total quality management process management

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



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.


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.


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


Product Development Process

Ideageneration

Conceptdevelopment

Product &process design

Full-scaleproduction

Productintroduction

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 product can be manufactured, and the quality of the output.


Design for ManufacturabilityDFM – the process of designing a

product for efficient production at the highest level of quality


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.


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.


Service Process DesignThree basic components:

Physical facilities, processes and procedures

Employee behavior Employee professional judgment


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.


Process ControlControl – the activity of ensuring

conformance to requirements and taking corrective action when necessary to correct problems and maintain stable performance


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.


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.


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.


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.


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.


Breakthrough Improvement Discontinuous change resulting from

innovative and creative thinking, motivated by stretch goals, and facilitated by benchmarking and reengineering


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.


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


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.

total quality management process management

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