TOTAL QUALITY

MANAGEMENT
CHAPTER 4
PROCESS
FOCUS
Learning Outcomes

After studying this chapter, you should be able to:

• Explain what process management is
• Identify processes and requirements
• Discuss what process design is.
• Explain process control in manufacturing and services
• Differentiate continuous improvement and breakthrough improvement
• Discuss how to manage supply chain processes.
Process Management
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 organization.
Process Management
Three (3) Major Activities:
• Design
• Control
• Improvement
Process Management
Cycle time-refers to the time it
takes to accomplish one cycle of a
process (e.g ., the time from when a
customer orders a product to the
time that it is delivered, or the total
time needed to introduce a new
product).
Process Management
Process Owners- (individual
or group)
are accountable for process
performance and have the
authority to control and
improve their process.
Process Management
• To apply the techniques of
process management,
processes must be
• (1) repeatable
• (2) measurable
Process Management
AT&T, for example, identified the following principles to guide their process management activities:

• Process improvement focuses on the end-to-end process.

• The mind-set of quality is one of prevention and continuous improvement.

• Everyone manages a process at some level and is simultaneously a customer and a supplier.

• Customer needs drive process improvement.

• Corrective action focuses on removing the root cause of the problem rather than on treating its symptoms.
• Process simplification reduces opportunities for errors and rework.
• Process improvement results from a disciplined and structured application of quality
management principles.
IDENTIFYING PROCESS AND
REQUIREMENTS
Leading organizations identify important processes throughout the value chain that
affect their ability to deliver customer value.

These processes typically fall into two categories:

• Value-creation processes

• Support processes.
IDENTIFYING PROCESS AND
REQUIREMENTS
Value-creation processes- (sometimes called core processes) are those most
important to "running the business" and maintaining or achieving a sustainable
competitive advantage.

Support processes- are those that are most important to an organization's value-
creation processes, employees, and daily operations.
IDENTIFYING PROCESS AND
REQUIREMENTS
PROCESS REQUIREMENTS
Understanding the requirements that processes should meet is vital to designing them.
-Given the diverse nature of value-creation processes, the requirements and
performance characteristics might vary significantly for different processes. In general,
value creation process requirements are driven by consumer or external customer
feeds.
IDENTIFYING PROCESS AND
REQUIREMENTS
PROCESS REQUIREMENTS-sample
IDENTIFYING PROCESS AND
REQUIREMENTS
PROCESS DESIGN
The goal of process design is to develop an efficient process that satisfies
both internal and external customer requirements and is capable of
achieving the requisite level of quality and performance.
IDENTIFYING PROCESS AND
REQUIREMENTS
PROCESS DESIGN
The goal of process design is to develop an efficient process that satisfies both internal and external customer
requirements and is capable of achieving the requisite level of quality and performance.

Other factors that might need to be considered in process design includes:

• Safety
• Cost • "green" manufacturing
• Variability
• Productivity
• environmental impact
• measurement
• Capability
• maintainability of equipment
PROCESS DESIGN
Technology is an integral part of
process design that makes
today's service and
manufacturing processes operate
productively and meet customer
needs better than ever.
PROCESS DESIGN
PROCESS MAPPING
Designing a process requires
a systematic approach.
To describe the specific steps in a
process and their sequence, we
generally develop a process map
or flowchart , along with
standard operating procedures
and work instructions.
PROCESS DESIGN
PROCESS DESIGN FOR SERVICES
Most cross-functional business value-creation processes and all support processes are primarily service-
oriented. Thus, it is important to understand the fundamental differences between manufacturing and
service processes.

-First, the outputs of service processes are not as well defined, as are manufactured products.

-Second, most service processes involve a greater interaction with the customer, often making it easier to
identify needs and expectations.

“On the other hand, customers often cannot define their needs for service until after they have

some point of reference or comparison. “

PROCESS DESIGN
PROCESS DESIGN FOR SERVICES
A useful approach to designing services is to recognize that services
differ in three dimensions:

• Customer contact and interaction

• Labor intensity

• Customization
PROCESS DESIGN
PROCESS DESIGN FOR SERVICES
In designing service processes, the following questions should be considered:

• What service standards are required to be met?

• What is the result of the service to be provided?

• At what point does the service begin, and what signals its completion?

• What is the maximum waiting time that a customer will tolerate?

• How long should it take to perform the service?

• Who must the consumer deal with in completing the service?
• What components of the service are essential? Desirable? Superfluous?
• Which components can differ from one service encounter to another while still meeting standard?
PROCESS DESIGN
DESIGN FOR AGILITY
Agility is a term that is commonly used to characterized flexibility and
short cycle times.
Flexibility refers to ability that to adapt quickly and effectively to
changing requirements.
PROCESS DESIGN
MISTAKE-PROOFING PROCESSES
Typical mistakes in production are omitted steps in a process, setup errors, missing parts, wrong parts, or
incorrect adjustments.

Such errors can arise from the following factors:

• Forgetfulness due to lack of reinforcement or guidance

• Misunderstanding or incorrect identification because of the lack of familiarity with a process or procedures .

• Lack of experience .
• Absentmindedness and lack of attention, especially when a process is automated
PROCESS DESIGN
MISTAKE-PROOFING PROCESSES
Preventing mistakes can be done in three ways:
• Designing potential defects and errors out of the process. Clearly, this approach is the
best because it eliminates any possibility that the error or defect will occur and will
not result in rework, scrap, or wasted time.
• Identifying potential defects and errors and stopping a process before they occur.
Although this approach prevents defects and errors, it does result in some
nonvalue- added time.
• Identifying defects and errors soon after they occur and quickly correcting the process.
This can avoid large amounts of costly defects and errors in the future, but does result
in some scrap, rework, and wasted resources
PROCESS DESIGN
Poka-yoke (POH-kah YOH-kay) is an approach for mistake-proofing processes using
automatic devices or simple methods to avoid human error.
Poka-yoke is focused on two aspects:
(1) prediction, or recognizing that a defect is about to occur and providing a
warning, and
(2) detection, or recognizing that a defect has occurred and stopping the process.
The poka-yoke concept was developed and refined in the early 1960s
by the late Shigeo
PROCESS DESIGN
The following list summarizes the typical types of service errors and related poka-yokes.

• Task errors

• Treatment Errors

• Tangible Errors

• Customer Errors in preparation

• Customer Errors during an encounter

• Customer Errors at the resolution stage

PROCESS CONTROL
Control is the activity of ensuring
conformance to the requirements
and taking corrective action when
necessary to correct problems
and maintain stable performance.
PROCESS CONTROL
Control should be the foundation for organizational learning.

Many companies have adopted an approach that has been used in the U.S. military, called
after-action review, or debrief.

This review consists of asking four basic questions:

• What was supposed to happen?

• What actually happened?
• Why was there a difference?
• What can we learn?
PROCESS CONTROL
PROCESS CONTROL IN MANUFACTURING
Manufacturing Control is usually applied to incoming materials, key
processes, and final product and services.

Control in manufacturing starts with purchasing and receiving processes.

Document control procedures are usually written down in

a

process control plan

PROCESS CONTROL
PROCESS CONTROL IN SERVICES
For many services, process control follows the same paradigm as
in manufacturing: define a standard or goal, measure
accomplishment, compare results with standard, make
corrections as needed.
PROCESS IMPROVEMENT
Continuous improvement refers to both incremental changes, which are
small and gradual, and breakthrough improvements, which are large and
rapid.

Learning cycle stages

* Planning
* Execution of plans
*Assessment of progress
*Revision of plans based upon assessment findings
PROCESS IMPROVEMENT
Continuous improvement
During 1950-1951 Toyota initiated some of the earliest formal continuous improvement programs.

Toyota pioneered Just in time (JIT) which showed that companies could make product efficiently with virtual zero
defects.

Kaizen- is a Japanese word that means gradual

and orderly continuous improvement.

Kaizen Event- is an intense and rapid improvement process

in which a team or a department throws all its resources into an

improvement project over a short time period, as opposed to traditional kaizen

application, which are performed on a part time basis.

PROCESS IMPROVEMENT
Breakthrough Improvement
Refers to discontinuous change, as opposed to be gradual, continuous improvement philosophy of kaizen.

Benchmarking is defined as “measuring your performance against that best-in-class companies, determining
how the best in class achieve those performance levels, and using the information as a basis for your own
company’s targets, strategies, and implementations” or more simply, “ the search for industry best practices
that lead to superior performance.

The term best practices refers to approaches that produce exceptional results, are usually

innovative in terms of the use of technology or human resources and are recognized by
customers or industry experts.
PROCESS IMPROVEMENT
Breakthrough Improvement
Process Benchmarking – identifies the most effective practices in key work processes in
organizations that perform similar functions, no matter in what industry.

Reengineering – has been defined as “ the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvement in critical, contemporary measures of

performance, such as cost, quality, service, and speed.

MANAGING SUPPLY CHAIN PROCESSES
Supply chains are among the
most important business
processes and can be viewed as
encompassing may key value
creation and support processes
such as supplier selection and
certification, purchasing, logistics,
receiving, and performance
measurement.
MANAGING SUPPLY CHAIN PROCESSES
Supplier Partnership
Supplier- include not only
companies that provide
materials and components, but
also distributors, transformation
companies, and information,
health care, and education
providers.
MANAGING SUPPLY CHAIN PROCESSES
Supplier Certification
- These processes are designed to
rate and certify suppliers who
provide quality materials in a
cost effective and timely manner.
Certified supplier- defines as one,
after extensive investigation, is
found to supply material of such
quality that routine testing on each
lot received is necessary.