So Processes Add Value

Process-based Management System - Part 2 of 10
by John R. Broomfield

Process merely means work. All of us work (with brawn, brains, machines or a combination) to add value to inputs. These inputs are information, materials or subassemblies. One could also argue that training and educating are processes that have people as input to whom value should be added. We agree.

The value of the output must exceed the cost of inputs, resources and controls to stay in business. The resources are facilities, equipment, skills and knowledge. The controls are methods, procedures (or instructions), care and coordination.

Coordination has an important role in managing the interplay between the many interconnected processes. Care is a result of leadership, if the team doesn?t care then look at the leader.

This model imparts two great strengths to the system and organization. It is extremely useful in problem solving because it helps problem solving teams to build a complete cause and effect model.

The second value of this model is that it fits well with the very latest quality costing models (for example see BS 6143). Process quality costing is far more powerful in practice than the old PAFF (prevention, appraisal, internal failure and external failure) model. This fact is also slowly being picked up by the cost accountants with a technique known as Activity Based Costing (ABC) so financial reports will be far more revealing of the true health of a company.

One day we will see the only true way to accurately depict costs and that is the rate at which your processes add value (in $ per millisecond perhaps!). By using this model when training your team to design, build, use and improve your system you are making a valuable and practical investment in the future.

Company Name: Quality Management International, Inc.
Website: http://www.aworldofquality.com
Author: John R. Broomfield
Address: PO Box 271
City: Exton
State: PA
Zip: 19341