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

BM066-3.5-2-QMGT: Quality Management

Output

Lecture 6: Process based Approaches to Management

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?

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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
BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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
BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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.

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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Inputs
Functional
Hierarchy vs.
Product/Service
Flow

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BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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

BM066-3.5-2-QMGT: Quality Management

Training
Guide

Lecture 6: Process based Approaches to Management

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

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

Basic process mapping symbols

Decision

Activity

No

Process Flow

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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

BM066-3.5-2-QMGT: Quality Management

Managing
Managing Managing
Money Supply chain
Assets

Lecture 6: Process based Approaches to Management

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

Financial Controller

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.

Financial Controller

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
Financial Controller
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

Implem ent tactical direction

and identify priority list of
what needs to be achieved,
who,how.

Tactical Action Plan

General Managers Forum

Implem ent tactical direction

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.

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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.

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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
BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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.

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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.

BM066-3.5-2-QMGT: Quality Management

Lecture 6: Process based Approaches to Management

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

BM066-3.5-2-QMGT: Quality Management

Communicate & run

the process

Lecture 6: Process based Approaches to Management