process mng

8/16/2019 Process Mng

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Process Management

&

Continuous Improvements

“ A process is a sequence of activities (tasks) that is

intended to achieve some result - typically to create value

for customers”

PROCESS

- tasks -

PROCESS

- tasks -Customer Supplier

Input Output

VALUE ADDING

- through transformation of input to output -

A process




PRODUCTION

SUPPORT

RM

Inventory

RM

Inventory

S u p p l i e r s

C u s t o m

e r s

Order

process

Order

process

Step 1Step 1 Step 2Step 2FG

Inventory

FG

Inventory

PlanningPlanningProcure-

ment

Procure-

ment

The value stream

Identify

customer

needs

Identify

customer

needs

Transform needs

into attributes

(Q, C, D)

Transform needs

into attributes

(Q, C, D)

Transform needs

into process

capabilities

Transform needs

into process

capabilities

Identify

and map

current processes

Identify

and map

current processes

Evaluate current processes in terms of:

satisfaction of customer needs

management

costs

Evaluate current processes in terms of:

satisfaction of customer needs

management

costs

Reengineer processes focusing on:

customer needs

ease of production / delivery

cycle time

employee satisfaction and education

flexibility and growth

Reengineer processes focusing on:

customer needs

ease of production / delivery

cycle time

employee satisfaction and education

flexibility and growth

Develop and

document best

practice

Develop and

document best

practice

Develop control

and

check points

Develop control

and

check points

Reengineer

the

organisation

Reengineer

the

organisation

Implement

the

changes

Implement

the

changes

Monitor and

evaluate

progress

Monitor and

evaluate

progress

Process Reengineering




Types of processes

z An organisation consists of several processes:

– Development processes (i.e. R&D, strategy…)

– Production/delivery processes

– Support processes (Training, IT, accounting…)

z Production/delivery processes has external customers

(end-users)

zDevelopment and support processes has internalcustomers - these processes are prerequisites for creating

value for end-users

TQM Processes

Customer

Driven

Master Plan

Daily Management

Cross

Functional

Management

Hoshin

PlanningMaximize

Coordination &

Cooperation

among All

Related Functions

Maximize

Focus on

Strategic Targets

from CEO to

Line Employees

Maximize

Individual's Department

Performance Every Day




“Muda” is the Japanese word for waste. MUDA is:

“Everything that consumes

resources without creating

value”

Daily Management

Daily Management

zDifferent types of Muda

– all human activities that absorbs resources but creates no

value

– mistakes which requires rectification (re-work)

– production of items that no one really wants– processing steps that aren’t actually needed

– movements of people/materials without any purpose

– groups of people waiting downstream because an upstream

activity has not delivered on time

– any goods and services which don’t meet the needs of the

customers




Time

Performance

Control

Control

Improvement

Daily Management

zControl versus improvement (kaizen)

Time

Performance

Continuous

improvement

Continuous

improvement

Innovation

Daily Management

z Improvement versus innovation




Daily Management

zKaizen:

– Everybody must admit errors committed

– Everybody must try to do better next time

– Everybody must go through adequate education and training

in conducting improvements

– Continuous improvements are based on standardisation of

existing processes

– Improvements are preserved through standardisation

Daily Management

P

D

C

A

S

D

C

A

KAIZEN =+

SDCA

SDCA

SDCA

DCA

P

DCA

P

DCA

P




Daily Management

zConnection between PDCA and SDCA

P

D

C

A

S

D

C

A

Step 1Step 1 Step 2Step 2 Step 3Step 3 Step 4Step 4 OutputInput

Quality check points Quality control point

Daily Managements

z Performance measurements

– Quality control points

› measures the process result

– Quality check points

› measures the state of the process (the result drivers - 6M’s)




OutputOutput

Daily Management

zHow to define control and check points

– What are the most important characteristics of the finished

process output (in tern of Q, C & D)?

› The answer(s) would be a good control point

– What drives (or influences) the process’ capability to deliver

this output?

› The answers would be good check points

– Define level of performance and how to measure it

– Communicate the checkpoints and level of performance tothe process upstream

Hoshin Planning

zThe objective of Hoshin Planning is to deploy the

strategy of the organisation

Top

Down

Bottom

Up

Agreement Coordinated action

Turning Strategic Intent into

an Annual Operating Plan

Engagement of the whole

company




Hoshin Planning

z From strategic intentions to yearly plans

Management

Process

Deployment

Setting

Direction

Vision, Mission, Priorities

3-5 Year Goals & Strategies

Implementation

Annual Objectives and Vital

Few Actions

Cascade Objectives and

Agree Vital Few Actions

Annual Diagnosis

Regular Review

Hoshin Planning vs.Traditional

Purpose

Values

Operating Principles

Purpose

Values

Operating Principles

Environmental Scan

Scenario Analysis

Statement of Vision

Environmental Scan

Scenario Analysis

Statement of VisionSelection of Key vision Element

Objectives

Metrics

Deployment

Objectives

Strategic Metrics

Catshball

Deployment

Breackthrough

Process Improvements

Maintenance

Strategic Breackthrough

Strategic Process Improvements

Strategic Maintenance

Analysis of Results

Annual Review

Analysis of Results

Analysis of Process

Regular Review

Annual Review

Traditional Flow Hoshin Flow

Mission

Vision

Year Plan

Plan Implementation

Plan Review




Hoshin Planning

zCatchball

Back and forth up to two times

Cross Functional Management

zEmployees across functions share objectives as well as

the responsibility to reach these objectives

zThe three cross-functional objectives Quality, Cost,

Scheduling/Delivery are overordnede i forhold til

liniefunktioner som design og produktion

zThe aim of Cross Functional Management (CFM) is to

ease coordination in relation to the cross-functional

objectives and to break down the barriers between

departments

zCFM is a continuous search for improvements

horizontally as well as vertically





zConnection between KAIZEN and Hoshin Planning

Quality

Cost

Schedule

KAIZEN

Policy-

deployment

Departments

MaintenanceRutine-

management

CFM

Small group activity

Individual suggestions


zQCS-wheel

Production and

procurement

Marketing Product-

planning

Design

Production

planning

Quality

Cost

Scedule

Supporting functions

Strategic planning

Top management





What are the best doing?

Lessons to be learned




Leading practices

zTranslate customer requirements into product and

service requirements early in the design process, taking

into account linkages between:

– product design requirements

– manufacturing process requirements

– supplier capabilities

– legal and environmental issues.

Leading practices

zBuild quality into the product and service, using:

– engineering tools

– statistical tools

zExamples are the use of Quality Function Deployment

(QFD), Factorial Designs and Controlled Experiments.

z Use a product development process, that ensures:

– cross-functional participation and communication

– trouble free production

zExamples are the use of Quality Function Deployment

(QFD) Design For Manufacturability.




Leading practices

zDefine and document critical production/delivery andsupport processes:

– make corrections to the present quality control systems

zExamples are the use of ISO 9000 Quality Standards.

zDefine and communicate performance requirements forsuppliers:

– Quality

– Delivery

zChose supplier based on performance rather than onprice.

zExamples are the use supplier managementprogrammes and supplier partnerships.

Leading practices

zUse statistical process control:

– Monitor all key processes

– Prevent special causes form returning

– Enhance process capability

z Facilitate continuous improvements:– Continuous improvement programmes (CIP)

– Educate all employees and assign responsibility

– Set “stretch goals”

– Use benchmarking

process mng

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