PROCESS FOCUS TECHNOLOGIES AND BOEING

AEROSOPACE SUPPORT
. Key points include:
 Role: Management and operations contractor for the
1. Management's Role: It is the responsibility of National Nuclear Security Administration,
management to design, manage, and improve specializing in engineering and manufacturing
processes, as highlighted by the quote from a former components for national defense systems.
president of Texas Instruments Defense Systems.  Vision: To be the preferred partner of the U.S.
2. Definition of a Process: A process is a sequence of Government and allies, known for trusted
linked activities aimed at achieving a specific result, relationships and exceptional solutions for national
such as producing goods or services. It involves security.
various elements like people, machines, tools,  Mission: To design, deliver products, manage
techniques, and materials. operations, and provide services that advance
3. Production Context: While processes are often national security objectives.
associated with production activities (e.g., machining,  Management Assurance System: A systematic
assembly), they are present in almost every major governing and planning process incorporating
organizational activity, crossing traditional strategic planning, alignment checks, and feedback
boundaries. scorecards to meet critical quality needs and sustain
4. Example of Order Fulfillment: The text illustrates performance.
an order fulfillment process that involves multiple  Continuous Improvement: Utilizes a Six Sigma
departments, including sales, marketing, finance, Plus model to integrate customer and business
distribution, and field service, demonstrating how requirements, leading to a culture focused on detail
interconnected activities enhance understanding of and results—“Commitments Made, Commitments
the entire system. Kept.”
5. Opportunities for Improvement: Significant  Achievements:
opportunities for improving performance often lie at o Annual cost savings of $23.5 million to $27
the interfaces between different organizational million from increased productivity and
functions, highlighting the importance of a process innovations.
perspective rather than focusing solely on individual o At least 20% annual improvement in energy
tasks or departments. conservation.
o Supply-chain savings of approximately $65
Table 5.1 outlines key practices for implementing a process- million.
focused approach to quality management. Here’s a simplified
summary: Boeing Aerospace Support (AS)

1. Identify Vital Processes: Recognize the essential  Role: Part of Boeing Company, providing
work processes that are crucial for core competencies maintenance, modification, repair, and training
and that provide value to customers, enhance services for military aircraft.
profitability, and contribute to overall organizational  Business Focus: 97% of business from military
success and sustainability. customers, emphasizing cost reduction and aircraft
2. Define Process Requirements: Gather input from effectiveness.
customers, suppliers, partners, and collaborators to  Process-Based Management (PBM): A seven-step
determine what is necessary for key work processes approach for defining, managing, stabilizing, and
to succeed. improving processes, requiring collaboration among
3. Design and Innovate Processes: Create and improve process owners, users, suppliers, and customers.
work processes to fulfill all requirements. This  AS People System: A structured process that ensures
includes leveraging new technologies, applying employees understand priorities, have necessary
organizational knowledge, ensuring product training and tools, and are recognized for their
excellence, increasing agility, reducing cycle times, accomplishments.
and enhancing productivity and cost efficiency.  Performance Metrics:
4. Prevent Defects and Errors: Find ways to eliminate o On-time delivery of maintenance and
defects, service errors, and the need for rework. This modification products between 95% and
also means reducing costs related to inspections, 99% since 1999.
tests, and audits of processes or performance. o Near 100% quality ratings for C-17 aircraft
5. Implement and Control Processes: Establish work maintenance since 1998.
processes and oversee their daily operations to ensure o Supplier on-time delivery improved from
they meet the established design requirements. Use 68% in 1999 to 95% in 2003.
appropriate performance measures and gather o Supplier deliverable quality consistently
feedback from customers and partners as necessary. above 99.5%.
6. Continuous Improvement: Regularly enhance work
processes to improve performance, reduce variability, PROCESS MANAGEMENT:
and ensure products and services meet current
business needs. Share improvements across different
organizational units to foster learning and innovation.  Definition: Process management involves planning
7. Manage Processes in the Supply Chain: and administering activities to achieve high
Incorporate effective process management practices performance in organizational processes, improve
throughout the entire supply chain to ensure overall quality, operational performance, and customer
quality and efficiency. satisfaction.
 Key Activities:
1. Design: Ensuring adequate inputs (materials,
QUALITY PROFILES: HONEYWELL technology, methods, workforce) to meet
FEDERAL MANUFACTURING & process requirements.
 2. Control: Maintaining consistent output 3. Improve: Set goals, develop an
through performance assessment and implementation plan, and apply
corrective actions. improvement methodologies like
3. Improvement: Continuously seeking higher Six Sigma and lean tools.
performance levels, such as reduced
variation, higher yields, fewer defects, and IDENTIFYING PROCESS AND REQUIREMENTS:
shorter cycle times.
1. Value Creation Processes
Cycle Time
 Definition: These processes directly contribute to the
 Importance: Cycle time measures the duration of production of goods or services that fulfill customer
one complete cycle of a process, such as the time needs and create value for the organization.
from order to delivery, and is a crucial metric in  Examples:
process management. o Manufacturing processes that transform raw
materials into finished products.
Process Owners o Service delivery processes, such as those in
hospitality or healthcare that provide
 Accountability: Individuals or groups, known as services to customers.
process owners, are responsible for process  Focus: Value creation processes are focused on
performance and have the authority to control and enhancing customer satisfaction and generating
improve their processes. This includes roles from revenue. They are critical for achieving the
high-level executives to shop floor workers. organization's strategic objectives.

ISO 9000 Standards 2. Support Processes

 Focus: ISO 9000:2000 standards emphasize an  Definition: Support processes enable value creation
organization's ability to understand, define, processes to function effectively. They provide
document, and manage its processes, including: necessary resources and infrastructure but do not
o Planning and controlling product design and directly create value for customers.
development.  Examples:
o Managing inputs and outputs and ensuring o Human resources processes, such as
effective communication. recruitment, training, and performance
o Systematic reviews for evaluating management.
requirements and proposing actions. o IT support processes that ensure technology
o Continual improvement through data systems function properly.
analysis and management reviews. o Maintenance and facility management
processes that keep physical operations
Conditions for Effective Process Management running smoothly.
 Focus: Support processes aim to enhance the
efficiency and effectiveness of value creation
 Repeatability: Processes must recur over time, processes by ensuring that the necessary resources
whether they are long (e.g., product development) or and systems are in place.
short (e.g., manufacturing).
 Measurability: The ability to capture quality and
performance indicators for analysis and 3. Process Requirements
improvement.
 Definition: Process requirements are the
Principles of Process Management specifications and conditions that processes must
meet to achieve their intended outcomes. They
outline what is needed for processes to operate
 Leading companies recognize process management effectively and produce the desired results.
as fundamental. For example, AT&T’s principles  Examples:
include: o Quality standards that products or services
o Focus on end-to-end processes.
must meet (e.g., ISO certifications).
o A prevention mindset with continuous o Timeframes for delivering products or
improvement. services (e.g., delivery schedules).
o Everyone as both a customer and supplier in o Resource allocations, such as the quantity
processes. and type of materials needed for production.
o Customer needs driving improvements.  Focus: Process requirements provide a framework for
o Corrective action addressing root causes, not evaluating and improving processes. They ensure that
just symptoms. both value creation and support processes align with
o Simplification of processes to reduce errors. organizational goals and customer expectations.

Boeing Aerospace Support’s Framework Summary

 Process-Based Management (PBM):  Value Creation Processes are essential for

o Phases: delivering products and services that create customer
1. Define: Design the process and value.
establish customer-centric metrics.  Support Processes provide the necessary resources
2. Measure: Monitor metrics and and infrastructure to enable value creation.
stabilize the process for predictable
performance.
  Process Requirements define the standards and  Purpose: The primary goal of process mapping is to
conditions that both types of processes must meet to provide a clear picture of how a process operates,
ensure quality and effectiveness. helping identify inefficiencies, redundancies, and
areas for improvement.
PROCESS DESIGN:  Tools: Common tools used in process mapping
include flowcharts, swimlane diagrams, and value
Goal of Process Design: stream mapping.
The primary objective is to create an efficient process that
meets both internal and external customer requirements while Discussion:
achieving the necessary quality and performance levels. Process mapping allows organizations to visualize the
sequence of actions in a process, clarifying roles and
Key Considerations in Process Design: responsibilities. By examining these maps, teams can pinpoint
bottlenecks, delays, and quality issues, facilitating process
optimization.
 Customer Requirements: Understanding who the
customer is and what outputs are needed.
 Safety and Environmental Impact: Ensuring 2. Process Design for Services
processes are safe for workers and environmentally
friendly (e.g., "green" manufacturing). Definition:
 Cost and Productivity: Balancing expenses with Process design for services focuses on creating and organizing
productivity to maintain efficiency. service delivery processes that meet customer needs while
 Variability and Measurement: Reducing variability ensuring efficiency and quality.
in outputs and having the capability to measure
process performance. i3 BASIC COMPONENTS OF SRVICES
 Maintainability: Ensuring equipment can be easily
maintained. a. physical facilities, processes and procedures
b. employee behavior
Interconnectedness of Processes: c. employee professional judgement
Processes often cut across traditional organizational functions USEFUL APPROACH TO DESIGNING SERVICES
and do not operate in isolation. Thus, the design of one (DIFFER IN 3 DIMENSION)
process must consider how it interacts with other related
processes. a. customer contact and interaction
b. labor intensity
Process Design Steps: c. customization

1. Understanding Purpose and Requirements: 3. Design for Agility

Determine the overall goal of the process (e.g.,
manufacturing a component or taking customer Definition:
orders). Design for agility involves creating processes that can quickly
2. Technical Analysis: Conduct a detailed analysis of adapt to changes in customer demand, market conditions, or
the product characteristics, technological capabilities, technological advancements.
required operations, and assembly methods, usually
performed by industrial or manufacturing engineers. Differentiation:
3. Customer Preferences: For customer-facing
processes, such as order-taking, identify how
customers prefer to place orders and their wait time  Focus on Flexibility: Agility emphasizes the ability
tolerance. to pivot and adjust processes rather than sticking
rigidly to predefined paths.
 Rapid Response: Agile designs allow organizations
Role of Technology in Process Design: Technology enhances to respond quickly to disruptions or opportunities,
the productivity and efficiency of processes. For example: maintaining competitiveness.

 Staples: Uses robotics in order fulfillment, improving Discussion:

productivity by 60% and speeding up order Organizations that design for agility build processes that can
processing. be easily modified or scaled. This includes implementing
 Fast-Food Restaurants: Utilize advanced systems modular systems, cross-functional teams, and leveraging
like hands-free intercoms and order display screens to technology for quick adjustments. Agile processes enable
enhance accuracy and response time in food businesses to meet customer needs effectively, even in
preparation and delivery. dynamic environments.

Overall, effective process design is crucial for operational 4. Mistake Proofing Process (Poka-Yoke)
efficiency, customer satisfaction, and continuous improvement
within organizations.
Definition:
Mistake proofing, or poka-yoke, is a process design technique
1. Process Mapping aimed at preventing errors or defects by implementing fail-
safe mechanisms in processes.
Definition:
Process mapping is a visual representation of the steps Differentiation:
involved in a process, outlining the flow of activities, decision
points, inputs, and outputs. It serves as a tool for analyzing and
improving processes by making them easier to understand.  Error Prevention vs. Correction: Mistake proofing
focuses on preventing mistakes from occurring in the
Differentiation:
 first place rather than correcting them after they 1. Standards/Goals: Define what is expected to be
happen. accomplished.
 Design Features: This may involve designing tools, 2. Measurement: Track performance against
processes, or systems that automatically prevent established standards.
incorrect actions or highlight potential errors before 3. Comparison: Assess results against goals to provide
they become problems. feedback.
4. Correction: Implement changes to address
Discussion: deviations from standards.
Mistake proofing techniques can include physical devices
(e.g., jigs and fixtures), visual cues (e.g., color coding), and Control vs. Improvement
software alerts. By integrating these features into process
design, organizations can significantly reduce the likelihood of  Control: Involves maintaining stability and
errors, leading to improved quality and efficiency. consistency in process performance, addressing
abnormalities that cause variations.
TYPICAL TYPES OF SERVICE ERRORS:  Improvement: Aims to either raise the average
1. Task Errors performance level or reduce variations around the
These occur when the service provider fails to perform a task current average, crucial for enhancing customer
correctly or completely. This can include mistakes such as: satisfaction.
 Incorrectly processing a customer order.
 Failing to complete a service as specified. Process Control in Practice
2. Treatment Errors
These errors relate to how customers are treated during their  Case Example: In the GE incident, employees failed
interaction with the service provider. They can include: to identify mislabeling of an engine part, leading to
 Rudeness or unprofessional behavior from staff. recommendations for added verification steps.
 Lack of empathy or attentiveness to customer needs.  Statistical Process Control: Many organizations
3. Tangible Errors employ statistical methods to detect deviations from
These involve issues with physical evidence or materials standards, triggering necessary corrections, such as
related to the service, such as: adjusting machinery or retraining staff.
 Poorly maintained facilities or equipment.
 Incorrect or missing signage and information.
4. Customer Errors in Preparation Organizational Learning
These errors occur when customers fail to adequately prepare
for their service experience, including:  After-Action Review: A method adopted by various
 Not bringing required documentation (e.g., ID, organizations, including the military, involving four
payment). key questions:
 Misunderstanding service requirements or policies. 1. What was supposed to happen?
5. Customer Errors During an Encounter 2. What actually happened?
These happen during the actual service interaction, such as: 3. Why was there a difference?
 Miscommunicating needs or expectations. 4. What can we learn?
 Providing incorrect information to the service
provider. Process Control in Manufacturing
6. Customer Errors at the Resolution Stage
These errors occur when a customer attempts to resolve an 1. Focus on Products: Centers on the production of
issue, such as: tangible goods, ensuring they meet quality standards.
2. Standardization: Relies on standardized procedures
 Failing to follow through with steps provided for and automation, often using Statistical Process
resolution. Control (SPC) for monitoring.
 Misinterpreting the resolution offered by the service 3. Measurement: Involves rigorous testing of products
provider. against specifications, including in-line inspections.
4. Corrective Actions: Addresses deviations by
recalibrating machines or retraining personnel.
5. Efficiency: Aims to maximize yield and minimize
Importance of Process Control waste and downtime.

1. Operational Integrity: The failure to properly Process Control in Services

process and identify an engine blade led to an
emergency landing, showcasing how lapses in 1. Focus on Intangibles: Centers on delivering
process control can lead to severe consequences, intangible outcomes and managing customer
including significant financial costs (e.g., GE interactions.
incurred $8 million in losses). 2. Flexibility: Requires adaptability to varying
2. Daily Management and Long-term Improvement: customer needs, often involving employee discretion.
o Daily Management: Effective process 3. Performance Metrics: Assessed through customer
control methods form the backbone of daily feedback, response times, and service accuracy.
operations, ensuring that processes run 4. Employee Engagement: Emphasizes training and
smoothly and conform to standards. support for frontline employees to enhance service
o Long-term Improvement: For meaningful quality.
improvements to occur, processes must first 5. Customer Interaction: Manages customer-provider
be controlled and stabilized. interactions, often using technology for tracking and
feedback.
Elements of Process Control
teps for Monitoring and Evaluation in Emergency
Departments
 1. Assign Responsibility: The emergency department using tools like benchmarking, best practices, and
director oversees and actively participates in reengineering.
monitoring and evaluation, assigning specific duties
to staff members. 1. Stretch Goals: High-reaching targets that drive
2. Delineate Scope of Care: Establish a comprehensive innovation and demand fresh approaches.
inventory of all services provided by the emergency 2. Benchmarking: Comparing processes and
department to identify key areas for monitoring. performance against industry leaders or competitors
3. Identify Important Aspects of Care: Focus on high- to set improvement targets.
risk, high-volume, and problem-prone activities that o Competitive Benchmarking: Learning
significantly impact patient care. from direct competitors.
4. Identify Indicators: Define measurable variables for o Process Benchmarking: Adopting top
each important aspect of care, such as staffing levels, methods from other industries to improve
delays in physician response, and transfusion errors. specific processes.
5. Establish Thresholds for Evaluation: Set specific 3. Best Practices: Proven methods that can be
thresholds that trigger intensive evaluations when integrated to reach higher performance levels and
indicators reach certain levels. support stretch goals.
6. Collect and Organize Data: Gather relevant data for 4. Reengineering: Radically redesigning processes to
the established indicators and organize it for remove inefficiencies and support breakthrough
comparison against the thresholds. objectives.
7. Evaluate Care: Analyze the collected data when
thresholds are met to determine if issues exist,
focusing on trends and performance patterns. MANAGING THE SUPPLY CHAIN PROCESS
8. Take Actions to Solve Problems: Develop and
implement action plans to address identified involves overseeing and optimizing the flow of goods,
problems or opportunities for improvement. information, and finances across the entire network—from
9. Assess Actions and Document Improvement: suppliers to manufacturers to distributors and, ultimately, to
Evaluate the effectiveness of the implemented actions customers. This management aims to ensure efficiency,
and document further necessary steps. quality, and responsiveness, enhancing customer satisfaction
10. Communicate Relevant Information: Report and minimizing costs.
findings and actions taken through established
hospital communication channels, ensuring Supplier is an entity or organization that provides goods,
transparency in the quality assurance program. materials, components, or services required for production or
operations. Suppliers are essential links in the supply chain, as
PROCESS IMPROVEMENT they ensure the availability of necessary inputs that meet
quality, cost, and delivery standards.
Process Improvement
Role of Suppliers in the Supply Chain Process
Process Improvement refers to the systematic approach to
enhancing the efficiency and effectiveness of organizational Suppliers are not just sources of raw materials or products but
processes. The aim is to increase quality, reduce waste, and also collaborative partners that contribute to a company's
optimize overall performance. It involves identifying areas ability to produce goods efficiently, maintain quality
where processes can be enhanced, analyzing the current standards, reduce costs, and meet customer demands. They
performance, implementing changes, and monitoring the may also be involved in aspects such as product design,
outcomes to ensure that improvements are sustaine inventory management, logistics, and innovation efforts.

4 STAGES OF LEARNING CYCLE: upplier Certification as a Foundation for Inclusion

1. Planning
2. Execution of plans Supplier certification ensures that only suppliers who meet
3. Assessment of progress specific standards are included in key processes. Certified
4. Revision of plans based upon assessment problems suppliers have proven capabilities, which strengthens the
overall supply chain and supports deeper collaboration.
Continuous Improvement is an ongoing effort to improve Through certification, businesses can rely on suppliers for
products, services, or processes incrementally over time. This consistent quality and performance, further supporting
philosophy encourages organizations to regularly assess and inclusion efforts.
refine their operations to achieve higher quality and efficiency.
Key principles of continuous improvement include: The supplier certification process is a formal assessment and
approval method to ensure that suppliers meet a company's
 Employee Involvement: Engaging all employees in quality, performance,
the improvement process fosters a culture of
innovation and accountability. and compliance standards. Certification establishes trust,
 Data-Driven Decisions: Using metrics and feedback minimizes risks, and ensures that suppliers consistently deliver
to identify areas for improvement and measure the quality products or services that align with the company's
impact of changes. requirements
 Incremental Changes: Implementing small,
manageable changes rather than radical overhauls to
reduce resistance and allow for easier adjustments.

Breakthrough Improvement is about achieving substantial

changes by setting ambitious stretch goals or breakthrough
objectives. These goals push organizations beyond
incremental progress to pursue major advancements, often