SQM.Mod 2-part A

8/4/2019 SQM.Mod 2-part A

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Amity Business School

Demming –

“Most quality problems have been due to processes and

seldom have they been due to men – as normally thought”

- Value Chain

- Value Adding Processes- Support Processes

Process Management




Some leading practices:

– Translation of customers requirements into product & service design earlyenough in the process taking into account all linkages between product designrequirement, conversion processes, supplier capabilities & legal andenvironmental considerations.

– Ensuring that quality is built into the product and services and use proper

technologies, qualitative tools and approaches during the developmentalprocess.

– Product development process manages cross functional communication, reducetime, smooth and uninterrupted introduction of product and process.

– Define and Document important product, delivery & support processes andmanage them as an important business process

– Define performance requirement for suppliers, partners and relationships – Control quality and operational performance, identify significant variations,

analyze root- causes, apply corrections and verify results.

– Continuously improve process

– Innovate for breakthrough performance improvements through benchmarkingand re-engineering.

Process Management (contd.)




Types of Processes

• Value-creation processes

– those most important to “running the business”

– Design processes – activities that develop functionalproduct specifications

– Production/delivery processes – those that create ordeliver product

• Support processes – those most important to anorganization’s value creation processes, employees, anddaily operations




4

Control vs. Improvement

Controlled

processImprovement

Time

New zone

of control

Out-of-control




Benchmarked Process

• Idea generation

• Preliminary Concept Development

• Product/Process Development

• Full-Scale production

• Market introduction

• Market evaluation

Design Approach Considerations

– Performance

– Cost

– Manufacturability/ Serviceability

– Facility, suppliers & partners capability & preparedness

– Safety & environment

Streamlining Design process – Concurrent engineering/simultaneous engineering

– Reduced Cycle-time – Cross Functional involvement

Product Design Process

CONCEPTUALIZATION

CONVERSION

EXECUTION




6

Product Development Process

Ideageneration

Conceptdevelopment

Product &process design

Full-scaleproduction

Product

introduction

Marketevaluation




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 productcan be manufactured, and the quality of the

output.




Design for Manufacturability

• DFM – the process of designing a product

for efficient production at the highest levelof quality




Key Idea

DFM is intended to prevent productdesigns that simplify assembly operations

but require more complex and expensivecomponents, designs that simplifycomponent manufacture while

complicating the assembly process, anddesigns that are simple and inexpensiveto produce but difficult or expensive toservice or support.




Design Quality and Social

Responsibility• Product liability issues

• Environmental issues – Design for Environment (DfE) - is the explicit

consideration of environmental concernsduring the design of products and processes,

and includes such practices as designing forrecyclability and disassembly.




11

Streamlining Product

Development

• Competitive need for rapid product

development• Concurrent (simultaneous) engineering

- A process in which all major functionsinvolved with bringing a product to market

are continuously involved with the productdevelopment from conception through sales

• Design reviews




Designing Processes for Quality

1. Identify the product or service : What work do I do?

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 simplifytasks? What “poka-yoke” (i.e., mistake-proofing) devices(see Chapter 13) can I use?

6. Develop measurements and controls, and improvement goals : How do I evaluate the process? How can I improvefurther?




Support Processes

Basic Understanding of significant ones;

– Human Resources Processes

– Information Technology Processes

– Finance & Accounts

– Project Management

Exercise: How the above processes get influenced by TQM culture

– Customer Orientation – Strategic Fit

– Cross Functional Alignment

– Data Analysis

– Measurement and Controls

– Continuous Improvement




Projects as Value-Creation

Processes

• Projects - temporary work structures that

start up, produce products or services, andthen shut down.

• Project management – all activities

associated with planning, scheduling, andcontrolling projects




Key Idea

Successful project managers have fourkey skills: a bias toward task completion,

technical and administrative credibility,interpersonal and political sensitivity,and leadership ability.




Project Life Cycle Management(1 of 2)

• Project Quality Initiation : Define directions,priorities, limitations, and constraints.

• Project Quality Planning : Create a blueprintfor the scope of the project and resourcesneeded to accomplish it.

• Project Quality Assurance : Useappropriate, qualified processes to meettechnical project design specifications.




Project Life Cycle Management(2 of 2)

• Project Quality Control : Use appropriatecommunication and management tools toensure that managerial performance,process improvements, and customersatisfaction is tracked.

• Project Quality Closure : Evaluate

customer satisfaction with projectdeliverables and assess success andfailures that provide learning for futureprojects and referrals from satisfied

customers.




• Decentralization & Strategic Outsourcing

– Adding new dimension to the significance – Competency development, Talent retention & cost of ownership

– Flexibility & Speed to market

• Supplier Involvement

– Product Development – From Design to Delivery

– Service & Spare parts

– Bench marking on Technology, Materials, Practices & Designs

• Guiding Principles – Realization of the strategic importance of suppliers

– Developing win-win relationship with suppliers

– Establishing trust through transparency leading to mutual benefits

Exercise: On customer orientation of suppliers

Supplier & Partnership Processes




Juran‟s Trend in Supplier Relationships

Element Traditional/Adversarial TQM- Teamwork Focus

• No. of suppliers Multiple/Many Few/Often Single

• Duration of suppliers Annual Contracts 3yrs. or more

• Quality Criteria Conformance to Total AlignmentSpecifications Fit for use

• Emphasis on Surveys Procedures, Data & Process Capability

systems

• Quality Planning Separate Joint Certification

• Pattern of Partnership Arms Length Mutual VisitsSecrecy Disclosures & Transparency

Mutual Supervision Mutual Assistance

Supplier Partnerships






Service Process Design

• Three basic components:

– Physical facilities, processes and procedures

– Employee behavior

– Employee professional judgment




22

Key Service Dimensions

Customer contact and interaction

Labor intensity

Customization

A i B i S h l




Key Idea

Service process designers mustconcentrate on doing things right thefirst time, minimizing processcomplexities, and making the processimmune to inadvertent human errors,particularly during customer interactions.

A i B i S h l




Process Control

• Control – the activity of ensuring

conformance to requirements and takingcorrective action when necessary tocorrect problems and maintain stableperformance

A it B i S h l




Key Idea

Process control is important for tworeasons. First, process control methods

are the basis for effective dailymanagement of processes. Second,long-term improvements cannot be

made to a process unless the process isfirst brought under control.

A it B i S h l




Components of Control

Systems• 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 thebasis for corrective action.

Amit B siness School




Key Idea

In manufacturing, control is usuallyapplied to incoming materials, key

processes, and final products andservices.





Effective Control Systems

• 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 writtenstandards, samples, or illustrations; and

• maintenance activities.





After Action Review

1. What was supposed to happen?

2. What actually happened?3. Why was there a difference?

4. What can we learn?





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 improvedelivered value.

• To continuously improve value creation ability, abusiness must continuously improve its valuecreation processes.





Key Idea

Improvement should be a proactivetask of management and be viewed as

an opportunity, not simply as a reactionto problems and competitive threats.





Kaizen

• Kaizen – a Japanese word that meansgradual and orderly continuous

improvement• Focus on small, gradual, and frequent

improvements over the long term with

minimum financial investment, andparticipation by everyone in theorganization.





Flexibility

• Flexibility – the ability to adapt quickly andeffectively to changing requirements.

– rapid changeover from one product toanother,

– rapid response to changing demands,

– the ability to produce a wide range ofcustomized services.





Cycle Time

• Cycle time – the time it takes toaccomplish one cycle of a process

• Reductions in cycle time serve twopurposes – First, they speed up work processes so

that customer response is improved.

– Second, reductions in cycle time can onlybe accomplished by streamlining andsimplifying processes to eliminate non-value-added steps such as rework.





Breakthrough Improvement• Discontinuous change resulting from

innovative and creative thinking, motivatedby stretch goals, and facilitated bybenchmarking and reengineering





Key Idea

Stretch goals force an organization to

think in a radically different way, and toencourage major improvements as wellas incremental ones.





Benchmarking

• Benchmarking – “the search of industry best

practices that lead to superior performance.”

• Best practices – approaches that produceexceptional results, are usually innovative interms of the use of technology or humanresources, and are recognized by customers orindustry experts.





Types of Benchmarking

• Competitive benchmarking - studyingproducts, processes, or businessperformance of competitors in the same

industry to compare pricing, technical quality,features, and other quality or performancecharacteristics of products and services.

• Process benchmarking – focus on key work

processes• Strategic benchmarking – focus on how

companies compete and strategies that leadto competitive advantage





Reengineering

• Reengineering – the fundamental

rethinking and radical redesign ofbusiness processes to achieve dramaticimprovements in critical, contemporarymeasures of performance, such as cost,quality, service, and speed.




ty us ess Sc oo

Key Idea

Reengineering involves asking basicquestions about business processes:Why do we do it? and Why is it done

this way?

Documents

SQM.Mod 2-part A