Process Focus Discussion - Business Finance
Respond to the following discussion topic. Your initial post should
be a minimum of 150 words in length. Then, make at least two thoughtful
responses to your fellow students’ posts.
What processes must you follow within your organization? Do these processes provide value?Presentation attached
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Process Focus
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 9e, © 2014 Cengage Publishing
1
Wisdom from Texas
Instruments
“Unless you change the
process, why would you
expect the results to
change?”
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
2
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
3
Process Versus Function
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
4
Key Process Management Principles
for Performance Excellence (1 of 2)
Identify vital work processes that relate to core competencies and
deliver customer value, profitability, organizational success, and
sustainability.
Determine key work process requirements, incorporating input from
customers, suppliers, partners, and collaborators.
Design and innovate work processes to meet all requirements,
incorporating new technology, organizational knowledge, cycle time,
productivity, cost control, and other efficiency and effectiveness
factors.
Seek ways to prevent defects, service errors, and rework and minimize
costs associated with inspections, tests, and process or performance
audits.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
5
Key Process Management Principles
for Performance Excellence (2 of 2)
Implement work processes and control their day-to-day operation to
ensure that they meet design requirements, using appropriate
performance measures along with customer, supplier, partner, and
collaborator input as needed.
Improve work processes to achieve better performance, reduce
variability, improve products and services, and keep processes current
with business needs and directions, and share improvements with
other organizational units and processes to drive organizational
learning and innovation.
Incorporate effective process management practices in the overall
supply chain.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
6
Quality Profile – Honeywell Federal
Manufacturing & Technologies
Multidisciplinary engineering and manufacturing
operations for national defense systems.
Checks that ensure processes align with goals, and
feedback scorecards, the system identifies,
implements, measures, and sustains the “critical-toquality” needs necessary for desired performance.
Six Sigma Plus Continuous Improvement Model that
ensures integration of customer and business
requirements into all design projects
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
7
Quality Profile – Boeing Aerospace
Support
Developed a seven-step approach for defining, managing,
stabilizing, and improving processes.
Teams of employees who “own” and are responsible for the
company’s complex operations and processes are the core
of the company’s high performance work environment.
The “AS People System” helps to ensure that employees
understand priorities and expectations; have the
knowledge, training, and tools they need to do the job and
to assess performance against goals and objectives; and are
rewarded and recognized for their accomplishments.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
8
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.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
9
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
10
Process Management and ISO 9000
The entire set of standards is focused on an organization’s
ability to understand, define, document, and manage its
processes.
Organizations must plan and control the design and
development of products and manage the interfaces
between different groups involved in design and
development to ensure effective communication and clear
assignment of responsibility.
The standards address a wide variety of process
management activities, including control of production
and service, control of monitoring and measuring devices,
and improvement of quality management system
effectiveness.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
11
AT&T Process Management
Principles
Process improvement focuses on the end-to-end process.
The mind-set of quality is one of prevention and continuous
improvement.
Everyone manages a process at some level and is simultaneously a
customer and a supplier.
Customer needs drive process improvement.
Corrective action focuses on removing the root cause of the problem
rather than on treating its symptoms.
Process simplification reduces opportunities for errors and rework.
Process improvement results from a disciplined and structured
application of the quality management principles.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
12
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
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
13
Projects as Processes
In many companies, value-creation processes take
the form of projects—temporary work structures
that start up, produce products or services, and
then shut down.
Project management involves all activities
associated with planning, scheduling, and
controlling projects.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
14
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
15
Value Creation Processes for Pal’s
Sudden Service
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
16
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.
© 2014
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
17
Process Mapping
A process map (flowchart)
describes the specific steps
in a process.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
18
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
19
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?
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
20
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
21
Key Service Dimensions
Customer contact and interaction
Labor intensity
Customization
© 2014
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
22
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?
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
23
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.
© 2014
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
24
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
25
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 nonvalue-added time.
3. Identifying defects and errors soon after they occur
and quickly correcting the process. Results in some
scrap, rework, and wasted resources.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
27
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
28
Types of Service Errors (1 of 2)
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
29
Types of Service Errors (2 of 2)
Customer errors in preparation such as the failure to bring
necessary materials to the encounter, to understand their
role in the service transaction, and to engage the correct
service.
Customer errors during an encounter such as inattention,
misunderstanding, or simply a memory lapse, and include
failure to remember steps in the process or to follow
instructions.
Customer errors at the resolution stage of a service
encounter include failure to signal service inadequacies, to
learn from experience, to adjust expectations, and to
execute appropriate post-encounter actions.
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
30
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
31
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
32
Processes and Control Measures in
the City of Coral Springs, FL
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
33
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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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
34
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.
© 2014
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
35
Effective Control Systems
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 activit ...
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