Quality Management: Lecture 6: Process Based Approaches To Management

Quality Management
Lecture 6: Process based

Approaches to
Management
Session one
What is a process and what

is process management?
Learning points:
To understand what is meant by the term process based management
To be able to put process management in context
To understand the system, process and procedure relationship.
BM066-3.5-2-QMGT: Quality Management
Lecture 6: Process based Approaches to Management
What is a process?
Transformation
activity
Inputs
Output
What is a process?
1. What could be some inputs to an
organisational / business process?
2. What could be some outputs from
an organisational / business
process?
What is a process?
Materials
Procedures and
methods
Information
Products
Services
Process
People
Knowledge
Competence
Plant or equipment
INPUTS?
Information
Paperwork
OUTPUTS?
dont get confused with resources

& constraints
But what do we improve?

Budget
Culture
Inputs
Competence
Asset use
H&S
Process as a
series of activities
Measure outcomes
/ results against
targets
Teamwork
Methods
Information
sharing
Environment
Learn & improve to
Enhance performance
you manage the resources & constraints not

just the process itself
Why process management?

Research indicates that the
biggest problem is that managers
do not understand the processes
they are working in, and therefore
cannot manage them
Collins, P. (1997), Using Process Mapping as a
Quality Tool Management Services, Vol. 41, No.
3, pp 24-26.
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Inputs
Functional
Hierarchy vs.
Product/Service
Flow
O
utputs
1
6
W
orkprocessesflowacrossdepartm
ents
Management system structure

multi-level mapping
Management System
the what is done

A process
A process
Owner - Director
Measure business performance
finance, customer process,
innovation
finance, customer process, innovation
Owner Process Owner
Measure efficiency and effectiveness
A procedure
the how it is done
Training
Guide
Photograph
To map a process
Start by defining the real purpose of the process
i.e. what the process is designed to achieve
Define inputs
Define outputs.
Define lead time.
Define person in charge
Basic process mapping symbols
Decision
Activity
No
Process Flow
Yes
The 7 golden rules of

process mapping
1. Time (& process flow) moves from left to right
2. Agree overall process title with start & end points
3. Define critical activities and critical cross-functional interfaces
4. Identify Process Owner
5. Use active verbs to describe process activities and, if possible,
define processes in terms of desired outcome.
6. Map using 3 levels (if required) of consistent detail
7. Apply the 80:20 rule dont try to map every eventuality
Exercise introduction
Understanding the
Leisure Business
Planning the
business
Bring about change

Run the leisure
facility
Monitor
performance
Run the restaurant
Market our services
Run conferences
Managing
People
Managing
Managing Managing
Money Supply chain
Assets
Process map: example two

Facilitate Review and solve
issues
yes
Research Independents
and identify their needs
and expectations for the
future.
Define goals and objectives

to Senior Managers.
Produce planning
assumptions and template
Finance Plan including any
sales numbers.
Define sales strategy and

resources required to
deliver sales targets.
Consolidate into Sales plan

and distribute.
Im plementation Group
Financial Controller
Sales Director
Do individual Sales Plans

fit?
Marketing
no
Research Independents,
Multiples & Distribution
outlets and identify their
needs and expectations for
the future.
Produce departmental plan

covering objectives,
timescales, manpower I.T.
requirements, equipm ent,
budget etc to deliver sales
target
Head Office Department
Managers
Produce Branch plan

covering objectives,
timescales, manpower,
equipment, budget etc to
deliver the sales target.
Review / sign off with

relevant Directors
Consolidate all plans into

P&H business plan.
General Managers
Im plementation Group
Do different departmentall
business plans fit
together?
General Managers
Facilitate a review process
with Sales Director
Sales Directors
Research market place for
potential opportunities and
identify potential impact on
P&H.
Discuss / agree shared

strategy and objectives.
Board
Directors
Approve plan
strategic
Implementation
Group
Review requirements of :Bank , legal and regulatory

institutions and
implications for P&H
Review / evaluate strategy,

needs of the market and
review direction
Financial Director
Board
Is direction tactical or
strategic ?
tactical
Identify Holdings Board

Requirements
Review and evaluate

current performance.
Managing Director
Management Executive
Meeting M.E.M. (Group)
Research and Identify

Supplier / Manaufacturer
needs and expectations
for the future.
Commercial Director
Research and identify staff

training needs and
expectations for the future.
Implem ent tactical direction

from the Board.
General Managers Sales

and identify priority list of
what needs to be achieved,
who,how.
Tactical Action Plan
General Managers Forum

from the Board
National Sales Manager

Distribution Services plus
Account Controllers
All Senior Managers

Communication of
business plan
implementation and advise
tactical changes.
Operations Director
Note:- The Directors
involvement is to indicate
the flow of the process only
and does not explain their
full job functions.
Process based
performance indicators
1. Process performance indicators linked to the
purpose of a process
2. Process performance indicators which measure
the outcome of a process in terms of volume,
cost, time, safety & quality i.e. business results
3. A metric, a percentage not a target.
Impact on typical scope

High Performance Organisations
Stakeholder Needs ISO 9004
Customer Needs ISO 9001
Monitor Performance
& Improve
Business (quality) objectives
System KPIs
Key performance
indicators
Processes
Process KPIs
shaped by the needs of stakeholders &

customers
KPI business examples

Number of sales leads / Number of sales achieved
Number of deliveries made on time / Number of deliveries made
Number or value of credit notes raised / Number of orders
delivered
Average debtor day
Number of staff leaving within 3 months / Total number of staff
Total sickness and absence days / Total work days available
Number of products not to specification / Total number of products
Number of customers leaving / Total number of customers
Individual customer value / Total number of customers.
Facilitators role
The facilitators role could include:
Helping the process owner to map the process with others as required
Helping to identify KPIs based on the purpose of the process
Providing training on process and systems management
Not getting involved in the detail of the process but concentrating on
helping create a good process.
Applying best practice in business process mapping
Ensuring that a consistent level and feel to the process and the system
is achieved.
Managing the pace of the meeting.
In summary
Build a process based on its
purpose
Improve the
process based
on results
Ensure the process

aligns with
organisational objectives
Measure performance
Against targets
Communicate & run

the process

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Quality Management

Lecture 6: Process based

What is a process and what

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

dont get confused with resources

Lecture 6: Process based Approaches to Management

But what do we improve?

you manage the resources & constraints not

Lecture 6: Process based Approaches to Management

Why process management?

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

Lecture 6: Process based Approaches to Management

Management system structure

the what is done

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

Basic process mapping symbols

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

The 7 golden rules of

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

Bring about change

Run the restaurant

Market our services

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

Process map: example two

Define goals and objectives

Define sales strategy and

Consolidate into Sales plan

Do individual Sales Plans

Produce departmental plan

Produce Branch plan

Review / sign off with

Consolidate all plans into

Discuss / agree shared

Review requirements of :Bank , legal and regulatory

Review / evaluate strategy,

Identify Holdings Board

Review and evaluate

Research and Identify

Research and identify staff

Implem ent tactical direction

General Managers Sales

Implem ent tactical direction

Tactical Action Plan

General Managers Forum

Implem ent tactical direction

National Sales Manager