibia
• Pumice (used in stone washing) from Turkey.
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McDonald’s uses suppliers all over the world for their core product, the hamburger.

A Big Mac sold in Saudi Arabia uses

Lettuce from Holland,

Cheese from New Zealand,
Beef from Spain,
Onions and pickles from the United States
Sugar and oil from Brazil,
Buns from Saudi Arabia, and
Packaging from Germany.

Raw material is procured from vendors worldwide, transported to distribution centres,

and then assembled into the nal product served to McDonald’s customers.

Such a logistics network is complicated and sophisticated in terms of quality control,

delivery timing, quantity scheduling, and cost analysis.

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 “Unless you change the process, why would you expect the results to
change?”
A process is a sequence of linked activities that is intended to achieve some
result, such as producing a good or service for a customer within or outside the
organisation.

Generally, processes involve combinations of people, machines, tools, techniques,

materials, and improvements in a de ned series of steps or actions

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Every major activity within an organization involves a process that crosses traditional
organisational boundaries

An order ful lment process might involve a salesperson placing the order;

a marketing representative entering it on the company’s computer system; a credit check

by nance;
picking, packaging, and shipping by distribution and logistics personnel;
invoicing by nance; and
Installation by eld service engineers.

A process perspective links together all necessary activities and increases one’s
understanding of the entire system, rather than focusing on only a small part.
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 Processes

● A process is a sequence of linked activities that is intended to achieve some result

● Processes involve combinations of people, machines, tools, techniques, materials, and
improvements in a de ned series of steps or actions
● Examples
● machining
● mixing
● assembly
● lling orders,
● approving loans
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 Key Process Management Principles for Performance Excellence

● Identify vital work processes that relate to core competencies and deliver
customer value, pro tability, organizational success, and sustainability
● Determine key work process requirements, incorporating input from
customers, suppliers, partners, and collaborators
● Design and innovate work processes to meet all requirements, incorporating
new technology, organizational knowledge, cycle time, productivity, cost control,
and other ef ciency and effectiveness factors
● Seek ways to prevent defects, service errors, and rework and minimize costs
associated with inspections, tests, and process or performance audits.
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 Key Process Management Principles for Performance Excellence

● Implement work processes and control their day-to-day operation to ensure

that they meet design requirements, using appropriate performance measures
along with customer, supplier, partner, and collaborator input as needed
● Improve work processes to achieve better performance, reduce variability,
improve products and services, and keep processes current with business needs
and directions, and share improvements with other organizational units and
processes to drive organizational learning and innovation
● Incorporate effective process management practices in the overall supply chain.

 Process Management

●…involves planning and administering the activities necessary

to achieve a high level of performance in key business
processes, and identifying opportunities for improving quality
and operational performance, and ultimately, customer
satisfaction.
Process management involves planning and administering the activities necessary to achieve a high
level of performance in key organizationa
processes, and identifying opportunities for improving quality and operational performance, and
ultimately, customer satisfaction.
Process management consists of three major activities:
Design, Control, and Improvement.

Processs Design focuses on ensuring that the inputs to the process, such as materials,
technology, work methods, and a trained workforce are adequate; and that the process can achieve
its requirements.

Process Control focuses on maintaining consistency in output by assessing performance and

taking corrective action when necessary.

Process Improvement focuses on continually seeking to achieve higher levels of performance,

such as reduced variation, higher yields, fewer defects and errors, smaller cycle times, and so on

 Process Design

● The goal of process design is to develop an ef cient process that satis es both
internal and external customer requirements and is capable of achieving the
requisite level of quality and performance.
● Process design considerations include safety, cost, variability, productivity,
environmental impact, “green” manufacturing, measurement capability, and
maintainability of equipment.

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A British Airways Boeing B-777 was forced to make an emergency landing in Houston afteran
engine caught re.
The cause was traced to the fact that the wrong engine blade had been processed and shipped to
the customer, and that inspections to prevent such an error were inadequate.
GE’s “quality notice” on the incident stated that employees failed to detect that the blade casting
was misidenti ed when it arrived at the plant or after they processed and cleared it for
installation.
The notice recommended adding veri cation requirements at several stages of the process, which
the company has done.
The incident cost GE $8 million
Although GE acted swiftly to resolve the problems, this case demonstrates the importance of
process control.
Process control is important for two reasons.
First, process control methods are the basis for effective daily management.
Second, long-term improvements cannot be made to a process unless the process is rst brought
under control

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• WHY THE M/C PERFORMS AT LOW OUTPUT ?
• BECAUSE OVER LOADED
• WHY OVER LOADED ?
• BECAUSE NOT PROPERLY LUBRICATED
• WHY NOT LUBRICATED ?
• BECAUSE LUBRICATING M/C NOT EFFICIENTLY WORKING
• WHY LUBRICATING M/C NOT WORKING?
• THE SHAFT IN THE M/C WORN OUT
• WHY THE SHAFT IS WORN OUT ?
• BECAUSE METAL CHIPS ENTER THE SHAFT IS WORN OUT
• WHY METAL CHIPS ENTER ?
• BECAUSE THE FILTER IS NOT THERE
• WHY FILTER IS NOT THERE ?
• OH YES ! WE WILL FIX IT !
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Reengineering

● Reengineering – the fundamental rethinking and radical redesign of

business processes to achieve dramatic improvements in critical,
contemporary measures of performance, such as cost, quality, service,
and speed
● Reengineering involves asking basic questions about business processes:
● Why do we do it?
● Why is it done this way?
.

 Types of Processes

● Value-creation processes – those most important to “running the

business
● Design processes – activities that develop functional product
speci cations
● Production/delivery processes – those that create or deliver products

● Support processes – those most important to an organization’s value

creation processes, employees, and daily operations
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 Projects as Processes

● In many companies, value-creation processes take the form of projects—

temporary work structures that start up, produce products or services,
and then shut down

● Project management involves all activities associated with planning,

scheduling, and controlling projects.
.

Process Requirements

● Value creation process requirements usually depend on consumer or external

customer needs
● Support process requirements are driven by internal customer needs and must
be aligned with the needs of key value-creation processes
.