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AEM1200_0206ToPost - AEM1200 Introduction to Business...

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Unformatted text preview: AEM1200, Introduction to Business Management. AEM1200, Friday 2/6 Operations Management (II) Total Quality Management Continuous improvement Employee empowerment Tools of TQM Benchmarking Just-in-time Modern production techniques Automation Re-engineering Total quality management Total Quality Management Total The practice of striving for customer satisfaction by The ensuring quality from all departments in an organization. organization. Continuous improvement Employee empowerment Benchmarking Just in time Knowledge of TQM tools Continuous Improvement Continuous The continuous implementation of incremental The improvements to steadily bring a process closer to the ideal to Management by sight Management by stress Management by objectives The ability to produce only two defective units per The billion produced. billion Six-Sigma Capability Employee Empowerment Employee The involvement of employees in every step of The the production process the Quality circles Groups made up of work center members chartered Groups with implementing continuous improvement; with Focus teams Multidisciplinary teams chartered to focus on specific Multidisciplinary problems or continuous improvement objectives. problems How to Improve How Organizational Structure Break business into smaller units Build teamwork Impose autonomy Create meaningful incentives Outsource non-operating activities Share business capabilities across units Job Oriented Motivational Techniques Job Job Enrichment/Redesign • • • • Skill Variety Task Identity/Significance Autonomy Feedback Job Simplification Job Enlargement Job Rotation Job Enrichment Job Job variety The extent to which a job demands different skills; The degree to which a job requires doing a task with a visible outcome The from beginning to end; from The degree to which the job has a substantial impact on the lives or work The of others in the company; of The degree of freedom, independence, and discretion in scheduling The work and determining procedures; work The amount of direct and clear information that is received about job The performance. performance. Task identity Task significance Autonomy Feedback Service Recovery and Empowerment Service Service recovery is restoring customer Service satisfaction to strongly dissatisfied customers satisfaction Fixing the mistakes that were made Performing “heroic” service that delights customers Empowering workers can help solve customer dissatisfaction dissatisfaction The goal is zero customer defections Tradeoffs of Empowering Service Employees Tradeoffs Finding service workers Finding capable of solving problems problems Training service workers Higher wages Less emphasis on service Less reliability reliability Eagerness to provide Eagerness “giveaways” “giveaways” Unintentional unfair Unintentional customer treatment Quicker response to customer complaints customer Employee morale Enthusiastic employee Enthusiastic interaction with customers interaction Employees offer ideas for Employees improvement and prevention prevention Great word-of-mouth Great advertising and customer retention retention Low employee turnover Benchmarking Benchmarking Selecting a demonstrated standard of Selecting performance that represent the very best performance for a process or activity; performance The benchmarking process Determine what to benchmark; Form a benchmark team; Identify benchmarking partners; Collect and analyze benchmarking information; Take action to match or exceed the benchmark. Just-in-Time Philosophy: Just-in-Time Achieving Process Synchronization Process “synchronization” refers to the ability of Process the process to meet customers’ demand in terms of their exact quality, quantity, time, and location requirements; requirements; Exactly what is needed; Exactly how much is needed; Exactly when is needed; Exactly where is needed. Process “efficiency” is measured in terms of total Process processing cost, the ideal being to develop, produce, and deliver products at the lowest possible cost. possible Tools of Total Quality Management Tools Quality function deployment Taguchi technique Pareto charts Process charts Cause-and-effect diagrams Statistical process control Modern Production Techniques Modern Just-In-Time (JIT) Just-In-Time Inventory Inventory Mass Customizing Purchasing and Supply Competing in Time Purchasing Chain Management Chain Flexible Manufacturing Lean Manufacturing Technology Assisted Computer-Aided Computer-Aided Design (CAD) Design Computer-Aided Computer-Aided Manufacturing (CAM) Manufacturing Reengineering Reengineering “The fundamental rethinking and radical redesign of “The business processes” (Hammer and Champy, 1994) business Just-in-Time and Lean Production Just-in-Time Reducing setup times Increasing flexibility Reducing inventory costs Increasing quality Quality circles Authority to “stop the line” “Lifetime” employment Integrate suppliers into the design and planning process “Kanban” Promote networking across suppliers Worker empowerment Managing the supply chain Comparison of Assembly Costs as a Function of Annual Volume (from “The Second Industrial Divide”, Piore & Sabel, 1986) Piore Take-Aways Take-Aways Three approaches to operational improvement Automation – Based on Machines Re-engineering – Based on Systems Total Quality Management – Based on people Total Quality Management is the hardest, but it Total sticks… sticks… Recommended Reading Recommended Any good Operations Management textbook, such as Any “Operations Management”, Render and Heizer (Pearson/PrenticeHall) (Pearson/PrenticeHall) “The Machine that Changed the World”, Womack et al., 1989 “The Goal”, Goldratt, 1992 “Reengineering the Corporation”, Hammer and Champy, 1993 ...
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