1. Designing, Controlling, and Improving Organizational Processes

2. Process Management
Involves design, control, and improvement – the key activities necessary to achieve a high level of performance in key value creation and support processes, and identifying opportunities for improving quality and operational performance, and ultimately, customer satisfaction.

3. Process Design
Good process management begins with good process design.
The design of the processes that produce and deliver goods and services can have a significant impact on cost, flexibility, and quality.
The design of a process begins with the process owner.

4. Product and Service Design
Major factors in strategy
Cost
Quality
Time-to-market
Customer satisfaction
Competitive advantage

5. Trends in Product & Service Design
Increased emphasis on our attention to:
Customer satisfaction
Reducing time to introduce new product
or service
Reducing time to produce product

6. Trends in Product & Service Design (Cont’d)
Increased emphasis on our attention to:
The organization’s capabilities to produce
or deliver the item
Environmental concerns
Designing products & services that are
“user friendly”
Designing products that use less material

7. Product or Service Design Activities
Translate customer wants and needs into product and service requirements
Refine existing products and services
Develop new products and services
Formulate quality goals
Formulate cost targets
Construct and test prototypes
Document specifications

8. Reasons for Product or Service Design
Be competitive
Increase business growth & profits
Avoid downsizing with development of new products
Improve product quality
Achieve cost reductions in labor or materials

9. Objectives of Product and Service Design
Development time and cost
Product or service cost
Resulting product or service quality
Capability to produce or deliver a given product or service

10. Design for Quality in Service Processes
Service processes often involve both internal and external activities, a factor that complicates quality design.
Services have three basic components:
Physical facilities, processes, and procedures
Employees’ behavior
Employees’ professional judgment.

11. Process Control
Control is the activity of ensuring conformance to the requirements and taking corrective action when necessary to correct problems and maintain stable performance.
Any control system has three components: (1) a standard or goal, (2) a means of measuring accomplishment, and (3) comparison of actual results with the standard, along with feedback to form the basis for corrective action.

12. Process Improvement
Any process performance measure naturally fluctuates around some average level. Abnormal conditions cause an unusual deviation form this pattern. Removing the causes of such abnormal conditions and maintaining level of performance is the essence of control. Improvement means changing the performance to a new level.

13. Process Improvement (c0nt’d)
To be able to improve a process, it must be repeatable and measurable.
Repeatability means that the process must recur over time.

14. Continuous Improvement and Kaizen
Continuous improvement to provide quality to customers is essential to total quality.
Kaizen strategy is the cumulative effect of hundreds or thousands of small improvements that creates dramatic change in performance.
Kaizen was created in Japan following World War II. The word Kaizen means "continuous improvement". It comes from the Chinese characters 改 ("kai") which means "change" or "to correct" and 善 ("zen") which means "good".

15. Improvement Processes
Managers need systematic approaches to drive continuous improvement programs.
Some organizations follow some standard and popular approaches, while others develop unique approaches to meet their own needs and cultures.

16. Eastman Chemical Focus and pinpoint Communicate Translate and link
Create a management action plan
Improve processes
Measure progress and provide feedback
Reinforce behaviors and celebrate results

17. Lean Thinking
Lean production refers to approaches initially developed by the Toyota Motor Corporation that focus on the elimination of waste in all forms including defects requiring rework, unnecessary processing steps, unnecessary movement of materials or people, waiting time, excess inventory, and overproduction.
It involves identifying and eliminating non- value-added activities throughout the entire value chain to achieve faster customer response, reduced inventories, higher quality, and better human resources.

18. Tools for Lean Production
The 5 S’s
Seiri - Sort
Seiton - Set in Order
Seiso - Shine
Seiketsu - Standardize
Shitsuke - Sustain
Visual Controls
Efficient Layout and Standardized Work
Pull Production
SMED
Total Productive Maintenance
Source Inspection
Continuous Improvement
C”,)

19. Breakthrough Improvement
This refers to discontinuous change, as opposed to the gradual, continuous improvement philosophy of kaizen.
This results from innovative and creative thinking; often these are motivated by stretch goals, or breakthrough objectives.
2 Approaches: Benchmarking and Reengineering

20. Benchmarking
This is the search for best practices that will lead to superior performance.
It helps a company learn its strengths and weaknesses (as well as those of other companies) and incorporate the best practices into its own operations.
2 major types: Competitive Benchmarking and Generic Benchmarking

21. Competitive Benchmarking versus Generic Benchmarking
Competitive benchmarking usually focuses on the products and manufacturing of a company’s competitors.
Generic benchmarking evaluates processes or business functions against the best companies, regardless of their industry.

22. Reengineering
This is focused on breakthrough improvement to dramatically improve the quality and speed of work and to reduce its cost of fundamentally changing the processes by which work gets done.
Also known as Process Redesign.
This is often used when the improvements needed are so great that incremental changes to operations will not get the job done. The goal is to achieve quantum leaps in performance.

23. Principles of Process Redesign
Reduce handoffs
Eliminate steps
Perform steps in parallel rather than in sequence
Involve key people early

24. Organizational issues in Process Design and Improvement
2 factors critical to the long-term success of reengineering initiatives:
Breadth – extent to which the process maps onto the dimensions of the business, from a single activity in one function to spanning the entire business unit.
Depth – how many of the depth levers (such as structure, skills, IT systems, roles, measurements/incentives, and shared values) are manipulated