I.4 Process Focus

4/7/2011
UNIT II
UNIT II
PRINCIPLES OF QUALITY
MSTM 6033 QUALITY SYSTEMS MANAGEMENT
Quality Systems Management
UNIT II
I.4 PROCESS FOCUS

BASED ON
MANAGING FOR QUALITY AND PERFORMANCE
EXCELLENCE 9TH ED
MSTM 6033 Quality Systems on
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Importance of Customers
“Unless you change the process, why would you expect the results
“U l h th h ld t th lt
to change?”
Importance of Process Management
•Prevent defects and errors,
•Eliminate waste and redundancy,
•Lead to better quality and improved company performance
through shorter cycle times, improved flexibility, and faster
and more consistent customer response.
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Key Process Management Principles for Performance
Excellence (1 of 2)
 Identify vital work processes that relate to core competencies
and deliver customer value, profitability, organizational success,
and deliver customer value profitability 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 efficiency and
time, productivity, cost control, and other efficiency and
effectiveness factors.
Excellence (2 of 3)
 Minimize overall costs associated with inspections, tests, and
process or performance audits and seeking to prevent defects
process or performance audits, and seeking to prevent defects,
service errors, and rework and minimize warranty costs or
customers’ productivity losses, as appropriate.
 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
supplier, partner, and collaborator input as needed.
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Excellence (3 of 3)
 Improve work processes to achieve better performance, reduce
variability, improve products and services, and keep processes
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.
Process Quality Management (PQM)
PQM is distinguished by the following:
 Strategic Orientation (Clear Mission, Vision and values)
Strategic Orientation (Clear Mission Vision and values)
 A cross‐functional orientation in place of the hierarchical
organization.
 Cross‐functional process teams, supported by the management
system.
 Prime organizational focus on the needs of customers, external
and internal.
 The driving of all work processes by quality of products and
overall value stream.
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Scope of Process Management
 Four types of key processes
• Design processes
• Production/delivery processes Value Creation Processes
• Support processes
• Supplier processes
 Value creation process requirements
Usually depend significantly on product and service characteristics.
Usually depend significantly on product and service characteristics.
•
 Support process requirements
• Usually depend on internal requirements, and they must be
coordinated and integrated to ensure efficient and effective linkage
and performance.
AT&T Process Management Principles
• Focus on end‐to‐end process.
• Mindset of prevention and continuous improvement
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.
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Process Management Activities
Design
Ensuring that the inputs to the process, such as materials,
technology work methods,
technology, methods and people are adequate,
adequate and that
the process steps are well‐defined, mistake‐proofed, sequenced
properly, lean, and understood for consistent and effective execution.
Control
Assessing whether the process performed as planned and the
process output is on target.
Improvement
Continually seeking to achieve higher levels of performance in the
process, such as reduced variation, higher yields, fewer defects
and errors, and so on.
Requirements for Process Management
 Processes must be repeatable
 Process must be measurable
Process must be measurable
Meeting these two conditions ensures that sufficient data can
be collected to reveal useful information for evaluation and
control, as well as learning that leads to improvement and
maturity.
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Designing Work Processes
 Process design can have a significant impact on
• Cost
• Agility
• Quality
Agility
 Agility refers to flexibility and short cycle times.
Enablers of agility include:
• Close relationships with customers to understand their
emerging needs and requirements,
• Empowering employees as decision makers,
• Effective manufacturing and information technology,
g gy,
• Close supplier and partner relationships, and breakthrough
improvement.
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Flexibility
Flexibility refers to the ability to adapt quickly and effectively to
changing requirements It might mean rapid changeover from one
changing requirements. It might mean rapid changeover from one
product to another, rapid response to changing demands, or the
ability to produce a wide range of customized services.
Process Design
1. Identify the product or service: What work do I do?
2 Identify the customer: Who is the work for?
2. Identify the customer: Who is the work for?
3. Identify the supplier: What do I need and from whom do I get it?
4. Identify the process: What steps or tasks are performed? What
are the inputs and outputs for each step?
5. Mistake‐proof the process: How can I eliminate or simplify tasks?
What “poka yoke” (i.e., mistake‐proofing) devices can I use?
6. Develop measurements, controls, and improvement goals: How
do I evaluate the process? How can I improve further?
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Service Process Design
 Three basic components:
• Physical facilities, processes and procedures
Physical facilities processes and procedures
• Employee behavior
• Employee professional judgment
Listening to Customers
Customer contact and interaction
Labor intensity
Customization
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Mistake‐Proofing Processes
Typical reasons for mistakes and errors:
• Forgetfulness due to lack of concentration.
Forgetfulness due to lack of concentration.
• Misunderstanding because of the lack of familiarity with a
process or procedures.
• Poor identification associated with lack of proper attention.
• Lack of experience.
• Absentmindedness.
• Delays in judgment when a process is automated.
• Equipment malfunctions.
Poka‐Yoke (ポカヨケ) (Error proofing)
 Poka‐Yoke is based on:
•Prediction, or recognizing that a defect is about to occur and
d h d f b d
providing a warning
• Detection, or recognizing that a defect has occurred and
stopping the process.
• Three levels:
• Designing potential errors out of the process.
g gp p
• Identifying potential defects and stopping a process before the
defect is produced.
• Finding defects that enter or leave a process.
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Service Errors (1 of 2)
 Task errors include doing work incorrectly, work not requested,
work on the wrong order, or working too slowly.
 Treatment errors in the contact between the server and the
customer, such as lack of courteous behavior, and failure to
acknowledge, listen, or react appropriately to the customer.
 Tangible errors, such as unclean facilities, dirty uniforms,
inappropriate temperature, and document errors.
Service Errors (2 of 2)
 Customer errors in preparation such as the failure to bring
necessary materials to the encounter, to understand their role in
necessary materials to the encounter to understand their role in
the service transaction, and to engage the correct service.
 Customer errors during an encounter such as inattention,
misunderstanding, or simply a memory lapse, and include failure
to remember steps in the process or to follow instructions.
 Customer errors at the resolution stage of a service encounter
include failure to signal service inadequacies to learn from
include failure to signal service inadequacies, to learn from
experience, to adjust expectations, and to execute appropriate
post‐encounter actions.
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Process Control
Control – the activity of ensuring conformance to requirements
and taking corrective action when necessary to correct problems
and taking corrective action when necessary to correct problems
and maintain stable performance.
 Any control system has three components:
1. a standard or goal,
2. a means of measuring accomplishment, and
3. comparison of actual results with the standard, along with
feedback to form the basis for corrective action.
Control Versus Improvement
Out-of-control
Controlled Improvement
process
New zone
of control
Time
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Customer Relationship Management (CRM) Software
 Control should be the basis for organizational learning and lead
to improvement and prevention of defects and errors.
to improvement and prevention of defects and errors
 After‐action review
• What was supposed to happen?
• What actually happened?
• Why was there a difference?
• What can we learn?
Effective Control Systems
 Documented procedures for all key processes;
 A clear understanding of the appropriate equipment and
A clear understanding of the appropriate equipment and
working environment;
 Methods for monitoring and controlling critical quality
characteristics;
 Approval processes for equipment;
 Criteria for workmanship, such as written standards, samples, or
;
illustrations; and
 Maintenance activities.
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Importance of Process Improvement
 Customer loyalty is driven by delivered value.
 Delivered value is created by business processes.
Delivered value is created by business processes
 Sustained success in competitive markets requires a business to
continuously improve delivered value.
 To continuously improve value creation ability, a business must
continuously improve its value creation processes.
Importance of Process Improvement
 Gradual and orderly continuous improvement
 Minimal financial investment
Minimal financial investment
 Involvement of all employees
 Exploit the knowledge and experience of workers
A kaizen blitz is an intense and rapid improvement process in which
p
a team or a department throws all its resources into an
improvement project over a short time period, as opposed to
traditional kaizen applications, which are performed on a part‐time
basis.
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Cycle Time Improvement
 Cycle time – the time it takes to accomplish one cycle of a
process
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 Reductions in cycle time serve two purposes:
• First, they speed up work processes so that customer response
is improved.
• Second, reductions in cycle time can only be accomplished by
streamlining and simplifying processes to eliminate non‐value‐
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added steps such as rework.
Process Improvement Methodologies
 Redefining and analyzing the problem: Collect and organize
information, analyze the data and underlying assumptions, and
information analyze the data and underlying assumptions and
reexamine the problem for new perspectives, with the goal of
achieving a workable problem definition.
 Generating ideas: “Brainstorm” to develop potential solutions.
 Evaluating and selecting ideas: Determine whether the ideas
have merit and will achieve the problem solver’s goal.
 Implementing ideas: Sell the solution and gain acceptance by
I l i id S ll h l i d i b
those who must use them.
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PDCA (PDSA)
Plan (1 of 2)
1. Define the process: its start, end, and what it does.
p , ,
2. Describe the process: list the key tasks performed and
sequence of steps, people involved, equipment used,
environmental conditions, work methods, and materials used.
3. Describe the players: external and internal customers and
suppliers, and process operators.
4. Define customer expectations: what the customer wants,
when, and where, for both external and internal customers.
, ,
5. Determine what historical data are available on process
performance, or what data need to be collected to better
understand the process.
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Plan (2 of 2)
6. Describe the perceived problems associated with the process;
for instance failure to meet customer expectations excessive
for instance, failure to meet customer expectations, excessive
variation, long cycle times, and so on.
7. Identify the primary causes of the problems and their impacts
on process performance.
8. Develop potential changes or solutions to the process, and
evaluate how these changes or solutions will address the
primary causes
primary causes.
9. Select the most promising solution(s).
Do
1. Conduct a pilot study or experiment to test the impact of the
potential solution(s)
potential solution(s).
2. Identify measures to understand how any changes or
solutions are successful in addressing the perceived problems.
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Check/Study
1. Examine the results of the pilot study or experiment.
2. Determine whether process performance has
improved.
3. Identify further experimentation that may be
necessary.
Act
1
1. Select the best change or solution.
Select the best change or solution
2. Develop an implementation plan: what needs to be done, who
should be involved, and when the plan should be
accomplished.
3. Standardize the solution, for example, by writing new standard
operating procedures.
4. Establish a process to monitor and control process
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performance.
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Benchmarking
 Benchmarking – “the search of industry best practices that lead
to superior performance.
to superior performance ”
 Best practices – 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.
Benchmarking
 Competitive benchmarking ‐ studying products,
processes, or business performance of competitors in the
processes or business performance of competitors in the
same industry to compare pricing, technical quality,
features, and other quality or performance characteristics
of products and services.
 Process benchmarking – focus on key work processes
 Strategic benchmarking – focus on how companies
compete and strategies that lead to competitive
compete and strategies that lead to competitive
advantage.
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Reengineering
Reengineering – the fundamental rethinking and radical redesign
of business processes to achieve dramatic improvements in critical
of business processes to achieve dramatic improvements in critical,
contemporary measures of performance, such as cost, quality,
service, and speed.
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4/7/2011

I.4 PROCESS FOCUS

MSTM 6033 Quality Systems on

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