process focus and performance management

Key Process Management Principles for Performance Excellence

• Identify key work processes and requirements.

• Design work processes to meet all requirements.

• Minimize cost of quality.

• Implement and control work processes with performance measures.

• Improve work processes to achieve better performance

types of processes

• value-creation processes

• support processes

value-creation processes

essential to running the business

— usually depend significantly on product and service characteristics

• design processes

• production / delivery processes

design processes 

activities that develop functional product specifications 

product / delivery processes

those that create or deliver products 

support processes

those critical to an organization’s value creation processes. employees, and daily operations

— usually depend on internal requirements 

EX] accounting, HR

process management activities 

1. design 

2. control

3. improvement 

design - process management activities 

ensuring that the inputs to the process are adequate
and that the process steps are well-defined,
mistake-proofed, appropriately sequenced, and
understood for consistent and effective execution

control

Assess whether the process was performed as
planned and whether the process output is on target

improvement

continually seeking to achieve higher levels of
performance in the process

• forgetfulness 

• misunderstanding bc of lack of familiarity with process

• absentmindedness

• poor identification bc of lack of proper attention

• lack of experience 

• equipment malfunction 

What are the typical reasons for Mistake-Proofing (Poka-Yoke)?

statistical process control

Methods for monitoring and controlling critical quality
characteristics

process control

Ensuring process conformance to requirements through standards, measurement, and comparison of actual vs. expected results.

1. a standard or goal

2. a means of measuring accomplishment

3. the comparison of actual results with the standard

What are the three components of a control system?

value-creation processes — continuously improve by generating fewer defects and errors, making higher yields, and reducing variation

What is the main focus of process improvement?

deming’s PDCA cycle

1. plan — define problems, causes, and solution

2. do — test the solutions 

3. check — evaluate results 

4. act / analyze — select the best option, implement plan, and monitor plus control the performance

kaizen 

a Japanese word that means gradual, continuous improvement involving everyone—small, frequent changes for long-term gains.

kaizen blitz

• an intense and rapid improvement process

A short, focused improvement event (3–7 days) where teams intensively address a specific process problem for measurable results.

• control = Maintain stability by correcting deviations.

• Improvement = Raise the standard by eliminating root causes and increasing performance.

What’s the difference between control and improvement?

breakthrough Improvement

• reengineering 

• benchmarking 

reengineering - breakthrough improvement

he fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements

benchmarking

Comparing an organization’s processes to industry best practices to identify areas for superior performance.

process management - baldrige criteria 

examines how an organization designs its work systems and how it designs, manages, and improves its key processes for implementing those work systems to deliver customer value and achieve organizational success and sustainability, and prepare for emergency readiness

• work systems 

• work processes 

• planning and controlling the design and development of products

• managing the interfaces between different groups involved in design and development

• management of inputs and outputs for design and development 

what is process management in ISO 9000?

process management in six sigma

• improving processes on a project-by-project basis

• process owners should be trained in six sigma methods, but have a responsibility for continuous improvement on a  daily basis 

data

simply representations of facts that come from some type of measurement process.

measurement

the act of quantifying the performance dimensions of products, services, processes, and other business activities

measures and indicators 

refer to the numerical results obtained from measurement.

EX]: 5 inches

information

derived from the analysis of data and measurements and expressed in the context of a business or organization

data = raw, unorganized facts that need to be processed. data can be something simple and seemingly random and useless until its organized 

information = when data is processes, organized, structured or presented in a given context so as to make it useful. 

what is thew difference between data and information? 

1. Collect and integrate relevant data.

2. Analyze performance regularly.

3. Turn insights into improvement priorities.

4. make needed data and information available and accessible to internal and external customers 

5. Ensure data is reliable, secure, and timely

What are the key measurement and information management practices for excellence?

1. individual 

2. process

3. organization 

what are the three levels of measurement? 

individual - three levels of measurement

real-time information for feedback

process - three levels of measurement

assess whether processes are accomplishing their objectives and efficiency

organization - three levels of measurement

basis for strategic planning and design of products, services, and processes

balanced scorecard

A strategic management tool linking measures across four perspectives:

1) financial

EX] profitability, revenue growth, ROI 

2) internal

EX] quality levels, productivity, cycle time, cost 

3) customer

EX] service levels, satisfaction ratings, repeat business

4) innovation / learning 

EX]employee satisfaction, skills development

• Provide insight into past/present/future performance

• identify trends

• support improvement

• compare to benchmarks

• clarify cause–effect links.

What are the main purposes of performance measurement systems?

measurement and information management - baldrige criteria

examines how an organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets, and how it manages information technology and uses organizational reviews to improve performance

Organizations must ensure all performance-critical information is accurate, up-to-date, and used to monitor customer satisfaction and promote continuous improvement.

What does ISO 9000 say about measurement?

It emphasizes fact-based decision-making, measurable results, and data-driven control of process performance.

How does Six Sigma relate to measurement and information management?