2 Wisdom from Texas Instruments “Unless you change the process, why would you expect the results to change”
3 Scope of Process Management Process Management: planning and administering the activities – design, control, and improvement – necessary to achieve a high level of performanceFour types of key processesDesign processesProduction/delivery processesSupport processesSupplier processes
4 Management Principles AT&T ProcessManagement PrinciplesFocus on end-to-end processMindset of prevention and continuous improvementEveryone manages a process at some level and is a customer and a supplierCustomer needs drive the processCorrective action focuses on root causeProcess simplification reduces errors
5 Control vs. Improvement ControlledprocessImprovementTimeNew zoneof controlOut-of-control
6 Leading Practices (1 of 2) Translate customer requirements and internal capabilities into product and service design requirements early in the processEnsure that quality is built into products and services and use appropriate tools during developmentManage product development process to enhance communication, reduce time, and ensure qualityDefine, document, and manage important production/delivery and support processes
7 Leading Practices (2 of 2) Define performance requirements for suppliers and ensure that they are metControl the quality and operational performance of key processes and use systematic methods to identify variations, determine root causes, and make correctionsContinuously improve processes to achieve better quality, cycle time, and overall operational performanceInnovate to achieve breakthrough performance using benchmarking and reengineering
8 Product Development Paradigms Traditional ApproachDesign the productMake the productSell the productDeming’s ApproachDesign the productMake it with appropriate testsPut it on the marketConduct consumer researchRedesign with improvements
9 Product Development Process IdeagenerationConceptdevelopmentProduct &process designFull-scaleproductionProductintroductionMarketevaluation
11 Loss Functions loss no loss nominal tolerance Traditional View Taguchi’sView
12 Taguchi Loss Function Calculations L(x) = k(x - T)2Example: Specification = .500 .020Failure outside of the tolerance range costs $50to repair. Thus, 50 = k(.020)2. Solving for kyields k = 125,000. The loss function is:L(x) = 125,000(x )2Expected loss = k(2 + D2) where D is the deviationfrom the target.
13 Design Objectives Cost, Manufacturability, Quality, Public Concerns Tools and ApproachesDesign for ManufacturabilityDesign for Environment
14 Streamlining Product Development Competitive need for rapid product developmentConcurrent 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 salesDesign reviews
15 House of Quality Interrelationships Customer requirement Technical requirementsVoice ofthecustomerRelationshipmatrixTechnical requirementprioritiesCustomerrequirementCompetitiveevaluationInterrelationships
16 Quality Function Deployment technicalrequirementscomponentcharacteristicsprocessoperationsquality plan
17 Motorola’s Approach to Process Design Identify the product or serviceIdentify the customerIdentify the supplierIdentify the processMistake-proof the processDevelop measurements and control, and improvement goals.
18 Evaluating a Process 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?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?
19 ProjectsProject initiation – direction, priorities, limitations, and constraintsProject plan – blueprint and resources neededExecution – produce deliverablesClose out – evaluate customer satisfaction and provide learning for future projects
20 Basic Components of Services Physical facilities, processes, and proceduresEmployee behaviorEmployee professionaljudgment
21 Key Service Dimensions Customer contact and interactionLabor intensityCustomization
22 Control A well-controlled system is predictable The continuing process of evaluating process performance and taking corrective action when necessaryComponents of control systemsStandard or goalMeans of measuring accomplishmentComparison of results with the standard as a basis for corrective actionA well-controlled system is predictable
23 After Action Review What was supposed to happen? What actually happened?Why was there a difference?What can we learn?
24 Supplier and Partnering Processes Recognize the strategic importance of suppliersDevelop win-win relationships through partnershipsEstablish trust through openness and honesty
25 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
26 Benefits of Effective Supplier Process Management Reduced costsFaster time to marketIncreased access to technologyReduced supplier riskImproved quality
27 Process Improvement New approaches from the total quality movement Productivity improvementWork simplificationPlanned methods changeKaizenStretch goalsBenchmarkingReengineeringTraditional Industrial EngineeringNew approaches from the total quality movement
28 Kaizen Gradual and orderly continuous improvement Minimal financial investmentInvolvement of all employeesExploit the knowledge and experience of workers
29 AgilityFlexibility – the ability to adapt quickly and effectively to changing requirementsCycle time – the time it takes to accomplish one cycle of a processBenefitsImprove customer responseForce process streamlining and simplification
30 Breakthrough Improvement Discontinuous change resulting from innovative and creative thinkingBenchmarking – the search of industry best practices that lead to superior performanceCompetitive benchmarkingProcess benchmarkingStrategic benchmarkingReengineering – radical redesign of processes
31 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 Processesa. Design Processesb. Production/Delivery Processes6.2 Business Processes6.3 Support Processes