Process Management 20
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
1. The process of making a batch of paint in a 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 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 this process using the questions posed
in the chapter.
Answer
a. and b. See the flowchart, below, that maps out this process, and the added detailed steps,
not described in detail in the problem.
21
22
c. Opportunities for improving the 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?
2. 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?
3. Are capacities of each step in balance; that is, do bottlenecks exist for which customers
will incur excessive waiting time?
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
5. At which points in the system might errors occur that would result in customer
dissatisfaction, and how might these errors be corrected?
Ans. Errors could occur in any of the steps in the process, which might affect customers
6. At which point or points should quality be measured?
7. Where interaction with the customer occurs, what procedures and guidelines should
employees follow to present a positive image?
Process Management 23
2. The process for filling a prescription at a large retail pharmacy 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, the pharmacy 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 this 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
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?
2. 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?
3. Are capacities of each step in balance; that is, do bottlenecks exist for which customers
will incur excessive waiting time?
4. What skills, equipment, and tools are required at each step of the process? Should some
steps be automated?
Process Management 24
5. At which points in the system might errors occur that would result in customer
dissatisfaction, and how might these errors be corrected?
Ans. Errors could occur in any of the steps in the process, which might affect customers
6. At which point or points should quality be measured?
7. Where interaction with the customer occurs, what procedures and guidelines should
employees follow to present a positive image?
Process Management 25
3. 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
3. 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.
Process Management 26
4. 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
4. For an automobile dealership, a comprehensive analysis is required. See flowchart below:
Process Management 27
Potential areas for failures and customer dissatisfaction that students might suggest are:
5. The process for depositing a check at a local bank 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 this
process and identify potential sources of error and poka-yokes that might be used to mitigate
these errors.
Answer
Process Management 28
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
presents
checks for
Start
First available
teller asks,”May
I help you?”
Cash
back
Are payee
names on
accounts?
Yes
No
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6. Global food supply chains consist of many processes.
a. The flowchart depicting the supply chain for bananas is shown below.
Supply Chain for Banana Production
Test samples
Monitor growth
& quality
Cut banana
stalks from trees
Cut bananas
into bunches
of 5-6 bananas
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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
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. For Christina Clark to “mistake-proof” these steps in each process, will require the
application of poke-yoke principles. For example, the Receiving and Storage steps could be
“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
Process Management 31
• 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
4. 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.
Process Management 32
* Controlling quality and operational performance of all key business processes, using
systematic methods to identify significant variations in operational performance and
5. This project is designed to encourage students to consider what steps are required to develop a
6. 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
7. 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
ANSWERS TO CASE QUESTIONS
I. The State University Experience
1. The prospective student experienced a number of service quality defects in trying to navigate
“the system” at State University. First, the tour guide was not well trained, thus creating a poor
initial impression.
Process Management 33
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
II. Gold Star Chili, Inc.
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.
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
Process Management 34
III. 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
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
Process Management 35
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
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
8.3 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
Process Management 36
2. There was no discussion of ISO category 6, Resource items. More information would be
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
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
Process Management 37
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