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Quality Tools for Analysis and Problem Solving Continuous Improvement in Service Organization Focuses on acquiring the tools of quality and productivity analysis to achieve continuous improvement. Continuous improvement in service organization Business become more productivity conscious Sleep Inn chain Washers and dryers locate behind front desk Night clerk can load & unload laundry Night stands are bolted to the wall No need to vacuum around the legs Quality & Productivity improvement process Foundation of Continuous Improvement Deming - Helping Japanese industries recover from WWII » Quality » Low cost i. Customer satisfaction 1. Putting the customers first ii. Management by fact 1. Decision based on objective data 2. Formal data gathering 3. Statistical analysis iii. Respect for people Companywide quality improvement program » Train employee with capacity Problem solving Self motivated » Encourage problems to be solved at the lowest level
The philosophy of continuous improvement is illustrated by the Deming wheel or PDCA (Plan, Do, Check, Act) cycle. Plan-Do-Check-Act cycle Deming’s approach Checking & inspecting for quality is too late Focus on process Plan Selection of the problems Change to important indicators » Rate of defections or complaints Current process is documented » Flowcharts Data are collected Root causes » Possible causes are brainstormed » Using data Develop action plan » Workable solution » Measure of success » Implementation target agreed upon Do Implement the solution Monitor the implementation plan Collect data on performance measure Noting progress against milestones Check Evaluate the results of change Intended effects Unforeseen consequence Act Reflect and act on learning Process changes are standardized Communicated to all involved Celebrate the success Repeat the PDCA cycle
Midway Airlines, a regional carrier, served business travellers from a hub at the Midway Airport in Chicago until taken over by Southwest Airlines in 1991. The hub-and-spoke

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