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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 1
Chapter 7Process Management
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 2
Wisdom from Texas Instruments
Unless you change the process, why wouldyou expect the results to change
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 3
Scope of Process Management
Process Management : planning andadministering the activities design ,control , and improvement necessary toachieve a high level of performance
Four types of key processes Design processes Production/delivery processes Support processes Supplier processes
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 4
AT&T ProcessManagement 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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 5
Control vs. Improvement
Controlledprocess
Improvement
Time
New zoneof control
Out-of-control
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 6
Leading Practices (1 of 2)
Translate customer requirements and internalcapabilities into product and service designrequirements early in the process
Ensure that quality is built into products and servicesand 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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 9
Product Development Process
Ideageneration
Conceptdevelopment
Product &process design
Full-scaleproduction
Productintroduction
Marketevaluation
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 10
Quality Engineering
System Design Functional performance
Parameter Design Nominal dimensions
Tolerance Design Tolerances
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 11
Loss Functions
loss lossno loss
nominaltolerance
loss loss
TraditionalView
Taguchis View
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 12
Taguchi Loss Function Calculations
L(x) = k(x - T) 2
Example : Specification = .500 .020 Failure outside of the tolerance range costs $50to 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 + D 2 ) where D is the deviation from the target.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 13
Taguchi Loss Function CalculationsThe equation used to describe the loss function of one unit of product: L = k(y-m)^2\qquadWhere:
L = Loss in Dollars y = Output Valuem = Target Value of Outputk = Proportionality ConstantThe proportionality constant (k) for nominal-the-best characteristics canbe defined as:
k = \frac {A_0} {\Delta_0^2}Where:
A0 = Consumer Loss (in Dollars) 0 = Maximum Deviation from Target Allowed by Consumer
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 14
Design Objectives
Cost, Manufacturability, Quality,Public Concerns
Tools and Approaches Design for Manufacturability
Design for Environment
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 15
Streamlining Product Development
Competitive need for rapid productdevelopment
Concurrent engineering - a process inwhich all major functions involved with
bringing a product to market arecontinuously involved with the product
development from conception throughsales Design reviews
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 16
House of Quality
Technical requirements
Voice ofthe
customer
Relationshipmatrix
Technical requirementpriorities
Customerrequirement
priorities
Competitiveevaluation
Interrelationships
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 17
Quality Function Deployment
technicalrequirements
component
characteristicsprocess
operations quality plan
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 18
Motorolas Approachto Process Design
1. Identify the product or service2. Identify the customer
3. Identify the supplier4. Identify the process5. Mistake-proof the process6. Develop measurements and control, and
improvement goals.
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 19
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 ateach 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?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 21
Basic Components of Services
Physical facilities, processes, and procedures
Employee behavior Employee professional
judgment
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 22
Key Service Dimensions
Customer contact and interaction
Labor intensity
Customization
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 23
Control
The continuing process of evaluating process performance and taking corrective action whennecessary
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
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 24
After Action Review
1. What was supposed to happen?2. What actually happened?3. Why was there a difference?4. What can we learn?
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 25
Supplier and Partnering Processes
Recognize the strategic importance ofsuppliers
Develop win-win relationships through partnerships
Establish trust through openness andhonesty
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 26
Supplier Certification Systems
Certified supplier one that, afterextensive investigation, is found tosupply material of such quality thatroutine testing on each lot received isunnecessary
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 28
Process Improvement
Productivity improvement Work simplification
Planned methods change
Kaizen Stretch goals Benchmarking Reengineering
TraditionalIndustrial
Engineering
New approaches from
the total qualitymovement
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 29
Kaizen
Gradual and orderly continuousimprovement
Minimal financial investment Involvement of all employees
Exploit the knowledge and experienceof workers
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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson Learning TM 31
Breakthrough Improvement
Discontinuous change resulting from innovativeand 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
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THE MANAGEMENT AND CONTROL OF QUALITY 5e 2002 South Western/Thomson Learning TM 32
Process Managementin the Baldrige Award Criteria
The Process Management Category examines the keyaspects of an organizations process management,including customer-focused design, product and service
delivery, key business, and support processes. ThisCategory encompasses all key processes and all workunits.
6.1 Product and Service Processes
a. Design Processes b. Production/Delivery Processes
6.2 Business Processes
6.3 Support Processes