• Processes that Make Money for Company
–
–
–
–
Producing Quality Product
Selling Product
Delivering the Product
Collecting Payment for Product
Create
Sell
Deliver
Collect $
The CHITA Program
Operations Management
• Common direction for Operations:
• Continuous Process Improvement
– Top down dictated
– Shortest path to long term income growth
– Jerky, trial and error approach
– Make part of company culture
– Frequently changing
– Certain outcomes
$
– Relies on coercive motivation
• Chita works differently:
$
Create
– Costly & poor outcomes
Sell
Deliver
Collect $
– Process operators actively
participate in improving the processes they work with.
– Faster & more predictable outcomes. Time
Create
Sell
Deliver
Collect $
What is a Process?
Why Improve Processes?
• Process = Input, Transformation, Output
• Fewer problems with processes will reduce the frustration caused by process problems. Input
• Better quality outputs will increase customer satisfaction.
Change or Add Value
Output
Bottle,
Cap,
Water
Fill bottle, with water,
Put on cap
Bottle of
Water
• Increased customer satisfaction will lead to higher sales.
• Faster processes reduce cost and increase cash flow.
• Company will be more competitive, increasing your job security and giving you the opportunity to earn more.
Copyright Paul M. Brainard 2013
1
What is a Process?
Paint Chair Process Summary
• Using Flowcharts to Document Processes
– Parallelogram = Input or Output
From
Assembly
– Triangle = Queue (Materials Waiting)
Input
Un‐finished
Chair
Paint Chair
Output
Painted
Chair
To
Packaging
– Rectangle = Process Step
– Diamond = Decision
– Circle = Connector
Input
Queue
Process
Step
Yes
Decision
Output
Connector
No
Paint Chair Process