Professional Documents
Culture Documents
Order
parts
Repair complete
Repair not authorized
Parts
available
Service visible to customer
Repair
authorized
Service not visible to customer
Perform
work
Inspect/
test and
repair
Perform
corrected
work
Corrective
work
necessary
Parts not
available
16
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Process: Emergency room admission
Subject: Ankle injury patient
Beginning: Enter emergency room
Ending: Leave hospital
1 0.50 15 X Enter emergency room, approach patient window,
2 10.0 - X Sit down and fill out patient history,
3 0.75 40 X Nurse escorts patient to ER triage room,
4 3.00 - X Nurse inspects injury,
5 0.75 40 X Return to waiting room,
6 1.00 - X Wait for available bed,
7 1.00 60 X Go to ER bed,
8 4.00 - X Wait for doctor,
9 5.00 - X Doctor inspects injury and questions patient,
10 2.00 200 X Nurse takes patient to radiology,
11 3.00 - X Technician x-rays patient,
12 2.00 200 X Return to bed in ER,
13 3.00 - X Wait for doctor to return,
14 2.00 - X Doctor provides diagnosis and advice,
15 1.00 60 X Return to emergency entrance area,
16 4.00 - X Check out,
17 2.00 180 X Walk to pharmacy,
18 4.00 - X Pick up prescription,
19 1.00 20 X Leave the building,
Step
no.
Time
(min)
Distance
(ft)
Summary
Number
of steps
Activity
Time
(min)
Distance
(ft)
Transport 9 11 815
Operation 5 23
Inspect 2 8
Store
Delay 3 8
Step description
Insert Step
Append Step
Remove Step
Planning and Documenting a Planning and Documenting a
Process Process - -Process Charts Process Charts- -
E.H. Aghezzaf- Vakgroep Technische
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Evaluating a Process
-Diagnosis-
Are steps arranged in a 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?
17
33
Controlling a Process Controlling Controlling a a Process Process
Process control consists in continually
evaluating performance and taking corrective
action when necessary,
Components of control systems:
Standards and goals,
Means of measuring accomplishments,
Comparison of the results with the standard as a
basis for corrective action,
A well-controlled system is predictable,
E.H. Aghezzaf- Vakgroep Technische
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Generic Quality Control System Generic Quality Control System
Inputs
(Materials)
Processes
Inspection &
Measurement
Identify Causes
Comparison
with
Standards
Comparison
with
Standards
Comparison
with
Standards
Inspection &
Measurement
Inspection &
Measurement
Output
(Products)
Acceptable
Quality
Acceptable
Quality
Acceptable
Quality
C
o
r
r
e
c
t
i
v
e
s
A
c
t
i
o
n
s
C
o
r
r
e
c
t
i
v
e
s
A
c
t
i
o
n
s
P
r
o
c
e
s
s
-
r
e
l
a
t
e
d
Yes
No No No
Yes Yes
M
a
t
e
r
i
a
l
s
-
r
e
l
a
t
e
d
What was supposed to happen? What actually happened?
Why is there a difference? What can we learn?
18
35
Process I mprovement Process I mprovement
Productivity improvement,
Work simplification,
Planned methods change,
Kaizen,
Stretch goals,
Benchmarking,
Reengineering,
Traditional Industrial
Engineering
New approaches from the
total quality movement
E.H. Aghezzaf- Vakgroep Technische
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Process I mprovement Process I mprovement
Supplier
Management &
development
Customer
Identify Quality Problems
Categorize &
Set priorities
Select a Quality Problem
Analyze the Quality
Problem Causes
Collect Relevante Data &
Diagnose for Causes
Confirme the Quality
Problem Causes
Develop Corrective
Actions, Solutions
& New Objectives
Remove the Quality
Problem Causes
Test,
Evaluate &
Implement Solutions
Input Out put Input Out put Input Out put
19
E.H. Aghezzaf- Vakgroep Technische
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The Quality Circle Process The Quality Circle Process
Organization
8-10 members
Same area
Moderator
Presentation
Implementation
monitoring
Solution
Problem results
Problem analysis
Cause & effect
Data collection &
analysis
Problem ID
List alternatives
Consensus
Brainstorming
Training
Group processes
Data collection
Problem analysis
E.H. Aghezzaf- Vakgroep Technische
Bedrijfsvoering (TW18V)
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Tools for Process I mprovement Tools for Process I mprovement
Histogram
0
5
10
15
20
1 2 6 13 10 16 19 17 12 16 20 17 13 5 6 2 1
N
u
m
b
e
r
o
f
d
e
f
e
c
t
s
100
80
60
40
20
0
50
40
30
20
10
0
C
u
m
u
l
a
t
i
v
e
p
e
r
c
e
n
t
a
g
e
Defect type
C
D
A
B
P
o
o
r
D
e
s
i
g
n
D
e
f
e
c
t
i
v
e
P
a
r
t
s
Headliner Defects
Defect type Tally Total
A. Tears in fabric //// 4
B. Discolored fabric /// 3
C. Broken fiber board //// //// //// ////
//// //// //// / 36
D. Ragged edges //// // 7
Total 50
Pareto Chart
Checklists
20
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Tools for Process I mprovement Tools for Process I mprovement
Parameter
values
Characteristics
values
Scatter Diagram
N
u
m
b
e
r
o
f
d
e
f
e
c
t
s
First Second Third
Shift
20
15
10
05
00
Control Charts Bar Chart
E.H. Aghezzaf- Vakgroep Technische
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Tools for I mproving Quality Tools for I mproving Quality
Cause-and-Effect Analysis
Quality
Problem
Machines Measurement Human
Process Environment Materials
Faulty testing equipment
Incorrect specifications
Improper methods
Poor supervision
Lack of concentration
Inadequate training
Out of adjustment
Tooling problems
Old or Worn
Defective from vendor
Not to specifications
Material-
handling problems
Deficiencies
in product design
Ineffective quality
management
Poor process
design
Inaccurate
temperature
control
Dust and
Dirt
21
41
Performance Measurement Performance Measurement
Performance Parameters
Operations that Control Products or Services
Produced and delivered
Customer Satisfaction
Degree to which Products or Services
are Perceived to Meet Expectations
Requirements
Features, Values
and Characteristics
Desired by Cusmoters
Capability
Features, Values
and Characteristics
Delivered by Process
Suppliers Customers Work Groups
Process
Output
Outcome
Work
Ref- TQM, A.R. Tenner & I.J.DeToro
levels levels
E.H. Aghezzaf- Vakgroep Technische
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Process Measurement Process Measurement
Flexibility Measures Flexibility Measures
Degree of empowerment,
Percentage of events in which
customers expectations are
exceeded,
Degree of difficulty to respond
to special requests,
Degree of authority people
have to continuously improve
the process,
Amount of time it takes to
adjust the process to handle
new requirements,
Number of pre-planned
process scenarios,
Effectiveness Measures Effectiveness Measures
Product Appearance,
Performance,
Reliability,
Timeliness,
Usability,
Serviceability,
Durability,
Cost,
Responsiveness,
Dependability,
Accuracy,
Adaptability,
Efficiency Measures Efficiency Measures
Process Cycle Time,
Resources used per unit of
output,
Value Added cost per unit of
output,
Ratio of value added to non-
value added time,
Cost of poor quality,
Wait and delay time per unit
of output,
22
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Breakthrough I mprovement Breakthrough I mprovement
Occasional 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,
E.H. Aghezzaf- Vakgroep Technische
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Breakthrough I mprovement Breakthrough I mprovement
E
x
p
e
c
t
e
d
I
m
p
a
c
t
I
n
c
r
e
a
m
e
n
t
a
l
B
r
e
a
k
t
h
r
o
u
g
h
Ongoing Periodic Occasional
Application Frequency
C
o
n
t
i
n
u
o
u
s
I
m
p
r
o
v
e
m
e
n
t
B
e
n
c
h
m
a
r
k
i
n
g
R
e
e
n
g
i
n
e
e
r
i
n
g
23
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The TQM System The TQM System
Leadership
Education and Training Supportive Structures
Rewards and recognition Communication
Measurement
Total
Involvement
TQM
Continuous Improvement
Customer
Focus
Process
Improvement
E.H. Aghezzaf- Vakgroep Technische
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Total I nvolvement Total I nvolvement
Human Resources,
Leadership,
Empowerment,
Employee Involvement,
Teamwork and work systems,
Suppliers Quality,
24
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Leadership Leadership
The ability to positively influence people
and systems to have a meaningful impact
and achieve results,
Leadership System:
Refers to how decisions are made,
communicated, and carried out at all levels;
mechanisms for leadership development, self-
examination, and improvement,
Effectiveness of leadership system depends in
part on its organizational structure,
48
Leadership Leading Practices Leadership Leadership Leading Practices Leading Practices
Create a customer-focused strategic vision and
clear quality values,
Create and sustain leadership system and
environment for empowerment, innovation, and
organizational learning,
Set high expectations and demonstrate personal
commitment and involvement in quality,
Integrate quality values into daily leadership and
management and communicate extensively,
Integrate public responsibilities and community
support into business practices,
25
E.H. Aghezzaf- Vakgroep Technische
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Leadership Theories Leadership Theories
Trait approach,
Behavioral approach,
Contingency approach,
Role approach,
Emerging theories:
Attributional theory,
Transactional theory,
Transformational leadership theory,
Substitutes for leadership theory,
Emotional intelligence theory,
Leading
Vision
Align
Empower
coach
care
Managing
Plan
Organize
Direct
Coordinate
Control
Getting
Results
Improving
Systems
E.H. Aghezzaf- Vakgroep Technische
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50
Leadership Leadership
Foundation
(Direction)
Commitment
Allocate resources
consistent with leadership
framework
Style
Role model- how we will
behave
Objectives
What is to be acheived in
scheduled period of time
Goal
What is to be acheived
through sustained efforts
over long period of time
Mission
The purpose or the reason
for the existance of the
business
Methodology
How objectives will be
acheived through strategy
and plans
Politicy
Statement of principles that
guide how all business
activities are to function
Values
Define how we will behave
by delineating shared
beliefs
Vision
What we will look like in sucessful future
state
Implement
(Action)
Specific Intent
Broad Intent
Do the right things
(What to do)
Doing things right
(How to do it)
Ref- TQM, A.R. Tenner & I.J.DeToro
26
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Human Resource Paradigms Human Resource Paradigms
Empowerment Empowerment
Old Thinking:
People are part of the process,
Process requires external control,
Managers have to control what people do,
New Thinking:
People design and improve processes,
Workers who run the process control it,
Managers must obtain commitment of workers,
E.H. Aghezzaf- Vakgroep Technische
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52
Empowerment Empowerment
Leading Practices Leading Practices
Promote cooperation and collaboration through
teamwork,
Empower individuals and teams to make decisions
that affect quality and customer satisfaction,
Make extensive investments in training and
education,
Maintain a work environment conducive to the
well-being and growth of all employees,
Monitor extent and effectiveness of HR practices
and measure employee satisfaction,
27
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Empowerment Empowerment
A
l
i
g
n
m
e
n
t
C
a
p
a
b
i
l
i
t
y
Trust
Empowerment in three
Dimensions
- Capability
- Alignment
- Trust
Build Capability
I ndividuals System
- Ability - Materials
- Skills - Methods
- Knowledge - Machines
E.H. Aghezzaf- Vakgroep Technische
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54
Empowerment Empowerment
Build Alignment
1. Teach your mission, vision, values, and
objectives,
2. Build everyone's commitment to them,
A
l
i
g
n
m
e
n
t
Trust
Without alignment and trust the
organization will suffer with paralisis,
bureaucracy, or chaos.
Build Mutual Trust
Employees feel that:
1. They can trust their managers,
2. Thier managers trust them,
Bureaucracy
Paralysis
Empowerment
Chaos
28
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Measuring Employee Measuring Employee
Satisfaction and Effectiveness Satisfaction and Effectiveness
Satisfaction,
Quality of work-life, training, teamwork,
leadership, communications, compensation,
benefits, internal suppliers and customers,
Effectiveness,
Team and individual behavior, cost, quality,
and productivity improvements, employee
turnover; suggestions, training effectiveness,
56
Supplier and Partnering
Processes
Supplier and Partnering Supplier and Partnering
Processes Processes
Recognize the strategic importance of
suppliers,
Develop win-win relationships through
strong partnerships,
Establish trust through openness and
honesty,
Reduce number of suppliers and integrate
the important once and eliminate the others,
29
E.H. Aghezzaf- Vakgroep Technische
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Suppliers Quality Suppliers Quality
Certified supplier one that, after
extensive investigation, is found to supply
material of such quality that routine testing
on each lot received is unnecessary,
Benefits of Effective Supplier Process
Management:
Reduced costs and faster time to market,
Increased access to technology,
Reduced supplier risk and improved quality,
E.H. Aghezzaf- Vakgroep Technische
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Strategies for quality Strategies for quality
Customer
Focus
Process
Improvement
Total
Involvement
Continuous
Improvement
Strategies and Plans
30
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Linking the Strategic Planning To Linking the Strategic Planning To
Process Management Process Management
Desired
Business Strategy
Operations
Strategy
Desired
Capabilities
Marketing, ,
Financial Strategy
Desired Operational
Structure: Processes &
Infrastructure
Product
Attributes
Price, Time,
Quality,
Variety
Process Attributes
Cost, Time,
Quality,
Flexibility
Existing
Capabilities
Current Operational
Structure: Processes &
Infrastructure
Existing Desired
Feasible
Business Strategies
Strategy Gap?
Measures
Capability Gap?
Process Gap?
E.H. Aghezzaf- Vakgroep Technische
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The TQM The TQM
Strategic Model Strategic Model
Business/Activity
Mission
Vision
Values
Goals
Critical success
factors
Objectives
Competitive Analysis Strengths/Weaknesses
Assumptions
Strategies
Programs
Organization Projects Budgets/Resources
31
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Objective Quality Objective Quality
Top management
Consensus
Generalised Education
and training
From Problem Solving
to Process Control
Quality Management
Policies
Deployment
Integration of quality
Management
&
Business Strategies
1
2
3
4
5
E.H. Aghezzaf- Vakgroep Technische
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Strategic Planning Strategic Planning
Guideline Guideliness
32
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Strategic Management
The Strategic Management is a long-term, future
oriented process of assessment, goal setting, and
decision-making that maps an explicit path between
the present and a vision of the future.
This process relies on careful consideration of an
organizations capabilities and the environment.
This process leads also to priority-based resource
allocation for achieving the organizations mission.
E.H. Aghezzaf- Vakgroep Technische
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64
Strategic Management
Vision
A vision is an inspiring picture of a preferred
future, not bound by time. It represents global and
continuing purposes. It serves as a foundation for
strategic planning.
A vision would depict an ideal future for the
organization and the contributions that it can make
to that end.
33
E.H. Aghezzaf- Vakgroep Technische
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Strategic Management
Goals
The general ends toward which the organization
directs its efforts.
They address the primary issues facing the
organization within broad grouping of interrelated
concerns.
They are founded on the vision and may involve
coordination among several department with
similar functions.
E.H. Aghezzaf- Vakgroep Technische
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Strategic Management
Mission
The reason for an organizations existence. it
succinctly identifies what the organization does,
why, and for whom it does it.
A mission reminds everyone in the organization,
and also outside, of the unique purposes promoted
and served by the organization.
34
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Strategic Management
Objectives
Objectives are clear targets for specific action.
They are more detailed than goals, they have
shorter time frames, and may state a quantity.
They are achievable, measurable, and they set the
direction for strategies.
A single goal may be subdivided into multiple
objectives.
E.H. Aghezzaf- Vakgroep Technische
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Strategic Management
Strategy
Strategies are the methods to achieve goals
and objectives.
The means of transforming inputs into
outputs, and ultimately outcomes, with the
best use of resources.
35
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Performance Measures
Indicators of the work performed and the
results achieved. Can divided into:
Output measures
Outcomes measures
Input measures
Efficiency measures
E.H. Aghezzaf- Vakgroep Technische
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Output Measures
Outputs are the goods and services produced by an
organization.
Output measures are the tools, or indicators, to
count the services and goods produced by an
organization.
The number of people receiving a service, or unit
produced, or the number of services and customer
delivered are often used as measures of output.
36
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Development Guides
Is the output reliably measurable?
Is the output measure directly related to the
organization's strategies?
Does the output measure show the quantity
of work performed?
Can the measure be stated in unit cost
terms?
Is the output measure clear?
E.H. Aghezzaf- Vakgroep Technische
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Outcome Measures
Outcomes are the quantified results, or
impacts, of organization action.
Outcome measures are tools, or indicators, to
assess the actual impact of an organizations
action.
A means for quantified comparison between
the actual results and the intended result.
37
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Development Guides
Is the outcome measure directly related to the
organizations goals.
Is the outcome reliably measurable?
Does the outcome measure show what change
(difference) the organizations action will have on
the target group or problem?
Can the organization gather data for the outcome
measure without incurring excessive costs or
undertaking cumbersome procedures?
Is the outcome measure clear?
E.H. Aghezzaf- Vakgroep Technische
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Output versus Outcome Measures
Percentage of high school graduates (output
measure) is not the same as the percentage of
students with a certain level of mastery of subjects
(outcome measure).
The number of patients treated and discharged
from a state mental hospital (output measure) is
not the same as the number of discharged patients
who are capable of living independently (outcome
measure).
38
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Input Measures
The resources that an organization uses to produce
products and services, including human, financial,
facility, or material resources.
Number of s expended
Kilograms of material used
Also includes measures of the scope of an
organizations operations:
Number of clients eligible for services
Number of entities subject to inspection/regulation
Number of applications or order received
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Efficiency Measures
Indicators that measure the cost, unit cost or
productivity associated with a given
outcome or output.
Average cost per client served
Average cost per inspection
Average time to process an order