LEARNING OBJECTIVES

Explain what process Management is;

01

Identify processes and requirements;

02

Discuss what process design is;

03

Explain process control in manufacturing

04
and services;

Differentiate continuous 05
improvement and breakthrough
improvement.
PROCESS

Process is a sequence of linked activities that is intended to achieve

some result such as producing a good or service for a customer
within or outside the organization.

Process involve combination of:

• People
• machines
• tools
• techniques
• materials
• improvements in a defined series of steps or action
PROCESS MANAGEMENT
Process Management involves planning and administering the
activities necessary to achieve a high level of performance in key
organizational processes, and identifying opportunities for
improving quality and operational performance, and ultimately,
customer satisfaction.

Three major activities in Process Management

 Design
 Control
 Improvement
PROCESS MANAGEMENT
Process Owners individual or groups that are accountable for
process performance and have the authority to control or improve
their process.

Process requirements to apply Process Management Techniques

1. Repeatable
Repeatability means that the process must recur over time

2. Measurable
Measurement provides the ability to capture important quality and
performance indicators to reveal patterns about process
performance.
IDENTIFYING PROCESSES
Two Categories of Processes

1. Value-Creation Processes (sometimes called as core processes)

Are those most important process to “running the business” and
maintaining or achieving a sustainable competitive advantage.
• They drive the creation of product and services
• critical to customer satisfaction
• have major impact on the strategic goals of an organization

Value-creation processes typically include product design and

production/delivery processes.
IDENTIFYING PROCESSES
2. Support Processes
Are those that are most important to an organization’s value-
creation processes, employees, and daily operation.

Support Processes might include processes for:

• Finance and accounting
• facilities management
• legal services
• human resource services
• public relations
• and other administrative services
PROCESS REQUIREMENTS
• Understanding the requirements that processes should meet is
vital to designing them.

• Value-creation processes requirements are driven by consumer or

external customer needs.

• Support processes requirements are driven by internal customer

needs and must be aligned with the needs of key value-creation
processes.

• Identifying process requirements provide the basis for measuring

process performance.
PROCESS DESIGN
• The goal of process design is to develop efficient process that
satisfies both internal and external customer requirements and is
capable of achieving the requisite level of quality and performance.

• Process design begin with understanding its purpose and

requirements, who the customer is and what outputs are
produced.

• Technology is an integral part of process design that makes’ today

service and manufacturing processes operate productively and
meet customer needs better than ever.
PROCESS DESIGN
Process Mapping
To describe specific steps in a process and their sequence, generally
process map or flowchart are developed, along with standard
operating procedures and work instruction.
PROCESS DESIGN FOR
SERVICE
Fundamental Differences between manufacturing and service
processes

• The ouputs of service processes are not as well defined, as are

manufactured products.

• Most service processes involve a greater interaction with

customer, often making it easier to identify needs and expectation.

Designing a service essentially involves determining an effective

balance between people and technology.
MISTAKE-PROOFING
PROCESSES
Errors can arise from the following factors:
• Forgetfulness due to lack of reinforcement or guidance
• Misunderstanding or incorrect identification because of the lack of
familiarity with a process or procedures
• Lack of experience
• Absentmindedness or lack of attention, especially when a pocess is
automated

Ways to Prevent Mistakes

1. Designing potential defects and errors out of the process.
2. Identifying potential defects and errors and stoping a process before they
occur.
3. Identifying defects and errors after they occur and quickly correcting the
process
MISTAKE-PROOFING
PROCESSES
Poka-yoke is an approach for mistake-proofing processes using
automatic devices or simple methods to avoid human error. Poka-
yoke is focused on two aspects: (1) prediction (2) detection.

Types of Service Errors

1. Task Errors
2. Treatment Errors
3. Tangible Errors
4. Customer Errors in preparation
5. Customer Errors during encounter
6. Customer Errors at the resolution stage
PROCESS CONTROL
Control is the activity of ensuring conformance to the requirements
and taking corrective action when necessary to correct problems
and maintain stable performance.

Importance of Process Control

• Process control methods are the basis for effective daily
management.
• Long-term improvements cannot be made to a process unless the
process is first brought under control.
PROCESS CONTROL

Elements of Control System

Standard or Goal

Means of measuring
accomplishment
Comparison of result with
standard to provide feedback
Ability to make corrections
as appropriate
PROCESS CONTROL
Process Control in Manufacturing
• In manufacturing, control is usually applied to incoming materials, key
processes, and final products and services.

• Control in manufacturing starts with purchasing and receiving

processes.

• In-process control is needed throughout the production process

because of unwanted variation that arises during production.

• Final inspection represents the last point in manufacturing process at

which the producer can verify that the product meets customer
requirements.
PROCESS CONTROL
Process Control in Services
• For many services, process control follows the same paradigm as in
manufacturing.

• In services with high customer contact is more difficult to control

than mechanical or automated process.
PROCESS IMPROVEMENT
Continuous Improvement refers to both incremental changes, which
are small and gradual, and breakthrough improvements, which are
large and rapid.

It is an important business strategy in a competitive market because:

• customer loyalty is driven by delivered value
• delivered value is created by business process
• sustaind success in competitive market requires a business to
continuously improved delivered value
• to continuously improve value-creation ability, a business must
continuously improve its value-creation process
PROCESS IMPROVEMENT
CONTINUOUS IMPROVEMENT

JIT established a philosophy of improvement, which the Japanese

call kaizen.

Kaizen is a Japanese word that means gradual and orderly

continuous improvement. It focuses on small, gradual and frequent
improvements over the long term with minimum financial
investment and participation by everyone in the organization.

Kaizen event is an intense and rapid improvement process in which a

team or a department throws all of its resources into an
improvement project over a short time period which are performed
on a part time basis.
BREAKTHROUGH
IMPROVEMENT
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 this are motivated by stretch goal or breakthrough
objectives.

Approaches in breakthrough improvement:

1. Benchmarking
2. Reengineering
MANAGING SUPPLY CHAIN
PROCESSES
Supplier Partnerships
Suppliers include not only companies that provide materials and
components, but also distributors, transportation companies, and
information, healthcare, and education providers.

Many companies segment their suppliers into categories based on

their importance to business and manage them accordingly.

Supplier are viewed as partners with customers, because there

usually is a codependent relationship.
MANAGING SUPPLY CHAIN
PROCESSES
Supplier Certification
Supplier Certification process are processes designed to rate and
certify suppliers who provide quality materials in a cost-effective and
timely manner.

Certification provides recognition for high-quality suppliers, which

motivate them to improve continuously and attract more business.

Supplier certification is driven by performance measurement and

rating processes.
THANK YOU