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Chapter 7 Process Management.

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Presentation on theme: "Chapter 7 Process Management."— Presentation transcript:

1 Chapter 7 Process Management

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 performance Four types of key processes Design processes Production/delivery processes Support processes Supplier processes

4 Management Principles
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

5 Control vs. Improvement
Controlled process Improvement Time New zone of control Out-of-control

6 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

7 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

8 Product Development 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

9 Product Development Process
Idea generation Concept development Product & process design Full-scale production Product introduction Market evaluation

10 Quality Engineering System Design Parameter Design Tolerance Design
Functional performance Parameter Design Nominal dimensions Tolerance Design Tolerances

11 Loss Functions loss no loss nominal tolerance Traditional View
Taguchi’s View

12 Taguchi Loss Function Calculations
L(x) = k(x - T)2 Example: Specification = .500  .020 Failure outside of the tolerance range costs $50 to repair. Thus, 50 = k(.020)2. Solving for k yields k = 125,000. The loss function is: L(x) = 125,000(x )2 Expected loss = k(2 + D2) where D is the deviation from the target.

13 Design Objectives Cost, Manufacturability, Quality, Public Concerns
Tools and Approaches Design for Manufacturability Design for Environment

14 Streamlining 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 Design reviews

15 House of Quality Interrelationships Customer requirement
Technical requirements Voice of the customer Relationship matrix Technical requirement priorities Customer requirement Competitive evaluation Interrelationships

16 Quality Function Deployment
technical requirements component characteristics process operations quality plan

17 Motorola’s Approach to Process Design
Identify the product or service Identify the customer Identify the supplier Identify the process Mistake-proof the process Develop 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 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

20 Basic Components of Services
Physical facilities, processes, and procedures Employee behavior Employee professional judgment

21 Key Service Dimensions
Customer contact and interaction Labor intensity Customization

22 Control A well-controlled system is predictable
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

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 suppliers Develop win-win relationships through partnerships Establish 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 costs Faster time to market Increased access to technology Reduced supplier risk Improved quality

27 Process Improvement New approaches from the total quality movement
Productivity improvement Work simplification Planned methods change Kaizen Stretch goals Benchmarking Reengineering Traditional Industrial Engineering New approaches from the total quality movement

28 Kaizen Gradual and orderly continuous improvement
Minimal financial investment Involvement of all employees Exploit the knowledge and experience of workers

29 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

30 Breakthrough Improvement
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

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 Processes a. Design Processes b. Production/Delivery Processes 6.2 Business Processes 6.3 Support Processes

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