CBM 121 – OPERATION MANAGEMENT (TQM)

Prof. Liberty B. Gutierrez

PROCESS FOCUS
A process is a sequence of linked activities that is intended to achieve some result, such as producing a good or
service for a customer within or outside the organization. Generally processes involve combinations of people,
machines, tools, techniques, materials, and improvements in a defined series of steps or actions.

Process is a network of interrelated activities that are repeated in time, whose objective is to create value to the
external customer.

Three Types of Processes:

 Main Process
 Support Process
 Management Process

Process Management:

Process management involves planning and administering the activities necessary to achieve a high level of
performance in key organizational processes, and identifying opportunities for improving quality and operational
performance, and ultimately, customer satisfaction.

Three Major Activities:

1.) Design

2.) Control

3.) Improvement

Eleven Fundamentals of Process Approach:

1.) Customer- orientation

2.) Quality First

3.) Survival through continued profit

4.) Actions guided by priorities

5.) Action guided by facts and figures

6.) Control Procedures

7.) Control the dispersion

8.) Customer is always right

 9.) Blocking and Correction of fault

10.) Treat employees like human beings

11.) The commitment of top management

Identifying Processes and Requirements:

Nearly everything an organization does can be viewed as a process. Common processes include acquiring customer
and market knowledge, strategic planning, research and development, purchasing, developing new products or
services, manufacturing and assembly, customer orders, managing information, analyzing performance and
training employees.

Value – Creation Processes:

Are those most important to “running the business” and maintaining or achieving a sustainable competitive
advantage, frequently align closely to an organization’s core competencies and strategic objectives. 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 product design and production/delivery processes.

Support Processes:

Support processes might include processes for finance and accounting, facilities management, legal services,
human resource services, public relations, and other administrative services.

Process Requirements:

Documented expectations, targets, and specifications for business processes. They may be collected from multiple
groups of stakeholders such as business units, customers, internal customers, users, and subject matter experts.

Examples of Process Requirements:

1.) Features
2.) Workflow
3.) Events
4.) Integration
5.) Business Rules

Process Design:

The goal of process design is to develop an efficient process that satisfies both internal and external customer
requirements and is capable of achieving the requisite level of quality and performance. Process design begins with
understanding its purpose and requirements, who the customer is, and what outputs are produced. The purpose
of a manufacturing process, for instance, is to produce a component or semi finished product for the next
manufacturing process. Thus, process design usually starts with a detailed technical analysis of characteristics of
the products, technological capabilities of machines and equipment, required operations sequences, assembly
methods, and so on.
Design Quality and Social Responsibility:

 Product liability issues

 Environmental Issues

Service Process Design:

Three basic components:

 Physical facilities, processes and procedures

 Employee behavior

 Employee professional judgment