Operation Management

and
Total Quality Management
PCHAPTER 5: PROCESS FOCUS
 Process
A process is a sequence of linked activities that
is intended to achieved some results, such as
producing good and service for a customer
within or outside the organization. Generally,
processes involve combination of people,
machines, tools, techniques, materials, and
improvements in a defined series of steps and
action.
4 AKey
d dProcess-Focused
your title Practices for TQM

01 02 03

Identify vital work Determining key work Design and innovate work
processes that relate to process requirements processes to meet all
core competences and incorporating inputs requirements, incorporating new
deliver customer value, from customers, technology, organizational
profitability, suppliers, partners, knowledge, product exellence, the
organizational success, and collaborators. need for agility, cycle time
and sustainability. reduction, productivity, cost
control, and other effeciency and
effectiveness factor.
5 AKey
d dProcess-Focused
your title Practices for TQM

04 05

Seek ways to prevent Implement work process and

defects, sevice errors control their day-to-day operation
and rework and to ensure that they meet design
minimize cost requirements, using appropriate
associated with performance measures along with
inspections, tests and customer, supplier, partner and
process or performance collaborator input as needed.
audits.
6 AKey
d dProcess-Focused
your title Practices for TQM

06 07

Improve work processes to achieve Incorporate effective

better performance, reduce variability, process management
improve products and services, keep practices in the overall
process current with business needs supply chain.
and directions, and share
improvements with other
organizational units and processes to
drive organizational learning and
innovation.
7 AQUALITY
d d y o uPROFILES
r title
Boeing Aerospace Support

Boeing AS provides products and services including

aircraft maintainance, modification, and repair and
training for aircrews and maintainance staff to reduce
life cycle costs and increase the effectiveness of aircraft.
Carefully planned and well-managed processes
combined with a culture that encourage knowledge
sharing and working together had been essential to
Boeing AS ability to deliver high-quality products and
services. Teams of employees who "own" and are
responsible for the company's complex operations and
processes are the core of the company's high
performance environment.
8 Add you
QUALITY r title
PROFILES
Honeywell FM&T, LLC
Vision
To be preferred partner with the
United States Government and
its allies distinguished by our
trusted relationship and
recognized for our ability to
deliver exceptional solutions for
national and homeland security.
Mission
To design and deliver
products, manage operations,
and provide targeted services
to advance national and
homeland security objectives
for the United States
Government and its allies.

Honeywell FM&T, LLC is a management and operations hontractor with National

Security Administration. The facilities under its management multidisciplinary
engineering ad manufacturing operations specializing in electrical, mechanical, and
engineered material components for National Defense System.
PROCESS MANAGEMENT
 Process Management involves planning
and administering the activities necessary to
improve a high level of performance in key
organizational process, and identifying
opportunities for improving quality and
operational performance, and ultimately,
customer satisfaction.
11 AMajor
d d activities
y o u r t iint lProcess
e Management
1. Design
Focuses on ensuring that the
inputs to the process, such as
materials, technology, work
methods, and a trained
workforce are adequate; and 2. Control
that the process can achieve its
Focuses on maintaining
requirements.
consistency in output by
assesing performance and
3. Improvement taking corrective action when
Focuses on continually necessary.
seeking to achieve higher
levels of performance, such
as reduce variation, higher
yield, fewer defects and error,
smaller cycle time, and so on.
12 C O N T E N T S

Cycle Time
Refers to the time it takes to
accomplish one cycle of a process.
Cycle time is one of the most
important matrix in process
management.
Process Owners are individuals or groups that are accountable
for process performance and have the authority to control and improve
their process. Assigning process owners ensures that someone is
responsible to manage the process and optimize its effectiveness.
14 A d d y o u r t i t l e Management Framework
Process-based

1.Design
(define the process)

2.Control
(measure the process)

3.Improvement
(improve the process)
15 P ro c e s s e s a n d R e q u i r e m e n t s
Value-Creation Processes
- According to AT&T, a process is how work vcreates value for
01 customers. It is sometimes called (core processes) are those most
important to “running the business” and maintaining or achieving a
sustainable competitive advantage. This is frequently align closely to
an organnization’s core competencies and strategic objectives.

Support Processes
- are those that are most important to an organization’s value
creation processes, employees and daily operations. It includes 02
processes for finance and accounting, facilities management, legal
services, human resource services, public relations, and other
administrative services.
16 AProcess
d d y o u rDesign
title
Its goal 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. Factors included are safety, cost, variability, productivity, environmental
impact, “green” manufacturing, measurement capability, and maintainability of equipment.
It begins with understanding its purpose and requirements, who the customer is, and what
outputs are produced.

Process Mapping Process Design for Services

Design for Agility Mistake-Proofing Processes

 Process Mapping
- requires a systematic approach. This
includes defining the sequence of steps that
need to be performed, along with formal
documentation of procedures and
requirements.
 Process Design for Services
- service processes often involve both internal
and external activities, a factor that complicates
design for quality. Internal activities are primarily
oncerned with efficiency (quality of conformance),
while external activities – with direct customer
interaction – require attention to effectiveness
(quality of design).
19 AServices
d d y o uhave
r t i tthree
le basic components

Physical facilities, processes, and procedures

Employee behavior; and

Employee professional judgment.

20 AA duseful
d yo u r t i t to
approach l edesigning services is to recognize that
services differ in three dimensions

1 Customer contact and interaction

2 Labor intensity, and

3
Customization
 Design for Agility
- agility is a term that is commonly used to
characterized flexibility and short cycle times. Electronic
commerce, for instance, requires more rapid, flexible, and
customized responses than traditional market outlets.
Flexibilty refers to the ability to adapt quickly and effectively
to changing requirements. Flexibility might demand special
strategies such as modular designs, sharing components,
sharing manufacturing lines and specialized training for
employees.
 - It also involves outsourcing decisions,
agreements with key suppliers, and innovative
partnering arrangements. Enablers of agility include
close relationships with customers to understand
their emerging needs and requirements, empowering
employees as decision makers, effective
manufacturing and infromation technology, close
supplier and partner relationships, and breakthrough
improvement.
 Mistake-Proofing Processes
- human beings tend to make mistakes
inadvertently. Typical mistakes in production are
omitted steps in a process, setup errors, missing
parts, wrong parts or incorrect adjustments .
24 ASuch
d d errors
y o u rcan
t iarise
t l e 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.
25 APreventing
d d y o umistakes
r t i t l e can be done in three ways:
1. Designing potential defects
and errors out of the process

This approach eliminates any

possibility that the error or defect
will occur and will not result in
rework, scrap, or wasted time.
2. Identifying potential defects
and errors and stopping a process
before they occur

This approach prevents defects and

3. Identifying defects and errors errors, it does result in some non-
soon after they occur and value-added time
quickly correcting the process

This can avoid large amounts of

costly defects and errors in the
future, but does result in scrap,
rework, and wasted resources.
26 AProcess
d d y o u rControl
title
Control is the activity of ensuring conformance to the requirements and taking
corrective action when necessary to correct problems and maintain stable performance.
Removing the causes of suh abnormalities and maintaining consistent performance is the
essence of control. Process control is the responsibilty of those who directly accomplish the
work, such as machine operators, order-fulfillment workers, and so on.
Any control system has four elements: (1) a standard or goal, (2) a means of
measuring accomplishment, (3) comparison of results with the standard to provide
feedback , and (4) the ability to make corrections as appropriate.

Process Control in Process Control in

Manufacturing Services
27 CControl
O N T Eshould
N T S be the foundation for organizational
learning. Many companies have adopted an approach tht
has been used in the U.S. Military, called after-action
review, or debrief. This review consists of asking four basic
questions:

01 What was supposed to 02 What actually

happen? happened?

03 Why was there a 04 What can we learn?

difference?
 Process Control in Manufacturing
- In manufacturing, control is usually applied to
incoming materials, key processes, and final products and
services. Control in manufacturing starts with pruchasing
and receiving processes. Clearly, if incoming materials are of
poor quality, then the final product will certainly be no
better. The control practices include visual management
through quality alert systems, which are designed to call
immediate attention to abnormal conditions.
 Effective quality control systems include
documented procedures for all key processes; 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. Documented control procedures are usually
written down in a process control plan.
 Process Control in Services
- In services, process control follows the same paradigm
as in manufacturing; define a standard or goal, measure
accomplishment, compare resultswith the standard, and
make corrections as needed. In services with high customer
contact, labor intensity, and/or customization, control can
be challenging. Human behavior-both the customer’s and the
service provider’s-is more difficult to control than mechanical
or automated processes.
 The company uses three types of control
processes to deliver quality:
1. Self-control of the individual employee based on
their spontaneous and learned behavior.
2. Basic control mechanisms, which are carried
out by every member of the workforce.
3. Critical success factor control for critical
processes.
32 AProcess
d d y o u rImprovement
title
Continuous improvement refers to both incremental changes,
which are small and gradual, and breakthrough improvements, which
are large and rapid. Continuous improvement is one of the foundation
principles of total quality. It is an important business strategy in
competitive markets because
• Customer loyalty is driven by delivered value.
• Delivered value is created by business processes.
• Sustained success in competitive markets requires a business to
continuously improve delivered value.
• To continuously imrpove value-creation ability, a business must
continuously imrpove its value-creation processes.
33 AReal
d dimprovement
y o u r t i tdepends
le on learning, which means
understanding why changes are successful through feedback between
practices and results, leading to new goals and approaches. A
learning cycle consists of four stages:
1. Planning
2. Execution
3. Assessment of progress
4. Revision of plans based upon assessment findings
Peter Senge, a professorat the Massachusetts Institute of
Technology (MIT), has become the major advocate of the learning
organization movement. He defines the learning organization as
34 A d d y o u r t i t l e

...an organization that is continually expanding its

capacity to create its future. For such an organization, it
is not enough merely to survive. “Survival learning” or
what is more often termed “adaptive learning” is
important – indeed it is necessary. But for a learning
organization, “adaptive learning” must be joined
by“generative learning,” learning that enhances our
capacity to create.
• Flow Chart • Fishbone Diagram

• Check Sheets • Scatter Diagram

• Histograms • Control Chart

• Pareto Diagram
36 C O NFlow
TENTS
Chart
-Diagram that represents how steps in a process fit together

Also known as Business Flow Diagram

Introduced by Frank Gilbreth (Pioneer of motion study

Use To design complex processes and finding bottlenecks in it

Benefits 1. Helps debugging the process
2. Acts as a blueprint in an analysis and
development phases
Limitations Complex and lenghty flow charts are hard to follow
 Histogram
-represents frequency
distribution in ordered
columns

Also known as Frequency Diagram

Introduced By Karl Pearson (Mathematician)
Use To represent different amount of data
Benefits 1. Graphical representation that helps comparing data
2. Indicates data trends evidently
Limitations Used only with continuous data
 Pareto Chart
- Is a chart that analyzes
frequency of process
problems

Also known Pareto Diagram

Introduced by JM Juran (Pareto Principle by Vilfredo Pareto)
Use To focus efforts on the most vital improvement projects
Benefits 1. Determines the most important problems using data
2. Display the importance of the difference between data
groups
Limitations Provide no insight on root causes of problem
 Fishbone
Diagram
- Shows the cause
of a specific event

Also known Ishikawa Diagram, Cause-and-effect Diagram

Introduced by Kaoru Ishikawa (Quality Management Innovator)
Use To identify possible cause of a problem
Benefits 1. generates deeper levels of causes
2. helps evolve counter measure
Limitations Cause identified are based on opinions rather that
facts
 Scatter Diagram
- Shows the
relationship between
two sets of data

Also known Scatter Plot

Introduced by Sir Francis Galton (Anthropologist)
Use To understand a trend in the data relationship
Benefits 1. Easy to identify correlation between variables
2. Great for finding outliers and pattern
Limitations Difficult to visualize data in large data sets
Control Chart
-is a graph explaining how a process changes over time
Also known as Shewart Chart or Process Behavioral Chart
Introduced by Walter Shewart (physicist and statistician)
Use To determine if a process is operating in statistical control
Benefits 1. Detects unwanted changes in the process
2.Heps correct errors in real time