Chapter 7 - YazdMistake-Proofing Processes Typical reasons for mistakes and errors: Forgetfulness...

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Evans & Lindsay (2008) MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e

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Chapter 7

Process

Management

Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University

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Why process?

“Unless you change the process, why would

you expect the results to change”


Processes

A process is a sequence of linked activities that

is intended to achieve some result.

Processes involve combinations of people,

machines, tools, techniques, materials, and

improvements in a defined series of steps or

actions.

Examples: machining, mixing, assembly, filling

orders, approving loans

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Process Versus Function

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Key Idea

Process management involves planning

and administering the activities necessary

to achieve a high level of performance in

key business processes, and identifying

opportunities for improving quality and

operational performance, and ultimately,

customer satisfaction.


Process Management Activities

Design

Ensuring that the inputs to the process, such as materials,

technology, work methods, and a trained workforce are

adequate, and that the process can achieve its

requirements.

Control

Maintaining consistency in output by assessing

performance and taking corrective action when necessary.

Improvement

Continually seeking to achieve higher levels of

performance in the process, such as reduced variation,

higher yields, fewer defects and errors, smaller cycle

times, and so on.

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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


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Value Analysis/Value Engineering (VA/VE)

–Does the item have any design features that are

not necessary?

–Can two or more parts be combined into one?

–How can we cut down the weight?

–Are there nonstandard parts that can be

eliminated?


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Key Idea

Leading companies identify important

business processes throughout the value

chain that affect customer satisfaction.

These processes typically fall into two

categories: value-creation processes and

support processes.

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Types of Processes

Value-creation processes – those most

important to “running the business”

Design processes – activities that develop

functional product specifications

Production/delivery processes – those that

create or deliver products

Support processes – those most important

to an organization’s value creation

processes, employees, and daily

operations


Process Requirements

Value creation process requirements usually

depend on consumer or external customer

needs.

Support process requirements are driven

by internal customer needs and must be

aligned with the needs of key value-creation

processes

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Leading Practices (1 of 2)

Define, document, and manage important value creation and support processes

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

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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


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Product Development Process

Idea

generation

Concept

development

Product &

process design

Full-scale

production

Product

introduction

Market

evaluation


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Control vs. Improvement

Controlled

process Improvement

Time

New zone

of control

Out-of-control

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Process Design

The goal of process design is to develop an

efficient process that satisfies both internal

and external customer requirements and is

capable of achieving the requisite level of

quality and performance.

Process design considerations include

safety, cost, variability, productivity,

environmental impact, “green”

manufacturing, measurement capability,

and maintainability of equipment.

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Process Mapping

A process map

(flowchart) describes

the specific steps in a

process.

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Developing Process Maps

1. Begin with the process output and ask, “What is the

last essential subprocess that produces the output of

the process?”

2. For that subprocess, ask, “What input does it need to

produce the process output?” For each input, test its

value to ensure that it is required.

3. For each input, identify its source. In many cases, the

input will be the output of the previous subprocess. In

some cases, the input may come from external

suppliers.

4. Continue backward, one subprocess at a time, until

each input comes from an external supplier

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Analyzing Process Maps

Are the steps in the process arranged in logical sequence?

Do all steps add value? Can some steps be eliminated and should

others be added in order to improve quality or operational

performance? Can some be combined? Should some be

reordered?

Are capacities of each step in balance; that is, do bottlenecks exist

for which customers will incur excessive waiting time?

What skills, equipment, and tools are required at each step of the

process? Should some steps be automated?

At which points in the system might errors occur that would result

in customer dissatisfaction, and how might these errors be

corrected?

At which point or points should quality be measured?

Where interaction with the customer occurs, what procedures and

guidelines should employees follow to present a positive image? 19


Service Process Design

Three basic components:

Physical facilities, processes and procedures

Employee behavior

Employee professional judgment

Designing a service essentially involves

determining an effective balance among

all three of these.

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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University 21

Key Service Dimensions

Customer contact and interaction

Labor intensity

Customization

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Key Questions for Service

Process Design What service standards are required to be met?

What is the final result of the service to be provided?

At what point does the service begin, and what signals its

completion?

What is the maximum waiting time that a customer will

tolerate?

How long should it take to perform the service?

Who must the consumer deal with in completing the

service?

What components of the service are essential? Desirable?

Superfluous?

Which components can differ from one service encounter

to another while still meeting standards? 22


Design for Agility

Agility refers to flexibility and short cycle times.

Flexibility refers to the ability to adapt quickly

and effectively to changing requirements.

Examples:

rapid changeover from one product to another

rapid response to changing demands

the ability to produce a wide range of customized

services

Agility is crucial to such customer-focused

strategies as mass customization.

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Cycle Time

Cycle time – the time it takes to accomplish one cycle of a process

Reductions in cycle time serve two purposes

First, they speed up work processes so that customer response is improved.

Second, reductions in cycle time can only be accomplished by streamlining and simplifying processes to eliminate non-value-added steps such as rework.

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Mistake-Proofing Processes

Typical reasons for mistakes and errors:

Forgetfulness due to lack of reinforcement or

guidance

Misunderstanding or incorrect identification

because of the lack of familiarity with process

or procedures

Lack of experience

Absentmindedness and lack of attention,

especially when a process is automated

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Preventing Mistakes

1. Designing potential defects and errors out of

the process. This eliminates any possibility that

the error or defect will occur and will not result in

rework, scrap, or wasted time.

2. Identifying potential defects and errors and

stopping a process before they occur. Often

results in some non-value-added time.

3. Identifying defects and errors soon after they

occur and quickly correcting the process. Results

in some scrap, rework, and wasted resources. 26


Poka-Yoke

…an approach for mistake-proofing processes

using automatic devices or simple methods to

avoid human error.

Based on:

Prediction, or recognizing that a defect is about to

occur and providing a warning

Detection, or recognizing that a defect has

occurred and stopping the process.

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Examples

Many machines have sensors that would be activated only if the

part was placed in the correct position.

A device on a drill counts the number of holes drilled in a work

piece; a buzzer sounds if the work piece is removed before the

correct number of holes has been drilled.

Computer programs display a warning message if a file that has

not been saved is to be closed.

Passwords set for web accounts are entered twice.

Orders for critical aircraft parts use pre-fit foam forms that only

allow the correct part to be placed in them, ensuring that the

correct parts are shipped.

Associates at Amazon sort products into bins that weigh them

and compare the weight to the order; if there is an inconsistency,

the associate is prompted to verify the items.

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Types of Service Errors

Task errors include doing work incorrectly, work

not requested, work on the wrong order, or

working too slowly.

Treatment errors in the contact between the server

and the customer, such as lack of courteous

behavior, and failure to acknowledge, listen, or

react appropriately to the customer.

Tangible errors, such as unclean facilities, dirty

uniforms, inappropriate temperature, and

document errors.

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Process Control

Control – the activity of ensuring conformance to

requirements and taking corrective action when

necessary to correct problems and maintain stable

performance

Control is different from improvement:

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Elements of Control Systems

Any control system has four elements:

(1) a standard or goal,

(2) a means of measuring accomplishment,

(3) comparison of results with the standard to

provide feedback, and

(4) the ability to make corrections as

appropriate.

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Control and Improvement

Control should be the basis for organizational

learning and lead to improvement and

prevention of defects and errors.

After-action review

What was supposed to happen?

What actually happened?

Why was there a difference?

What can we learn?

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Process Control in

Manufacturing

Control is usually applied to incoming materials,

key processes, and final products and services.

Effective quality control systems include

documented procedures for all key processes;

a clear understanding of the appropriate equipment

and working environment;

methods for monitoring and controlling critical quality

characteristics; approval processes for equipment;

criteria for workmanship, such as written standards,

samples, or illustrations; and

maintenance activities. 33

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Continuous Improvement

…refers to both incremental changes, which

are small and gradual, and breakthrough

improvements, which are large and rapid.

Continuous improvement is important

because Customer loyalty is driven by delivered value.

Delivered value is created by business processes.

Sustained success in competitive markets requires a business to

continuously improve delivered value.

To continuously improve value-creation ability, a business must

continuously improve its value-creation processes.

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Learning

…understanding why changes are successful

through feedback between practices and

results, leading to new goals and

approaches.

A learning cycle consists of four stages:

1. Planning

2. Execution of plans

3. Assessment of progress

4. Revision of plans based upon assessment

findings

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Kaizen

Kaizen – a Japanese word that means

gradual and orderly continuous improvement

Focus on small, gradual, and frequent

improvements over the long term with

minimum financial investment, and

participation by everyone in the organization.

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Breakthrough Improvement

…refers to discontinuous change, as opposed

to the gradual, continuous improvement

philosophy of kaizen.

Breakthrough improvements result from

innovative and creative thinking; often these are

motivated by stretch goals, or breakthrough

objectives.

Example (Motorola):

Improve product and services quality ten times within

two years, and at least 100-fold within four years

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Benchmarking

Benchmarking – “the search of industry best

practices that lead to superior performance.”

Best practices – approaches that produce

exceptional results, are usually innovative in

terms of the use of technology or human

resources, and are recognized by customers or

industry experts.

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Types of Benchmarking

Competitive benchmarking - studying

products or business results against

competitors to compare pricing, technical

quality, features, and other quality or

performance characteristics.

Process benchmarking – identifying the most

effective practices in key work processes in

organizations that perform similar functions,

no matter in what industry.

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Reengineering

Reengineering – the fundamental rethinking

and radical redesign of business processes to

achieve dramatic improvements in critical,

contemporary measures of performance, such

as cost, quality, service, and speed.

Reengineering involves asking basic questions

about business processes:

Why do we do it?

Why is it done this way?

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Managing Supply Chain

Processes

Suppliers include not only companies that

provide materials and components, but also

distributors, transportation companies, and

information, health care, and education

providers.

Many companies segment suppliers into

categories based on their importance to the

business and manage them accordingly.

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Supply Chain Management

Principles

1. Recognizing the strategic importance of

suppliers in accomplishing business objectives,

particularly minimizing the total cost of ownership,

2. Developing win-win relationships through long-

term partnerships rather than as adversaries, and

3. Establishing trust through openness and

honesty, thus leading to mutual advantages.

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Supplier Certification

…designed to rate and certify suppliers who

provide quality materials in a cost-effective and

timely manner.

The Pharmaceutical Manufacturers Association

defines a certified supplier as one that, after

extensive investigation, is found to supply material of

such quality that routine testing on each lot received

is unnecessary.

Supplier certification processes can be time-

consuming and expensive to administer. Using

a uniform set of standards such as ISO 9000

can reduce costs.. 43


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Chapter 7 - YazdMistake-Proofing Processes Typical reasons for mistakes and errors: Forgetfulness...

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