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THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 1
Chapter 5
ProcessManagement
Dr. John V. Padua
The Management & Control of Quality, 7e
Learning ObjectivesAt the end of the discussion, students are all expectedto understand the following: Definition of Process Management Types of Processes Design for Manufacturability, Quality and Social
Responsibility Process Control Importance of Process Improvement Benchmarking
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 2
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 3
Key Idea
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.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 4
Key Idea
Leading companies identify important business processes throughout the value chain that affect customer satisfaction. These processes typically fall into two categories: value-creation processes and support processes.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 5
Types of Processes Value-creation processes – those most
important to “running the business” Design processes – activities that develop
functional product specifications 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
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 6
Product Development Process
Ideageneration
Conceptdevelopment
Product &process design
Full-scaleproduction
Productintroduction
Marketevaluation
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 7
Key Idea
Product design can significantly affect the cost of manufacturing (direct and indirect labor, materials, and overhead), redesign, warranty, and field repair; the efficiency by which the product can be manufactured, and the quality of the output.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 8
Design for ManufacturabilityDFM – the process of designing a
product for efficient production at the highest level of quality
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 9
Key Idea
DFM is intended to prevent product designs that simplify assembly operations but require more complex and expensive components, designs that simplify component manufacture while complicating the assembly process, and designs that are simple and inexpensive to produce but difficult or expensive to service or support.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 10
Design Quality and Social ResponsibilityProduct liability issuesEnvironmental issues
Design for Environment (DfE) - is the explicit consideration of environmental concerns during the design of products and processes, and includes such practices as designing for recyclability and disassembly.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 11
Service Process DesignThree basic components:
Physical facilities, processes and procedures
Employee behavior Employee professional judgment
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 12
Key Idea
Service process designers must concentrate on doing things right the first time, minimizing process complexities, and making the process immune to inadvertent human errors, particularly during customer interactions.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 13
Process ControlControl – the activity of ensuring
conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 14
Importance of Process Improvement 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 improve value creation ability, a business must continuously improve its value creation processes.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 15
Key Idea
Improvement should be a proactive task of management and be viewed as an opportunity, not simply as a reaction to problems and competitive threats.
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KaizenKaizen – a Japanese word that means
gradual and orderly continuous improvement
Focus on small, gradual, and frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 17
FlexibilityFlexibility – the ability to adapt quickly
and effectively to changing requirements. rapid changeover from one product to
another, rapid response to changing demands, the ability to produce a wide range of
customized services.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 18
Cycle TimeCycle time – the time it takes to
accomplish one cycle of a processReductions 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-added steps such as rework.
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 19
Breakthrough Improvement Discontinuous change resulting from
innovative and creative thinking, motivated by stretch goals, and facilitated by benchmarking and reengineering
THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 20
Benchmarking Benchmarking – “the search of industry best
practices that lead 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.
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Types of Benchmarking Competitive benchmarking - studying products,
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 advantage
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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.