2. Determine key work process requirements, incorporating input from customers, suppliers, partners, and collaborators.
3. Utilize cross function team in product development process
4. Define performance requirements for supplier, from long term relationships with supplier and buyer.
6. 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.
7. Innovate to attain breakthrough performance via benchmarking and reengineering
Design=Ensuring that the inputs to the process are adequate and 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
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 organisation’s value creation processes, employees, and daily operations
Support process requirements are driven by internal customer needs and must be aligned with the needs of key value-creation processes
Process design considerations include safety, cost, variability, productivity, environmental impact, measurement capability, and maintainability of equipment.
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
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?
At which point in the step, 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 point or points should quality be measured?
Documentation: what procedures and guidelines should employees follow to present a positive image?
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
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.
Control is different from improvement:
(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.
What was supposed to happen?
What actually happened?
Why was there a difference?
What can we learn?
Effective quality control systems include
Make it right first time
Process owner inspection
Documented policies and procedures for all key processes;
Methods for monitoring and controlling critical quality characteristics;
Basic control mechanisms, which are carried out by every member of the workforce. The first person who detects a problem is empowered to break away from routine duties, investigate and correct the problem immediately, document the incident, and then return to their routine.
Critical success factor control for critical processes. Process teams use customer and organizational requirement measurements to determine quality, speed, and cost performance. These measurements are compared against benchmarks and customer satisfaction data to determine corrective action and resource allocation. In addition, The Ritz-Carlton conducts both self-audits and outside audits.
Continuous improvement is important because
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.
Flexibility and Cycle Time reduction
Breakthrough vs Incremental Improvement
Focus on small, gradual, and frequent improvements over the long term with minimum financial investment, and participation by everyone in the organization; making improvement .
Total involvement – Top management make improvement as culture and provide support activities like resources, reward structure.
Middle manager provide detail standards that reflect goals, improve cooperation between departments and developing problem solving skills through training. Supervisor provide guidance than direct (empowered). Individual staff engage through suggestion scheme, small group team activities. Self development programme that teach problem-solving techniques and improve job performance skills
Training both in philosophy and tools application.
Breakthrough improvements result from innovative and creative thinking; often these are motivated by stretch goals, or breakthrough objectives.
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.
Process benchmarking – identifying the most effective practices in key work processes in organizations that perform similar functions, no matter in what industry.
Modular designs, sharing manufacturing and specialized training, outsourcing, agreeing with key suppliers.
Rapid changeover from one product to another,
Rapid response to produce a wide range of new/customized products
Client charters; Land transport checking; business permit, LDP ministrial decision.
JIT and Lean – an approach that emphasizes the smooth flow of items synchronized to demand so as to identify waste.
Six Sigma – a disciplined methodology of improving every product, process, and transaction.
All these improvement approaches share overlapping sets of elements.