3c564bpsm.mod 2 Part-A

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Amity Business School

Demming± ³Most quality problems have been due to processes and

seldom have they been due to men ± as normally thought´

- Value Chain

- Value Adding Processes- Support Processes

Process Management




Some leading practices:

± T ranslation of customers requirements into product & service design earlyenough in the process taking into account all linkages between product designrequirement, conversion processes, supplier capabilities & legal andenvironmental considerations.

± Ensuring that quality is built into the product and services and use propertechnologies, qualitative tools and approaches during the developmentalprocess.

± Product development process manages cross functional communication, reducetime, smooth and uninterrupted introduction of product and process.

± Define and Document important product, delivery & support processes andmanage them as an important business process

± Define performance requirement for suppliers, partners and relationships ± Control quality and operational performance, identify significant variations,

analyze root- causes, apply corrections and verify results. ± Continuously improve process ± Innovate for breakthrough performance improvements through benchmarking

and re-engineering.

Process Management (contd.)




T ypes of ProcessesT ypes of ProcessesValueValue--creation processescreation processes ± ± those most important to ³running the business´those most important to ³running the business´

± ± Design processesDesign processes ± ± activities that develop functionalactivities that develop functional product specifications product specifications ± ± Production/delivery processesProduction/delivery processes ± ± those that create or those that create or

deliver productdeliver product

Support processesSupport processes ± ± those most important to anthose most important to anorganization¶s value creation processes, employees, andorganization¶s value creation processes, employees, anddaily operationsdaily operations




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Control vs. ImprovementControl vs. Improvement

Controlledprocess

Improvement

T ime

New zoneof control

Out-of-control




Benchmarked ProcessIdea generationPreliminary Concept Development

Product/Process DevelopmentFull-Scale production

Market introductionMarket evaluation

Design Approach Considerations ± Performance ± Cost ± Manufacturability/ Serviceability ± Facility, suppliers & partners capability & preparedness ± Safety & environment

Streamlining Design process ± Concurrent engineering/simultaneous engineering ± Reduced Cycle-time ± Cross Functional involvement

Product Design Process

CONCEPTUALIZATION

CONVERSION

EXECUTION




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Product Development ProcessProduct Development Process

Ideageneration

Ideageneration

Concept

developmentProduct &

process design

Full-scaleproduction

Productintroduction

Marketevaluation




K ey IdeaK ey Idea

Product design can significantly affect the cost of manufacturing (direct and indirect labor,materials, and overhead), redesign, warranty, andfield repair; the efficiency by which the productcan be manufactured, and the quality of theoutput.




Design for ManufacturabilityDesign for Manufacturability

DFMDFM ± ± the process of designing a productthe process of designing a product

for efficient production at the highest levelfor efficient production at the highest levelof qualityof quality




Key Idea

Key Idea

DFM is intended to prevent product designs that simplify assembly operationsbut require more complex and expensivecomponents, designs that simplifycomponent manufacture while

complicating the assembly process, anddesigns that are simple and inexpensiveto produce but difficult or expensive toservice or support.




Design Quality and SocialDesign Quality and SocialResponsibilityResponsibility

Product liability issuesProduct liability issues

Environmental issuesEnvironmental issues ± ± Design for Environment (DfE)Design for Environment (DfE) -- is the explicit

consideration of environmental concernsduring the design of products and processes,and includes such practices as designing for recyclability and disassembly.




1111

Streamlining ProductStreamlining ProductDevelopmentDevelopment

Streamlining ProductStreamlining ProductDevelopmentDevelopment

Competitive need for rapid productCompetitive need for rapid product

developmentdevelopmentConcurrent (simultaneous) engineeringConcurrent (simultaneous) engineering

-- A process in which all major functions A process in which all major functionsinvolved with bringing a product to marketinvolved with bringing a product to marketare continuously involved with the productare continuously involved with the productdevelopment from conception through salesdevelopment from conception through salesDesign reviewsDesign reviews




Designing Processes for QualityDesigning Processes for Quality1. Identify the product or service : W hat work do I do?2. Identify the customer : W ho is the work for?3. Identify the supplier : W hat do I need and from whom do I

get it?4. Identify the process : W hat steps or tasks are performed?

W hat are the inputs and outputs for each step?5. Mistake-proof the process : How can I eliminate or simplify

tasks? W hat ³poka-yoke´ (i.e., mistake-proofing) devices(see Chapter 13) can I use?

6. Develop measurements and controls, and improvement goals : How do I evaluate the process? How can I improvefurther?




Support Processes

Basic Understanding of significant ones;

± H uman Resources Processes

± Information Technology Processes ± Finance & Accounts ± Project Management

Exercise: H ow the above processes get influenced by TQM culture

± Customer Orientation ± Strategic Fit ± Cross Functional Alignment

± Data Analysis ± Measurement and Controls

± Continuous Improvement




Projects as ValueProjects as Value- -CreationCreationProcessesProcesses

ProjectsProjects -- temporary work structures thatstart up, produce products or services, andthen shut down.Project management ± all activities

associated with planning, scheduling, andcontrolling projects




Key Idea

Key Idea

S uccessful project managers have fourkey skills: a bias toward task completion,technical and administrative credibility,interpersonal and political sensitivity,and leadership ability.




Project Life Cycle ManagementProject Life Cycle Management(1 of 2)(1 of 2)

Project Quality Initiation : Define directions,priorities, limitations, and constraints.Project Quality Planning : Create a blueprintfor the scope of the project and resourcesneeded to accomplish it.

Project Quality Assurance : Useappropriate, qualified processes to meettechnical project design specifications.




Project Life Cycle ManagementProject Life Cycle Management(2 of 2)(2 of 2)

Project Quality Control : Use appropriatecommunication and management tools to

ensure that managerial performance,process improvements, and customer satisfaction is tracked.Project Quality Closure : Evaluate

customer satisfaction with projectdeliverables and assess success andfailures that provide learning for futureprojects and referrals from satisfiedcustomers.




Decentralization & Strategic Outsourcing ± Adding new dimension to the significance ± Competency development, Talent retention & cost of ownership ± Flexibility & Speed to market

Supplier Involvement ± Product Development ± From Design to Delivery ± Service & Spare parts ± Bench marking on Technology, Materials, Practices & Designs

Guiding Principles ± Realization of the strategic importance of suppliers ± Developing win-win relationship with suppliers ± Establishing trust through transparency leading to mutual benefits

Exercise : On customer orientation of suppliers

Supplier & Partnership Processes




J uran¶s Trend in Supplier Relationships

Element Traditional/Adversarial TQM- Teamwork Focus

N o. of suppliers Multiple/Many Few/Often Single

Duration of suppliers Annual Contracts 3yrs. or moreQuality Criteria Conformance to Total Alignment

Specifications Fit for use

Emphasis on Surveys Procedures, Data & Process Capabilitysystems

Quality Planning Separate J oint Certification

Pattern of Partnership Arms Length Mutual Visits Secrecy Disclosures & Transparency

Mutual Supervision Mutual Assistance

Supplier Partnerships




Service Product Design: ± Exercise on application of TQM requirement checks ± On how it can influence the Delivery Process

± Typical Customer requirement to be converted in product & delivery

H ow Service Processes are µunique¶ ± Measurements are not always possible ± Dealing with softer side of life

± There is no standard customer

Delivery of Front-end contacts getting influenced by: ± Too many things which are beyond his control or influence ± Physical Facility ± Professional J udgment

± Personal Behaviors

Service Processes




Service Process DesignService Process Design

Three basic components:Three basic components:

± ± Physical facilities, processes and proceduresPhysical facilities, processes and procedures ± ± Employee behavior Employee behavior ± ± Employee professional judgmentEmployee professional judgment




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K ey Service DimensionsK ey Service DimensionsK ey Service DimensionsK ey Service Dimensions

Customer contact and interaction

Labor intensity

Customization




K ey IdeaK ey Idea

S ervice process designers must concentrate on doing things right thefirst time, minimizing process

complexities, and making the processimmune to inadvertent human errors,particularly during customer interactions.




Process ControlProcess ControlControlControl ± ± the activity of ensuringthe activity of ensuring

conformance to requirements and takingconformance to requirements and takingcorrective action when necessary tocorrective action when necessary tocorrect problems and maintain stablecorrect problems and maintain stableperformanceperformance




Key Idea

Key Idea

P rocess control is important for tworeasons. First, process control methodsare the basis for effective dailymanagement of processes. S econd,long-term improvements cannot be

made to a process unless the process isfirst brought under control.




Components of ControlComponents of ControlSystemsSystems

Any control system has threecomponents:

1. a standard or goal,2. a means of measuring accomplishment, and3. comparison of actual results with the

standard, along with feedback to form thebasis for corrective action.




Key Idea

Key Idea

I n manufacturing, control is usuallyapplied to incoming materials, keyprocesses, and final products andservices.




Effective Control SystemsEffective Control Systems

documented procedures for all key processes;a clear understanding of the appropriateequipment and working environment;methods for monitoring and controlling criticalquality characteristics;approval processes for equipment;criteria for workmanship, such as writtenstandards, samples, or illustrations; andmaintenance activities.






Importance of ProcessImportance of ProcessImprovementImprovement

Customer loyalty is driven by delivered value.Delivered value is created by businessprocesses.Sustained success in competitive marketsrequires a business to continuously improvedelivered value.To continuously improve value creation ability, abusiness must continuously improve its valuecreation processes.




Key Idea

Key Idea

I mprovement should be a proactivetask of management and be viewed asan opportunity, not simply as a reactionto problems and competitive threats.




Kaizen

Kaizen

K aizenK aizen ± ± a Japanese word that meansa Japanese word that meansgradual and orderly continuousgradual and orderly continuousimprovementimprovementFocus on small, gradual, and frequentFocus on small, gradual, and frequentimprovements over the long term withimprovements over the long term with

minimum financial investment, andminimum financial investment, andparticipation by everyone in theparticipation by everyone in theorganization.organization.




FlexibilityFlexibilityFlexibility ± the ability to adapt quickly and

effectively to changing requirements. ± rapid changeover from one product toanother,

± rapid response to changing demands, ± the ability to produce a wide range of

customized services.




Cycle TimeCycle Time

Cycle time ± the time it takes toaccomplish one cycle of a process

Reductions in cycle time serve twopurposes ± First, they speed up work processes so

that customer response is improved. ± Second, reductions in cycle time can only

be accomplished by streamlining andsimplifying processes to eliminate non-value-added steps such as rework.






Key Idea

Key Idea

S tretch goals force an organization to

think in a radically different way, and toencourage major improvements as wellas incremental ones.




Benchmarking

Benchmarking

B enchmarking ± ³the search of industry bestpractices that lead to superior performance.´B est practices ± approaches that produceexceptional results, are usually innovative interms of the use of technology or human

resources, and are recognized by customers or industry experts.




Types of B enchmarkingTypes of B enchmarking

Competitive benchmarkingCompetitive benchmarking -- studyingstudyingproducts, processes, or businessproducts, processes, or business

performance of competitors in the sameperformance of competitors in the sameindustry to compare pricing, technical quality,industry to compare pricing, technical quality,features, and other quality or performancefeatures, and other quality or performancecharacteristics of products and services.characteristics of products and services.Process benchmarkingProcess benchmarking ± ± focus on key workfocus on key workprocessesprocessesStrategic benchmarkingStrategic benchmarking ± ± focus on howfocus on howcompanies compete and strategies that leadcompanies compete and strategies that leadto competitive advantageto competitive advantage






Key Idea

Key Idea

Reengineering involves asking basicquestions about business processes:Why do we do it? and Why is it done

this way?

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3c564bpsm.mod 2 Part-A

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