Process Management Details

Description
The presentation describes about measurement of processes in terms of quality, cycle time, performance matrix, redesigning and re-engineering.

“If you can’t measure, you can’t manage”
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Measurement is pre – requisite for improvement
The parameters of measurement should be identified first The measurement should relate with the objectives / targets Measurements should take place at defined stages of operations, at subsystem levels and also at output stage Measurement is linked with control and improvement Decision on improvement should not be taken only one parameter

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The key parameters are –
Quality : product and customer related Quantity : product and revenue related

Timeliness : in meeting the internal schedule and customer demand
Cost

The dimensions are –
Product quality : rejection, variation, etc. Cost of quality : prevention, appraisal & failure

The parameters are –
Manufacturing Cycle Time Ratio of Delivery Lead Time & Production Lead Time

Material availability
Material movement time Customer service time

Batch Size

Time / Unit

Set up Time

Queue Time

Operation Time = Set up Time + Run Time Throughput Rate = Average Time for a unit to move through the system

Run Time

Operation Time

Throughput Time

Velocity = Throughput Time / Value Added Time Cycle Time = Average Time between completion of units Throughput Rate = 1 / Cycle Time

Standards

Cycle Time

Velocity Efficiency = Actual Output / Standard Output Productivity = Output / Input

Efficiency

Throughput Rate

Productivity

Input

Utilization = Time Activated / Time Available

Time Available

Utilization

Time Activated

“Fundamental rethinking and radical redesign of processes to improve the performance dramatically in terms of cost, quality, service and speed”

Why ?
In order to perform complex jobs and by simplified processes

Focus –
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Core processes (in totality), not on functions or departments Need not discontinue the normal improvement activities Leadership Cross functional and specialization focus Usage of technology & IT (as a tool not as an end) Start from the scratch Calls for clear understanding of the processes and results

Principles –
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Objectivity – the purpose to be focused Reduce number of hands Eliminate process steps Perform process steps in parallel rather in a sequence Capture information at one point rather at many places Involve the people who use the outputs, can take decision and influence the process Information management Control the process after reengineering



doc_735548317.ppt
 

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