Process

1
Chapter 7

• Process
• Management

2
Wisdom from Texas Instruments

• Unless you change the process, why would you
  expect the results to change

3
Process Concepts

• A process is a sequence of activities that is
  intended to achieve some result
• Cross functional
• Adds value

4
Scope of Process Management

• Process Management planning and administering
  the activities design, control, and improvement
  necessary to achieve a high level of performance

5
ATT 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

6
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
  organizations value creation processes,
  employees, and daily operations

7
Control vs. Improvement
8
Leading Practices (1 of 2)

• Define, document, and manage important value
  creation and support processes
• 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

9
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

10
Product Development Process
Idea generation
Concept development
Product process design
Full-scale production
Product introduction
Market evaluation
11
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.
12
Design for Manufacturability

• DFM the process of designing a product for
  efficient production at the highest level of
  quality

13
Design Quality and Social Responsibility

• Product liability issues
• Environmental 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.

14
Streamlining Product Development

• Competitive need for rapid product development
• Concurrent (simultaneous) 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
• Design reviews

15
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
   simplify tasks? 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 improve further?

16
Service Process Design

• Three basic components
• Physical facilities, processes and procedures
• Employee behavior
• Employee professional judgment

17
Key Service Dimensions
18
Projects as Value-Creation Processes

• Projects - temporary work structures that start
  up, produce products or services, and then shut
  down.
• Project management all activities associated
  with planning, scheduling, and controlling
  projects

19
Project Life Cycle Management (1 of 2)

• Project Quality Initiation Define directions,
  priorities, limitations, and constraints.
• Project Quality Planning Create a blueprint for
  the scope of the project and resources needed to
  accomplish it.
• Project Quality Assurance Use appropriate,
  qualified processes to meet technical project
  design specifications.

20
Project Life Cycle Management (2 of 2)

• Project Quality Control Use appropriate
  communication and management tools to ensure that
  managerial performance, process improvements, and
  customer satisfaction is tracked.
• Project Quality Closure Evaluate customer
  satisfaction with project deliverables and assess
  success and failures that provide learning for
  future projects and referrals from satisfied
  customers.

21
Process Control

• Control the activity of ensuring conformance to
  requirements and taking corrective action when
  necessary to correct problems and maintain stable
  performance

22
Components of Control Systems

• Any control system has three components
• a standard or goal,
• a means of measuring accomplishment, and
• comparison of actual results with the standard,
  along with feedback to form the basis for
  corrective action.

23
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 written
  standards, samples, or illustrations and
• maintenance activities.

24
After Action Review

1. What was supposed to happen?
2. What actually happened?
3. Why was there a difference?
4. What can we learn?

25
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.

26
Kaizen

• Kaizen 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.

27
Flexibility

• Flexibility 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.

28
Cycle Time

• Cycle time the time it takes to accomplish one
  cycle of a process
• Reductions 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.

29
Breakthrough Improvement

• Discontinuous change resulting from innovative
  and creative thinking, motivated by stretch
  goals, and facilitated by benchmarking and
  reengineering

30
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.

31
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

32
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.

33
Process Management in the Baldrige Award Criteria

• The Process Management Category examines the key
  aspects of an organizations process management,
  including key product, service, and business
  processes for creating customer and
  organizational value and key support processes,
  encompassing all key processes and work units.
• 6.1 Value Creation Processes
• 6.2 Support Processes