TOM 453 chapter 7 notes

TOM 453 chapter 7 notes - Chapter 7 Chapter Process...

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Unformatted text preview: Chapter 7 Chapter Process Improvement Chapter 7 Chapter a Skip supplement Skip Quality and Productivity Improvement Process Improvement a Plan-do-check-act (PDCA) cycle a Quality tools for analysis and problem Quality solving PDCA Cycle PDCA a Plan-do-check-act (PDCA) cycle • Plan – Select and analyze the problem • Do – Implement the solution • Check – The results of the change • Act – To standardize the solution Quality Tools Quality a Check Sheet a Run Chart a Histogram a Pareto Chart a Flowchart a Cause-and-Effect Diagram a Scatter Diagram a Control Chart Check Sheet Check Month Lost Luggage January 1 February 3 March 2 April 5 May 4 June 3 July 6 August 7 September 4 October 3 November 2 December 4 Total 44 Departure Mechanical Overbooked Delay 2 3 3 3 0 1 5 3 2 4 4 0 7 2 3 8 1 1 6 3 0 9 0 3 7 3 0 11 2 3 10 1 0 12 2 0 84 24 16 Other 1 0 3 2 0 1 2 0 2 0 0 1 12 Run Chart Run 14 12 Depar tur e Delays 10 8 6 4 2 0 1 2 3 4 5 6 7 Months 8 9 10 11 12 Histogram of Lost Luggage Histogram 3.5 3 Frequency 2.5 2 1.5 1 0.5 0 1 2 3 4 5 Occurrences per Month 6 7 Pareto Analysis of Flight Departure Delay Causes Departure Cause Percentage of Incidents Cumulative Percentage Late passengers 53.3 53.3 Waiting for pushback 15.0 68.3 Waiting for fuel 11.3 79.6 Late weight and balance sheet 8.7 88.3 Flowchart Flowchart Passenger Arrives Ticket For Flight Yes Check Luggage Yes Excess Carry-on No Issue Boarding Pass Passenger Boards Airplane No Wait for Appropriate Flight Cause-and-Effect Chart for Flight Cause-and-Effect Departure Delay (Fishbone Chart) Departure Equipment Personnel Aircraft late to gate Late arrival Gate occupied Other Weather Air traffic Mechanical failures Late pushback tug Gate agents cannot process passengers quickly enough Too few agents Agents undertrained Agents undermotivated Agents arrive at gate late Late cabin cleaners Late or unavailable cabin crews Late or unavailable cockpit crews Poor announcement of departures Weight and balance sheet late Late baggage to aircraft Late fuel Late food service Delayed checkin procedure Confused seat selection Passengers bypass checkin counter Checking oversize baggage Issuance of boarding pass Acceptance of late passengers Cutoff too close to departure time Desire to protect late passengers Desire to help company’s income Poor gate locations Material Procedure Delayed Flight Departure Scatter Diagram Scatter 12 Departure Delays 10 8 6 4 2 0 0 1 2 3 4 Late Passengers 5 6 7 Control Chart of Departure Control Delays Delays expected Lower Control Limit 1998 199 9 Benchmarking Benchmarking a Comparing with ‘best in class’ a Does not have to be a competitor (e.g. Does airlines and auto racing for turnaround times) times) Quality Improvement Programs a Marriott Personnel Programs a Zero Defects (Crosby) a Deming’s 14 Point Program a Malcolm Baldrige National Quality Award a ISO 9000 a Six-Sigma Malcolm Baldrige National Quality Award Quality a Criteria (2011-2012) • • • • Leadership (also social responsibility) Strategic planning Customer focus Measurement, analysis, and knowledge Measurement, management management • Human resource focus • Operations focus • Business results Malcolm Baldrige National Quality Award Quality a Categories of awards • • • • • • Manufacturing Service Small business Education (introduced in 1999) Health care (introduced in 1999) Non-profit (introduced in 2007) Malcolm Baldrige National Quality Award Quality a Service companies that have won this Service award in the past include award – Ritz-Carlton Hotels – AT&T Universal Card Services – Merrill Lynch Credit Corporation Malcolm Baldrige National Quality Award Quality a 2004 recipients include • University of Northern Colorado College University of Business of • Robert Wood Johnson University Robert Hospital Hospital Service quality Service a How would you think about quality for • A College of Business in a University? • A hospital? University of Northern Colorado College of Business highlights College a a a a Student performance on ETS standardized tests Student satisfaction measured by Business Exit Student Survey Survey Ratings by organizations employing students Strategy elements • • • a High touch (small class sizes) Wide tech (integrate technology) Professional depth Professional Value of investment in degree University of Northern Colorado College of Business (contd.) College a Processes • Executive professor program • Dean’s council (partnership with Dean’s businesses) businesses) • Reduced cycle time to launch new Reduced courses courses • Strategic planning (includes SWOT Strategic analysis) analysis) Robert Wood Johnson University Hospital highlights Hospital a a a a a Provides acute care and outpatient services Mission is to provide “Excellence through Mission Service” Service” 15/30 program in emergency (see nurse within 15 15/30 minutes of arrival, physician within 30 minutes) minutes Patient satisfaction with emergency department Patient-focused model • Care plans evaluated daily • Patients included in process (e.g., preferences, cultural Patients needs) needs) Robert Wood Johnson University Hospital (contd.) Hospital a a a a a a a Employee commitment Community health (e.g., free health screening), Community charity (e.g., soup kitchens) charity Patient mortality rates Rates of hospital-acquired infections Safeguards to prevent errors (e.g., wrong Safeguards medication) medication) Investment in technology, equipment, facilities Employee training (includes ‘walk in my shoes’) Employee and retention and Malcolm Baldrige National Quality Award Quality a 2005 recipients include • Jenks Public Schools • Park Place Lexus Jenks Public Schools highlights Jenks a a a a a a a Highly qualified teachers High API scores Communication between parents, students, and Communication teachers (newsletters, web pages, electronic communication) communication) Graduation rates Teacher/student ratios Partnerships e.g., with a long-term care facility Service learning (students involved with Service community projects) community Park Place Lexus highlights Park High client satisfaction index (highest rated High Lexus dealership in nation) Lexus a Focus on client satisfaction and retention Focus (client relationship management database) (client a Client concern resolution (ties in with Client employee empowerment) employee a Employee training (includes classroom Employee training, mentoring) training, a Social responsibility (e.g., donate new Social Lexus to charity annually) Lexus a Malcolm Baldrige National Quality Award Quality a 2006 recipients include • Premier Inc. – Healthcare strategic alliance owned by notfor-profit hospitals and health organizations for-profit (e.g., nursing homes) (e.g., Premier Inc. highlights Premier a a Improve clinical quality Improve cost-effectiveness • Hospitals incur savings through group purchasing a a a a Standards for ethical business practices Focus on safety and environmental concerns Customer satisfaction levels exceed industry Customer benchmarks benchmarks Focus on people • Safe positive work environment • Opportunities for career growth e.g., tuition Opportunities reimbursement reimbursement Malcolm Baldrige National Quality Award Quality a 2007 recipients include • The City of Coral Springs, Florida City of Coral Springs highlights City a Follows corporate management model – run like a Follows business business • • • a a a High level of financial performance ‘Distinguished budget’ award for 16 consecutive years Zero findings on external audits for 11 years Centrally planned community Facilities: fire stations, police stations, parks, Facilities: sports complex, arts center, charter school sports Committed to customer focus • Frequent communications with business and residential Frequent customers customers a Improve public safety • Lowest crime rate in state Malcolm Baldrige National Quality Award Quality a 2008 recipients include • Iredell-Statesville Schools, North Iredell-Statesville Carolina Carolina Iredell-Statesville Schools highlights highlights a a Student achievement on standardized tests Provide teachers with opportunities to collaborate Provide on improving student learning • Culture shift from ‘focus on teaching’ to ‘focus on Culture learning’ learning’ a a ‘Closing the gap’ model to focus staff on what Closing students should know and be able to do; use of PDSA cycle, continuous improvement PDSA Focus on attendance, dropout rate, teacher Focus turnover rate, staff qualifications turnover Malcolm Baldrige National Quality Award Quality a 2009 recipients include • Heartland Health, Missouri Heartland Health highlights Heartland a a a a a High ratings in patient satisfaction High ratings for patient safety (mortality, High infections, post-operative safety) infections, Focus on community health (collaboration on Focus community support initiatives e.g., Healthy Kids) community Electronic medical records system Six sigma methods for process improvement Malcolm Baldrige National Quality Award Quality a 2010 recipients include • Montgomery County Public Schools • Advocate Good Samaritan Hospital Montgomery County Public Schools highlights Schools a a a a a a Standardized assessment results show positive Standardized performance and improved trends performance “Reverse engineered” the education process Reverse (seven keys to college readiness) (seven Instructional services are a budget priority; Instructional lowered class sizes lowered High satisfaction ratings from parents and High students; as well as teachers and employees students; Strategic planning: goals for improvement Focus on needs of special education and ESL Focus students students Advocate Good Samaritan Hospital highlights Hospital a a a a a Reduction in malpractice insurance expense High performance in measures e.g., mortality rates High patient satisfaction; workforce satisfaction Participation in community support projects (e.g., Participation free health fairs, screenings, lectures) free Failure Mode and Effect Analysis to improve Failure processes processes Six Sigma Quality Six Statistically, 3.4 defects per million a Focus is on Focus a • reducing variation • continuous improvement a Examples are Motorola and GE Six Sigma Quality : DMAIC Model Model Define Define a Measure a Analyze a Improve a Control a Six Sigma Quality : Organizational roles Organizational Executive a Champion a Master black belt a Black belt a Green belt a Project member a For further reading For a a Read up on Baldrige Award winners ( http://www.quality.nist.gov/Contacts_Profiles.htm ) Read up on Six Sigma at GE ( http://www.ge.com/sixsigma/SixSigma.pdf) ...
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