Operations

1
Operations Quality (BMG774M1)

• Edel ONeill

2
Components of a Total Quality System

• A Vision of Where the Company Wants to Go
• An Assessment of Where the Company Is at Present
• A Plan of How to Get to the Vision

3
Strategy of Implementation

• Identify Opportunities for Quality Improvement
• Focus on the Right Problems to Solve
• Analyse Those Problems
• Develop Realistic and Worthwhile Solutions
• Evaluate How Well New Procedures and Systems Are
  Working

4
Five Implementation Issues

• Customer Focus
• Total Involvement
• Measurement
• Systematic Support, Leadership and Commitment
• Continuous Improvement

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Customer Value Strategy
Topics Old paradigm New (emerging)
paradigm Quality Meeting specifications, One
component of customer inspected into
product, value, managed into process, make
tradeoffs among seek synergies among quality,
cost, schedule quality, cost, schedule Measurem
ent Internal measures of All measures linked to
efficiency, productivity, customer
value costs and profitability, not
necessarily linked to customers Positioning C
ompetition Customer segments Key
stakeholder Stockholder, boss (other Customer
(other stakeholders are pawns) stakeholders
are beneficiaries)
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Organisation Systems
Topics Old paradigm New (emerging)
paradigm Cross-functional Negotiation
across Cross-functional systems approach functio
nal interfaces to defined, owned and
optimised obtain co-operation Employee Focuse
d on hygiene Focused on strategic
factors involvement factors Human
resource Regarded as staff Regarded as a
critical management responsibility, resource,
managed as system administration of
input personnel hiring, firing, and
handling complaints
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Organisation Systems
Topics Old paradigm New (emerging)
paradigm Role definition Task and job
descriptions Vision inspires flexibility set
limits Culture Social and emotional Connect
with individual issues are suppressed, sense
of purpose, emotions politics and power and
social meaning dominate Structure Specialisat
ion, tall Integration, flat hierarchy hierarch
y with functional with team emphasis emphasis
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Continuous Improvement Strategy
Topics Old paradigm New (emerging)
paradigm Occasion Focused new product Focused
on broader systems, development,
episodic, unending, proactive to reactive to
problems, opportunities, big big breakthroughs
only breakthroughs and small steps Response to
error Punish, fear, cover-up, Learning, openness,
seek seek people fix, process/system fix,
employees are management is
responsible responsible Decision-making Indivi
dual political Strategic, long-term, perspective
expediency, short- purposeful for
organisation term
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Continuous Improvement Strategy
Topics Old paradigm New (emerging)
paradigm Managerial roles Administer and
maintain Challenge status quo, prompt status
quo, control others strategic improvement Focus
Business results through Business results
through quotas and targets capable systems,
means tied to results Control Scoring,
reporting, Statistical study of variation
to evaluating understand causes Means Deleg
ated by managers Owned by managers who lead to
staff and subordinates staff and subordinates
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Key Principles

• The importance of determining what customers
  value as opposed to what management think they
  need
• A customer versus an organisational focus
• A focus on optimising organisational performance
  rather than maximising functional end results
• A focus on the processes and systems that cause
  results and not the results themselves
• The importance of experimentation for knowledge
  and openness to new information

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Key Principles

• Mistakes That Lead to Organisational Learning Are
  Acceptable
• The Importance of Continuous Improvement Versus
  Working to Specification or Adherence to the
  Status Quo
• Performance Improvement Comes From Process/
  System Improvement and Not Just Improving People
• To Improve Processes/systems, Managers Must Seek
  Out Root Causes of Problems
• Continuous Improvement Is Demanded at Every Level
  of the Organisation

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SUMMARY

• Developing a Quality System Increases
  Profitability for the Company and Job
  Satisfaction for the Employees
• Quality Is Not Simply Desirable but Essential for
  Survival.
• A Quality System Will Ensure That Goods or
  Services Are Supplied by Not Only Doing the
  Right Things but Doing Things Right
• For a Quality System to Succeed It Must Involve
  Everyone in the Company and Be Led From the Top
• It Is Vital to Listen to Customers, Both Internal
  and External, in Order to Understand, Meet and
  Surpass Their Needs and Expectations

13
SUMMARY

• When implementing a quality system develop the
  following
• A vision of where the company wants to be
• An assessment of where the company is at present
• A plan of how to get to the vision via continuous
  improvement, through
• Focussing on the right problems to solve
• Developing realistic and worthwhile solutions
• Monitoring and evaluating the new procedures and
  systems.

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Additional Aspects of Quality

• Reliability
• Non-Functional Aspects of Quality
• Reputation

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GAP ANALYSIS
What the customer expects
GAP ?
What the customer gets
Promoted image of the product/service
GAP ?
GAP ?
GAP ?
Specification of the product/service
GAP ?
Intended product/service
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Demings 14 Points

• Create Constancy of Purpose Towards Improvement
  of Product and Service, With the Aim to Become
  Competitive, Stay in Business, and to Provide
  Jobs.
• Adopt the New Philosophy - We Are in a New
  Economic Age. We Can No Longer Live With
  Commonly Accepted Levels of Delays, Mistakes,
  Defective Material, Defective Work.
• Cease Dependence on Mass Inspection to Achieve
  Quality. Require, Instead, Statistical Evidence
  That Quality Is Built Into the Product in the
  First Place.

17
Demings 14 Points

• End the Practice of Awarding Business on the
  Basis of Price. Instead, Minimise Total Cost.
  Move Towards a Single Supplier for Any One Item
  on a Long-term Relationship of Loyalty and Trust.
• Improve Constantly and Forever the System of
  Production and Service, to Improve Quality and
  Productivity, and Thus Constantly Decrease Costs.
• Institute Training on the Job.
• Adopt and Institute Modern Methods of Supervision
  and Leadership. Supervision of Management, As
  Well As Supervision of Production Workers, Is in
  Need of Overhaul.

18
Demings 14 Points

• Drive Out Fear, So That Everyone May Work
  Effectively for the Company.
• Break Down Barriers Between Departments and
  Individuals. Everyone Must Work As a Team, to
  Forsee and Solve Problems.
• Eliminate Slogans, Exhortations and Targets for
  the Workforce That Ask for Zero Defects and New
  Levels of Productivity, Without Providing
  Methods. Such Exhortations Only Create
  Adversarial Relationships, As the Bulk of the
  Causes of Low Quality and Low Productivity Belong
  to the System and Thus Lie Beyond the Power of
  the Workforce.

19
Demings 14 Points

• Eliminate Work Standards (Quotas), Management by
  Objectives, by Numbers and by Numerical Goals,
  Substitute Leadership Instead.
• Remove Barriers That Rob Employees of Their Right
  to Pride of Workmanship.
• Institute a Vigorous Programme of Education and
  Self-improvement.
• Put Everyone in the Company to Work to Accomplish
  the Transformation. The Transformation Is
  Everyones Job.

20
Demings 14 Points

• Create Constancy of Purpose Towards Improvement
  of Product and Service, With the Aim to Become
  Competitive, Stay in Business, and to Provide
  Jobs.
• Adopt the New Philosophy - We Are in a New
  Economic Age. We Can No Longer Live With
  Commonly Accepted Levels of Delays, Mistakes,
  Defective Material, Defective Work.
• Cease Dependence on Mass Inspection to Achieve
  Quality. Require, Instead, Statistical Evidence
  That Quality Is Built Into the Product in the
  First Place.
• End the Practice of Awarding Business on the
  Basis of Price. Instead, Minimise Total Cost.
  Move Towards a Single Supplier for Any One Item
  on a Long-term Relationship of Loyalty and Trust.
• Improve Constantly and Forever the System of
  Production and Service, to Improve Quality and
  Productivity, and Thus Constantly Decrease Costs.
• Institute Training on the Job.
• Adopt and Institute Modern Methods of Supervision
  and Leadership. Supervision of Management, As
  Well As Supervision of Production Workers, Is in
  Need of Overhaul.
• Drive Out Fear, So That Everyone May Work
  Effectively for the Company.
• Break Down Barriers Between Departments and
  Individuals. Everyone Must Work As a Team, to
  Forsee and Solve Problems.
• Eliminate Slogans, Exhortations and Targets for
  the Workforce That Ask for Zero Defects and New
  Levels of Productivity, Without Providing
  Methods. Such Exhortations Only Create
  Adversarial Relationships, As the Bulk of the
  Causes of Low Quality and Low Productivity Belong
  to the System and Thus Lie Beyond the Power of
  the Workforce.
• Eliminate Work Standards (Quotas), Management by
  Objectives, by Numbers and by Numerical Goals,
  Substitute Leadership Instead.
• Remove Barriers That Rob Employees of Their Right
  to Pride of Workmanship.
• Institute a Vigorous Programme of Education and
  Self-improvement.
• Put Everyone in the Company to Work to Accomplish
  the Transformation. The Transformation Is
  Everyones Job.

21
Demings Seven Deadly Diseases

• Lack of constancy of purpose
• Emphasis on short-term profits
• Evaluation of performance, merit rating or annual
  review
• Mobility of management
• Running a company on visible figures alone
• Excessive medical costs
• Excessive costs of liability

22
Jurans Quality Trilogy

• Quality Planning
• Identify Customers (External and Internal) and
  Their Needs
• Translate Their Needs Into a Language Everyone
  Can Understand
• Optimise the Process to Satisfy These Needs
• Verify and Implement the Improved Process

23
Jurans Quality Trilogy

• Quality Control
• This Is the Process of Detecting and Correcting
  Adverse Change, to Maintain the Status Quo
• Only a Process in Control Is Predictable, and
  Hence Capable of Being Improved
• The Majority of Quality Problems Are the Fault of
  Management, Rather Than Poor Workmanship on the
  Shop Floor

24
Jurans Quality Trilogy

• Quality Improvement
• Quality breakthroughs are required to achieve
  significant improvement
• Priorities for projects have to be decided, and
  clear responsibilities defined
• The system can only be improved by management

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Jurans 10 Point Plan

• Build Awareness of the Need and Opportunity for
  Improvement
• Set Goals for Improvement
• Organise to Reach the Goals
• Provide Training
• Carry Out Projects to Solve Problems

26
Jurans 10 Point Plan

• Report Progress
• Give Recognition
• Communicate Results
• Keep the Score
• Maintain Momentum by Making Annual Improvement
  Part of the Regular System and Processes of the
  Company.

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Crosbys 14 Steps

• Make It Clear That Management Is Committed to
  Quality
• Form Quality Improvement Teams With
  Representatives From Each Department
• Determine Where Current and Potential Quality
  Problems Lie
• Evaluate the Cost of Quality and Explain Its Use
  As a Management Tool
• Raise the Quality Awareness and Personal Concern
  of All Employees

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Crosbys 14 Steps

• Take action to correct problems identified
  through previous steps
• Establish an ad hoc committee for the zero
  defects programme
• Train supervisors to actively participate in the
  quality improvement programme
• Hold a zero defects day to let all employees
  realise that there has been a change
• Encourage individuals to establish improvement
  goals for themselves and their groups

29
Crosbys 14 Steps

• Encourage employees to communicate to management
  the obstacles they face in attaining their
  improvement goals
• Recognise and appreciate those who participate
• Establish quality councils to communicate on a
  regular basis
• Do it all over again, to emphasize that the
  quality improvement programme never ends

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ALIGNMENT THEORY
Competitive Environment

• Rules of the Game
• How the Company Plans to Play the Game
• The Capability to Play the Game
• Building a Team Vision to Play the Game

Strategy
Culture
Leadership Style
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ALIGNMENT LOGICS
32
Competitive Position(Rules of the Game)
33
Business Strategy(How We Plan To Play The Game)
34
Organisation Culture(Capability to Play the Game)
35
Leadership Style(Building A Team Vision)
36
MARKETPLACE LOGICS
Market Uncertainty
Need for Creativity Change (D)
Need for Integration Cohesion (I)
Low Competitive Intensity
High Competitive Intensity
(A) Need for Control Order
(P) Need for Action Results
Market Certainty
37
MARKETPLACE LOGICS
Market Uncertainty
SURPRISE ME (D)
UNDERSTAND ME (I)
Low Competitive Intensity
High Competitive Intensity
(A) BE CONSISTENT
(P) RESPOND
Market Certainty