Process Management Overview

Process Management

• Involves planning and managing activities to ensure high quality in business processes.
• Objectives include enhancing quality, operational performance, and customer satisfaction.
• Simplification of processes helps reduce errors and rework.
• Effective process management requires processes to be repeatable and measurable.
• Process owners, ranging from executives to frontline workers, are accountable for performance.
• Two process categories:
  • Value-added processes driven by external customer needs.
  • Support processes driven by internal needs.

Process Planning

• Essential for achieving corporate success and aligning with organizational goals.
• Quality Function Development (QFD) process-planning matrix is recommended.
• Matrix connects customer requirements (prioritized) to process parameters through a relationships matrix.
• Process owners collaborate with customers and stakeholders to complete the chart.

Process Control

• Encompasses activities ensuring compliance with requirements and implementing corrective actions.
• Importance of controlling processes for effective daily management and long-term improvements.
• Responsible parties:
  • Process owners handle short-term corrective actions.
  • Management oversees long-term improvements.
• Effective quality control systems should include:
  • Documented procedures for key processes.
  • Clear understanding of necessary equipment and environment.
  • Monitoring methods for critical quality aspects.
  • Approval processes for equipment and criteria for workmanship.
  • Regular maintenance activities.

Process Control Problems

• Noted issues include:
  • Ineffectiveness: 100% inspection cannot guarantee quality, as some defective products may pass unnoticed.
  • High costs: Inspection systems require significant manpower resources.
  • Timeliness: Delay between production and inspection can result in late identification of defects.
  • Responsibility: Quality accountability often shifts from the producer to the inspector.

Statistical Process Control (SPC)

• SPC uses statistical methods for data collection and analysis to ensure process monitoring.
• Aims for high confidence in producing quality final products.
• Benefits of SPC include:
  • More consistent products leading to improved customer satisfaction.
  • Reduced waste, lower operational costs, and enhanced profits.
  • Informed management decisions across all business levels.
  • Greater workplace consistency and pride among employees involved in process control.

Process Improvement

• Customer loyalty stems from perceived delivered value, which is generated by business processes.
• Continuous improvement is vital for sustained competitive success.
• Importance of refining value creation processes over time.
• Historical context: Continuous process improvement concepts date back to 1895, focusing on productivity.
• Evolution of concepts, notably with Toyota's Just-In-Time system in 1951 emphasizing defect reduction.

Kaizen Approach for Process Improvement

• A Japanese philosophy that encourages gradual, continuous improvement over time with minimal financial investment.
• Involves everyone in the organization for holistic enhancement of quality.
• Three key components for a successful Kaizen program:
  • Effective operating practices.
  • Total involvement from all staff.
  • Comprehensive training for continuous improvement efforts.