11/10/02sjsu bus. 142 - david bentley1 chapter 7 – process management leading practices, quality...
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11/10/02 SJSU Bus. 142 - David Bentley 1
Chapter 7 – Process Management
Leading practices, Quality engineering, Product design and
development, Process evaluation, Projects, Services, Suppliers, Kaizen,
Baldrige criteria
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Wisdom from Texas Instruments
“Unless you change the process, why would you expect the results to change”
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Scope of Process ManagementScope 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Control vs. ImprovementControl vs. Improvement
Controlled process
Improvement
Time
New zoneof control
Out-of-control
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Leading Practices (1 of 2)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 production/delivery and support processes
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Leading Practices (2 of 2)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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Product Developm’t ParadigmsProduct Developm’t Paradigms
Traditional Approach
Design the product
Make the product Sell the product
Deming’s Approach Design the product Make it with
appropriate tests Put it on the
market Conduct consumer
research Redesign with
improvements
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Product Development ProcessProduct Development Process
Ideageneration
Ideageneration
Conceptdevelopment
Conceptdevelopment
Product &process design
Full-scaleproduction
Full-scaleproduction
Productintroduction
Productintroduction
Marketevaluation
Marketevaluation
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Quality EngineeringQuality Engineering
System Design Functional performance
Parameter Design Nominal dimensions
Tolerance Design Tolerances
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Design ObjectivesDesign Objectives
Customer Requirements Quality Manufacturability Cost Public Concerns
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Product Design Concepts Product life cycles – may be short Manufacturability & serviceability
tools DFM/DFA/DFS/DFR/DFD/DFE = “DFX”
Concurrent engineering Vs. Over-the-wall (slide # 18)
Design guidelines (following slides)
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Product Design Guidelines From Richard Schonberger:
General Guidelines Quality Guidelines Operability Guidelines
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General Guidelines (Schonberger)
1. Design to target markets and target costs.
2. Minimize number of parts and number of operations
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Quality Guidelines (Schonberger)
3. Ensure that customer requirements are known and design to those requirements
4. Ensure that process capabilities are known (those in your firm and of your suppliers) and design to those
5. Use standard procedures, materials, and processes with already known and proven quality
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Operability Guidelines - 1 (Schonberger)
Design multifunctional / multiuse components and service elements and modules
Design for ease of joining, separating, rejoining (goods) and ease of coupling / uncoupling (services)
Design for one-way assembly, one-way travel (avoid backtracking and return visits)
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Operability Guidelines - 2 (Schonberger)
Avoid special fasteners and connectors (goods) and off-line or misfit service elements
Avoid fragile designs requiring extraordinary effort or attentiveness – or that otherwise tempt substandard or unsafe performance
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Streamlining Product DevelopmentStreamlining 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 (vs. “over-the-wall”)
Design reviews
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Motorola Approach to Process Design (process owner)
1. Identify the product or service2. Identify the customer3. Identify the supplier4. Identify the process5. Mistake-proof the process6. Develop measurements and
control, and improvement goals.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Evaluating a Process - 1 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?
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Evaluating a Process - 2 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?
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Basic Components of ServicesBasic Components of Services
Physical facilities, processes, and procedures
Employee behavior Employee professional
judgment
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Key Service DimensionsKey Service DimensionsCustomer contact and interaction
Labor intensity
Customization
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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ControlControl
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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After Action Review
1. What was supposed to happen?2. What actually happened?3. Why was there a difference?4. What can we learn?
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Supplier and Partnering ProcessesSupplier and Partnering Processes
Recognize the strategic importance of suppliers
Develop win-win relationships through partnerships
Establish trust through openness and honesty
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Benefits of Effective Supplier Process Management
Reduced costs Faster time to market Increased access to technology Reduced supplier risk Improved quality
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Kaizen Gradual and orderly continuous
improvement Minimal financial investment Involvement of all employees Exploit the knowledge and
experience of workers
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Breakthrough Improvement
Hoshin – 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
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Process Management in the Baldrige Award Criteria
The Process Management Category examines the key aspects of an organization’s 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 Processesb. Production/Delivery Processes
6.2 Business Processes
6.3 Support Processes
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM