Post on 16-Aug-2020
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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”
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
Process Versus Function
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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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.
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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?
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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Product Development Process
Idea
generation
Concept
development
Product &
process design
Full-scale
production
Product
introduction
Market
evaluation
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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Control vs. Improvement
Controlled
process Improvement
Time
New zone
of control
Out-of-control
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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
Process Mapping
A process map
(flowchart) describes
the specific steps in a
process.
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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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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Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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
Evans & Lindsay, MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Dr. Owlia, Yazd University
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یکی از فراینذهای کلیذی سازمان را انتخاب
:آنکرده و با مشخص کردن مراحل
1- در مورد ساده سازی فراینذ پیشنهاد دهیذ.
2- در مورد ارتقاء فراینذ در جهت افسایش
.رضایت مشتری بحث کنیذ
7تکلیف