CHP 10 Productivity, Quality and Reengineering

7/31/2019 CHP 10 Productivity, Quality and Reengineering

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THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 2

productivity and Quality

The misconception exist that productivity

and cost must be sacrificed if quality is to

be improved, but it seems to be the view of

those who rank production ahead of qualityas the top priority.


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The Leverage of Productivity and

Quality

the leverage is even more dramatic if a

smaller and more realistic return on sale is

used. There are also potential additionalcompanion benefits that can be achieved in

quality.

Management System VS. Technology


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Measuring Productivity

Carl G. Thor principle of measurement forproductivity and Quality:

Meet the customer need Feedback

Measure what is important

Measure should be controllable andunderstandable

Base measures on available data.


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Basic Measure Of Productivity

Ratio Of Output To Input

Total Factor: T o t a l O u t p u tLabor+Material+Energy+Capital

Partial Factor: Total Output

Labor Input

Functional Department Measure

Individual Measure

Industry and competitive Measure


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White-Collar Productivity

Causes of wasted time include:

Poor Scheduling

Slack start and quit times

Lack of communication Between function

Information overload

Poor staffing Inadequate communication of assignments

Unproductive meetings and telephone conversations


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Five ways to increase

Productivity

Reduce cost

Manage growth

Work smarter

Pare down

Work effectively


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REDUCED COSTyou must sit down with a team and go over the steps of TQM and

decide if they are right for your company. Then, you can list outyour goals and begin implementing the program. In order to besuccessful, customer feedback is a must! TQM is about changingthe way you do business. The program is designed to improvequality of products and services while increasing profits. It doestake some time to implement the process and see it work, but itwill not be long before you begin to see results. Communication isa key tool to having a successful TQM process. Communicationencourages everyone to improve in specific areas and it showscommitment from each member working on the process. TQM isdefinitely about the customer. TQM puts the customer at thecenter of every activity and considers the whole process ascustomer driven.


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MANAGED GROWTH

What do employees do that contributes value to thecompany's services, or advances its mission?

Conversely, what do the employees do that does notcontribute value?

If the organization was working in the most efficient andeffective manner, how would they be organized and howwould the activity be performed?

What inhibits the organization from working in the mostefficient and effective manner?

How else can the activity be provided?


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PARE DOWN

Decrease gradually or bit by bit


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Reengineering

It has been suggested that in order to

reinvent their companies, manager need to

abandon the organizatioanl and operationalprinciples and procedures they are now

using and create entirely new ones. These

new ones can be combined into an emergingidea called business reengineering.


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Principle of Reengineering

Organize around outcomes not tasks. Have those who use the output of the process

perform the process.

Subsume information processing work into the real

work that produces the information. Treat geographical dispersed resources as though

they were centralized.

Link parallel activities instead of integrating their

result

Put the decision point where the work is performed

Capture information once and at the source.

Documents

CHP 10 Productivity, Quality and Reengineering