Chapter 7 – Process Management Leading practices, Quality engineering, Product design and development, Process evaluation, Projects, Services, Suppliers, Kaizen, Baldrige criteria 11/10/02 SJSU Bus. 142 - David Bentley

Wisdom from Texas Instruments THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Wisdom from Texas Instruments “Unless you change the process, why would you expect the results to change” 11/10/02 SJSU Bus. 142 - David Bentley

Scope of Process Management THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

Control vs. Improvement THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Control vs. Improvement Controlled process Improvement Time New zone of control Out-of-control 11/10/02 SJSU Bus. 142 - David Bentley

Leading Practices (1 of 2) THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

Leading Practices (2 of 2) THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

Product Developm’t Paradigms THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Product Developm’t Paradigms Deming’s Approach Design the product Make it with appropriate tests Put it on the market Conduct consumer research Redesign with improvements Traditional Approach Design the product Make the product Sell the product 11/10/02 SJSU Bus. 142 - David Bentley

Product Development Process THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Product Development Process Idea generation Concept development Product & process design Full-scale production Product introduction Market evaluation 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Quality Engineering System Design Functional performance Parameter Design Nominal dimensions Tolerance Design Tolerances 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Design Objectives Customer Requirements Quality Manufacturability Cost Public Concerns Rev. 02/24/06 SJSU Bus. 142 - David Bentley

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) Rev. 09/26/06 SJSU Bus 142- David Bentley

Product Design Guidelines From Richard Schonberger: General Guidelines Quality Guidelines Operability Guidelines Rev. 02/24/06 SJSU Bus 142 - David Bentley

General Guidelines (Schonberger) Design to target markets and target costs. Minimize number of parts and number of operations 11/21/02 SJSU Bus 142 - David Bentley

Quality Guidelines (Schonberger) Ensure that customer requirements are known and design to those requirements Ensure that process capabilities are known (those in your firm and of your suppliers) and design to those Use standard procedures, materials, and processes with already known and proven quality 11/21/02 SJSU Bus 142 - David Bentley

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) 11/21/02 SJSU Bus 142 - David Bentley

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 11/21/02 SJSU Bus 142 - David Bentley

Streamlining Product Development THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 (vs. “over-the-wall”) Design reviews Rev. 02/24/06 SJSU Bus. 142 - David Bentley

Motorola Approach to Process Design (process owner) THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Motorola Approach to Process Design (process owner) 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. 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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? 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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? 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

Basic Components of Services THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Basic Components of Services Physical facilities, processes, and procedures Employee behavior Employee professional judgment 11/10/02 SJSU Bus. 142 - David Bentley

Key Service Dimensions THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Key Service Dimensions Customer contact and interaction Labor intensity Customization 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Control 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 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM After Action Review What was supposed to happen? What actually happened? Why was there a difference? What can we learn? 11/10/02 SJSU Bus. 142 - David Bentley

Supplier and Partnering Processes THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Supplier and Partnering Processes Recognize the strategic importance of suppliers Develop win-win relationships through partnerships Establish trust through openness and honesty 11/10/02 SJSU Bus. 142 - David Bentley

Supplier Certification Systems THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

Benefits of Effective Supplier Process Management THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Benefits of Effective Supplier Process Management Reduced costs Faster time to market Increased access to technology Reduced supplier risk Improved quality 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Process Improvement Productivity improvement Work simplification Planned methods change Kaizen Stretch goals Benchmarking Reengineering Traditional Industrial Engineering New approaches from the total quality movement 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM Kaizen Gradual and orderly continuous improvement Minimal financial investment Involvement of all employees Exploit the knowledge and experience of workers 11/10/02 SJSU Bus. 142 - David Bentley

SJSU Bus. 142 - David Bentley THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley

Breakthrough Improvement THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 Rev. 02/24/06 SJSU Bus. 142 - David Bentley

Process Management in the Baldrige Award Criteria THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 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 11/10/02 SJSU Bus. 142 - David Bentley