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Report By: Engr. Nancy Mercado PROCESS APPROACH. INTRODUCTION  Every organization should therefore be a well-knit collection of processes so as to practice.

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Presentation on theme: "Report By: Engr. Nancy Mercado PROCESS APPROACH. INTRODUCTION  Every organization should therefore be a well-knit collection of processes so as to practice."— Presentation transcript:

1 Report By: Engr. Nancy Mercado PROCESS APPROACH

2 INTRODUCTION  Every organization should therefore be a well-knit collection of processes so as to practice TQM and be competitive successful.  This concept is also advocated by the IOS9001:2000 standard.  Process approach in the organization is essential to make continuous improvement, get ISO9000 certification as well as practicing TQM. To reduce costs and increase profits.

3 Product and Service Quality Depend on Processes  Manufacturing and service organization were measuring, confirming and analyzing quality with reference to the final product alone.

4  Process orientation should be adopted for Total Quality Management (TQM).  Process orientation is the right strategy to be adopted for practicing quality as well as management of organizations so that the producer can be certain about the quality of the products or services even before the final inspection.

5 Process Orientation Helps in Finding Defects Early  Quality should be built into the product or service right from the early stages. If a defect cannot be corrected early in the process, it cannot be removed at the final stages. Therefore, the defects are to be found early. In the product orientation, the defects are found only at the final stages, whereas in the process orientation, defects could be prevented totally by eliminating the cause of failure in the process.

6 MODEL FOR PROCESS DEFINITION  Input/s to the process Input/s to the process  Output/s of the process Output/s of the process  The process or task The process or task

7 Input of the process The various inputs required for any process are:  Bill of materials  Specification or each material  Requirements for inspection for the incoming materials  Procedure for receipt of materials.

8 Output of the process The output of process consists of the following:  The products or service to be delivered  Documents to be delivered  The specifications for all the above  Method of measurements for verifying conformance to the specifications  Criteria for acceptance / rejection

9 Value Addition in the process  Every organization attains profit only through value addition to its processes. Therefore, the primary goal of the organization is value addition. It, in turn, applies to every process in the organization. NEXT

10  The process may need machinery, infrastructure or techniques for achieving the desired value addition as per the goals and objectives of the process.  The process owners and the other employees attached to the process for carrying out the assigned tasks should be clearly identified and documented, along with their authority and responsibility. NEXTPREVIOUS

11 ETX MODEL  The most popular process model is ETX as shown in figure. ENTR Y TASKEXIT INPUT OUTPUT EXT MODEL EXT stands for Entry, Task and Exit. The value adding process is called Task. The new items in the diagram are Entry and Exit NEXT PREVIOUS

12 Entry – Conditions to be satisfied before the task is undertaken. Exit - Conditions to be fulfilled before the task is considered as completed. NEXTPREVIOUS

13 Training for Process Orientation  The most important requirement for transforming the employee from product orientation to process orientation is training and coaching.  It should also be helped to identify their customers and suppliers and coached as how to conduct themselves in the roles of customers as well as suppliers. NEXTPREVIOUS

14 Measure Process  Before giving a go ahead for normal production, the process parameters should be studied, statistical analysis made and only then the process should be authorized for normal deployment.  This should repeated at regular intervals. NEXTPREVIOUS

15 Improve Process Continuously  In line with the TQM philosophy, the processes should be improved continuously. Efforts should be put in for continuous process improvement. NEXTPREVIOUS

16 SUBBURAJ’s 6s MODEL FOR PROCESS IMPROVEMENT  Since 1991, the author has been heading ETDC, Chennai which is a testing and calibration service provider, offering services to more than 700 organization in a year. NEXTPREVIOUS

17 Subburaj’s 6s for Process Improvement Strengthen Study Process Improvement Synergize Streamline Simplify Standardize NEXTPREVIOUS

18 6’S MODEL FOR PROCESS IMPROVEMENT  StudyStudy  StreamlineStreamline  SimplifySimplify  StandardizeStandardize  SynergizeSynergize  StrengthenStrengthen

19 STUDY  The current performance level of the process triggers improvement. It could be the defects found (both internal and external), cycle time achieved, customer feedback/complaint, employee feedback, customer waiting time, hassles of the employees or customers, etc.

20 STREAMLINE  The process should offer the least resistance to motion in the organization.  For instance, before embarking on TQM, the CEO of the organization was formally issuing the test and calibration reports under his signature.

21 SIMPLIFY  One has to formulate a simplified procedure for carrying out the task without increasing the cost and compromising on quality.

22 STANDARDIZE permits performing the process in the same way by every employee at all times.

23 SYNERGIZE  No process is a stand-alone activity in any organization. A process may interact with at least two other processes – customers and supplier processes.

24 STRENGTHEN  Educating and convincing the process owners, customers and suppliers  Periodic counseling and assuring that the new process will perform better than the old process  Monitoring the result s and confirming that the process transition has occurred NEXT

25 CUSTOMER SUPPLIER CHAINS  Increased Inspection Adds Cost, not Value Increased Inspection Adds Cost, not Value  Identify Internal Customers and Suppliers Identify Internal Customers and Suppliers  Customer-supplier Chains Customer-supplier Chains  Educate Educate  Customer Orientation Includes Internal Customers Customer Orientation Includes Internal Customers  Advantage of Customer-Supplier Chains Advantage of Customer-Supplier Chains

26 Increased Inspection Adds Cost, not Value  Customer supplier chains have to be established for building quality into the products and services.  increased expenditure in increased inspections is not worth it. It only adds to the increased cost of the product or service, without adding value.  This can be achieved through establishing customer supplier chains in the organization. NEXT

27 Identify Internal Customers and Suppliers  “divide and conquer” approach is advocated in customer-supplier chains which is suitable for solving quality problem or for that matter any scientific problem. NEXT

28 Customer-supplier Chains  Each sub-process has an owner, who actually is responsible for giving an output to internal customers after receiving the right inputs from internal suppliers and adding value.  Some sub-processes would terminate at the internal customer. Some sub- processes would have external suppliers. NEXT

29 Educate  The employees should also be educated about the customer supplier chain to treat the internal customers and suppliers, as the organization would like to treat the external customers and suppliers.  The management’s task is only to make the customers supplier chain work for the successful implementation of TQM.

30 Customer Orientation Includes Internal Customers  Customer orientation should be equality applicable to the internal customers in addition to the external customers. The process owners who are customers should not only inspect, but also spend time in educating the internal suppliers for improving the quality of the incoming products.

31 Advantage of Customer-Supplier Chains a) It improves communications within the organization. b) It reduces communication gap. c) It helps in documenting the process flow. d) It helps in defining the specifications not for the overall input and output, but also for the entire process. e) It helps in finalizing verification methodology throughout the process with clear accept/reject criteria. NEXT

32 f) It facilitates immediate feedback from colleagues rather than time lapsed feedback from customers through the channel of hierarchy. g) The management can easily identify problem areas clearly, easily and deal with them specifically, instead of going for global solution across the organization. NEXTPREVIOUS

33 h) It helps in building quality throughout the organization. i) It enables the management to have absolute control over quality with optimal expenditure. j) Above all, it helps the management to understand its own organization and operations better, leading to effective planning, management and improvement. NEXTPREVIOUS

34 SUPPLY CHAIN MANAGEMENT  Supply Chain -is the series of links and shared processes that exist between the suppliers and customers. NEXTPREVIOUS

35 SUPPLY CHAIN MANAGEMENT(SCM)  a task of optimizing all activities throughout the supply chain, so that the products and services are supplied in the right quantity, right quality, to the right customer, at the right time and at the optimal cost. NEXTPREVIOUS

36 SUPPLY CHAIN MANAGEMENT(SCM)  Demand Planning Demand Planning  Manufacturing Planning and Scheduling Manufacturing Planning and Scheduling  Supply Planning Supply Planning  Transportation Planning Transportation Planning

37 DEMAND PLANNING  A planning process to predict the demand of products and services based on forecasts.  Forecasting customer demands improves customer service while decreasing costs by reducing demand uncertainty.

38 MANUFACTURING PLANNING AND SCHEDULING  A planning process that optimally schedules manufacturing orders with production capacity. This is performed by combining Material Requirements Planning (MRP) and Capacity Requirements Planning (CRP) to create optimized and constrained production plans.

39 SUPPLY PLANNING  Supply planning process that meets customers demand based on available inventory and transportation resources. This includes Distribution Requirements Planning (DRP), which determines the need to replenish inventory at branch warehouse.

40 TRANSPORTATION PLANNING  A planning process to optimally schedule, load, and deliver shipments to customers while considering constraints, such as delivery date, mode of transportation, carrier, etc. NEXT

41 JUST-IN-TIME (JIT) MANUFACTURING  The products should be made to order, just in time for immediate delivery to the customers. The materials, which go into the product or service, should also arrive on just time, before manufacturing starts.

42 OBJECTIVES OF JUST-IN-TIME  Development of optimal process and be competitive  Streamlining of operations and eliminating unwanted processes  Continuous improvement  Reducing the levels of wasted materials, time and effort  Increasing efficiency of production process

43 BENEFITS OF JUST-IN-TIME  Reduction of wastes  Reduction of Work-In-Progress(WIP)  Establishing proper customer-supplier relationship  Reduction in lead-time  Less-inventory of raw materials  Improvement in flexibility  Lower cost and high productivity

44  Enhanced customer satisfaction due to lower price owing to elimination of wastes  Improved employee morale owing to a perfect system without waiting  Improved satisfaction of shareholders due to high profit  Reduced space requirements on total elimination of WIP and buffer stock of materials, sub-assemblies and products  Improved productivity and improved quality

45 LEAN MANUFACTURING  The International Motor Vehicle Program (IMVP) was created at MIT, USA to study the techniques used in automobile production around the world. IMVP researcher John Krafcik commented that the Toyota System was lean.

46 Major Tenets of Lean Manufacturing Quick Changeover/ Set- up Reduction Pull/Kanban SystemWorkplace Organization 5S System Value Stream Analysis Total Productive Maintenance (TPM) Cellular Manufacturing

47 SUPPORTING STRATEGIES AND CONCEPTS One Piece FlowVisual Controls TAKT Time Team Building Balanced Flow Quality at the source Employee Involvement Stabilized Operations StandardizedContinuous Improvement Equipment Replacement

48 TENETS AND CONCEPTS OF LEAN MANUFACTURING  Kanban Systems Kanban Systems  Cellular ManufacturingCellular Manufacturing  One Piece FlowOne Piece Flow

49 KANBAN SYSTEMS  The Kanban System was developed by Mr. Taiichi Ohno, Vice President of Toyota, to achieve objectives that included:  Reducing costs by eliminating waste/scrap  Try to create work sites that can respond to changes quickly  Facilitate the methods of achieving and assuring quality control  Design work sites according to human dignity, mutual trust and support and allowing workers reach their maximum potential. NEXT

50 TWO MOST COMMON TYPES OF KANBANS USED: i. Withdrawal Kanban - Is to pass the authorization for the movement of parts from one stage to another. ii. Production Kanban - The main function of the production Kanban is to release an order to the preceding stage to build the lot size indicated on the card. NEXTPREVIOUS

51 KANBAN PROCESS FEATURES  Parts travel from one process to the next process  Parts are received from the preceding process as per details in kanban such as the type and time when required  Kanban must always be attached to the parts  The parts should be produced according to the information on Kanban NEXTPREVIOUS

52  The quantity produced should match the requirement of the subsequent process  No extra pieces are produced  If no Kanban is attached to a product, no manufacturing should be made  In case if defective items are produced, they should not be transferred to the subsequent process.  It should be ensure that the parts are placed in the container should be defect free  The kanban can be used to respond to changes in demand by increasing or decreasing the number of units to be produced. NEXT PREVIOUS

53 ADVANTAGES OF KANBAN PROCESS  Simple and understandable process  Provides quick and precise information  Low costs associated with the transfer of information  Provides quick response to changes  Avoids overproduction  Minimizes waste  Control can be maintained  Delegates responsibility to line workers

54 CELLULAR MANUFACTURING  A cell is configured normally for speed and material handling and can reap substantial benefits in cost saving, time compression and inventory reduction.  Cellular manufacturing and work cells are at the heart of lean manufacturing. Their benefits are many and varied. They increase productivity and quality. Cells simplify material flow, management and accounting systems.

55 Improvement in efficiency cell build vs. batch build ResourcesBatch BuildCell BuildImprovemnt Direct Labour 11 hours10 hours9% Floor space12,000 sq. ft.3000 sq. ft.42% Lead time12 weeks2 weeks83% Inventory$ 564,000$ 279,00051% Scrap and network $ 23,040$ 12,03048%

56 SINGLE PIECE FLOW  Cellular manufacturing demands single piece flow methodology. This is also called one-piece flow or continuous flow manufacturing. It is a technique used to manufacture components in a cellular environment.  The goals of one piece however are: to make one part at a time correctly all the time without lengthy queue.

57 FLOW MANUFACTURING vs. BATCH PRODUCTION  The opposite of one-piece flow is large-lot production. Although, many companies produce goods in large lots or batches, it builds delays into the process. No items can move on to the next process, until all the items in the lot have been processed. NEXTPREVIOUS

58 Single Piece Flow Diagram Process A Process B Process C 10 minutes Lead Time: 30 + minutes for total order 21 + minutes for first pieces A. Batch and Queue Processing NEXTPREVIOUS

59 Process A Process B Process C 12 min, for total order 3 min, for first part B. Continuous Flow Processing Single Piece Flow Diagram NEXTPREVIOUS

60 Table: Single Piece Flow WasIsChangeGoal People/Parts Travel (feet) 1690430-75%-60% Increase in Floor Space (sq. ft.) 1559222943%30% Non-Value Added Work (minutes) 43330-93%-50% NEXTPREVIOUS

61 ZERO DEFECTS  Performance standard should be zero defect and not Acceptable Quality Level (AQL)  Is it Possible to Achieve Zero Defect?  Determination Required  Right Mindset Required  Do not Accept Work from Others Which is not up to the Standard  Do not Pass on the Work to Others Saying that will be Good Enough

62  Do not Put Off Till Later  Do not Put the Blame on Others Perfect System Required  Cultural Change Required  Never Ending Enthusiasm Required  Training Required  Management Commitment Required


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