Automotive Quality Systems Handbook, 2nd Edition

ISO 9000, TQM and other quality initiatives fail. They resulted in sub-optimization, not

optimization of the organizational performance. If the business objectives are func-

tionally oriented, they tend to drive a function-oriented organization rather than a

process-oriented organization. Establish process-oriented objectives, measures and tar-

gets focused on the needs and expectations of external stakeholders; the functions will

come into line and you will be able to optimize organizational performance. When

Texas Instruments re-engineered its processes in 1992, their process map showed only

six processes.

1

Hammer remarks that hardly any company contains more than 10 or

so principle processes.

There are several ways of identifying processes but the two that we will discuss here are

the top-down approach and the bottom-up approach.

Top-do

wn approac

h

From the organization’s mission statement identify the stakeholders and their needs

and expectations relative to this mission. Now determine the outputs needed to satisfy

the stakeholders and group these outputs according to the following criteria:

1 Outputs that create demand for the organizations products and services.

2 Outputs that satisfy a demand for the organizations products and services.

3 Outputs that provide resources to the organization for creating or satisfying a

demand.

4 Outputs that establish the goals and strategy for the organization, establish the

enabling processes and review performance.

This will result in four business processes:

1 The group of outputs that create demand will be delivered by a Demand Creation

Process. These are considered to be customer-oriented processes or COPs by the

International Automotive Task Force (IATF).

2 The group of outputs that satisfy a demand will be delivered by a Demand

Fulfillment Process. These are considered to be customer-oriented processes or

COPs by the IATF.

3 The group of outputs that provide resources will be delivered by a Resource

Management Process. These are considered to be support-oriented processes or

SOPs by the IATF.

4 The group of outputs that establish goals, strategy, etc. will be delivered by a Mission

Management Process. These are considered to be management-oriented processes

or MOPs by the IATF.

Customer Oriented Processes have a customer at either end. A diagram called the

octopus is used on IATF in Auditor Training to illustrate this concept (see Figure 4.2).

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