EXAM 2 NOTES.docx - 15-5 B Open Book Management allows employees to see for themselves the financial condition of the organization and encourage

EXAM 2 NOTES.docx - 15-5 B Open Book Management allows...

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15-5 B Open Book Management : allows employees to see for themselves the financial condition of the organization and encourage employees to think and act like business owners Company transparency: blue collar workers became assets to be maximized and were shown financial statements and taught to read it. Most transparency in Britain Exhibit 15.7: opacity index- indication of the degree to which various countries are open regarding economic matters. The higher the more Opaque. Nigeria is the most opaque rating at 57. Finland the lowest at 9. When people perceive the system is unfair, that is demotivating Tapping into people's perception that the system is unfair is a political tactic for politicians like Bernie and trump. Post WW2: everything is bombed out, no productive capacities left Demming said teach the workers everything 15-6 Total Quality Management (TQM): TQM is an organization-wide effort to infuse quality into every activity in a company through continuous improvement. Quality control becomes part of the day to day business of every employee rather than being assigned to departments. Get improvement from workers who do the everyday operations. 15-6a TQM Techniques Quality Circle : group of 6-12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work. Main Point being: to push decision making to an organization level which recommendation can be made by the people who do the job and know it better than anyone else. Benchmarking: the continuous process of measuring products services and practices against the toughest competitors or those companies recognized as industry leaders to identify areas of improvements. Exhibit 15-8 A Five-Step Benchmarking Process Step 1: Plan the benchmark study - identifying the objectives of the study and the characteristics of a product or service that significantly influences customer satisfaction. Step2: Find- Identifying the source of the information to be collected. Case studies Step 3: Collect- the data from the source identified. Step 4: Analyze- analyze the benchmarking data that is collected and recommend areas of improvement. Step 5: Improve- implementing recommendations and then monitoring them through continuous benchmarking. Six Sigma : Is ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts = 99.997% of the time. six standard deviations We want the usable output to be equal to 99.999% of total output, acceptable output is 3 stan devs above and below Make the distributions tighter to improve efficiency Standard deviation formula
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DMAIC - deviation from Six Sigma: The five-step methodlogy for DEFINE, MEASURE, ANALYZE, IMPROVE, and CONTROL. Provides a structured way for organizations to approach and solve problems.
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