4. Process optimization

Process Control - 2013 - M.Brotto

4. Process optimizationManagement by Objectives (MBO)

MBO and Quality management

Quality management is based on objectives :

1 Forecast what we are going to do : objectives set up

2 Work in prospect of meeting these objectives

3 Measure the effectiveness to meet the objectives

4 Correct if need be

The field of MBO is the process. A company piloting its activities

(processes) by objectives is able to modify its behaviour so as to meet

its goal (target).

Management By Objective steps

Performance metrics selection (progress metrics)

Objectives setting

3

4

5

Process selection and mapping1

Process pilot appointement

Critical points identification2

Performance metrics selection (progress metrics)

Process dashboard construction

Process review

5

8

7

Process ID card filling 6

Select processes to be monitored means identify and select key processes,

Key processes are processes which have a direct impact on :

– customer satisfaction and/or

– company performance or business survival

Process selection and mapping

Negative impact may be measured thanks to (examples) :

• report of frequent or important dysfunctions or non conformities in the process

• metrics trend (time delivery, quality, costs…) leading to customer dissatisfaction or

yield slowdown, cost overun, waste,…

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yield slowdown, cost overun, waste,…

• loss of operational control, loss of market shares….

Level IMPACT RISK DEFINITION

1

2

3

4

Impact risk without any effect on process

Local impact risk : workstation

Impact risk spread out : workshop or company

Impact risk visible outside : at customer’s

To select them, we can use the

following criteria :

impact degree on above items

Once selected, the process must

be broken down into tasks to find

out its critical points for above

items

Processes mapping C

US

TO

ME

R N

EE

DS

/

EX

PE

CTA

TIO

NS

CU

ST

OM

ER

SA

TIS

FA

CT

ION

R0. Sales

PROCESS of REALIZATION

Objectives

Means Results

PROCESS of MANAGEMENT

R4. Project follow-up

R2. Project realization

R3 DeliveryR1 Project preparation

M : Strategy and QSE performance piloting

Project life cycle

11C

US

TO

ME

R N

EE

DS

/

EX

PE

CTA

TIO

NS

CU

ST

OM

ER

SA

TIS

FA

CT

ION

SUPPORT PROCESSES

Planning

and

maintenance

NeedsInformation

Competences

R4. Project follow-up

Improvement

and risks

control

management

Competences

management Purchase

and supply

R5. Projects portfolio management

Documentation

management Subcontractors

assessment

Subprocesses mapping

R0. Sales

PROCESS of REALIZATION

R3. Delivery

R1. Project preparation

R1.2 Workplanning

R1.4 Subcontractorsselection

R1.1 Ship reception

R2. Project realization

R4. Project follow-up

Final invoices

Acceptance of work

WOOrder

Acceptance of workSContractororder

New customer needs

R2.1 Ship refit

R2.2 Crew welcomingR1.3 Design

R5. Projects portfolio management

R4. Project follow-up

Reports

Schedule

R4.1 Customer order management

R4.2 Subcontractor order management

Means

(Main) process

(Sub) process

Trigger/input

Légende :

WO

“MARINE WOODWORK CUT OF “ subprocess

PlanningPlanningShortTermShortTerm

ForemanForeman

ComponentsComponents

purchasingpurchasing

OperatorOperator

Subprocess R.2.1 “Ship refit” breakdown

Quality/Quality/

QuantityQuantity

CheckingChecking

Upstream Process

DownstreamProcess

Triggers

PlanningPlanning

Wood rough Wood rough

ComponentsComponents

AssemblyAssembly

Cutting upCutting upExecutionExecution

plan in 2Dplan in 2D

ApprovalApproval

OKOK

NOKNOK

R&DR&DDesignDesign

ApprovalApprovalRecoveryRecoveryOKOK

NOKNOK NOKNOK

OKOK

PurchasingPurchasing

Controlled Controlled

componentscomponentsCheckCheck

reception reception

Cut up Cut up

componentscomponents

Critical points identificationCritical points are any point, place, employee, operation, equipment… for which

the loss of control can produce non acceptable risks for the customer satisfaction

or process added value (process efficiency or effectiveness).

Identification

1. Define the characteristics of the product/service that are vital :

Questions to ask :

- What is important for the customer? for the company survival?

- What can satisfy him or not satisfy him? What can go wrong?

- What could be improved?

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- What could be improved?

2. Identify the process steps/tasks that have an impact on each characteristic of

product/service (effectiveness) and/or on process efficiency (= critical or

improvement point to Quality)

Critical Points to Quality (CTQ)

(to be monitored)

Or improvement points

Actors

A

B

C

D

Process steps

3. Perform a risk analysis : (see FMECA method)

Activity 1

Ctrl.

Process step

Commentary

Standards requirements

Policy

Procedures

Instructions

Rules, regulatory docs

Company requirements

Customer requirements.

….

RecordsApplicable documentsActorsCritical point :

Data collection regarding critical points

Activity n

Ctrl.

Ctrl.

Ctrl.

Activity 2

Ctrl.

Ctrl.

process step

Process pilot Missions

The pilot of a process is in charge of process monitoring, he has to :

• measure the process objectives thanks to metrics follow-up

• make sure the process dysfunctions are managed

• engage correctives actions planned

• identify improvement opportunities and propose preventive action

• implement improvement action plans

• report results to the Top management

•

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• oversee the optimal use of resources

P

A C

D

Objectives set up and performance metrics selection

Selected metrics must allow the process owner to correct asap any drift

of process course. That supposes to select relevant metrics relying on :

- objectives to be met : internal or external performance (efficiency

or effectiveness). See file 3.3 « Follow-up, measure, reporting tools »

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Process objectives are defined according to and in compliance with company

policy ones.

or effectiveness). See file 3.3 « Follow-up, measure, reporting tools »

- critical points to monitor.

Process : Rx : xxxxx

Process goal :

Pilot : function/name Date of review

Customer expectations: Resources needed :

Requirements (quality, cost, time…)

Entry data Internal/external supplier Internal/external

customer

Exit data

Related objective (Company level) :

Process Identity Card model (1/2)66

Measure and monitoring

Targets (quantified) Metrics Critical points Responsible

Example : Internal training process

Activities

Outcome

Resources

Budget

validationSkilled

Staff

Training Department

Trigger income

Needs

identificationImplementationEngineering

Assessment&

improvement

Fulfill the process ID card

1. Company objectives : People quality skills development

2. Process goals :

• Propose to the staff, trainings compliant with their needs

• Design and implement trainings likely to facilitate the organization change

And targets :

• 75% of company people trained by the end of 2013

• 90% of the trainees satisfied with the training

• 100 % of new know how put successfully into practice within the company

Training Department

Training process Identity CardProcess : Internal Training

Process goals : 1) Trainings compliant with needs 2) trainings that facilitate organization changes

Pilot : Mr BradPitt Training DeptManager Date of review: 8th April of 2013

Know- how put into practiceManagersCEOCompany objectives

Skilled & satisfied peopleEmployeesCEOBudget validation

Exit dataInternal/externalcustomerInternal/externalsupplierEntry data

Requirements ( quality , cost, time …)

Company goal : develop people quality skills

Ms Y

Trainers competences

Needs identification--% % ofof staff staff whosewhose new new competencescompetences have have beenbeen putput intointopracticepractice (( yearlyyearly performance performance appraisalappraisal ))

100 % trainings 100 % trainings putput

intointo practicepractice

Mrs ZPeople trained / total companypeople

75% people trained

to Quality by end y 11

Mr X% % traineestrainees satisfiedsatisfied /total staff / total staff trainedtrained (( appraisalappraisal on on thethe spot)spot)

90% 90% traineestrainees fullyfully

satisfiedsatisfied

ResponsibleProcess Critical pointsMetricsTargets (quantified )

Measure and monitoring

Know- how put into practiceManagersCEOCompany objectives

Curriculum updatedHR DeptManagersNeeds

Dashboard and process review

Policy

Strategy

Management Review

Dashboard

Process reviews are essential in the

process piloting. They allow to :

- Set up subprocess/tasks objectives (in

line with Company ones)

- Validate measures (metrics)

- Control outcomes (in compliance with

objectives)

- Define or validate corrective actions

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Objectives

Process

Strategy

ProcessReview

Dashboard

Outcomes- Define or validate corrective actions

plan to improve process performance

Besides, the process outcomes

(dashboard) are one of the inputs of the

management review (Company level)

Process

Process

See process review model (word file)