L:\ EQA \ EQA97 \ gen erel \ ind s_k r.p pt Process Management & Continuous Improvements “ A process is a sequence of activities (tasks) that is intended to achieve some result - typic ally to create value for customers” PROCESS - tasks - PROCESS - tasks - CustomerSupplierInput Output VALUE ADDING - through transformation of inpu t to output - A process
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8/16/2019 Process Mng
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Process Management
&
Continuous Improvements
“ A process is a sequence of activities (tasks) that is
intended to achieve some result - typically to create value
for customers”
PROCESS
- tasks -
PROCESS
- tasks -Customer Supplier
Input Output
VALUE ADDING
- through transformation of input to output -
A process
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PRODUCTION
SUPPORT
RM
Inventory
RM
Inventory
S u p p l i e r s
C u s t o m
e r s
Order
process
Order
process
Step 1Step 1 Step 2Step 2FG
Inventory
FG
Inventory
PlanningPlanningProcure-
ment
Procure-
ment
The value stream
Identify
customer
needs
Identify
customer
needs
Transform needs
into attributes
(Q, C, D)
Transform needs
into attributes
(Q, C, D)
Transform needs
into process
capabilities
Transform needs
into process
capabilities
Identify
and map
current processes
Identify
and map
current processes
Evaluate current processes in terms of:
satisfaction of customer needs
management
costs
Evaluate current processes in terms of:
satisfaction of customer needs
management
costs
Reengineer processes focusing on:
customer needs
ease of production / delivery
cycle time
employee satisfaction and education
flexibility and growth
Reengineer processes focusing on:
customer needs
ease of production / delivery
cycle time
employee satisfaction and education
flexibility and growth
Develop and
document best
practice
Develop and
document best
practice
Develop control
and
check points
Develop control
and
check points
Reengineer
the
organisation
Reengineer
the
organisation
Implement
the
changes
Implement
the
changes
Monitor and
evaluate
progress
Monitor and
evaluate
progress
Process Reengineering
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Types of processes
z An organisation consists of several processes:
– Development processes (i.e. R&D, strategy…)
– Production/delivery processes
– Support processes (Training, IT, accounting…)
z Production/delivery processes has external customers
(end-users)
zDevelopment and support processes has internalcustomers - these processes are prerequisites for creating
value for end-users
TQM Processes
Customer
Driven
Master Plan
Daily Management
Cross
Functional
Management
Hoshin
PlanningMaximize
Coordination &
Cooperation
among All
Related Functions
Maximize
Focus on
Strategic Targets
from CEO to
Line Employees
Maximize
Individual's Department
Performance Every Day
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“Muda” is the Japanese word for waste. MUDA is:
“Everything that consumes
resources without creating
value”
Daily Management
Daily Management
zDifferent types of Muda
– all human activities that absorbs resources but creates no
value
– mistakes which requires rectification (re-work)
– production of items that no one really wants– processing steps that aren’t actually needed
– movements of people/materials without any purpose
– groups of people waiting downstream because an upstream
activity has not delivered on time
– any goods and services which don’t meet the needs of the
customers
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Time
Performance
Control
Control
Improvement
Daily Management
zControl versus improvement (kaizen)
Time
Performance
Continuous
improvement
Continuous
improvement
Innovation
Daily Management
z Improvement versus innovation
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Daily Management
zKaizen:
– Everybody must admit errors committed
– Everybody must try to do better next time
– Everybody must go through adequate education and training
in conducting improvements
– Continuous improvements are based on standardisation of
existing processes
– Improvements are preserved through standardisation