CHAPTER 7

Process Management
Teaching Notes
This chapter investigates the concept of process and techniques used to design and manage processes.
It emphasizes the fact that it is essential to design products and services to meet customer needs. An
old, but good, video clip that could be shown with this chapter is the Tom Peters In Search of
Excellence segment on 3M Corporation, a company that has a world class reputation for fostering
design and innovation champions. The video might be considered dated, but it gives a unique
insider look at the product development of CD technology, which was just in its infancy at the time
that the film was made.
This chapter introduces the concepts of process design, control, and improvement, including the
Japanese kaizen, or continuous improvement, philosophy. Students may have some difficulty in
understanding how frequent, gradual changes as an approach to process improvement over the long
term, can be successful in our "quick fix" society. What is a quick fix society? Its one that looks for
instant answers and is reluctant to search for root causes, because we dont have time for that.
Quick fixes for simple problems are not all bad. However quick fixes for complex problems with
multiple causes and negative effects can often be costly and are generally ineffective. This chapter
focuses on systematic and systemic improvements in processes.
Key objectives for this chapter should include:

To introduce the concept of process management, that involves planning and administering the
activities necessary to achieve a high level of performance in value creation and support
processes, including their design, control, and improvement.

To review a number of leading process management practices related to value creation and
support processes in closely coordinated, well structured, and highly effective product design and
development systems.

To point out that projects are important value creation processes in many organizations and that
project management involves all activities associated with planning, scheduling, and controlling
projects. The lifecycle of a typical project includes initiation, planning, quality assurance, quality
control, and closure.

To focus students attention on process design that begins with the process owner (defined as
those who are accountable for process performance and have the authority to manage and

Process Management

improve their process) and is focused on developing an efficient procedure to satisfy both internal
and external customer requirements.

To impress on students that as customer needs and expectations change, organizations must
design processes that are increasingly agile. Agility is a term that is commonly used to characterize
flexibility and short cycle times. Flexibility refers to the ability to adapt quickly and effectively to
changing requirements. It might mean rapid changeover from one product to another, rapid
response to changing demands, or the ability to produce a wide range of customized services.

In manufacturing, process design usually involves detailed technical analysis of product

characteristics, such as technology capabilities, production sequences, ect., using tools such as
flow-process charts, assembly charts, and work methods analysis, whereas, in pure service
environments, processes are often designed around the five key service dimensions: reliability,
assurance, tangibles, empathy, and responsiveness.

To define Poka-yoke (POH-kah YOH-kay) as an approach for mistake-proofing processes using

automatic devices or methods to avoid simple human error. It might consist of designing potential
errors out of a process, identifying potential defects and stopping a process before the defect is
produced, or finding defects that enter or leave a process.

To learn that control is the activity of ensuring conformance to requirements and taking corrective
action when necessary to correct problems and maintain stable performance. The three
components of a control system: 1) a standard or goal, 2) a means of accomplishment, and 3)
comparison of actual results with the standard to provide feedback for corrective action and how
they are used in design as well as throughout a manufacturing or service process.

To emphasize that control is the foundation for organizational learning. Many organizations
conduct an after-action review, or debriefing, that consists of understanding what was supposed to
happen, what actually happened, why there might have been a difference, and what could be
learned from the experience.

To encourage understanding and development of documented control procedures, which are

usually written down in a process control plan, in order to provide a clear understanding of the
appropriate equipment and working environment; methods for monitoring and controlling critical
quality characteristics; approval processes for equipment; criteria for workmanship, such as
written standards, samples, or illustrations; and maintenance activities.

To explore the concept that process improvement should be viewed as an opportunity, not simply
a reaction to problems. Kaizen, the Japanese philosophy of quality improvement, may be used in
all areas of business to make small, frequent, and gradual improvements over the long term. A
kaizen blitz, which is an intense and rapid improvement process in which a team or a department
throws all its resources into an improvement project over a short time period, may sometimes be
used, as opposed to traditional kaizen applications, which are performed on a part-time basis.
To teach that cycle time is an important concept in process design, and refers to the time it takes
to accomplish one cycle of a process (e.g., the time from when a customer orders a product to the
time that it is delivered, or the time to introduce a new product). Reductions in cycle time serve
two purposes. First, they speed up work processes so that customer response is improved.

Process Management

Second, reductions in cycle time can only be accomplished by streamlining and simplifying
processes to eliminate non-value-added steps such as rework.

Other approaches to process design and improvement include: 1) Structured improvement

methodologies typically consist of four steps: redefining and analyzing a problem, generating
ideas, evaluating and selecting ideas, and implementing ideas. Common approaches are the
Deming cycle (plan, do study, act), creative problem solving, Six Sigma DMAIC, TRIZ, and many
others; 2) breakthrough improvement that refers to discontinuous change; 3) benchmarking - the
search for innovative best practices in any industry, and includes several types of benchmarking;
stretch goals, which force an organization to think in a radically different way and to encourage
breakthrough improvement; and 4) reengineering, the fundamental rethinking and radical redesign
of business processes to achieve dramatic improvements in performance.

The Instructors Resource website has a number of Baldrige video clips which give an inside view of
organizations that have received the Baldrige award. Some of those are especially appropriate for this
chapter, having scenes that show how process and supply chain management can enhance an
organizations quest for world-class quality.
ANSWERS TO QUALITY IN PRACTICE KEY ISSUES
Gold Star Chili, Inc.
1.

The Gold Star Chili, Inc.s organization chart is remarkably similar to Demings view of a
production system in Chapter 1. In both, the suppliers appear on the left as inputs to the system.
Materials and resources are consumed and/or transformed in the core process through receiving,
manufacturing, warehousing, and shipping. Production, assembly, and inspection takes place as
described in the narrative, even though some of those processes are hidden in the diagram. The
three classes of customers: franchisees, retail/wholesale, and restaurant customers receive
products and services, and consumer research is done for design/redesign of the product or
service.

2.

In a small, privately held organization, such as Gold Star, it is important for the organization to
become a learning organization. That means that they must constantly examine their processes to
determine whether their processes are effective and efficient. Obviously, the site selection and
design process are very up-to-date, with site selection and computer-aided design software being
used on a computer. Restaurant processes for restaurant operations are documented and taught
through training sessions. Production processes in the Commissary are run with an eye toward
consistent quality. Suppliers are selected on the basis of quality and price. Overall, the processes
appear to be well thought-out.
A determination of how to constantly improve must be made based on use of data from each
process, appropriate levels of cross-functional cooperation and teamwork, and dropping and
adding products and services based on customer needs. It may be a good idea for Gold Star to
benchmark both its top store operations and others to determine excellent practices and new
ideas that can be incorporated. For example, they might want to benchmark a food processor or
manufacturer to pick up new ideas for the commissary. Only by building in continuous change
and improvement can the companys processes be used as a foundation for success in such a
highly competitive environment.

Process Management

Building Japanese Quality in North America

1.

The processes to support achievement of high product quality at Lexus Cambridge, Ontario,
plant start with training workers on the importance of using their skills and knowledge to
make a quality product. Skills are developed via cross-training on various jobs. Knowledge is
used to invent new kaizens. In addition, systems support comes in the form of visible
production status systems and production line status warnings that tell if the line has been
stopped and help to keep production moving smoothly and efficiently. These have been
designed in.
Control is achieved through policies, such as no watches, rings, or riveted pants on the
production floor, empowerment of workers to stop the line for quality problems, making each
worker a quality control inspector, and providing information for on-the-spot decision-making
and correction through built-in quality gates as a part of the production system.
Improvement is fostered through the kaizen process. One likely invention was the Raku
chair which a worker rides inside the body to install such interior parts as the headliner. New
ideas are likely picked up from the shipping quality audits of random samples of cars that
undergo more rigorous inspection before being shipped to customers.

2.

The lessons and practices that might be learned and applied to other companies, even outside
the automotive industry include:

Dont be stingy with worker training.

Build visual systems to help workers and managers keep track of progress.
Empower workers to do a quality job.
Pay attention to small details that may affect quality (workers jewelry and clothing, small
blemishes that may affect later processing, etc.)
Design, control, and improvement quality are all important parts of the quality system.

ANSWERS TO REVIEW QUESTIONS

1.

There are two major categories of processes - value creation processes and support processes.
Four major sub-processes of those categories are: 1) design processes, 2) production/delivery
processes, 3) support processes, 4) supplier and partner processes.
Value creation processes (sometimes called core processes) are those important to running
the business and maintaining or achieving a sustainable competitive advantage. They drive
the creation of products and services, are critical to customer satisfaction, and have a major
impact on the strategic goals of an organization. Value creation processes typically include
design, production/delivery, and other critical business processes. The ultimate value of the
product, and hence, the perceived quality to the consumer, depends on both these types of
processes. Support processes are those that are important to an organizations value creation
processes, employees, and daily operations. They provide infrastructure for value creation
processes but generally do not add value directly to the product or service. Their three key

Process Management

components are design, control and improvement of business processes. The importance of
process management to businesses lies in its focus on prevention of defects and errors, and
elimination of wasteful procedures, resulting in better quality and improved company
performance through shorter cycle times and faster customer responsiveness. Supplier and
partner processes are generally types of support process and describe how supplier and
partner relationships are managed, for instance, how performance requirements are
communicated and ensured, mutual assistance and training, etc.
A basic approach to designing value-creating or support processes might involve the one
developed by Motorola, with steps of: 1) Identifying the product or service; 2) identifying the
customer; 3) identifying the supplier; 4) identifying the process; 5) Mistake-proofing the
process; and 6) developing measurements and controls, and improvement goals.
2.

In many companies, value creation processes take the form of projects temporary work
structures that start up, produce products or services, and then shut down. Some
organizations are project-focused because of the nature of their work. They tend to deliver
unique, one-of-a-kind products or services tailored to the specific needs of an individual
customer. Others simply use projects as necessary to create processes for production and
delivery of products or services. Project management involves all activities associated with
planning, scheduling, and controlling projects. Good project management ensures that an
organizations resources are used efficiently and effectively. Obviously this applies to Six
Sigma projects as well as others. See further discussion of the Six Sigma process for projects
in question 22, below.

3.

Process management involves planning and administering the activities necessary to achieve a
high level of performance in a process, identifying opportunities for improving quality and
operational performance, and ultimately, customer satisfaction. Processes typically fall into
two categories - value creation processes and support processes (see answer to question 1,
above).

4.

As customer needs and expectations change, organizations must design processes that are
increasingly agile. Agility is a term that is commonly used to characterize flexibility and short
cycle times. Flexibility refers to the ability to adapt quickly and effectively to changing
requirements. It might mean rapid changeover from one product to another, rapid response to
changing demands, or the ability to produce a wide range of customized services. Flexibility
might demand special strategies such as modular designs, sharing components, sharing
manufacturing lines, and specialized training for employees. It also involves outsourcing
decisions, agreements with key suppliers, and innovative partnering arrangements. Of course,
it is also a requirement for a TQ culture in an organization.
Competitive pressures are forcing companies to reduce time to market, another characteristic
of agility. The problems incurred in speeding up the process are well known. If done too
hastily, the result will be the need to revise or scrap the design, cost increases or project overruns, difficulty in manufacturing the product, early product failure in the field, customer
dissatisfaction, and/or lawsuits due to product liability. One of them most significant
impediments to rapid design is poor intra-organizational coordination. Reducing time to
market can only be accomplished by process simplification, eliminating design changes, and
improving product manufacturability. This requires involvement and cooperation of many

Process Management

functional groups to identify and solve design problems in order to reduce product
development and introduction time.
5.

The fundamental differences between manufacturing and service processes deserve special
attention. This is especially important because support processes are basically services, so
manufacturing firms invariably are also required to become involved in service delivery. First,
the outputs of service processes are not as well defined as are manufactured products.
Another way to think of this is that manufactured goods are tangible, service goods are (at
least to some degree) intangible. Second, most service processes involve a greater interaction
with the customer, often making it easier to identify needs and expectations. On the other
hand, customers often cannot define their specific needs for service until after they have some
point of reference or comparison.
Service process designers must concentrate on doing things right the first time, minimizing
process complexities, and making the process immune to inadvertent human errors,
particularly during customer interactions. Researchers have suggested that services have three
basic components: physical facilities, processes, and procedures; employees behavior; and
employees professional judgment. Designing a service essentially involves determining an
effective balance of these components. The goal is to provide a service whose elements are
internally consistent and directed at meeting the needs of a specific target market segment.
Too much or too little emphasis on one component will lead to problems and poor customer
perceptions. A useful approach to designing effective services is first to recognize that services
differ in the degree of customer contact and interaction, the degree of labor intensity, and the
degree of customization.

6.

AT&T bases its methodology on the following principles:

7.

Process quality improvement focuses on the end-to-end process.

The mind-set of quality is one of prevention and continuous improvement.
Everyone manages a process at some level and is simultaneously a customer and a
supplier.
Customer needs drive process quality improvement.
Corrective action focuses on removing the root cause of the problem rather than on
treating its symptoms.
Process simplification reduces opportunities for errors and rework.
Process quality improvement results from a disciplined and structured application of the
quality management principles.

Processes controllable by their owners have three requirements: 1) the owner has to have a
means of knowing what is expected of him or her through clear instructions and
specifications; 2) he/she must have a means of determining their actual performance via
inspection or measurement; 3) they must have a means of making corrections if they discover
a variance between what is required (specification) and their actual performance. The
implications of owner-controllable requirements are that management must provide (generally
with owner assistance) the necessary instructions and specifications, the tools and assistance
needed to set up a measurement system, and the training and empowerment to allow operatorowners to take corrective action when there is an error or defective process in operation.

Process Management

8.

Processes need to be repeatable (the process must recur over time) so that enough data can
be gathered to show useful information. They must also be measurable so that patterns about
the process performance can be made clear. This ability to "predict" performance then leads to
ability to detect out-of-control conditions and helps in the search for improvements. Meeting
these two conditions ensures that sufficient data can be collected to reveal useful information
for evaluation and learning that lead to improvement and maturity.

9.

People make inadvertent mistakes for a number of reasons, including the following:

Forgetfulness due to lack of concentration

Misunderstanding because of the lack of familiarity with a process or procedures
Poor identification associated with lack of proper attention
Lack of experience
Absentmindedness
Delays in judgment when a process is automated
Equipment malfunctions

Poka-yoke can help to prevent such errors because it is focused on two aspects: (1) prediction,
or recognizing that a defect is about to occur and providing a warning, and (2) detection, or
recognizing that a defect has occurred and stopping the process.
10.

Service poka-yokes are designed to prevent two major classes of errors: server errors and
customer errors. Server errors result from the task, treatment, or tangibles of the service.
Customer errors occur during preparation, the service encounter, or during resolution.

11.

The three components of any control system are a standard or goal, a means of measurement of
accomplishment, and a way to compare actual results with the standard, along with an
appropriate method of feedback of results to form the basis for corrective action.

12.

An after action review consists of asking four basic questions:

1.
2.
3.
4.

What was supposed to happen?

What actually happened?
Why was there a difference?
What can we learn?

Thus, rather than simply correcting unacceptable events, the focus is on preventing them from
occurring again in the future.
13.

Prior to the development of the TQ approach, most U.S. managers simply maintained
processes until replaced by new technology. Japanese managers generally focused on
continually improving products and processes through a process called kaizen. Often in the
West, quality improvement (sometimes mistakenly called kaizen by those who dont really
understand its philosophy) is viewed as simply making improvements in product quality. In the
kaizen philosophy, improvement should take place in all areas of business--cost, meeting
delivery schedules, employee safety and skill development, supplier relations, new product
development, or productivity-- in order to enhance the quality of the firm. Thus, any activity
directed toward improvement falls under the kaizen umbrella. Activities to establish traditional
quality control systems, install robotics and advanced technology, institute employee

Process Management

suggestion systems, maintain equipment, and implement just-in-time production systems all
lead to improvement. In contrast to seeking improvement through radical technological
change, kaizen focuses on small, gradual, and frequent improvements over the long term.
Financial investment is minimal. Everyone participates in the process; many improvements
result from the know-how and experience of workers. Actually, continuous improvement
approaches were developed decades earlier in the U.S. under a number of labels. Work
simplification, a program developed by Allan Mogensen, was designed to train workers in the
simple steps necessary to analyze and challenge the work they are doing, and thus make
improvements when necessary. It has been used for a number of years in such organizations as
Texas Instruments and Maytag. Planned methods change, created by Proctor & Gamble,
seeks not only to improve processes, but also to replace or eliminate unnecessary operations.
This approach relies on forming teams of employees to study the operations, establish dollar
goals as to how much of their cost they would try to eliminate through planned change, and
provide positive recognition for success.
14.

Cycle time refers to the time it takes to accomplish one cycle of a process-- for instance, the
time a customer orders a product to the time that it is delivered, or the time to introduce a
new product. Reductions in cycle time serve two purposes. First, they speed up work
processes so that customer response is improved. Second, reductions in cycle time can only be
accomplished by streamlining processes to eliminate non-value-added steps such as rework.
This forces improvements in quality by reducing the potential for mistakes and errors as well
as reducing costs. Thus, cycle time reductions often drive simultaneous improvements in
organization, quality, cost, and productivity.

15.

The Deming cycle is a simple, straightforward improvement process, consisting of four steps:
plan, do study, and act. The plan stage consists of studying the current situation and describing
the process: its inputs, outputs, customers, and suppliers; understanding customer
expectations; gathering data; identifying problems; testing theories of causes; and developing
solutions and action plans. In the do stage, the plan is implemented on a trial basis, for
example, in a laboratory, pilot production process, or with a small group of customers, to
evaluate a proposed solution and provide objective data. Data from the experiment are
collected and documented. The study stage determines whether the trial plan is working
correctly by evaluating the results, recording the learning, and determining whether any
further issues or opportunities need be addressed. Often, the first solution must be modified or
scrapped. New solutions are proposed and evaluated by returning to the do stage. In the last
stage, act, the improvements become standardized and the final plan is implemented as a
current best practice and communicated throughout the organization. This process then
leads back to the plan stage for identification of other improvement opportunities.
The Deming cycle focuses on both short-term continuous improvement and long-term
organizational learning.

16.

Often, creative ideas come at moments of inspiration, but systematic approaches can refine
thinking and help prepare for those moments. An effective problem-solving process that can
easily be adapted to quality improvement stems from creative problem-solving (CPS) concepts
pioneered by Osborn and refined by Parnes. This strategy consists of the following steps:

Understanding the mess

Finding facts

Process Management

Identifying specific problems

Generating ideas
Developing solutions
Implementing solutions

17.

Stretch goals, also called breakthrough objectives, are urgent, short-term goals for improving
products or services which force a company to think radically, different, to encourage major
improvements and well as incremental ones. Such goals apply to all areas of a company.

18.

Benchmarking is measuring an organizations process performance against that of best-in-class

organizations, no matter what the industry, determining how they achieve their performance
levels, and using the information to improve on the organizations own targets, strategies, and
implementation. Benefits include:
*0 The best practices from any industry may be creatively incorporated into a company's
operations.
*1 Benchmarking is motivating. It provides targets that have been achieved by others.
Resistance to change may be lessened if ideas for improvement come from other
industries.
*2 Technical breakthroughs from other industries that may be useful can be identified early.
Benchmarking broadens peoples' experience base and increases knowledge. To be effective, it
must be applied to all facets of a business.
However, mere competitive comparison is not adequate for benchmarking purposes, since a
company may be so competitive that they find that they have a slight edge in various practices
and are the industry leader. Thus, by concentrating only on competitors, it may not learn about
ideas and practices from outside the industry that allow it to surpass the best within its industry
and achieve truly distinctive superiority.

19.

Reengineering has been defined as the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements in critical, contemporary measures of performance,
such as cost, quality, service, and speed. Reengineering's incremental improvement and
breakthrough improvement are not incompatible, but rather are complementary approaches that
fall under the TQ umbrella; both are necessary to remain competitive. It has been suggested that
TQ support is needed for successful reengineering. Reengineering alone is often driven by upper
management without the full support or understanding of the rest of the organization, and radical
innovations may end up as failures. The TQ philosophy encourages participation and systematic
study, measurement and verification of results that support reengineering efforts.

20.

Strong supplier relationships are based on recognizing the strategic importance of suppliers in
accomplishing business objectives, developing win-win relationships through partnerships, and
establishing trust through openness and honesty. Supplier certification systems are often used
to manage supplier relationships (see next answer for details).

21.

The purpose for supplier certification programs is to rate and certify suppliers who provide
quality materials in a cost effective and timely manner to their customers. Specific criteria for
suppliers generally include:

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10

Certified suppliers experience virtually no product-related lot rejections for a

significant time period, usually for 12 months, or in some cases two years.
Certified suppliers have no nonproduct-related rejections for a stated period of time.
"Nonproduct-related" means mismarkings on a container, for example.
Certified suppliers precipitate no production-related negative incidents for a stated
period of time, usually six months.
Certified suppliers successfully pass on-site quality system evaluation (audit),
conducted within the past year.
Certified suppliers operate according to an agreed-on specification. Documentation
should not contain ambiguous phrases such as "free of flash" or "no characteristic
odor.
Certified suppliers have a fully documented process and quality system, which should
include the use of statistical process control and a program for continuous
improvement.
Certified suppliers furnish timely copies of certificates of analysis, inspection data, and
test results.

Details of supplier certification processes vary by company, and such programs are timeconsuming and expensive to administer, but are generally cost effective, in the long run.
22.

Six Sigma projects generally cut across organizational boundaries and require the coordination
of many different departments and functions. Like all other projects, they require good project
management to ensure that the organizations resources are used efficiently and effectively.
Two of the advantages of Six Sigma are that projects are clearly linked to strategic needs and
organizational objectives, and that projects are managed under a common framework. This
linkage enables projects to be timely and relevant, and ensures that controls are put in place to
leverage the improvements that are identified. The Six Sigma team-project approach provides
a natural fit with the requirements of product and process design, control, and improvement. A
good system for process management is a prerequisite to Six Sigma. Obviously, to effectively
design or improve a process you first need to understand it. The Six Sigma DMAIC process is
a systematic approach to improvement that involves Defining, Measurement, Analysis,
Improvement, and Control steps in the process. This process goes beyond action planning
steps to process improvement and a plan for improving, and then holding the gains, through
a control process (steps I and C).

23.

Category 6 of the 2003 Malcolm Baldrige NQA criteria assesses the key aspects of process
management. It examines how an organization identifies and manages its key processes for
creating customer value and achieving business success and growth. This includes how an
organization incorporates customer and supplier input into determining its key process
requirements; how processes are designed to meet these requirements; and how new
technology, organizational learning, cycle time, productivity, cost control, and other efficiency
and effectiveness factors are designed into processes. This criteria item also seeks to
understand how key performance measures and indicators are used for controlling and
improving processes, how costs associated with inspections, tests, and audits are minimized,
and how defects and rework are prevented. Finally, it calls for information on how value
creation processes are improved to achieve better performance, reduce variability, improve

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11

products and services, keep processes current with business needs and directions, and how
improvements are shared with other organizational units. Item 6.2, Support Processes, calls
for similar information about key support processes, particularly on how they are design to
meet appropriate internal and external customer requirements, and how they are controlled
and improved.
ISO 9000:2000 deals with process management activities (in fact, the entire standards are
focused on an organizations ability to understand, define, and document its processes.) For
example, one of the requirements is that organizations plan and control the design and
development of products and manage the interfaces between different groups involved in
design and development to ensure effective communication and clear assignment of
responsibility. The standards also address the management of inputs and outputs for design
and development activities, and use of systematic reviews to evaluate the ability to meet
requirements, identify any problems, and propose necessary actions; purchasing processes;
control of production and service, including measurement and process validation; control of
monitoring and measuring devices used to evaluate conformity; analysis and improvement;
monitoring and measurement of quality management processes; and continual improvement,
including preventive and corrective action. The standard requires that an organization use its
quality policy, objectives, audit results, data analysis, corrective and preventive actions, and
management reviews to continually improve its quality management systems effectiveness.
Six Sigma is based on understanding and improving processes on a project-by-project basis.
Two of the advantages of Six Sigma are that projects are clearly linked to strategic needs and
organizational objectives, and that projects are managed under a common framework.
The Six Sigma team-project approach provides a natural fit with the requirements of product
and process design, control, and improvement. A good system for process management is a
prerequisite to Six Sigma. Obviously, to effectively design or improve a process you first need
to understand it. If an organization does not have an ongoing system of process management,
it will be quite difficult to implement Six Sigma. Some key processes that are necessary to
implement Six Sigma include the following:

Project selection and definition

Financial review
Training
Leadership for project leaders
Project leader mentoring
Certification for Six Sigma specialists
Project tracking and reporting
Information management and dissemination

It is important to note that Six Sigma is not a substitute for continuous improvement.
Because of its reliance on specialists the black belts who lead the high-profile projects, it
becomes quite easy to ignore simple improvements that can be achieved at the process owner
level. In fact, it can easily alienate process owners who, instead of seeking continuous
improvements, leave them to the specialists.
ANSWERS TO DISCUSSION QUESTIONS

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12

1.

Godfrey painfully, but effectively, points out the blinds spots of process management that many
organizations have. The three issues of overscheduling, lack of effective capacity planning, and
unwillingness of departments to work together create costly delays, waste, lost time, and hard
feelings. Overscheduling can occur in such situations as putting tickets on sale at a single location
for sporting events, such as the World Series, or the Super Bowl; lack of capacity planning can
take place when there are insufficient doses of a flu vaccine available during the flu season; and
unwillingness of departments to work together is frequently seen when local governments refuse
to work together to develop an integrated system of permits for building construction projects.

2.

Key business processes for sales and marketing could include the process for identifying and
selling products/services to customers and another one for order handling and processing for
repeat sales; supply chain management requires processes for ordering routine and special
materials and supplies; information technology management requires processes to develop
computer systems and programs and other processes to handle routine, repetitive processing
jobs, such as payrolls; and HRM requires processes for recruiting, hiring, orienting new hires,
performance review, and employee separation, among others. See below for a more extensive
view.

Understanding
Markets and
Customers (UMC)

Developing Vision
and Strategy (DVS)

Selling and
Customer Service
(SCS)
Responding to
customer inquiries

Acquiring Materials
and Supplies (AMS)

Determining
customers' needs
and wants

Monitoring the
external environment

Monitoring changes in
market or customer
expectations

Defining the business concept Taking and processing Purchasing materials

and organizational strategy
orders
and supplies

Marketing products
Designing the products
or services for relevant
organization customer
structure segments

Defining the organization

structure

Providing after-sales
service

Acquiring and
Implementing systems,
deploying
security and controls
appropriate technology

Providing technical
support relevant to
customer markets

Developing and
setting organizational
goals

Reconciling order
exceptions

Managing supplier
relationships

Supporting
information systems
and technology

Identifying and
securing new
suppliers

Improving customer
processes

Managing inventory

Facilitating
information sharing
and storage retrieval

Negotiating and
monitoring supplier
participation

Managing customer
segmentation

Providing internal
customer services

Managing
information and
storage retrieval

Measuring customer
satisfaction

Evaluating and
selecting suppliers

Managing
Information
Technology (MIT)
Planning for
information systems
and technology
Developing and
deploying enterprise
support systems

Managing facilities,
network, operating
systems and
technology

Process Management
Managing
Movement of
Inventories and
Making Deliveries (MId)

Managing Integrated
Supply (MIS)

13
Developing and
Managing Human
Resources (DHR)

Managing Financial
and Physical
Resources (MFR)

Managing Quality
Improvement and
Change (MIC)

Receiving/Stocking

Marketing and sales

Managing
deployment of
personnel

Managing financial
resources

Developing and
deploying the
Quality Plan

Controlling
inventory

Acquiring materials
and supplies

Interpreting
personnel policies

Processing finance
and accounting
transactions

Measuring
organization
performance

Picking material

Managing customer
inventories

Ensuring associate
well-being and
satisfaction

Reporting financial
information

Benchmarking
performance

Shipping, delivery
and pickup

Fulfilling customer
requisitions

Managing worker's
compensation claims

Managing the tax

function

Improving processes
and systems

Acquiring MID
Improving customer
materials and processes processes
supplies

Providing required
basic safety training
for all associates

Implementing TQM

Managing facilities and

equipment

Developing and
Maintaining a human
resource information
system

Maintaining 1S0 9000

registration and
conducting quality
assessments

Complying with all

government
reporting

Training

Implementing improvements

3.

Processes should be repeatable (the process must recur over time) so that enough data can be
gathered to show useful information. They must also be measurable so that patterns about the
process performance can be made clear. This ability to "predict" performance then leads to ability
to detect out-of-control conditions and helps in the search for improvements. An example of the
types of processes that are repeatable and measurable might include the time required to register
for a class using a telephone or internet-enabled process. An example of a non-repeatable, nonmeasurable process would be painting a picture of a landscape. Other examples will vary
according to student understanding and interests.

4.

Some processes that students perform are often included on Personal TQM projects (see Chapter
1). These might include going to the gym three times per week for exercise, studying at least 2
hours per day, five days a week, etc. These are repeatable and measurable, and they may be
improved upon by using a PTQM checklist to record whether they have been accomplished or
not. The answers will vary here, depending on students' perspectives.

5.

Typically, examinations are a means of control (or appraisal, in quality cost terms). They could be
used as a means for gathering data to discover areas for improvement. An advantage of the
"English system" of examinations is that classroom examinations are separated from
comprehensive examinations. Classroom examinations (if they are given) are developmental, and
have no direct bearing on class rank or the comprehensive exam "grade." Individual professors

Process Management

14

do not prepare the comprehensive examinations. Therefore, professors are seen more as "tutors,"
"lecturers," or "mentors" in the classroom setting as opposed to "quality control" police.
6.

Companies today face incredible pressures to continually improve the quality of their products
while simultaneously reducing costs, to meet ever-increasing legal and environmental
requirements, and to shorten product life cycles to meet changing consumer needs and remain
competitive. The ability to achieve these goals depends on a large extent on product design.
The complexity of todays products makes design a difficult activity; a single state-of-the-art
integrated circuit may contain millions of transistors and involve hundreds of manufacturing
steps. Nevertheless, improved designs not only reduce costs, but also increase quality.

7.

As indicated in the answer to Review Question 13, above, the kaizen philosophy, improvement in
all areas of business enhance the quality of the firm. Thus, any activity directed toward
improvement falls under the kaizen umbrella. Applying this concept to the classroom would mean
that students would search for improvement opportunities in every area, from study skills to
improving the quality and readability of their written reports, as well as the professor's handouts.

8.

Other excuses for not wanting to engage in improvement include: Weve tried that before and it
didnt work; Im not paid to improve the process its not my job; We never do it that way
twice, so it cant be improved; The boss wont let us change it; Government regulations
prohibit that from being changed (maybe they do, but no one has ever looked up the
regulation!)

9.

One of the authors was actually involved in this type of process at both the program level and the
course level. At that time, prior to the growing popularity of Six Sigma, he attempted with some
success, to use TQ principles and tools in the course design process. The process should begin
with problem definition and development of a list of customer needs and expectations (CTQ
issues) as well as team formation in the Define stage, move on to Measurement of what is
currently done and required metrics, Analysis to determine where improvements might be made,
investigation of possible Improvements and whether they solve the perceived problem, and
ending with Control of the new process so that what the customer sees and believes the quality of
the product to be (perceived quality) will be continually delivered.

10.

The first task of the producer (university administrators and faculty) is to identify customer needs
and expectations. The university must focus on the key dimensions that are reflected in specific
customer needs. If these expectations are not identified correctly or are misinterpreted, then the
final product will not be perceived to be of high quality by customers. A university has two
primary customers (and many other customer groups). The primary customers are the students
and the employers of graduates.
Technical requirements determine the design quality of the product. Process (or course)
designers' perceptions of customers' needs can often differ from their actual needs. For instance,
the "average" customer might need course content that is general enough for use in any
organization. A "design" decision might be made in a computer course to teach AUTOCAD,
rather than a common spreadsheet program. If the intent is to prepare business (not engineering)
students to work in business organizations, then the "product (student who graduates)" may be
said to "fail prematurely" under normal use. If course designers never have an opportunity to

Process Management

15

interact with customers (employers), the probability that they will not understand or misinterpret
the expected quality is greatly increased.
Next, product designs are transferred to people or organizational units responsible for
delivering the service. Poor attention to customer needs can affect the perceived quality. For
example, if the system is not designed to assure conformance to the technical specifications,
then the actual quality produced may not be the same as the design quality. The fundamental
equation that relates these different levels of quality is: perceived quality = actual quality expected quality.
11.

Researchers have suggested that services have three basic components: physical facilities,
processes, and procedures; employees behavior; and employees professional judgment.
Designing a service essentially involves determining an effective balance of these components.
The goal is to provide a service whose elements are internally consistent and directed at
meeting the needs of a specific target market segment. Too much or too little emphasis on one
component will lead to problems and poor customer perceptions. For example, too much
emphasis on procedures might result in timely and efficient service, but might also suggest
insensitivity and apathy toward the customer. Too much emphasis on behavior might provide a
friendly and personable environment at the expense of slow, inconsistent, or chaotic service.
Too much emphasis on professional judgment might lead to good solutions to customer
problems but also to slow, inconsistent, or insensitive service.
A useful approach to designing effective services is first to recognize that services differ in the
degree of customer contact and interaction, the degree of labor intensity, and the degree of
customization. For example, a railroad is low in all three dimensions. On the other hand, an
interior design service would be high in all three dimensions. A fast-food restaurant would be
high in customer contact and labor intensity, but low in customization.
Services that are low in all three dimensions of this classification are more similar to
manufacturing organizations. The emphasis on quality should be focused on the physical
facilities and procedures; behavior and professional judgment are relatively unimportant. As
contact and interaction between the customer and the service system increases, two factors
must be taken into account. In services low in labor intensity, the customers impression of
physical facilities, processes, and procedures is important. Service organizations must exercise
special care in choosing and maintaining reliable and easy-to-use equipment. With higher
levels of contact and interaction, appropriate staff behavior becomes increasingly important.
As labor intensity increases, variations between individuals become more important; however,
the elements of personal behavior and professional judgment will remain relatively
unimportant as long as the degrees of customization and contact and interaction remain low.
As customization increases, professional judgment becomes a bigger factor in the customers
perception of service quality. In services that are high in all three dimensions, facilities,
behavior, and professional judgment must be equally balanced.

12.

Traditionally, there have been high "walls" built between design engineers and manufacturing
engineers. In fact, in many companies, there is a saying that Design develops the product
requirements and "throws the new design over the wall" for Manufacturing to make. The
implication is that neither side has wanted to talk to, or cooperate with, the other. Quality

Process Management

16

assurance personnel may be able to "bridge the gap" or "tear down the walls" between these
groups by focusing on the needs of the organization to design a product with the customer in
mind, where the customer can be seen as the immediate group (Manufacturing) by the design
engineers, as well as the ultimate customers or consumers of the finished product.
13.

a. Legal Sea Foods designs their process to include major steps of: 1) Supplier specifications
(fresh, local products from government certified beds) carefully monitored. 2) Closely controlled
initial processing (cutting and filleting in an environmentally controlled facility with an in-house
microbiology laboratory) that assures high quality raw materials. 3) Acceptance and in-process
inspections (total of eight) that are consistently performed. 4) Customer-focused order taking
and processing (cooked to order and delivered individually) using teamwork to assure freshness
at the customers' tables. The three components of any control system are a standard or goal, a
means of measurement of accomplishment, and a way to compare actual results with the
standard, along with an appropriate method of feedback of results to form the basis for corrective
action. Legal Sea Foods process seems to be designed to ensure control.
b. In terms of a 3-dimensional classification of: customer contact/interaction, labor intensity, and
customization, Legal Sea Foods would probably rank moderately high in customer
contact/interaction (not as high as a fine restaurant), moderately high in labor intensity
(teamwork required to serve the meal), and medium on customization. It would certainly not be
the same as fast food services or of fine restaurants. Their process design appears to be
consistent.

14.

The Circle H "case" problem is designed to give students a "feel" for the types of challenges that
are faced by quality auditors, who must act as "detectives" to determine what problem exists
before they can recommend how it is to be fixed. In this case, there are many questions raised by
the data from the customer survey. The main question in this case is "how to define the problem."
answers to associated questions are:
A number of questions about the problem must be raised, and appropriate data must be gathered
inside and outside the company, before the solution can be found. Among these are:
How many people were included in the survey at the three former customer's companies, from
which the survey data was compiled? What were their titles and what specifically did they say
about the three top complaint categories?
If detailed information on complaint categories is available from the customers, what data can
they provide on the way in which the packaging was inconvenient (wrong sizes, way the order
was packed and shipped from the plant, etc.)? What data is available on delivery and restocking
time? Has this changed recently, or was it always "too slow"? What information can be provided
about the lack of availability of preferred items? Was their customer representative aware that this
was a problem? What was done to communicate and handle the problems?
What internal company information is available from the shipping department on the way the
product is packed before sending the product to the customer? Have customer preferences in
packaging been communicated to shipping?

Process Management

17

What information is available from the ordering and production control departments on the
former customers' preferences for certain products versus production scheduling and run sizes?
Are these products running into capacity bottlenecks, constantly sold out, or delayed during
production due to chronic production problems?
The same type of questions used above could be extended to the investigation of whether the
credit approval process significantly affected the order processing time. Specifically, you would
need to know when the customers became aware of the fact that delivery and restocking were
"too slow." Then the following line of investigation should be taken in the company, by asking:
What information is available from all affected departments on the complete process used to
enter and process orders, up to and including the new delay for credit checking of restock orders,
and how are controls set up to ensure that the orders are shipped in a timely and complete
fashion?
Were any of the former customers involved in the delinquent accounts receivable category? Was
there a way to avoid having every restock order to be scrutinized by the credit department, such
as having a code on the order for "good" customers and a separate code for "delinquent"
customers?
If there are problems in order processing and accounts receivable, as there appear to be, the
next step is to analyze their processes, determine what controls are in place, find out why the
controls aren't giving satisfactory results, and organize a team composed of representatives
from both departments to take quick corrective action.
15.

This expensive experiment of McDonalds may have violated many of the rules of process
design and/or improvement. It can only be speculated what went wrong without more facts.
Even a basic understanding of Demings PDCA model would have provided some protection
against this type of problem, if it had been done systematically. It is unclear what kinds of
market testing were done, but it is not likely that they did an extensive full-scale test of the
concept in the field for very long. Chances are they did 4.5 years of testing in the lab and 0.5
year in an actual outlet. Did the plan for the process change include workers, store
managers, and a cross section of customers? Did the do step calculate possible risk factors
and include simulations? Did the study step allow for adequate time to analyze the data from
the tests? Did the act phase obtain feedback before the entire changeover was made?

16.

The billing and service information system at Cincinnati Water Works appears to be extremely
sophisticated and comprehensive for a utility, such as a water department. The technology that
they designed has removed many of the most obvious hassles and delays for customers, while
providing the opportunity for extensive productivity improvement for the department. It appears
that the system would contribute to quality, time, and productivity improvements, simultaneously.
It has individualized account history for customer satisfaction and cycle time reduction; troubleshooting and repair capability, including locators and GPS, for quality and productivity
improvement; personpower scheduling capacity for both call center representatives and
maintenance personnel which also improves quality, cycle time and productivity; productivity
enhancement for meter readers and repair people; and its primary function, billing customers and
handling account queries. This type of system might be used by almost any type of utility, but

Process Management

18

could possibly be adapted to transportation systems such as airlines, freight handlers, and
passenger transportation organizations.
17.

Below is a diagram that represents a complete process:

18.

The PepsiCo flowchart explicitly contains three of the elements of Demings plan-do-study-act
cycle (Deming cycle). Planning involves a customer focus, analysis of the current steps in the
process, and proposing an improved process, with process measures. Doing involves pilot
testing the new process, implementing stabilizing it, and continuously improving it (repeating
the cycle). After the pilot test, it is assumed that one would study the results for flaws or
necessary corrections before full implementation takes place. This is not stated explicitly. In
contrast with the Deming cycle, there is a definite customer focus that is a unique part of the
planning process.
PepsiCos process has several features that are similar to the Juran improvement program, as
well. The process flowchart seems to emphasize the steps in the diagnostic journey, the
remedial journey, and holding the gains that Juran developed.

19.

Defects to consider might include:

Metropolitan Bus Service

Lack of available buses to cover all routes

Lack of available drivers to cover all routes
Lack of maintenance personnel to service
buses.
Unsafe or defective transmissions on buses
Lack of customer accommodations (i.e.

Process Management

19

A Local Department Store

An Electric Power Company

A theme or amusement park, such as Walt

Disney World, Kings Island, or Six Flags.

bike racks, priority seating for elderly) on

buses.
Lack of handicapped facilities (i.e.
wheelchair loading ramps) on buses.
Lack of routes available for rural areas
outside the metropolitan area
Poorly developed time schedules for buses
that do not take local driving conditions
(i.e. traffic congestion, weather) into
account.
Defective equipment on buses (i.e. speaker
systems that are too loud or too soft for
passenger comfort.)
Customer service issues (i.e. bus drivers
who are surly; tour guide drivers who
feel obliged to keep up a running dialogue
instead of concentrating on driving the bus,
etc.)
Lack of advertisement for store products
and events (sales, etc.)
Lack of customer service and store
personnel to handle store sales volume.
Poorly developed layout of store, which
causes confusion among customers.
Lack of customer accommodation (i.e.
available parking, shopping bags or carts,
handicapped facilities.)
Customer service issues (i.e. sales personnel
who are surly, sales personnel who are TOO
friendly, sales personnel who ask you Are
you finding everything okay? soon after
you walk up to the counter, etc.)
Lack of adequate power sources to cover
peak demand
Lack of sufficient maintenance crews to
handle emergencies (i.e. blackouts, etc.)
Consistently defective billing services
Customer service issues (i.e. lack of people
to handle the customer service call center;
customer service personnel who are not
trained to properly answer the phone or
deal adequately with customer problems,
etc.)
Defective or unsafe rides and attractions.
Lack of maintenance personnel to service

Process Management

20

Your college or university

20.

rides and attractions.

Lack of customer accommodations (i.e.
sufficient parking, first aid services,
handicapped services, etc.)
Lack of sufficient personnel to handle
admission booths, rides, food services, etc.
Crowd-control issues (i.e. long lines for
rides, attractions, restrooms, etc.)
Customer service issues (i.e. customer
service personnel who are not trained to
properly answer general questions or deal
adequately with customer problems.)
Lack of sufficient student accommodations
(i.e. dormitory rooms, parking) on campus.
Poorly developed course registration
systems.
Lack of student employment opportunities
Lack of public facilities (i.e. public parking
spaces, trash cans, etc.) on campus
Lack of school supplies or books for
courses, at the campus bookstore.

The Siemens Energy and Automation and Lucas Sumitomo Brakes, Inc. case studies reveal
two similar situations in which the Deming cycle and creative problem-solving process
resulted in significant process improvements and savings.
1a) The Deming cycle (plan-do-study-act) required the Siemens team to go
through the cycle twice. First, they planned to simply try to reduce the
negative appearance of the E-Frame breaker. Although details werent
given, they began gathering data on the problem, found after a brief study
that they could possibly eliminate the operation, and acted on that
information to redefine the problem and begin the cycle again. They then
planned to gather data, gathered it and determined costs and customer
requirements, studied the operation using a fishbone analysis, extended
the
study
to
consider
alternatives,
and
implemented
their
recommendation, with follow-up (action step).
1b) A broader picture using the 6-step creative problem-solving process
consists of:
1. Understand the mess
2. Find facts
3. Identify specific problems
4. Generate ideas.
5. Develop solutions

Process Management

21

6. Implement the best solution

Obviously, the Siemens team took time to understand the mess. This
resulted in a problem re-definition that saved both time and considerable
costs. In Step 5, the time spent to determine the five possible alternative
solutions [ a) constant airflow; b) shop vacuum; c) deflashing parts; e)
ionizer (mousetrap); and e) air hose at press] was probably time well spent.
The best solution was determined to be e). It was implemented and data
on its usefulness was gathered before the old process was dismantled.
2a) The Deming cycle (plan-do-study-act) required the Lucas-Sumitomo
team to look at the big picture of factory downtime. They too had to plan
and do data gathering, study data to narrow their focus, and act to focus
on reducing downtime on the high-pressure washing machines. They began
the next cycle with a better view of the major part of the focus.
It is easy to see that the Lucas-Sumitomo team had a big mess in looking
at the complex problem of reducing downtime, so they needed to focus on
a significant segment of that. This was seen in setting a goal to reduce
downtime on the washers by 40% in the short term and 70% in the long
term. Steps 2 and 3 of the creative problem solving process took extensive
data gathering and fact-finding in order to identify specific problems.
Techniques that were used included brainstorming, fishbone (cause-effect)
diagrams, and use of the 5 Whys to get to root causes. Ideas were
generated, potential solutions for multiple problems were listed and tested,
and implementation was done, with follow-up. The changes required
included a) relocating switches and wires on the machines, b) changing
materials and specifications of o-rings, seals, and tubing, and implementing
a preventive maintenance program to rebuild rotary joints during
scheduled downtime. The results were that downtime was decreased more
than the targeted amount in the short run. It continues to be increased
over time.
21.

These are not easy problems for libraries to solve. The following are only top of the head
suggestions. They have not been reviewed by librarians.
a. Some low tech approaches might include sorting books on carts according to the
sections where they must be returned to, providing a checklist to shelvers to remind them
of steps needed to ensure proper placement, and/or providing marking on shelves
(numbers or color codes) to match similar codes on the books. Of course, a more high
tech solution might be to barcode the books and have matching barcodes on the shelves.
b. Check ins should be easier to mistake proof than shelving accuracy. Some solutions
would be to have a check in bin located close to the checkout station, have library clerks
check in the books, just in time, as they are submitted, and place the books on carts to
be reshelved as soon as possible. Again, automation through barcodes would help to
ensure process speed and accuracy.

Process Management
22.

For the Hensley automobile dealership problem, a comprehensive analysis is required. Chase
and Stewart point out that ...poke-yokes are either warnings that signal the existence of a
problem or controls that stop production until the problem is resolved. The authors provide
an interesting classification of the type of poke-yokes that are relevant in services. These are
included here, with an example, rather than trying to provide an exhaustive list of those for
Rick Hensleys automobile dealerships service. However see the Figure 7.11, and the Sloan
Management Review article for a more detailed listing of process steps and examples.

Classification of Errors
Task
Treatment
Tangible
Preparation
Encounter
Resolution
23.

22

Poka Yoke Fix Examples

Color-coded tags on vehicle roof to identify service order / advisor

Smile, greeting with, Hello, Ms. Smith. Welcome to Hensley.
Clean uniforms; waiting areas clean, with rugs, fresh coffee
Appointment reminder calls; customer to bring warranty paperwork
Staple correct (legible) copy (not companys copy) of credit card
receipt to customers bill
Customer satisfaction card given to customer when keys returned

As can be seen on the flowchart, below, the medication administration process offers
numerous possibilities for error at every step. The physician may not write legibly (probably
the most frequent source of physician error), or even specify the wrong drug or dosage. The
secretary may not transcribe the order correctly. The reviewing nurse may approve an order
that is not correct. The pharmacist may not read or interpret the prescription correctly, or may
mix up orders. And the attending nurse may give the wrong medication, or the wrong amount,
to the patient.
A Medication Error Committee at one hospital identified the highest ranked problems that
were deemed to be the most critical in causing severe errors as follows:

Having lethal drugs available on floor stocks.

Mistakes in math when calculating doses.
Doses or flow rates calculated incorrectly.
Not checking armbands (patient identity) before drug administration.
Excessive drugs in nursing floor stock.

To reduce possible critical errors at the point of medication, these poka-yokes could be
applied:

Remove lethal and excessive drugs from floor stock.

Standardize infusion rates and develop an infusion handbook
Educate nurses to double-check rates, protocols, and doses

Process Management

24.

The flowchart for this process is as follows:

23

Process Management

First available
teller asks,May
I help you?

Start

24
Yes

Customer
presents
checks for
deposit

Are payee
names on
accounts?

No

Cash
back
?
Yes
No

Request
payee name
on account

Check
customer status

Verify customer with SSN,

DOB or mothers name

Add checks on
calculator &
subtract out net
deposit to verify
cash back

Make cash out

ticket

Stamp deposit
slip

Give customer
cash & receipt

Give customer
receipt

End

Possible sources of error include customer error, teller error, or processing error.1
Some Poke-Yokes are:

Check addition and subtraction with calculator, regardless of cash back, or not
Check cash-out ticket to verify correct account number and amount
Count checks and cash twice to ensure that the tally is correct
Train new employees, using a flowchart
Have new employees work with veteran employees for a specified period to learn operations
well and prevent processing errors

SUGGESTIONS FOR PROJECTS, ETC.

1.

Processes that students might encounter at their college or university due to direct contact or
part-time work on campus might include accounting, budgeting, purchasing, training and
development, and research. Non-educational institutions that might be benchmarked might be
hospitals (accounting); relief agencies, such as the Red Cross (budgeting); discount stores

Appreciation is expressed to one of Dr. Evans students, Emily Schlicter, for providing the above flow chart and
concepts for this problem solution.

Process Management

25

(purchasing); consulting firms (training and development); and pharmaceutical firms (research
and development).
2.

This exercise is designed to further students' awareness of the breadth of the "quality movement"
and help them confirm how and whether the theory of quality is being applied in a practical
settings in business and industry. Process design concepts are fairly widely known among trained
quality managers, but it varies widely depending on the size of the firm and the industry.

3.

Design for environment is becoming more important in US firms, as well as abroad. Many
European firms are certified under ISO 14000 and more and more US firms are being certified,
each year. This will be an interesting exercise to take the pulse of socially responsible managers
in local industries.

4.

For Christina Clark to mistake-proof these steps in each process, will require the application
of poke-yoke principles. For example, the Receiving and Storage steps could be mistakeproofed by putting a clipboard on the refrigerator door as a reminder of the requirement to
check the temperature of incoming hotdogs and the temperature of the refrigerator. Columns
on the form would require signoff on the two temperatures, the date and time, and the name
of the associate checking in the product. Similar sign-offs could be required for the other
processes of cooking, cooked storage and re-heating. In addition, other HACCP requirements
(see Bonus Materials for a review of these requirements) would have to be met. HACCP
involves these seven principles:

Analyze hazards. Potential hazards associated with a food and measures to control
those hazards are identified. The hazard could be biological, such as a microbe;
chemical, such as a toxin; or physical, such as ground glass or metal fragments.

Identify critical control points. These are points in a food's production--from its raw
state through processing and shipping to consumption by the consumer--at which the
potential hazard can be controlled or eliminated. Examples are cooking, cooling,
packaging, and metal detection.

Establish preventive measures with critical limits for each control point. For a
cooked food, for example, this might include setting the minimum cooking
temperature and time required to ensure the elimination of any harmful microbes.

Establish procedures to monitor the critical control points. Such procedures might
include determining how and by whom cooking time and temperature should be
monitored.

Establish corrective actions to be taken when monitoring shows that a critical

limit has not been met--for example, reprocessing or disposing of food if the
minimum cooking temperature is not met.

Establish procedures to verify that the system is working properly--for example,

testing time-and-temperature recording devices to verify that a cooking unit is working
properly.

Establish effective record keeping to document the HACCP system. This would
include records of hazards and their control methods, the monitoring of safety

Process Management

26

requirements and action taken to correct potential problems. Each of these principles
must be backed by sound scientific knowledge: for example, published microbiological
studies on time and temperature factors for controlling food borne pathogens.
5.

Answers will vary depending on the individual/group efforts of the students.

6.

Answers will vary, depending on the individual processes of the students. Such an instrument for
evaluating the process orientation of an organization might be built on leading process
management practices including:
*3 Translating customer requirements into product and service design requirements, taking
into account linkages between product design requirements and manufacturing process
requirements, supplier capabilities, and legal and environmental issues.
*4 Ensuring that quality is built into products using appropriate engineering and quantitative
tools
*5 Effective management of the product development process to enhance cross-functional
communication, reduce product development time, and ensure trouble-free introduction of
products and services.
*6 Defining and documenting important production/delivery and support processes, and
managing these as important business processes.
*7 Defining performance requirements for suppliers, ensuring that requirements are met, and
developing partnering relationships with key suppliers and other organizations.
*8 Controlling quality and operational performance of all key business processes, using
systematic methods to identify significant variations in operational performance and output
quality, determine root causes, make corrections, and verify results.
*9 Continuously improving processes to achieve better quality, cycle time, and overall
operational performance.
*10

Innovating to achieve breakthrough performance using such approaches as

benchmarking and reengineering.

7.

This project is designed to encourage students to consider what steps are required to develop a
process manual. Some ideas on what such a manual contains might be found in the Gold Star
Chili QIP case.

8.

This project is designed to help the student to find which techniques are used in businesses to
improve their processes. Results will vary, but often related to the quality focus in the firm.
Most companies now chart some output measures. How an organization approaches problem
solving is not as critical as doing it in a systematic fashion, whether they use the Deming cycle,
CPS, or some other variation. Dont expect to see sophisticated approaches or complex
statistical tools except in the most advanced quality-minded organizations (for example, those
with a Six Sigma program.)

9.

This project will take significant time to develop, but can pay tremendous dividends in
learning how to use quality tools for problem solving and improvement. It would also help to

Process Management

27

get school administrators involved in systematic quality improvement processes. This would
be a good term project for a student.
10.

Results will vary, depending on the personal problem chosen. See Review Question 15, for a
frame of reference for this project.

11.

This is also a good community service project, similar to project 9 that will also provide
excellent experience for students in applying the process improvement concepts and tools of
quality.

12.

Students can often identify a number of objectives for improvement when they do a personal
TQM project in this or a related course (see Chapter 1 for details). Some typical objectives
are get up on time (no snooze alarm), study chapters before coming to class, eat no more than
one junk food item out of the vending machine each day, etc. Poka-yoke devices to at least
remind them of each objective would be: place the alarm clock on the far side of the room, so
that one has to walk over to turn it off; place a reminder note on the refrigerator to remind
one to study the chapters, the night before a class; put change for one snack in a special
change purse or pocket, which will be empty after the student eats the one junk food item for
the day.

13.

Results will vary, depending on the manager who is interviewed and the type of company or
industry that is chosen.

14.

Results will vary, depending on the quality improvement tool chosen. This will help expose
students to some of the dozens of improvement techniques that are available.

15.

Results will vary, depending on the article that is chosen for review from Grouts website.

ANSWERS TO CASE QUESTIONS

I. The State University Experience
1.

The prospective student experienced a number of service quality defects in trying to navigate "the
system" at State College. First, the tour guide was not well trained, thus creating a poor initial
impression.
The admissions process obviously needed improvement. The application form was confusing, a
transcript was lost, the choice of major by the applicant was miscoded, and the confirmation form
contained redundant information that had been requested on the previously submitted application
form.
The billing and financial aid processes were also uncoordinated. The systems for payment seemed
to have some unresolved problems, which created errors and confusion.

2.

To fix the problems with the systems at State University, administrators should begin with
customer focus. They need to understand the problems of the average 18-25 year old prospective

Process Management

28

student, and design their processes to be user-friendly. This would require them to chart the
processes (such as admissions, financial aid and billing), analyze them for unnecessary steps and
overlap (such as the same information required on the application and the acceptance form),
gather data on the problems and perhaps analyze them using Pareto analysis, and redesign the
system to simplify it. With this approach, customer satisfaction could certainly be improved.
II. The PIVOT Initiative at Midwest Bank Part I
The Define Process
1.

It appears that preparation of the team members gave them the basic tools needed to
undertake the challenge of finding a solution to a significant bank problem. The project team
received valuable training in the Yellow Belt stage that allowed them to calculate the initial
process capability in terms of the sigma level. In addition, a trained Six Sigma analyst was in
charge of data integrity, graphical analysis, and data stratification. Other team members were
selected for the contributions that they could make to defining, collecting, and interpreting
data and coming up with possible solutions to the problem.

2.

The roles for Midwest Banks team members were not as clear-cut as those in the Team
Member Roles, Responsibilities, and Performance Attributes (Table 6.1). The team consisted
of six members, excluding the project champions. Besides the Champions, other roles listed in
the table can be identified. Key roles of team members were: Team Leader (called the Project
Coordinator by Midwest), the facilitators (process owners described as the Assistant Vice
President and team Supervisor from CPD), the technical facilitator (the Project /Six Sigma
Analyst for CPD), and various other Core Team members (Operations Finance Manager and
the other Project Coordinator). While not specifically named, it is likely that a timekeeper
and scribe were appointed, perhaps on a meeting-by-meeting basis.
The team makeup differs from the conventional Six Sigma team roles because Midwest
Bank was in the process of setting up their own version of a Six Sigma process and they
wanted to avoid duplicating the exact terminology of a General Electric or other similar
processes. Further support for this theory can be provided by the fact that they called their
process the PIVOT process, not the Midwest Six Sigma process.
One puzzling omission from the team was the absence of line employees. It would appear in
hindsight that first line bank employees could have provided valuable insights into the process,
potential sources of errors, and how improvements would be accepted and supported.

3.

The decision to include the $280,000 anomaly was a difficult judgment call. While it might
possibly never happen again, the existing system was not strong enough to prevent it. Another
reason could have been based on managerial politics. If a sound Six Sigma solution to the
problem was found, it is likely that other departments would notice the success and be more
likely to want to undertake their own projects, using this project as a model.

Another approach to roles and accountability at various stages of the life-cycle of a Six Sigma project
was provided by the following table, which can be found in the previous edition of our textbook, as well
as in the reference for which it was originally developed.

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29

Table 7.4 Project Lifecycle Accountability Matrix

(From Chapter 7 in the 7th edition of Managing for Quality and Performance Excellence)

Stag
e
Role \
Champion

External
Customer (or
Process Owner)

Project
Quality
Initiation

Project
Quality
Planning

Project
Quality
Assurance

Project
Quality
Control

Project
Quality
Closure

Select project
manager, promote
Six Sigma use, align
and select project,
commit to charter

Determine
decision-making
authority, commit
to plan, allocate
resources needed for
project success

Conduct
external customer
communications,
mentor project
manager, clear
obstacles as
needed

Sign off on
completed project,
recognize and
reward participants,
assess project to
improve system

Identify and
prioritize
expectations,
commit to charter

Contribute process
knowledge, identify
customer
satisfaction
standards and
tradeoff values,
commit to plan

Participate in
ongoing
communications,
assist in obtaining
approvals for
changes in processes

Conduct
external customer
communications,
mentor project
manager, approve or
reject process
improvements,
clear obstacles as
needed
Confirm ongoing
satisfaction level,
accept deliverables

Master Black Belt Assist in strategic

(Technical
project selection,
Consultant)
promote Six Sigma
vision, tools, and
process

Assist in identifying
data collection and
analysis needs,
provide training
resources, ensure
that processes are
statistically sound

Project
Manager
(SSBB and/or
SSGB)

Select core team,

identify risks,
empower
performance,
commit to charter

Identify customer
satisfaction
standards and
tradeoff values, plan
for short-term
training if needed,
develop quality and
communications
plans, commit so
plan

Core Team

Determine team
operating
principles, flowchart
project, identify
lessons learned,
commit to charter

Plan project,
contribute special
expertise,
identify suppliers,
qualify the process,
identify data to
collect, commit to
plan

Verify when usage

training and support
are completed,
assess
project to improve
system, ensure that
new processes are
implemented,
signoff
Participate in
Provide expertise in Assist in
ongoing
design of process
development of
communications,
improvements,
management
mentor project
support project
presentations, do
manager, facilitate manager (SSBB
project signoffs,
cross-project sharing and/or SSGB)
ensure that project
and learning
results are
publicized,
disseminate best
practices and
lessons learned
Conduct
Track progress,
Notify champion of
customer/manage- critical success
project completion,
ment communifactors, and costs
recognize and
cations, select tools, versus plan;
reward participants,
confirm qualified
implement midassess project to
processes used,
course corrections; improve system
oversee data
measure customer
gathering and
satisfaction;
analysis, manage
manage process
quality audits and
improvements
planning
Use qualified
Measure customer Provide customer
processes, gather
satisfaction, test
support and
data, find root
deliverables,
training, assess
causes, conduct
correct defects,
project to improve
quality audits, plan endorse
system
future work.
deliverables

Source: Adapted from Timothy J. Kloppenborg and Joseph A. Petrick. Managing Project Quality. Vienna, VA:
Management Concepts, 2003, p. 11, used with permission.

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30

IV. Novel Connect

Although not required for this exercise, the feedback report comments for this case, based on the
2008 Baldrige criteria and the Baldrige Training Feedback Report, are enlightening and serve the
purpose of addressing the issues of the Category 6 response of Novel Connect. The companys
response in their application will not be duplicated here.
Category 6 Process Management
6.1 Work Systems Design
STRENGTHS
Novel Connects four core competencies (Figure 6.1-1) were established during a two
day workshop in 2000, and they have been reviewed annually since 2002. Review inputs
include data from customer focus groups, surveys, sales trend analysis, and call center
data. The data are integrated and validated using a quality function deployment (QFD)
matrix. The reviews are conducted as part of the SPP cycle, and the process aligns with
the voice of the customer, which helps ensure that the core competencies evolve with
changing customer needs. Further, the QFD matrix is used as part of the analysis to
determine if processes remain internal or use external resources. The analysis
determines correlations among process performance, customer satisfaction, and a
current competency.
Key work process requirements are initially defined in individual process flow diagrams by
process owners using a standard approach that includes collecting requirements from both
internal and external customers. These process requirements are maintained by the respective
process owners, who use an annual evaluation and update process to assess how well the
process is meeting the requirements. For example, through this process, improvements were
made to the Internet order fulfillment process and the returns process. Requirements for all
value creation and value stream support processes are identified in Figure 6.1-2.
Novel Connect uses the PFPD Process (Figure 6.1-4) to design new products, features, and
process options. The PFPD Process is used to transform data and requirements into sample
products and to test production runs. The resulting challenge tests are performed by a sample
group of internal or external customers.
As part of Novel Connects Emergency Preparedness Process (EPP), a formal risk assessment
for all physical operations and daily process activities is conducted annually by a Risk
Assessment Team (RAT), and results are entered into a risk management matrix. These
assessments are augmented with job safety analyses, monthly safety training, and annual drills.
The RATs list of contingent actions for medium- and high-level risk items is compared against
the current process, and revisions are made as appropriate. In 2005, the process was improved
to include the technology infrastructure. The EPP supports Novel Connects core values of
valuing employees/partners and sustainability.
OPPORTUNITIES FOR IMPROVEMENT
The SLT uses performance information related to meeting customer expectations, coupled
with a process synergy map (Figure 6.1-3), to design and innovate the overall work system.

Process Management

31

However, it is not clear (1) whether the steps and methods used by the SLT are systematic or
(2) whether they are integrated with establishing the roles of the workforce, suppliers, and
partners in producing and delivering products and services. The lack of a systematic approach
to designing the overall work system may limit Novel Connects ability to realize its success
factors of responding rapidly to marketplace changes with new products and optimizing
process performance to maintain strong margins.
While Novel Connect uses input from customers to define and maintain process requirements,
it is not evident that input from key suppliers and partners is sought and used in this process.
Without such input, Novel Connect may have difficulty ensuring that its processes are
responsive to all stakeholders, including critical partners such as its cell carrier and retailers,
and Novel Connect may not be able to fully leverage its strategic advantage of lowered costs
from offshore suppliers.
It is not clear how the PFPD Process (Figure 6.1-4) systematically incorporates all key
requirements, agility, new technology, and organizational knowledge, as well as cycle time,
productivity, cost control, and other efficiency/effectiveness factors, into process design.
Without a systematic approach for consideration of these factors, Novel Connect may have
difficulty ensuring that its processes are optimized, which may in turn impact its ability to
address the strategic challenge of volatility in niche markets.
6.2 Work Process Management and Improvement
STRENGTHS
To help ensure that work processes meet key design and process requirements, process
owners (identified for all key processes) monitor key process data and performance daily. In
process metrics (Figure 6.1-2) include safety, quality, staffing, cost, and cycle-time indicators.
Indicators such as cycle times and error rates for processes are tracked and trended to help
ensure that daily operations meet key process requirements. Key process diagrams are
reviewed and updated annually. Alignment with stakeholders is facilitated through the annual
Improvement Day, which is led by the respective process owners. Outputs are maintained in
MAP, allowing integration with Novel Connects other performance management system
areas.
To help prevent defects, service errors, and rework, process owners are required to share
significant beneficial or adverse trends determined from their daily monitoring, as well as
improvement efforts. This information can in turn be used to generate preventive actions. The
information is stored in a database and is shared during daily process owner meetings, which
last five to ten minutes and may be conducted virtually. In addition, the PFPD Process
includes a formal challenge test step that may identify defects that could lead to service errors,
rework, and warranty costs.
The PIP (Figure 6.2-1) is used to improve process performance. Components include annual
process reviews, the annual Improvement Day with stakeholders, and the use of
crossfunctional teams where necessary. Trends and improvement efforts are shared at Triple-M
meetings and are stored in the PIP database, which internal and external customers, the
carrier, and outsourcing partners can access and use to input ideas. A recent refinement led to
process improvement expectations being built into process owners job descriptions. Quality
tools associated with the Lean and Six Sigma methodologies are in the early stages of
deployment.

Process Management

32

OPPORTUNITIES FOR IMPROVEMENT

It is unclear how input from suppliers and partners is used in the day-to-day management of
key processes. While these groups can provide input to the PIP database, how such input is
effectively linked to day-to-day process operations is not evident. Without such linkage, Novel
Connect may be missing an opportunity to understand and integrate requirements from key
suppliers such as its cell carrier and offshore manufacturing partners.

It is not clear what approaches Novel Connect uses to minimize the cost of inspections, tests,
or audits as appropriate. For example, it is unclear how daily process performance monitoring
systematically reduces the cost of inspections. Without an approach to target this specific cost
of quality, Novel Connect may have difficulty leveraging its strategic advantage of lowered
costs from offshore suppliers.

While Novel Connect uses the PIP to improve the performance of its work processes, it is not
clear that a systematic approach is in place to keep its work processes current with business
needs and directions. In addition, a systematic approach to improve the effectiveness and
efficiency of the PIP (Figure 6.2-1) is not evident, nor are repeated cycles of refinement
apparent for the process. Without fact-based systematic processes in these areas, Novel
Connect may not be able to maximize its potential for improvement, which may in turn impact
its ability to address the challenge of rapidly changing customer and market needs.

Bonus Materials
Case- Stuart Injection Molding Company
To meet ISO 9000 certification requirements, as well as QS-9000 requirements as an automotive
supplier, Stuart will have to develop a comprehensive quality manual. Based on broad ISO 9000:2000
categories, the following might be an outline of the content of a quality policy and procedures
manual:
1 Scope
2 Normative references
3 Terms and definitions
4 Quality management system
5 Management responsibility
6 Resource management
7 Product realization
7.1 Planning of realization processes
7.2 Customer-related processes
7.3 Design and/or development
7.4 Purchasing
7.5 Production and service operations
7.6 Control of measuring and monitoring devices

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33

8 Measurement, analysis and improvement

8.1 Planning
8.2 Measurement and monitoring
8.2.1 Customer satisfaction
8.2.2 Internal audit
8.2.3 Measurement and monitoring of processes
8.2.4 Measurement and monitoring of product
8.3 Control of nonconformity
8.4 Analysis of data
8.5 Improvement
8.5.1 Planning for continual improvement
8.5.2 Corrective action
8.5.3 Preventive action
1.

The Plant Manager (PM) is responsible for ensuring the success of the quality management
system by providing the necessary resources and reviewing system performance. There should
be statements in the manual concerning: Management commitment, customer focus,
managements part in developing the quality policy, quality planning administration, and
management review of results.

2.

There was no discussion of ISO category 6, Resource items. More information would be
needed on human resources and physical resources, as it relates to the quality system,
including: Provision of resources, human resources, facilities, and work environment.

3.

A number of sub categories are included under ISO category 7, Product Realization.
Under 7.2 Customer-related processes - Identification of customer requirements, review of
product requirements, customer communication processes may be carried out by the
Marketing and Sales department when they conduct market research to understand customer
needs and handle customer complaints.
Under 7.3 Design and/or development requirements include: Design and/or development
planning, development inputs, development outputs, development review, development
verification, validation and control of design and/or development changes. Since most
products are custom-designed with the customer, the cross-functional teams that include
members from Project Engineering, Quality Assurance, Manufacturing, and Sales would be
involved in all of these requirements. Team roles and responsibilities would have to be spelled
out in the manual.
Under 7.4 Purchasing - was not specifically mentioned in the discussion held with SIMC
employees. However, the manual must cover aspects of: Purchasing control, purchasing
information, verification of purchased products.

Process Management

34

Under 7.5 Production and service operations - are the responsibility of line personnel and QA
department staff. They include product and process procedures for operations control,
identification and traceability, customer property, preservation of product and validation of
processes.
Under 7.6 Control of measuring and monitoring devices - would come the gage R&R and
related activities that are the direct responsibility of the QA department.
4.

Category 8, Measurement, analysis, and improvement, also includes numerous sub-categories

that would have to be included in the manual. Generally, these appear to be well covered by
SIMCs current practices. However, processes and procedures would have to be documented
for inclusion in the manual.
Under 8.1, Planning - activities required to design and maintain the measurement and
analysis systems. (assumed to be performed by the Q.A. Department and cross-functional
teams, depending on the system. More information needed.)
Under 8.2 Measurement and monitoring - of customer satisfaction (Marketing and Sales
department), internal audit (Q.A. department), measurement and monitoring of processes
(Manufacturing and Q.A. departments) and measurement and monitoring of product
(Manufacturing and Q.A. departments).
Under 8.3 Control of nonconformity - Nonconforming products are reworked or disposed
of according to specific procedures. Products that do not fully comply with requirements
are not shipped without customer authorization. (Q.A. Department and cross-functional
teams when nonconformities are detected.)
Under 8.4 Analysis of data - performed by various department and cross-functional teams,
using a variety of contemporary tools to simplify and optimize the product while also
focusing on reducing production cost and waste. These include Quality Function
Deployment, Geometric Dimensioning and Tolerancing, Design for Manufacturing and
Assembly, Value Engineering, Design of Experiments, Failure Mode and Effects Analysis,
and Cost/Performance/Risk Analysis.
8.5 Improvement - Planning for continual improvement, corrective
action, and preventive action processes would have to be
documented. (Manufacturing department)

Case - Baldrige Assessment of Process Management Share Foods Part 1

The Baldrige Documents Bonus Materials folder contains an example of a fictitious
Baldrige application the 2007 Share Food Case Study.

Process Management

35

Assignment 1: The most important business or organizational factors relevant to this item
in the Organizational Profile include:

In 2002, organization exited food pantry and soup kitchen services to focus on food banking
as core competency. Share Foods aims to provide best foods, at the right time, to the right
place.
Mission: A community-based food bank dedicated to feeding the hungry residents of its
communities
Four major customer/stakeholder/market segments, each with specific requirements:
customers (member agencies), stakeholders (governments, organizations, taxpayers),
community segments, donors/suppliers
Food suppliers and partners provide food, facilitate innovation, broaden the organizations
reach, and improve core processes; finances and services suppliers and partners provide funds
for food and activities, donate in-kind support, fund improved organizational capabilities,
provide fiduciary controls, and volunteer.
Key success factors: its ability to feed the food-insecure through member agencies, network of
food suppliers, tight management of overhead costs (12.1% of operating expenses), volunteer
base, and food availability and quality
Performance improvement system: Plan-Do-Check-Act (PDCA) Process

Assignment 2: After reviewing the strengths and opportunities for improvement as

identified by an experienced team of Baldrige examiners for the Share Foods case and
comparing that with the 2008 Baldrige Criteria questions, the organization clearly has
strengths, which can be related to, and strongly answer the Criteria questions.
a. Strengths 1 and 2 clearly address and answer the questions posed in paragraphs 6.1a(1)
and 6.1b(1) in the Baldrige criteria, of:
a. CORE COMPETENCIES
(1) HOW does your organization determine its CORE COMPETENCIES? What are your
organizations CORE COMPETENCIES, and how do they relate to your MISSION,
competitive environment, and ACTION PLANS?
b. Work PROCESS Design
(1) What are your organizations KEY work PROCESSES? How do these KEY work
PROCESSES relate to your CORE COMPETENCIES? How do these PROCESSES
contribute to delivering CUSTOMER VALUE, profitability, organizational success, and
SUSTAINABILITY?
b. The third strength answers the Criteria question 6,1b(3)
b. (3) HOW do you design and innovate your work PROCESSES to meet all the KEY
requirements? HOW do you incorporate new technology, organizational knowledge, and the
potential need for agility into the design of these PROCESSES? HOW do you incorporate

Process Management

36

CYCLE TIME, PRODUCTIVITY, cost control, and other efficiency and EFFECTIVENESS
factors into the design of these PROCESSES?
c. The fourth strength is related to and answers Criteria question 6.1c.
c. Emergency Readiness
HOW do you ensure WORK SYSTEM and workplace preparedness for disasters or
emergencies? HOW does your disaster and emergency preparedness system consider
prevention, management, continuity of operations, and recovery?
d. Concerning the opportunities for improvement (OFIs), the examiners have discovered
some gaps that exist in their approach, deployment and/or outcomes of their workforce
enrichment, workforce and leader development, and workforce assessment.
1) The first OFI points to a lack of development or use of a systematic approach to determine core
competencies that provide an advantage in the organizations service environment. This relates to the
Criteria question 6.1a(1) of:
(1) HOW does your organization determine its CORE COMPETENCIES? What are your
organizations CORE COMPETENCIES, and how do they relate to your MISSION,
competitive environment, and ACTION PLANS?
2) The second OFI points to the lack of a systematic, comprehensive design process that could limit
the organizations ability to ensure that it consistently provides the best foods, at the right time, to the
right place. This relates to the Criteria question 6.1a(2) of:
(2) HOW do you design and innovate your overall WORK SYSTEMS? HOW do you decide
which PROCESSES within your overall WORK SYSTEMS will be internal to your
organization (your KEY work PROCESSES) and which will use external resources?
3) The third OFI points to the fact that it is not apparent how the organizations disaster and
emergency preparedness system fully considers prevention, management, continuity of operations,
and recovery. This relates to Criteria question 6.1c:
c. Emergency Readiness
HOW do you ensure WORK SYSTEM and workplace preparedness for disasters or
emergencies? HOW does your disaster and emergency preparedness system consider
prevention, management, continuity of operations, and recovery?
In summary, the examiners used the criteria to judge whether (and ultimately, to what degree) Share
Foods has developed a complete, well deployed, and effective work system design.
e. As to questions: Would you agree that these are key strengths and opportunities for improvement
for this organization? Can you suggest any others that the team did not identify?
1) The strengths and OFIs relate well with the key factors, which have to do with food banking as
core competency in order to provide best foods, at the right time, to the right place, and accomplish
their mission and meet needs of the four major customer/stakeholder/market segments; also, to work

Process Management

37

with food suppliers and partners, finances and services suppliers and partners, donors of in-kind
support, those who provide funds, maintain fiduciary controls, and volunteers; their key success
factors: its ability to feed the food-insecure through member agencies, network of food suppliers,
tight management of overhead costs (12.1% of operating expenses), volunteer base, and food
availability and quality; use of the performance improvement system: Plan-Do-Check-Act (PDCA)
Process.
2) It would be hard to disagree that the strengths and OFIs presented were not the key ones for
Share Foods.
3) Another strength that the team did not emphasize might be pointed out in the area of motivation
and morale, relating to the Criteria section 6.1a(2). The application states:
In 2006 the CTQ Determination Process was enhanced to include not only key hunger-reducing
processes but also key support processes, and this has resulted in broader and more comprehensive
requirements that relate to customer value, profitability, organizational success, and sustainability. In
2007 volunteers, employees, donors/suppliers, partners, and member agencies were included in the
CTQ Determination Process for requirement identification. As a result of this enhancement, a
scorecard is being developed to share with key stakeholders to ensure further alignment with them
and improved metrics and customer satisfaction outcomes. This enhancement also has resulted in
improved comparative data and benchmarks for learning and knowledge transfer among and between
various stakeholder groups.
Thus, the strength might be stated as:

The organization has developed innovative work systems internally, such as the CTQ
Determination Process was enhanced to include not only key hunger-reducing processes but
also key support processes, and this has resulted in broader and more comprehensive
requirements that relate to customer value, profitability, organizational success, and
sustainability.

Case - Baldrige Assessment of Process Management Share Foods Part 2

Identify
1.

The most relevant business and organization factors from the Organizational Profile pertaining
to Item 6.2 include:

Paid employees and volunteers acquire, warehouse, transport, and distribute food to the
food-insecure through partnerships with 58 member agencies.
Technologies: Uses FoodAnswers software from Food Banks of America (FBA) and
Rapid Inventory Control Enterprise (RICE); an information technology firm provides
hardware and software pro bono support
Equipment: refrigerators and other food storage equipment, two trucks, and one van
The regulatory environment includes multiple regulating agencies and standards to protect
food, workers, and member agencies; food safety and the safety of employees and
volunteers require tight controls

Process Management

38

Food suppliers and partners provide food, facilitate innovation, broaden the organizations
reach, and improve core processes; finances and services suppliers and partners provide
funds for food and activities, donate in-kind support, fund improved organizational
capabilities, provide fiduciary controls, and volunteers
Performance improvement system: Plan-Do-Check-Act (PDCA) Process

2. & 3. Strengths that the organization has relative to the criteria questions, and opportunities for
improvement relative to the criteria questions include:
6.2 Work Process Management and Improvement
STRENGTHS
SF uses the PDCA Process to help ensure its work processes meet the design requirements
identified in its CTQ indicators. In addition, SF has identified both outcome and in-process
measures to control and improve its hunger-reducing and support processes (Figures 6.1-2
and 6.2-1). In-process measures are tracked daily, weekly, and monthly and updated on the
Daily Harvest or Monthly Harvest Dashboards and/or the Balanced Plate Scorecard. All
measures are evaluated regularly by senior leaders.

SF uses the PDCA Process (Step 6) to minimize overall costs and eliminate rework.
Employees, volunteers, senior leaders, and PITs use the PDCA Process to review, evaluate,
and measure processes. Improvements include streamlined and/or improved processes, such as
new sanitation and food handling processes, as well as improved fuel efficiency in the delivery
fleet. In addition, process improvements through training, posting processes, sharing metrics,
and implementing the RICE system have contributed to a 25% reduction in inspection and
audit times.

SF uses Step 7 of its PDCA Process and a semiannual review to improve its work
processes to achieve better performance. The planning portion of the PDCA Process was
enhanced through extensive senior leader and stakeholder participation to design and
deploy each key work process. A senior leader involves employees, volunteers, and
partners in an informal, semiannual process review that reflects on performance and
identifies key learnings and improvement opportunities. For example, in 2006, SF
conducted a redesign of each key work process to ensure appropriate CTQ indicators.

OPPORTUNITIES FOR IMPROVEMENT

While a focus group of partners, donors/suppliers, core volunteers, and member agencies
provides annual input on process requirements through the CTQ Determination Process, a
process is not evident for using the input of these groups in the day-to-day management of the
key processes, as appropriate.

While the CTQ Determination Process is used to determine process requirements and the
PDCA Process is used to improve processes, it is not clear how SFs day-to-day operation of
work processes ensures that they meet key process requirements.

Process Management

39

While SF documents lessons learned and process improvements to include in process

diagrams, it is not clear how these improvements and lessons are shared with other
organizational processes and work units to drive organizational learning and innovation.
Without a systematic, well-deployed approach, SFs efforts to achieve its vision and optimize
the use of resources may be restricted.