Lecture 3 - IE 330 Lecture 3 Chapter 2 cont’d 1/23/08...

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IE 330 Lecture 3 Chapter 2 cont’d 1/23/08
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Deming’s point 6 Better Training for someone to know how to do something well, they must be trained properly • People, not information, are an organization's most important asset. • “greatest waste in America is failure to use the abilities of people” • “train people, and then they left to go elsewhere” • For people to do a good job, they must be trained how to do that job properly • education as to why the quality required is expected • training is required not just for employees, but also for management • Japanese managers start their careers with long internships that vary from four to twelve years. During this time, the manager-trainee works in all parts of the enterprise, from the factory floor to procurement, accounting, distribution and sales. As a result of this on-the-job training, the Japanese managers have firsthand experience in production problems, as well as those of acquisition, logistics and sales. This prepares them for understanding how all parts of the business integrate.
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Deming’s point 7 Institute Leadership stresses management's accountability in quality improvement not just supervise, but must continually work on sources of improvement of both product and service “catching someone doing smth right” vs. “catching someone doing smth wrong” Focus on outcome must be abolished, leadership put in its place This statement is a bold contradiction to traditional management theory A major mail-order company found that its goal to reduce time on the telephone caused a high incidence of duplicate customer records and unverified (and incorrect) addresses. A major stock trading firm found unacceptable errors in trade data. The culprit-- trader's bonuses were based on volume of trades, not quality of trade data.
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Business leaders will: Understand how their group's processes fit into the goals of the enterprise. Understand how their group's processes fit into the value chain of which they are a part. This means knowing who are the downstream customers of the work and products. It also means knowing the quality requirements those downstream customers have of the products produced by their group. Work to improve the business processes. Manage the employees not by numbers or standards, but by customer satisfaction and team-effectiveness criteria.
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How to facilitate leadership: Be proactive. Identify areas in need of improvement and in which you have influence; lead the team to make improvements. Identify your customers and solicit their feedback on how to better meet their needs; then act on that feedback and get their new feedback. Encourage and coach others to do the same.
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This note was uploaded on 04/07/2008 for the course IE 330 taught by Professor Tezcan during the Spring '08 term at University of Illinois at Urbana–Champaign.

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Lecture 3 - IE 330 Lecture 3 Chapter 2 cont’d 1/23/08...

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