Ch5 Summary HSM605

CHAPTER 5
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. The YouTube video that focuses on Baldrige Award winner Honeywell FM&T (see:
http://www.youtube.com/watch?v=ZE4rfpYAB9s&feature=autoplay&list=ULpbHDemBVKIM&index=2&playnext=3 )
provides insights into the importance of process quality.
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? It’s one that looks
for instant answers and is reluctant to search for root causes, because “we don’t 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 define a process as 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.
 To introduce the concept of process management, which 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 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. Second, reductions in cycle time can only be accomplished by streamlining and
simplifying processes to eliminate non-value-added steps such as rework.
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Process Management 2
 To define value-creation processes (sometimes called core processes) as those most important
to “running the business” and maintaining or achieving a sustainable competitive advantage.
These processes frequently relate to an organization’s core competencies and strategic
objectives.
 To understand that projects are important value-creation processes in many organizations.

Projects generally cut across organizational boundaries and require the coordination of many
different departments and functions. Project management involves all activities associated
with planning, scheduling, and controlling projects.
 To appreciate the importance of Support processes which are those that are most important to
an organization’s 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.
 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 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
improve their process) and is focused on developing an efficient procedure to satisfy both
internal and external customer requirements.
 To understand that in manufacturing, process design usually involves detailed technical analysis
of product characteristics, such as technology capabilities, production sequences, etc., 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 understand that pure service processes are frequently designed around the five key service
dimensions of: reliability, assurance, tangibles, empathy, and responsiveness. Designing a
service essentially involves determining an effective balance of physical facilities, process
and procedures; employee behavior; and professional judgment. Services differ in three
dimensions: customer contact and interaction, labor intensity, and customization. Services
low in all three dimensions of this classification are more similar to manufacturing
organizations. Services high in these dimensions require more focus on employee behavior
and professional judgment.
 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.
 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
four components of a control system: (1) a standard or goal, (2) a means of measuring
accomplishment, (3) comparison of results with the standard to provide feedback, and (4) the
ability to make corrections as appropriate throughout a manufacturing or service process.
 To emphasize that control is the foundation for organizational learning. Many organizations,
after analyzing and solving a problem, 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 of continuous improvement which refers to both incremental changes,
which are small and gradual, and breakthrough improvements, which are large and rapid.
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 touch on other approaches to process design and improvement include: 1) breakthrough

improvement that refers to discontinuous change; 2) 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 3) reengineering, the fundamental rethinking and radical
redesign of business processes to achieve dramatic improvements in performance.
 To explore the concepts of suppliers, supply chain management, and supplier certification,
where 1) Suppliers include not only companies that provide materials and components, but
also distributors, transportation companies, and information, healthcare, and education
providers; 2) supply chain management is based on three guiding principles: a) Recognizing
the strategic importance of suppliers in accomplishing business objectives, particularly
minimizing the total cost of ownership, b) developing win-win relationships through long-
term partnerships rather than as adversaries, and c) establishing trust through openness and
honesty, thus leading to mutual advantages; 3) Supplier certification processes are designed
to rate and certify suppliers who provide quality materials in a cost-effective and timely
manner.
In addition to the Honeywell FM&T video mentioned above, the Instructor’s 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 organization’s quest for world-class
quality.
ANSWERS TO QUALITY IN PRACTICE KEY ISSUES
K&N Management, Inc.
1. K&N Management uses innovation and technology to create product offerings that meet or
exceed guest requirements. Guests can access store information and events via Web sites and
social media, as well as through innovative approaches such as an interactive system at each
Mighty Fine location. Feedback is collected with an iPad that administers short surveys
around the main meal periods and uploads the information to a third-party host for
aggregation. These approaches impact the design of processes by considering key guest
requirements (KGRs) that are aligned with key business drivers. The company’s performance
against its KGRs is then systematically measured and communicated throughout the
workforce. Performance gaps and opportunities are funneled into appropriate planning
approaches, ranging from problem solving to strategic planning.
2. Customers require high-quality food served quickly and accurately by friendly team
members (K&N’s terminology for their employees) in a clean environment. Thus, the key
purpose of process management at K&N is to meet customer requirements. This is carried
out by designing well-defined processes with clearly-defined requirements and
measurements. K&N uses a comprehensive process for process management that
incorporates design, control, and improvement.
Team members are very important to K&N as they apply lean principles and remove non-
value added steps from the process in order to improve quality and productivity. Employee
training in self-management includes familiarity knowledge of how to identify and correct
problems, and the critical importance of not passing on product that does not fully meet the
standard.
[Note: Several of the above details are taken from the Baldrige Application for K&N, and
may not be directly accessible to students.]
Building Japanese Quality in North America
1. The processes to support achievement of high product quality at Lexus’ Cambridge, Ontario,
plant can be summarized as:
Aspects of Process:
1. Spottless Floors and Workspace
2. Bright colors and great lighting
3. Removal of “Hard” accessories and clothing

4. Personal Weld Testing
5. Initialing (accountability)
6. Dirt and Debris Prevention in Paint room
7. Quality Gates
8. Occasional Semi-Surgical Inspections
9. Prevention of Damage by removing doors
10. Arm to sit on when interior installation
11. Rain test
12. Rigorous mechanical and automotive performance testing
13. All parts from the same whole (consistency)
14. Individual can stop entire process for error
Design starts 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.
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.
Here is a good summary proposed by one of our students:
Design Control Improvement
(Inputs: materials, (Maintaining consistency in (continually seeking higher

technology, work methods, output by assessing levels of performance:
trained workforce) performance & taking reduced variation, higher
corrective action) yields, fewer defects,
smaller cycle times)
“Teamwork … Teaching “Each worker is also a Kaizen philosophy
workers about every stage quality control inspector of
of the production process” his or her own work and
that of … fellow team
members”
Paint area: “airlock”, “Pulling a cord allows team Cartridges of paint: “allows
“Downdrafts and grated members to stop the for mixing colors on the line
walkways with water line…” and “towers of – no longer must a batch of
beneath catch particles of lights” blue or red vehicles be run
lint and dust. No together.”
cardboard…”, “vehicle
body is vacuumed to
remove metal shavings.”
Installation of headliner “quality gates” Removal of doors for access
using Raku and to prevent damage
“If a wood component is Weatherproof testing,
damaged in assembly, all “shipping quality audits”,
the other pieces from its and test track runs
set are replaced as well.
2. The lessons and practices that might be learned and applied to other companies, even outside
the automotive industry include:
 Don’t 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 (worker’s jewelry and clothing,
small blemishes that may affect later processing, etc.)
 Design, control, and improvement quality are all important parts of the quality system.
One of our students suggested the following:
The fast food industry can incorporate the concept of interior design and cleanliness into
their kitchen. The industry focuses a lot of financial resources into the public dining. The
kitchen that is visible to consumers contains harsh metals, dark tinged microwaves and
fryers, and the kitchen staff often appear unkempt due to the high temperatures in the area.
Imagine as a customer looking to a fast food restaurant’s kitchen area that has non-porous,
decorative counter tops and uses color to create an environment of pride in the workplace.
Updated temperature control mechanisms to ensure employee comfort can be maintained as
well as their outward appearance. Employees are motivated to provide an excellent product
to the customer and will enjoy the experience of working at the restaurant if as much time
and money is spent upgrading their workspace as it is the public areas.
United States Post Office (USPS) could incorporate quality testing protocols to track mail
from point of receipt to delivery. The post office could initially focus on areas where they
receive the most complaints. This would allow them to detect processes within the system
where mail is most likely to be damaged or lost. USPS could incorporate Lexus’ concept that
every employee is a quality control inspector for his job and other team member’s duties to
help eliminate errors and defects as mail moves through the system and allow the employee
to stop the “line” when a defect is spotted. The USPS could incorporate a kaizen philosophy
into its processes to empower employees to make suggestions and propose innovations to
perform their tasks more efficiently and effectively.
Public schools systems can also adapt some of the strategies used at the Cambridge plant.
The idea of a “clean space” decorated with bright colors and murals. Incorporating the
students’ ideas and allowing them to participate in the design, creation, and upkeep instills a
concept of student ownership. Cambridge instructs it team members on their job and the
duties of other team members to understand how each step impacts the next. What if school
board members, principals, or city councilpersons spent a day in the life of the student at a
lower performing school? The officials would sit in the classrooms, use the same textbooks
and computer equipment as the students, use the same bathroom facilities and sports
equipment as the students, and ate the same food as the students. Would that experience alter
budget conversations? The Cambridge plant built upon the ideas from the plants in Japan in
an effort to be better than the Japanese plants. What if low performing public school students
and staff had shadowing opportunities at higher performing suburban public or private
schools? What different or innovative learning techniques could they learn? What school
equipment would they learn is essential to successful student matriculation?
ANSWERS TO REVIEW QUESTIONS
1. 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. Examples include: Common types of
production processes include machining, mixing, assembly, filling orders, or approving
loans. However, nearly every major activity within an organization involves a process that
crosses traditional organizational boundaries. For example, an order fulfillment process
might involve a salesperson placing the order; a marketing representative entering it on the
company’s computer system; a credit check by finance; picking, packaging, and shipping by
distribution and logistics personnel; invoicing by finance; and installation by field service
engineers. A process perspective links together all necessary activities and increases one’s
understanding of the entire system, rather than focusing on only a small part.
2. Several key process-focused practices for quality management include:

 Identify vital work processes that relate to core competencies and deliver
customer value, profitability, organizational success, and sustainability.
 Determine key work process requirements, incorporating input from
customers, suppliers, partners, and collaborators.
 Design and innovate work processes to meet all requirements, incorporating
new technology, organizational knowledge, product excellence, the need for
agility, cycle time reduction, productivity, cost control, and other efficiency
and effectiveness factors.
 Seek ways prevent defects, service errors, and rework and minimize costs
associated with inspections, tests, and process or performance audits.
 Implement work processes and control their day-to-day operation to ensure
that they meet design requirements, using appropriate performance measures
along with customer, supplier, partner, and collaborator input as needed.
 Improve work processes to achieve better performance, reduce variability,
improve products and services, and keep processes current with business
needs and directions, and share improvements with other organizational units
and processes to drive organizational learning and innovation.
 Incorporate effective process management practices in the overall supply
chain.
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). Process management is important to any business because all businesses are
performed using processes. If a process is not done well, quality suffers, and if quality
suffers, so does the business.
4. ISO 9000:2000 deals with process management activities (in fact, the entire standards are
focused on an organization’s 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 system’s effectiveness.
5. 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.
6. 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 organization’s 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 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.
7. 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
organization’s 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.
8. Basically, a “process map” is a flowchart. To develop a process map, AT&T recommends

steps, including:
1. Begin with the process output and ask, “What is the last essential subprocess that produces
the output of the process?”
2. For that subprocess, ask, “What input does it need to produce the process output?” For
each input, test its value to ensure that it is required.
3. For each input, identify its source. In many cases, the input will be the output of the
previous subprocess. In some cases, the input may come from external suppliers.
4. Continue backward, one subprocess at a time, until each input comes from an external
supplier.
It is important to uses process maps or flowcharts in process design because, after a flowchart
is developed, a number of fundamental questions can be asked to analyze the process and
create a more effective design. A list of these questions are contained in the next answer.
9. Once a process map has been created, the following questions may be asked during the
improvement stage:
 Are the steps in the process arranged in logical sequence?

 Do all steps add value? Can some steps be eliminated and should others be added in order
to improve quality or operational performance? Can some be combined? Should some be
reordered?
 Are capacities of each step in balance; that is, do bottlenecks exist for which customers
will incur excessive waiting time?
 What skills, equipment, and tools are required at each step of the process? Should some
steps be automated?
 At which points in the system might errors occur that would result in customer
dissatisfaction, and how might these errors be corrected?
 At which point or points should quality be measured?
 Where interaction with the customer occurs, what procedures and guidelines should
employees follow to present a positive image?
For example, to determine if a process step has value, more detailed questions may be asked,
such as:
 Would the customer notice a loss of value if this step were eliminated?
 Would the product or service be obviously incomplete without this step?
 If you were forced to complete the product or service on an emergency basis, is this step
too important to skip?
 If you owned the business and could pocket the savings from skipping this step, would
you include it?
 If the step is a review or inspection, is the reject rate significant? Are the consequences of
an error at this step significant?
10. 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.
11. 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 over-
runs, 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
functional groups to identify and solve design problems in order to reduce product
development and introduction time.
12. 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.
13. 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.
14 Processes control has 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 process control are based on
the fact that each process must have an owner to be considered valid. 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 operator-owners to take
corrective action when there is an error or defective process in operation. If these are not met,
the owner cannot and should not be held accountable for errors that are generated by the
process.
15. The four elements of any control system are (1) a standard or goal, (2) a means of measuring
accomplishment, (3) comparison of results with the standard to provide feedback, and (4) the
ability to make corrections as appropriate.
16. An after action review consists of asking four basic questions:
1. What was supposed to happen?

2. What actually happened?
3. Why was there a difference?
4. What can we learn?
Thus, rather than simply correcting unacceptable events, the focus is on preventing them
from occurring again in the future.
17. Effective process control systems include documented procedures for all key processes; 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. Documented control procedures are usually written down in a
process control plan. Of particular importance in manufacturing is the ability to trace all
components of a product back to process equipment, operators, and to the original material
from which it was made. Process control also includes monitoring the accuracy and
variability of equipment, operator knowledge and skills, the accuracy of measurement results
and data used, and environmental factors such as time and temperature.
In services, the same paradigm as in manufacturing generally applies: define a standard or

goal, measure accomplishment, compare results with the standard, and make corrections as
needed. However, in services with high customer contact, labor intensity, and/or
customization, control can be challenging. Human behavior – both the customer’s and the
service provider’s – is more difficult to control than mechanical or automated processes.
18. Continuous improvement refers to both incremental changes, which are small and gradual,
and breakthrough improvements, which are large and rapid. Continuous improvement is one
of the foundation principles of total quality. It is an important business strategy in
competitive markets because
 Customer loyalty is driven by delivered value.
 Delivered value is created by business processes.
 Sustained success in competitive markets requires a business to continuously improve
delivered value.
To continuously improve value-creation ability, a business must continuously improve its

value-creation processes. Many opportunities for improvement exist, the most obvious being
reductions in manufacturing defects or service errors. Other examples of improvements
include new and improved products and services, reductions in waste and cost, more efficient
manufacturing systems, increased productivity and effectiveness in the use of all resources,
and improved responsiveness and cycle time performance for such processes as resolving
customer complaints or new product introduction. Organizations should also consider
improving all managerial practices such as leadership and strategic planning.
19. Real improvement depends on learning, which means understanding why changes are
successful through feedback between practices and results, leading to new goals and
approaches. A learning cycle consists of four stages:
1. Planning
2. Execution of plans
3. Assessment of progress
4. Revision of plans based upon assessment findings
The concept of organizational learning is not new. It has its roots in general systems theory
and systems developed in the 1950s and 1960s, as well as theories of learning from
organizational psychology. Professor Peter Senge, the major advocate of the learning
organization movement. He defines the learning organization as:
. . . an organization that is continually expanding its capacity to create its future. For such
an organization, it is not enough merely to survive. “Survival learning” or what is more
often termed “adaptive learning” is important—indeed it is necessary. But for a learning
organization, “adaptive learning” must be joined by “generative learning,” learning that
enhances our capacity to create.
Senge repeatedly points out, “Over the long run, superior performance depends on superior
learning.” Continuous improvement and learning should be a regular part of daily work,
practiced at personal, work unit, and organizational levels, driven by opportunities to affect
significant change, and focused on sharing throughout the organization.
20. 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. Thus, the “blitz” is the intensive use of kaizen techniques.
21. 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.
22. Continuous improvement refers to both incremental changes, which are small and
gradual, and breakthrough improvements, which are large and rapid. Breakthrough
improvement refers to discontinuous change, as opposed to the gradual, continuous
improvement philosophy of kaizen. Breakthrough improvements result from innovative and
creative thinking; often these are motivated by stretch goals, or breakthrough objectives.
Stretch goals force an organization to think in a radically different way and to encourage
major improvements as well as incremental ones.
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 don’t 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 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.
23. 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.
When a goal of 10 percent improvement is set, managers or engineers can usually meet it
with some minor improvements. However, when the goal is 1,000 percent improvement,
employees must be creative and think “outside of the box.” The seemingly impossible is
often achieved, yielding dramatic improvements and boosting morale. For stretch goals to be
successful, they must derive unambiguously from corporate strategy. Organizations must not
set goals that result in unreasonable stress to employees or punish failure. In addition, they
must provide appropriate help and tools to accomplish the task.
24. Benchmarking is measuring an organization’s 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 organization’s own targets, strategies, and
implementation. Benefits include:
* The best practices from any industry may be creatively incorporated into a company's
operations.
* 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.
* 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 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.
25. 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.
26. 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 answer to question 28 for details).
27. 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.
28. Common practices for suppliers generally include:
 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 time-
consuming and expensive to administer, but are generally cost effective, in the long run.
Supplier certification processes can be time-consuming and expensive to administer. One

approach to avoiding unnecessary audit costs and helping to assure buyers that specified
practices are being followed is to use a uniform set of standards such as ISO 9000. ISO 9000
was motivated by the need for widespread supplier certification.
ANSWERS TO DISCUSSION QUESTIONS
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 Selling and Managing

Markets and Developing Vision Customer Service Acquiring Materials Information
Customers (UMC) and Strategy (DVS) (SCS) and Supplies (AMS) Technology (MIT)
Determining Monitoring the Responding to Evaluating and Planning for
customers' needs external environment customer inquiries selecting suppliers information systems
and wants and technology
Monitoring changes in Defining the business concept and Taking and processing Purchasing materials and Developing and deploying
market or customer organizational strategy orders supplies enterprise support systems
expectations
Marketing products Defining the organization Providing after-sales Acquiring and deploying Implementing systems,
Designing the products structure service appropriate technology security and controls
or services for relevant
organization customer
structure segments
Providing technical Developing and Reconciling order Managing supplier Supporting

support relevant to setting organizational exceptions relationships information systems
customer markets goals and technology
Identifying and Improving customer Managing inventory Facilitating

securing new processes information sharing
suppliers and storage retrieval
Negotiating and Managing customer Providing internal Managing

monitoring supplier segmentation customer services information and
participation storage retrieval
Measuring customer Managing facilities,

satisfaction network, operating
systems and
technology
Managing
Movement of Managing Integrated Developing and Managing Financial Managing Quality
Inventories and Supply (MIS) Managing Human and Physical Improvement and
Making Deliveries (MId) Resources (DHR) Resources (MFR) Change (MIC)
Receiving/Stocking Marketing and sales Managing Managing financial Developing and

deployment of resources deploying the
personnel Quality Plan
Controlling Acquiring materials Interpreting Processing finance Measuring

inventory and supplies personnel policies and accounting organization
transactions performance
Picking material Managing customer Ensuring associate Reporting financial Benchmarking

inventories well-being and information performance
satisfaction
Shipping, delivery Fulfilling customer Managing worker's Managing the tax Improving processes
and pickup requisitions compensation claims function and systems
Acquiring MID Improving customer Providing required Implementing TQM

materials and processes processes basic safety training
supplies for all associates
Managing facilities and Implementing improvements Developing and Maintaining 1S0 9000
equipment Maintaining a human registration and
resource information conducting quality
system assessments
Complying with all Training

government
reporting
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, non-measurable 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 in 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. As can be seen in Example 5.1 and on the flowchart, Figure 5.3 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
Figure 5.3 Flowchart for Administering Medicine

6. Researchers have suggested that services have three basic components: physical facilities,
processes, and procedures; employees’ behavior; and employees’ professional judgment. De-
signing 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 ser-
vice. 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 customer’s 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 customer’s
perception of service quality. In services that are high in all three dimensions, facilities,
behavior, and professional judgment must be equally balanced.
7. 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 con-
trolled 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 or-
der 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 correc-
tive 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.
8. 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; trouble-shooting 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 could possibly be adapted to transportation systems such as
airlines, freight handlers, and passenger transportation organizations.
9. This Circle H "case" or vignette 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?
• 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.
10. As indicated in the answer to Review Question 20, above, the kaizen philosophy, improvement
in all areas of business, enhances the quality of the firm. Additional excuses for not wanting to
engage in improvement include: “We’ve tried that before and it didn’t work;” “I’m not paid to
improve the process – it’s not my job;” “We never do it that way twice, so it can’t be
improved;” “The boss won’t let us change it;” “Government regulations prohibit that from being
changed (maybe they do, but no one has ever looked up the regulation!)”
PROBLEMS
(Note: Example flowcharts in the solutions for this chapter are available on Work or Excel files in Ch
05 Problem Solution Flowcharts folder in the Instructor Manual Files)
1. Consider the following list of generic business processes. Identify each as a value creation
process or a support process. Then develop a flowchart showing the logical sequence that the
core processes should follow.
a. invoice customers
b. manage information
c. market and sell products and services
d. manage improvement and organizational change
e. manage financial and physical resources
f. understand markets and customers
g. manage supplier relationships
h. provide customer service
i. produce and deliver manufactured goods
j. management environmental and corporate social responsibility programs
k. produce and deliver services
l. design goods and services
m. manage human resources
Answer
1. a. invoice customers - support
b. manage information - support
c. market and sell products and services – value creation
d. manage improvement and organizational change - support
e. manage financial and physical resources - support
f. understand markets and customers - support
g. manage supplier relationships - support
h. provide customer service - support
i. produce and deliver manufactured goods – value creation
j. management environmental and corporate social responsibility programs - support
k. produce and deliver services – value creation
l. design goods and services – value creation
m. manage human resources – support
Ordered processes
b. manage information
f. understand markets and customers
l. design goods and services
c. market and sell products and services
e. manage financial and physical resources
g. manage supplier relationships
m. manage human resources
i. produce and deliver manufactured goods
k. produce and deliver services
a. invoice customers
h. provide customer service
d. manage improvement and organizational change
j. management environmental and corporate social responsibility programs
Note: The above is one path that might logically constitute a flowchart for the listed
processes. For some products or service, pre-selling is possible. For others, the product must
be produced before it can be sold. Improvement and organizational change may need to take
place earlier and often. Environmental and social responsibility programs may well be “built
in,” as, or before, products or services are designed and produced.
2. The process of making a batch of paint at the Awesome Paint Products (APP) paint factory
consists of the following steps. First the correct amount of raw materials must be mixed in
the proper sequence. The operator must follow specified safety instructions. After mixing, a
sample is drawn and taken to a laboratory, where the sample is tested to ensure conformance
to customer requirements and specifications. Next, the mixing tank is taken to a filling
station and verified to be the correct one prior to filling individual cans of paint. The filled
cans go to the packing department where labels are printed and applied to the cans. They are
inspected to ensure that the labels are correct and the proper quantity was produced for the
customer’s order. The cans are packed in boxes and moved to shipping.
a. Develop a flowchart that maps out APP’s process.
b. Enrich the flowchart by adding detailed steps, which may not have been described in
detail.
c. Determine if any opportunities exist for improving APP’s process using the questions
posed in the chapter.
Answer
2. a. and b. See the flowchart, below, that maps out APP’s process, and the added detailed steps,
not described in detail in the problem.
24
c. Opportunities for improving APP’s process may be explored by answering the following
questions. They may serve to help create a more effective design:
1. Are the steps in the process arranged in logical sequence?

Ans. Customer order information and labels should all be part of the order packet, at the
beginning of the process. Labels should not have to be printed immediately prior to
applying them to the can.
2. Do all steps add value?.Can some steps be eliminated and should others be added in order
reordered?
Ans. No, not all steps add value. In particular, transportation, storage, and some
inspections should all be looked at for reduction or elimination.
3. Are capacities of each step in balance; that is, do bottlenecks exist for which customers
Ans. This is difficult to tell from the problem statement. However, a potential bottleneck
exists when samples are taken to the laboratory for processing. The transportation steps
may cause delays is material handling equipment is not immediately available.
4. What skills, equipment, and tools are required at each step of the process? Should some
steps be automated?
Ans. Operators must be skilled in using the mixing and filling equipment, taking and
handling samples, adjusting the batch – depending on sample results, using computers
that print the labels, the packing machinery, and the material handling equipment. Some
steps to be considered for automation include label preparation and application, paint
testing after mixing, and order checking (perhaps by adding barcode technology).
5. At which points in the system might errors occur that would result in customer
Ans. Errors could occur in any of the steps in the process, which might affect customers
and impact their level of satisfaction or dissatisfaction. A number of things could go
wrong, just in the mixing process, alone. These might include wrong formula, wrong
amounts of ingredients, wrong color, over- or under-mixing, and failure to detect errors in
the lab. Beyond that point, contamination could occur at any time before the paint is
sealed in cans. Orders could be mixed up or shorted, and they could even be loaded on
the wrong truck or train car, or routed to the wrong customer. Errors could be prevented
or corrected using computerized order and label processing, bar coding, mistake-
proofing, and training.
6. At which point or points should quality be measured?

Ans. Quality should probably be measured after mixing and before filling.
7. Where interaction with the customer occurs, what procedures and guidelines should
25
Ans. Employees who work with customers should be technically knowledgeable, have
good computer skills to apply to the order, and pay attention to personal appearance,
corporate culture and requirements, and develop their own listening skills.
3. The process for filling a prescription at Precision Prescription Pharmacy (PPP) begins when a
customer’s physician calls the pharmacy or the customer drops off a written prescription.
Sometimes the customer needs to refill a prescription and if no refills remain, PPP will call
the physician for approval. The prescription information is entered into a computer,
insurance information is checked or solicited from the customer, and the prescription is put in
a queue for either a pharmacist or a technician to count out the number of pills or pull some
other medicine from inventory. A label is prepared and printed, and affixed to the bottle. If
the prescription is prepared by a technician, then a pharmacist must check and verify it. The
completed prescription is placed in a basket for pickup.
a. Develop a flowchart that maps out this process.
b. Enrich the flowchart by adding detailed steps, which may not have been described in
detail.
c. Determine if any opportunities exist for improving PPP’s process using the questions
posed in the chapter. For example, how might technology, such as an automated telephone
system or the Internet be incorporated into the process to improve customer satisfaction?
Answer
3. a. & b. The flowchart depicting the prescription filling process is shown below.
c. Opportunities for improving the process may be explored by answering the following
questions. They may serve to help create a more effective and customer-friendly process:
1. Are the steps in the process arranged in logical sequence?

Ans. Generally, yes, the steps are arranged in a logical sequence. However, if the
computer input work is done by the pharmacist or technician who also fills the
prescription, then the assignment step would have to be done much earlier in the process.
2. Do all steps add value? Can some steps be eliminated and should others be added in order
reordered?
Ans. No, not all steps add value. However, it might require additional computerization to
gain some of the improvements that are possible. For example, ordering by either the
customers or the physicians could be enhanced by using an automated system.
3. Are capacities of each step in balance; that is, do bottlenecks exist for which customers
Ans. A potential bottleneck exists when technicians have completed several prescription
orders and are waiting for the pharmacist to sign off, so that it can be delivered.
4. What skills, equipment, and tools are required at each step of the process? Should some
steps be automated?
Ans. Pharmacists must be skilled in all aspects of pharmaceuticals. They rarely use
mixing and filling equipment, as pharmacists did in the past. However, customer
relationships, ability to relate to doctors and staff people, and the ability to build trust are
very important skills. A secondary skill that is required includes using computers. Some
steps to be considered for automation include those relating to order entry.
5. At which points in the system might errors occur that would result in customer
Ans. Errors could occur in any of the steps in the process, which might affect customers
and impact their level of satisfaction or dissatisfaction. Of course any errors in filling
prescriptions can result in major loss of trust in a pharmacy. A number of things could go
wrong, just in the order entry and filling sub-processes. These might include misreading
the prescription, wrong drug, dosage, incorrect data on labels, and failure to detect errors
of technicians. Beyond that point, contamination, although unlikely, could occur. Orders
could be mixed up or shorted. Errors could be prevented or corrected using computerized
order and label processing, bar coding, mistake-proofing, and training.
6. At which point or points should quality be measured?

Ans. Quality should probably be measured after taking the order, before filling, and after
filling.
7. Where interaction with the customer occurs, what procedures and guidelines should
Ans. Employees who work with customers should be technically knowledgeable, have
good computer skills to apply to the order, and pay attention to personal appearance,
corporate culture and requirements, and developing their own listening skills.
4. Maintaining accuracy of books on the shelves in a college library is an important task.

Consider the following problems that are often observed:
 Books are not placed in the correct shelf position, which includes those books that have
been checked out and returned, as well as those taken off the shelves for use within the
library by patrons.
 New or returned books are not checked in and consequently, the online catalog does not
show their availability.
What procedures or poka-yokes might you suggest for mitigating these problems? You might
wish to talk to some librarians or administrators at your college library to see how they
address such problems.
Answer
4. 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 in’s 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.
5. You have most likely taken your car for service at an automobile dealership. Typical
activities in servicing a customer's automobile include making an appointment, meeting with
a service advisor to discuss the service or problem, waiting for the work to be performed,
paying the bill, and receiving the vehicle. Draw a flowchart for this process with detailed
activities for these steps. Identify potential failures that customers may experience and
discuss possible poke-yokes that the dealership might use to prevent such failures and ensure
customer satisfaction.
Answer
5. For an automobile dealership, a comprehensive analysis is required. See flowchart below:
Potential areas for failures and customer dissatisfaction that students might suggest are:
 Appointment scheduled for wrong time or date; Poka-yoke: service manager might
repeat the date and time to the customer for verification
 Not retrieving the correct VIN number; Poka-yoke: check that the VIN matches the
vehicle description in the system database, or use preprinted cards before the
customer arrives
 Service manager doesn’t understand the customer’s description of the problem; Poka-
yoke: restate what the service manager thinks s/he hears, drive the car to experience
the problem
 Excessive wait time in waiting room; Poka-yoke: check periodically with customer to
inform of progress.
 Customer dissatisfied with bill; Poka-yoke: go over estimate and bill to show that all
components conform to work that was agreed on.
We suggest that the instructor read the article: Richard B. Chase and Douglas M. Stewart,
“Make your service fail-safe,” Sloan Management Review, 1994, pp. 41-42. This paper
addresses similar issues and provides additional perspectives.
6. The process for depositing a check at Better Banking, Inc. begins with the teller determining
if the customer wants to receive any cash back. If not, the teller checks to see if the payee’s
name is on the account, stamps the deposit slip, and gives the customer a receipt. If there is
cash back, the teller adds the checks and subtracts the net deposit to verify the cash amount
on the deposit slip, checks and verifies the customer’s account, makes a “cash out” ticket for
bank accounting, and gives the customer back the cash and receipt. Draw a flowchart for
Better Banking’s process and identify potential sources of error and poka-yokes that might be
used to mitigate these errors.
Answer
6. The flowchart for this process of depositing a check is as follows:

Yes
First available Customer No
Are payee Cash
Start teller asks,”May presents
names on back
I help you?” checks for
accounts? ?
deposit
Yes
No
Request
Add checks on
payee name
calculator &
on account
subtract out net
deposit to
verify cash
back
Check Verify customer with SSN, Make cash out Stamp deposit
customer status DOB or mother’s name ticket slip
Give customer Give customer

cash & receipt receipt
End
Note that it appears logical that the payee names must be on the accounts, whether or not cash back
is desired. Hence the flowchart shows this as the step prior to determination of whether cash back is
desired, or not.
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
 New employees work with veteran employees to learn operations and prevent processing
errors
1
Appreciation is expressed to one of Dr. Evans’ students, Emily Schlicter, for providing the above flow chart and
concepts for this problem solution.
7. Global food supply chains consist of many processes. Bananas, for example, are grown on farms in South or Central America. At
the farm, the growth and quality are monitored continuously, and samples are tested periodically. Once the bananas in a cluster
reaches a certain size, it is cut from the tree. Workers cut the cluster into smaller clusters of five to six bananas. The bananas are
rinsed, and then inspected. If the fruit is approved, the importer’s sticker is placed on the bananas and the fruit is packaged to
avoid bruising. Boxes of bananas are loaded into containers and shipped via cargo ships to a port in the United States. If the
bananas are not ripe enough, they can be treated with a gas to hasten ripening. Bananas are sorted by color, as different
customers have different requirements (for example, green, yellow, or brown). They are then boxed per customer specifications
and sent to the customer (retailer, restaurant, hotel, and so on).
a. Construct a flowchart depicting the supply chain for bananas.
b. Describe the principal processes in this supply chain.
c. What types of supplier management activities might the importer use to help control the quality of the bananas?
7. Global food supply chains consist of many processes.

a. The flowchart depicting the supply chain for bananas is shown below.
32
Supply Chain for Banana Production
Monitor growth Cut bananas

Cut banana
Test samples into bunches
& quality stalks from trees
of 5-6 bananas
Green
Ripen - treat
with gas
Load into
Wash & inspect Ripe Place sticker & containers & ship
Quality OK?
banana clusters package bunches to U.S. on cargo
ships
Rotten
Discard
Box - per
customer specs
Color? Box - per

Sort bananas Retail customers
customer specs
Box - per
customer specs
b. The principal processes in this supply chain are growing and harvesting, processing cut
bananas, shipping to U.S., sorting and preparation according to customer specs, and shipping
to customers.
c. The importer might use supplier management activities such as those listed below to help
control the quality of the bananas (supplier certification).
* 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.
PROJECTS, ETC.
1. 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.
2. Answers will vary depending on the individual/group efforts of the students.
3. 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:
* 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.
* Ensuring that quality is built into products using appropriate engineering and quantitative
tools
34
* 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.
* Defining and documenting important production/delivery and support processes, and
managing these as important business processes.
* Defining performance requirements for suppliers, ensuring that requirements are met, and
developing partnering relationships with key suppliers and other organizations.
* 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.
* Continuously improving processes to achieve better quality, cycle time, and overall
operational performance.
* Innovating to achieve breakthrough performance using such approaches as benchmarking
and reengineering.
4. 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: Process Management case and in the ISO-9000 discussion in Chapter 2.
5. In examining the processes for fulfilling customer’s needs and creating a satisfying dining
experience in casual dining restaurants, students will gain “hands-on” experience in using
process management techniques. Using process mapping, poka-yoke and other process
management techniques described in this chapter, they can design the overall process and
subprocesses that would create a good customer experience. Among these might be:
“greeting and seating,” order taking for beverages, beverage delivery, main order taking,
order delivery, follow-up (verbal satisfaction questions, refreshing beverages, etc.), partial
table clearing, dessert order-taking, and delivering check/farewell.
6. 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.
7. Results will vary, depending on the manager who is interviewed and the type of company or
industry that is chosen.
8. Results will vary, depending on the article that is chosen for review from Grout’s website.
ANSWERS TO CASE QUESTIONS

I. Harbour Community College – Food Service Program
1. For Christina Clark to design a process control plan and to ensure that these requirements were
met, she must “mistake-proof” these steps in each process. It will require the application of
poke-yoke principles. Also, a flow process chart could be developed, showing each step of
the process.
a. For example, the Receiving and Storage steps could be “mistake-proofed” 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 Student Companion Site 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
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.
http://www.fsis.usda.gov/wps/wcm/connect/425bade0-1805-4d24-8577-07c31ee7d21e/HACCP-
3.pdf?MOD=AJPERES (accessed 12/23/14)
2. Specific forms or “standard operating procedures” would be helpful in implementing this

plan. For example, the requirements for hot dogs include:
Receiving: Refrigerated hot dogs should be between 40°F and 34°F when received.
Storage: Storage temperature should be between 40°F and 34°F.
Cooking: Hot dogs should be heated to a temperature of 145 5°F within 30 minutes of
placing on the grill.
Cooked Storage: Leftover hot dogs must be covered and placed in refrigeration immediately
and reach a temperature of 40°F or lower within four hours.
Reheating: Hot dogs must be reheated to an internal temperature of 165°F within 20 minutes,
one time only.
3. The process control plan might have to be modified to deal with handling ground, uncooked
meat, such as hamburger or pork sausage, because the risk of bacterial contamination is much
higher for such products. Specifically, receiving, storage, and cooking requirements would
have to be held to strict temperature standards, similar to hot dogs. However, the holding
time would have to be specified, under heat lamps (perhaps 10 minutes, or less), with the
requirement that they be discarded after the specified holding time (no reheating).
II. The State University Experience
1. The prospective student experienced a number of service quality defects in trying to navigate
"the system" at State University. 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 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.
III. Gold Star Chili: Process Management
1. The Gold Star Chili, Inc.’s organization chart is remarkably similar to Deming’s 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 company’s processes be used as a foundation for success in such a
highly competitive environment.
IV. IBM’s Integrated Supply Chain
1. Process improvement results from a disciplined and structured application of quality

management principles. Fundamental TQ principles include: focusing on the customer, fact-
based decisions, continual improvement, empowerment, the right leadership structure, and an
understanding of work processes.
In IBM’s supply chain management, they are focused on end-to-end total quality. For example, a
manager said: “We must not forget the other functions in the organization, such as quality,
being achieved at every stage of the supply chain; marketing, finance and accounting are also
a key element in our strategy.” The key values that IBM employees espouse are: dedication
to every client’s success, innovation that matters, and trust and personal responsibility in all
relationships. Having a shared set of values helps IBM to make fast decisions that directly
impact supplier performance and customer satisfaction. The influence of values occurs when
values are applied to personal work and in interactions with one another and the wider world.
The supply chain manager made the point that it is critical for a particular leadership style to
align with IBM’s culture.
The ISC is organized into four distinctive but strongly related areas: customer fulfillment,
global logistics, manufacturing, and procurement. These functions are all underpinned by
ISC business transformation and operations strategy, which provide depth. On the other
hand, IBM has established core teams that are responsible for the proactive implementation
of the various activities in the ISC. The three teams are: the operations team, strategy team,
and talent team, which provide the breadth for the ISC organization.
2. Process management consists of three major activities: design, control, and improvement.
Design, control, and improvement are all evidenced by the principal objectives of the ISC
which are are underpinned by the strategic quality principle of managing variation, hence
cutting costs in the various activities of the supply chain, and engaging in continuous
reinvention. These principles have led to specific objectives for IBM’s On-Demand Supply
Chain, which are to: deliver competitive cost advantage and reduce the variability in the cost
and expense structure; improve sales productivity by decreasing the time sales
representatives spend on order fulfillment by 25 percent per year; accelerate the cash
conversion cycle by 33 percent over two years by continuing to drive improved inventory,
accounts receivable, and supplier payment terms execution; improve inventory turns by one
per year, increase payables by at least one day per year, and improve receivables by one to
two days per year; and deliver marked improvement in supply chain capability to contribute
to IBM achieving no. 1 in customer satisfaction. IBM’s definition of its on demand business
model is: “An enterprise whose business processes are integrated end-to-end across the
company and with key partners, suppliers, and customers—can respond with flexibility and
speed to any customer demand, market opportunity or external threat.”
Instructor Reserve 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
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,
management’s 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.
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 SIMC’s 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)

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CHAPTER 5

Key objectives for this chapter should include:

 To understand that projects are important value-creation processes in many organizations.

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

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

 To touch on other approaches to process design and improvement include: 1) breakthrough

ANSWERS TO QUALITY IN PRACTICE KEY ISSUES

K&N Management, Inc.

Building Japanese Quality in North America

3. Removal of “Hard” accessories and clothing

Here is a good summary proposed by one of our students:

Design Control Improvement

(Inputs: materials, (Maintaining consistency in (continually seeking higher

 Don’t be stingy with worker training.

One of our students suggested the following:

ANSWERS TO REVIEW QUESTIONS

2. Several key process-focused practices for quality management include:

elimination of wasteful procedures, resulting in better quality and improved company

8. Basically, a “process map” is a flowchart. To develop a process map, AT&T recommends

 Are the steps in the process arranged in logical sequence?

• Forgetfulness due to lack of concentration

16. An after action review consists of asking four basic questions:

1. What was supposed to happen?

In services, the same paradigm as in manufacturing generally applies: define a standard or

To continuously improve value-creation ability, a business must continuously improve its

24. Benchmarking is measuring an organization’s process performance against that of best-in-class

* Benchmarking is motivating. It provides targets that have been achieved by others.

28. Common practices for suppliers generally include:

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

Supplier certification processes can be time-consuming and expensive to administer. One

ANSWERS TO DISCUSSION QUESTIONS

Understanding Selling and Managing

Providing technical Developing and Reconciling order Managing supplier Supporting

Identifying and Improving customer Managing inventory Facilitating

Negotiating and Managing customer Providing internal Managing

Measuring customer Managing facilities,

Receiving/Stocking Marketing and sales Managing Managing financial Developing and

Controlling Acquiring materials Interpreting Processing finance Measuring

Picking material Managing customer Ensuring associate Reporting financial Benchmarking

Acquiring MID Improving customer Providing required Implementing TQM

Complying with all Training

 Having lethal drugs available on floor stocks.

 Remove lethal and excessive drugs from floor stock.

Figure 5.3 Flowchart for Administering Medicine

As labor intensity increases, variations between individuals become more important;

b. In terms of a 3-dimensional classification of: customer contact/interaction, labor intensity, and

1. Are the steps in the process arranged in logical sequence?

6. At which point or points should quality be measured?

1. Are the steps in the process arranged in logical sequence?

6. At which point or points should quality be measured?

4. Maintaining accuracy of books on the shelves in a college library is an important task.

5. For an automobile dealership, a comprehensive analysis is required. See flowchart below:

6. The flowchart for this process of depositing a check is as follows:

Give customer Give customer

7. Global food supply chains consist of many processes.

Monitor growth Cut bananas

Color? Box - per

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

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