TQM Principle 7: Process

design
Report By: Roscelline Franchesca C. Dela
Peña
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.
Product and Service Quality
Depend on Processes
• Manufacturing and service organization were measuring,
confirming and analyzing quality with reference to the final
product alone.
• 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.
 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.
MODEL FOR PROCESS
DEFINITION
 Input/s to the process
Output/s of the process
The process or task
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.
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
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.

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• 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.

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ETX MODEL
• The most popular process model is ETX as shown in figure.

ENTRY TASK EXIT

INPUT OUTPUT

EXT MODEL

ETX stands for Entry, Task and Exit. The value adding
process is called Task. The new items in the diagram
are Entry and Exit
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Entry – Conditions to be satisfied before the task is undertaken.
Exit - Conditions to be fulfilled before the task is considered as
completed.

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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.

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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.

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

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SUBBURAJ’s 6s MODEL FOR
PROCESS IMPROVEMENT
• Since 1991, the author has been heading ETDC (Electronics
test & Development Centre, Chennai, Tamil Nadu, India) which
is a testing and calibration service provider, offering services
to more than 700 organization in a year.

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Subburaj’s 6s for Process
Improvement
Study

Strengthen Streamline
Process
Improvement
Synergize Simplify

Standardize

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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.
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.
SIMPLIFY
• One has to formulate a simplified procedure for carrying out
the task without increasing the cost and compromising on
quality.
STANDARDIZE
permits performing the process in the same way by every employee
at all times.
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.
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

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

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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.
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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.
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.
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.

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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.

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

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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.

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SUPPLY CHAIN MANAGEMENT(SCM)

 Demand Planning
 Manufacturing Planning and Scheduling
 Supply Planning
 Transportation Planning
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.
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.
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.
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.

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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.
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
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
• 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
LEAN MANUFACTURING
• (also known as Lean Management, Lean Enterprise, Lean
Production, Lean Thinking – they are all names for the same thing) is
a system of management developed by the Toyota Motor
Corporation and adapted successfully across the world to almost
every sector of manufacturing as well as a huge range of non-
manufacturing sectors including Healthcare, Banking, Government
and Services.
• Doing more with less by employing 'lean thinking.' Lean
manufacturing involves never ending efforts to eliminate or reduce
'muda' (Japanese for waste or any activity that consumes resources
without adding value) in design, manufacturing, distribution,
and customer service processes. Developed by the
Toyota executive Taiichi Ohno (1912-90) during post-Second World
War reconstruction period in Japan, and popularized by James P.
Womack and Daniel T. Jones in their 1996 book 'Lean Thinking.' Also
called lean production.