Chapter 7

Process Management

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

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

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

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Control vs. Improvement

Out-of-control
Controlled
process

Improvement

New zone
of control
Time
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
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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Product Development Paradigms

Traditional Approach
Design the product
Make the product
Sell the product

Demings Approach
Design the product
Make it with
appropriate tests
Put it on the market
Conduct consumer
research
Redesign with
improvements

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Product Development Process

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

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Loss Functions
Traditional
View

loss

no loss

loss

nominal
tolerance

Taguchis
View

loss

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

loss
11

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 - .500)2
Expected loss = k(2 + D2) where D is the deviation
from the target.
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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House of Quality
Interrelationships
Technical requirements
Voice of
the
customer

Customer
requirement
priorities

Relationship
matrix
Technical requirement
priorities

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

Competitive
evaluation
15

Quality Function Deployment

technical
requirements
component
characteristics
process
operations
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

quality plan
16

Motorolas 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.

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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?

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Basic Components of Services

Physical facilities, processes, and
procedures
Employee behavior
Employee professional
judgment

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Key Service Dimensions

Customer contact and interaction

Labor intensity
Customization
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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

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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After Action Review

1.
2.
3.
4.

What was supposed to happen?

What actually happened?
Why was there a difference?
What can we learn?

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Supplier and Partnering Processes

Recognize the strategic importance of
suppliers
Develop win-win relationships through
partnerships
Establish trust through openness and
honesty

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Benefits of Effective Supplier

Process Management

Reduced costs
Faster time to market
Increased access to technology
Reduced supplier risk
Improved quality

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Process Improvement
Productivity improvement
Work simplification
Planned methods change

Kaizen
Stretch goals
Benchmarking
Reengineering

Traditional
Industrial
Engineering

New approaches from

the total quality
movement

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Kaizen
Gradual and orderly continuous
improvement
Minimal financial investment
Involvement of all employees
Exploit the knowledge and experience
of workers
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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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

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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Process Management
in the Baldrige Award Criteria
The Process Management Category examines the key
aspects of an organizations 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
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM

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