Process Management

Prof. Rushen Chahal

Prof. Rushen Chahal

Wisdom from Texas Instruments

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

Prof. Rushen Chahal

Scope 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 Prof. Rushen Chahal

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
Prof. Rushen Chahal

Control vs. Improvement

Out-of-control Controlled process New zone of control Time
Prof. Rushen Chahal

Improvement

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 6 production/delivery andProf. Rushen Chahal processes support

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
Prof. Rushen Chahal

Product Development Paradigms

Traditional Approach Design the product Make the product Sell the product Demings Approach Design the product Make it with appropriate tests Put it on the market Conduct consumer research Redesign with improvements
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Prof. Rushen Chahal

Product Development Process

Idea generation Concept development Product & process design Full-scale production Product introduction Market evaluation
Prof. Rushen Chahal

Quality Engineering
System Design
Functional performance

Parameter Design
Nominal dimensions

Tolerance Design
Tolerances

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Loss Functions
Traditional View loss no loss nominal tolerance loss

Taguchis View

loss

loss

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Taguchi Loss Function Calculations

L(x) = k(x - T)2 Example: Specification = .500 s .020 Failure 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(W2 + D2) where D is the deviation from the target.
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Design Objectives
Cost, Manufacturability, Quality, Public Concerns Tools and Approaches
Design for Manufacturability Design for Environment

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Streamlining 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
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House of Quality
Interrelationships Technical requirements Voice of the customer Relationship matrix Technical requirement priorities
Prof. Rushen Chahal

Customer requirement priorities

Competitive evaluation 15

Quality Function Deployment

technical requirements component characteristics process operations

Prof. Rushen Chahal

quality plan 16

Motorolas Approach to Process Design

1. 2. 3. 4. 5. 6. 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.
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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?
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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
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Basic Components of Services

Physical facilities, processes, and procedures Employee behavior Employee professional judgment

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Key Service Dimensions

Customer contact and interaction

Labor intensity Customization

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Control
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

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After Action Review

1. 2. 3. 4. What was supposed to happen? What actually happened? Why was there a difference? What can we learn?

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Supplier and Partnering Processes

Recognize the strategic importance of suppliers Develop win-win relationships through partnerships Establish trust through openness and honesty
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Prof. Rushen Chahal

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

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Reduced costs Faster time to market Increased access to technology Reduced supplier risk Improved quality

Benefits of Effective Supplier Process Management

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Process Improvement
Productivity improvement Work simplification Planned methods change Kaizen Stretch goals Benchmarking Reengineering

Traditional Industrial Engineering

New approaches from the total quality movement

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Kaizen
Gradual and orderly continuous improvement Minimal financial investment Involvement of all employees Exploit the knowledge and experience of workers
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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
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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

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Process Management in the Baldrige Award Criteria

The Process Management Category examines the key aspects of an organizations 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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