Sujit,Navin,Nitin AQM.pptx

7/27/2019 Sujit,Navin,Nitin AQM.pptx

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A PRESENTATION ON

PROCESS QUALITY MANAGEMENT

PRESENTED BYSUJIT KUMAR RANJAN

NABIN BISHWAKARMA

NITIN YADAV

SUBMITTED TO : - MRS. NUPUR CHOPRA


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INTRODUCTION

WHAT IS PROCESS MANAGEMENT

qIt is a planning, controlling, organizing and leadingof any type of activity for its proper execution.

qThe organization senior management is responsiblefor carrying out its management process


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TYPES OF PROCESS MANAGEMENT

qProcess Quality Management

qBusiness Process Management

qStrategic Process Management

qOrganization Process Management

qDepartment Process Management


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WHAT IS PROCESS QUALITYMANAGEMENT

qProcess quality management ensures that theprocess will satisfy the needs for which it wasundertaken

q

Processes include- Process planning

Process assurance

Process control


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WHY PROCESS QUALITYMANAGEMENT

qWhy Process Quality Management? The dynamic environment inwhich business is conducted today is characterized by what has beenreferred to as the six cs these are-

change

complexity customer demands

competitive pressure

cost impacts and

constraints.

All have a great impact on an organizations ability to meet its statedbusiness goals and objectives.


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DIMENSIONS FOR MEASURINGPROCESS QUALITY

Three principal dimensions are-

1. Effectiveness: The output meets customer needs.

2. Efficiency: When it is effective at the least cost.3.Adaptability: When it remains effective and

efficient in the face of the many changes that occurover time.

The process orientation is vital if management is to meetcustomer needs and ensure organizational health.


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THE ORIGINS OF PQM

q IBM Corporation was among the first American companies to seethe benefits of identifying and managing business processes.

Manage business processes in the early 1980s

Focus for improvement on job process

Plant manager owns a large part of the manufacturingprocess in product manufacturing.

Control, improve, and optimize the manufacturing process to

meet customer needs and business needs.


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Contd

q Developed some indispensable concepts and tools, including-

Definition of process requirements

Step-by-step process documentation

Establishment of process measurements Removal of process defects, and

Assurance of process optimization

q

North American companies, including AT&T, FordMotor Company, Motorola, Corning, and Hewlett-Packard, alsobegan applying process management

concepts to their business processes.


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DEFINITION OF PQM

q Its a set of methods for aligning all components of a business toquality requirement of customer in order to maximize quality &reduce waste.

q For improving quality ,management processes are-

Quality control Quality improvement

Quality planning


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AN APPLICATION EXAMPLE: THE CONTRACTMANAGEMENT

PROCESS

Special-contract management process (before application of process-management

principles).

Special-contract management process (after application of process-management

principles).


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METHODOLOGY OF PQM

q They work through the three phases of PQM methodology

1. Planning:Its a most time consuming phase.

2. Transfer : plans developed in the first phase are handedoff from the process team to the operating forces and put

into operation.3. Operational management:Here, the working owner

and team first monitor new process performance,focusing on process effectiveness and efficiencymeasurements.


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Contd

q In planning phase, in which the process design (or redesign)takes place, involves five steps are:

1. Defining the present process.

2. Determining customer needs and process flow.

3. Establishing process measurements.

4. Conducting analyses of measurement and other data.

5. Designing the new process. The output is the newprocess plan.


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1)Defining the Current Process

The owner(s) and team collaborate to define the process precisely.

q Effective missions:-

- The purpose and scope of the process.

-Stretch targets for customer needs and business needs.

q The goals for the same process are:-1. Deliver approved price and contract support

document within 30 days of date of customers letter of intent.

2. Achieve a yield of special-contract proposals(percent of proposals closed as sales) of not less than 50

percent.


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High-level diagram of the special-contract process,an output of process analysis


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2)Customer Needs and Flowcharting theProcess:

q To do its work well, the team must identify all of the customers,determine their needs, and prioritize the information.

q Determining customer needs and expectations requires

ongoing, disciplined activity.

q Ensure that this activity is incorporated in the day-to-dayconduct of the business process as the customer requirementssub process and assign accountability for its performance.


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Measurement Model

Flowchart of the special-contract management process


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4) Analyzing the Process:

q Process Analysis performed for following purposes:-

Assess the current process for its effectiveness and efficiency.

Identify the underlying causes of any performance inadequacy.

Identify opportunities for improvement.

Make the improvements.


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5) Designing (or Redesigning) the Process:

q The team defines the specific operational means for meetingstated product goals.

q The result is a newly developed Process Plan.

q Design changes fall into five broad categories:-

workflow technology

people and organization

physical infrastructure

policy and regulations


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New Process Plan Creation

q After we have redefined a key process, we must document thenew process and carefully explain the new steps. The new processplan now includes the new process design and its control plan formaintaining the new level of process performance.

Completed process plan

diagram for the special-

contract managementprocess.


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Initiating PQM Activity

qSelecting the Key Process:

q The Critical Success Factor:

q necessary and sufficient for the attainment of its mission and

vision.q used to select the key business processes and rank them by priority

q The Balanced Business Scorecard:

measures business performance in four dimensions-

1. financial performance

2. performance in the eyes of the customer3. internal process performance and

4. performance in organization learning and innovation

H d h i i k


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How does the organizations work getdone?

Process map of major business processes at Educational Testing Services.


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qOrganizing: Assigning Ownership, Selecting the Team,and PQM Infrastructure:

The major advantages of this structure are that there is atthe same time hands on involvement and support of upper

management and adequate management of the process details.

Contd

qEstablishing the Teams Mission and Goals:The preliminary process mission and improvement

goals for the process are communicated to the owners (executiveand working levels) and team by

the quality council. To do their jobs most effectively, the owners and teammust make the missionand goals their own. They do this in the first step of the planning phase:defining the process.


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Organization infrastructure for processmanagement in multifunctional

organizations


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The Transfer Phase

q Transferring the New Process Plan to Operations.

The transfer phase consists of three steps:

(1) Planning for implementation problems:- A major PQM effort may involve huge expenditures and precipitate

fundamental change in an organization, affecting thousands of jobs.

All of this poses major management challenges.

(2) Planning for implementation action:- The output of this step is a complex work plan, to be carried out by the Owner

and Process Management Team.

They will benefit from skills in the techniques of Project Management.


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contd

(3) Deploying the new process plan:- Before actually implementing the new process, the team tests the

process plan.

They test selected components of the process and may carry outcomputer simulations.

The purpose is to predict the performance of the new process anddetermine feasibility.

Design

categories.


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Contd

q The team must decide how to deploy the new process, There areseveral options:-

Horizontal deployment,function by function.

Vertical deployment, top down, all functions at once. Modularized deployment, activity by activity, until all are

deployed.

Priority deployment, sub processes and activities in prioritysequence, those having the highestpotential for improvement going

first. Trial deployment, a small-scale pilot of the entire process, then

expansion for complete implementation.


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Operational Management Phase:-Managing the New Process.

q This phase begins when the process is put into operation.

q The major activities are:-

(1) Process quality control:- is an ongoing managerial process,

in which the actual performance of the operating process is evaluated bymeasurements taken at the control points, comparing the measurementsto the quality targets, and taking action on the difference.

The goal is to maintain performance of the business process at itsplanned level.

(2) Process quality improvement:- Monitoring process performance respect to customer requirements, process

owner identifies gaps between what the process is delivering and what isrequired for full customer satisfaction.

Gaps are targets for process quality improvement effort.


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Contd

(3) Periodic process review and assessment:-

q To ensure that the process is performing according to plan.

q Protect against changes in the design assumptions and anticipatedfuture changes.

Contents

of complete

process plan


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THE INTEGRATION OF PQM WITH TQM

q Process quality management is an important concept within the TQMframework.

q Organizations have learned not to limit managerial attention to thefinancial dimension.

q gain experience in defining, identifying, and managing the quality

dimension.

q setting a vision, mission, and goals, all in alignment

q PQM is a natural extension of many of the lessons learned in earlyquality improvement activities.


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SUMMARY AND CRITICAL SUCCESS FACTORSFOR PQM IMPLEMENTATION

q Key Points: PQM is distinguished by the following: A strategic orientation, that is: A clear mission, values, and vision for

the organization

Strategic goals tied to the organization vision, which are shared byexecutive leadership and deployed throughout the organization in the

form of key business objectives Alignment and linkage of the organizations processes to its vision,

strategic goals, and objectives.

A cross-functional orientation in place of the hierarchical organization.


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Contd

q Cross-functional process teams, supported by the management system(education, communication, performance management, recognitionand reward, compensation, new career path structures, etc.).

q The mission of each team is to dramatically improve the effectiveness,efficiency, and adaptabilityof each major business process to which it is

assigned.q Prime organizational focus on the needs of customers, external and

internal, and business needs such as cost, cycle time, waste elimination.

q The driving of all work processes by quality of products and servicesand overall value creation.


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Critical Success Factors

q Important factors to the success of a PQM initiative are : Leadership from the top of the organization

Management which communicates the vision, strategic goals, and key business objectivesthroughout the organization.

Vision shared by all in the organization

Employees empowered and accountable to act in support of these key business objectives Expertise in change management available throughout the organization to facilitate

dramatic change

Continuous improvement

To enable the many PQM teams to manage schedules, costs, and work plans coordinatedand implemented.

Executive management promotion of the importance, impact, progress, and success ofthe PQM.

Upper managements obligation is to enable and promote three principal objectives:customer focus, process orientation, and empowered employees at all levels.


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Reference

qJurans Quality Handbook


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THANK YOU

Sujit,Navin,Nitin AQM.pptx

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