Chapter 5 Process Management

THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 1
Chapter 5
Process
Management
Dr. John V. Padua
The
Management
& Control of
Quality, 7e

Learning Objectives
At the end of the discussion, students are all expected
to understand the following:
 Definition of Process Management
 Types of Processes
 Design for Manufacturability, Quality and Social
Responsibility
 Process Control
 Importance of Process Improvement
 Benchmarking

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.

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.

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

Product Development Process
Idea
generation
Idea
generation
Concept
development
Concept
development
Product &
process design
Full-scale
production
Full-scale
production
Product
introduction
Product
introduction
Market
evaluation
Market
evaluation

Key Idea
Product design can significantly affect the
cost of manufacturing (direct and indirect
labor, materials, and overhead), redesign,
warranty, and field repair; the efficiency by
which the product can be manufactured,
and the quality of the output.

Design for Manufacturability
 DFM – the process of designing a
product for efficient production at the
highest level of quality

Key Idea
DFM is intended to prevent product
designs that simplify assembly operations
but require more complex and expensive
components, designs that simplify
component manufacture while
complicating the assembly process, and
designs that are simple and inexpensive
to produce but difficult or expensive to
service or support.

Design Quality and Social
Responsibility
 Product liability issues
 Environmental issues
 Design for Environment (DfE) - is the
explicit consideration of environmental
concerns during the design of products and
processes, and includes such practices as
designing for recyclability and disassembly.

Service Process Design
 Three basic components:
 Physical facilities, processes and
procedures
 Employee behavior
 Employee professional judgment

Key Idea
Service process designers must
concentrate on doing things right the first
time, minimizing process complexities,
and making the process immune to
inadvertent human errors, particularly
during customer interactions.

Process Control
 Control – the activity of ensuring
conformance to requirements and
taking corrective action when necessary
to correct problems and maintain stable
performance

Importance of Process
Improvement
 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.

Key Idea
Improvement should be a proactive task
of management and be viewed as an
opportunity, not simply as a reaction to
problems and competitive threats.

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.

Flexibility
 Flexibility – the ability to adapt quickly
and effectively to changing
requirements.
 rapid changeover from one product to
another,
 rapid response to changing demands,
 the ability to produce a wide range of
customized services.

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.

Breakthrough Improvement
 Discontinuous change resulting from
innovative and creative thinking,
motivated by stretch goals, and
facilitated by benchmarking and
reengineering

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.

Types of Benchmarking
 Competitive benchmarking - studying
products, processes, or business
performance of competitors in the same
industry to compare pricing, technical quality,
features, and other quality or performance
characteristics of products and services.
 Process benchmarking – focus on key work
processes
 Strategic benchmarking – focus on how
companies compete and strategies that lead
to competitive advantage

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.

Chapter 5 Process Management

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