management of business - vacation.docx

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Shem Edwards Upper 6th Alpha 1

Management of Business

Lean Production and Quality Management

1. Defne the term ‘quality’.Quality – This means that the good provides the benets that the

!onsumer wants.

2. Discuss the importance o quality

• "ustomer E#pe!tations

$our !ustomers e#pe!t %ou to deliver &ualit% produ!ts. 'f %ou do not( the% will&ui!)l% loo) for alternatives. *ualit% is !riti!al to satisf%ing %our !ustomers

and retaining their lo%alt% so the% !ontinue to bu% from %ou in the future.*ualit% produ!ts ma)e an important !ontribution to long+term revenue andprotabilit%. The% also enable %ou to !harge and maintain higher pri!es.

• ,eputation

*ualit% in-uen!es %our !ompan%s reputation. The growing importan!e ofso!ial media means that !ustomers and prospe!ts !an easil% share bothfavorable opinions and !riti!ism of %our produ!t &ualit% on forums( produ!treview sites and so!ial networ)ing sites( su!h as /a!eboo) and Twitter. Astrong reputation for &ualit% !an be an important di0erentiator in mar)ets

that are ver% !ompetitive. oor &ualit% or a produ!t failure that results in aprodu!t re!all !ampaign !an !reate negative publi!it% and damage %ourreputation.

• Meeting Standards

A!!reditation to a re!ogni2ed &ualit% standard ma% be essential for dealingwith !ertain !ustomers or !ompl%ing with legislation. ubli! se!tor!ompanies( for e#ample( ma% insist that their suppliers a!hieve a!!reditationwith &ualit% standards. 'f %ou sell produ!ts in regulated mar)ets( su!h ashealth !are( food or ele!tri!al goods( %ou must be able to !ompl% with healthand safet% standards designed to prote!t !onsumers. A!!redited &ualit%!ontrol s%stems pla% a !ru!ial role in !ompl%ing with those standards.A!!reditation !an also help %ou win new !ustomers or enter new mar)ets b%giving prospe!ts independent !onrmation of %our !ompan%s abilit% tosuppl% &ualit% produ!ts.


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• "osts

oor &ualit% in!reases !osts. 'f %ou do not have an e0e!tive &ualit% !ontrols%stem in pla!e( %ou ma% in!ur the !ost of anal%2ing non!onforming goods orservi!es to determine the root !auses and retesting produ!ts after rewor)ing

them. 'n some !ases( %ou ma% have to s!rap defe!tive produ!ts and in!uradditional produ!tion !osts to repla!e them. 'f defe!tive produ!ts rea!h!ustomers( %ou will have to pa% for returns and repla!ements and( in serious!ases( %ou !ould in!ur legal !osts for failure to !ompl% with !ustomer orindustr% standards.

Explain the dimensions of quality

Perormance – the produ!t should do what it !laims to do. A sound s%stem

should provide &ualit% sound( an eraser should rub out mar)s on a page( apair of spe!ta!les should enable the wearer to see more e0e!tivel%. A

!ompan% whose produ!ts perform poorl% will lose sales and gain a poor

reputation.

Features – these are the additional benets that a user will loo) for in a

produ!t3 for e#ample( a sunroof on a !ar( an air !onditioning s%stem( assisted

par)ing or warning sounds that !ome on when the seat belt is not fastened.

elia!ility – the produ!t should perform !onsistentl% over its lifetime. The

pur!haser of a new pair of 4eans wants them to be wearable even afterwashing and not lose shape after onl% a few months.

"onormance – does the produ!t !onform to( or meet with( the re&uired

spe!i!ations3 for e#ample( health and safet% standards

Dura!ility – how long does the produ!t last5 'deall% it will retain its value

over a long period of time. arranties and servi!e agreements are important

in durabilit% be!ause the% help to guarantee the ongoing performan!e of the

produ!t or servi!e.

#er$icea!ility – is the produ!t eas% to servi!e5 's servi!e support providedb% the produ!er or seller in a desirable wa%5 /or e#ample( is after+sales !are

helpful and are sta0 friendl%5

%esthetics – does the produ!t loo) good5 's it well designed to meet the

re&uirements of the user5


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Percei$ed Quality – the &ualit% of a produ!t is ultimatel% determined b%

!ustomers per!eption – do the% feel that the good or servi!e is a &ualit%

produ!t5

Discuss the techniques for improving quality

&. Di'erence !et(een quality control and quality assurance.

Quality %ssurance )Q%* refers to the pro!ess used to !reate the

deliverables( and !an be performed b% a manager( !lient( or even a third+part% reviewer. E#amples of &ualit% assuran!e in!lude pro!ess !he!)lists(pro4e!t audits and methodolog% and standards development.

Quality "ontrol )Q"* refers to &ualit% related a!tivities asso!iated withthe !reation of pro4e!t deliverables. *ualit% !ontrol is used to verif% thatdeliverables are of a!!eptable &ualit% and that the% are !omplete and!orre!t. E#amples of &ualit% !ontrol a!tivities in!lude inspe!tion(deliverable peer reviews and the testing pro!ess.

*ualit% !ontrol is about adheren!e to re&uirements. *ualit% assuran!e is

generi! and does not !on!ern the spe!i! re&uirements of the produ!tbeing developed.

*ualit% assuran!e a!tivities are determined before produ!tion wor) beginsand these a!tivities are performed while the produ!t is being developed.'n !ontrast( *ualit% !ontrol a!tivities are performed after the produ!t isdeveloped.

2. +enchmar,ing

Ben!hmar)ing is the pro!ess of !omparing one7s business pro!esses and

performan!e metri!s to industr% bests or best pra!ti!es from other!ompanies. 8imensions t%pi!all% measured are &ualit%( time and !ost.

-. #/ Quality #tandards

A standard – awarding bod% representing the &ualit% of produ!tion and its

pro!esses or management s%stems.


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0. /utsourcing

A pra!ti!e used b% di0erent !ompanies to redu!e !osts b% transferring

portions of wor) to outside suppliers rather than !ompleting it internall%.

1. Quality "ircles

A &ualit% !ir!le is a parti!ipator% management te!hni&ue that enlists the help

of emplo%ees in solving problems related to their own 4obs. "ir!les are

formed of emplo%ees wor)ing together in an operation who meet at intervals

to dis!uss problems of &ualit% and to devise solutions for improvements.

. 3otal Quality Management )including 4ai5en or continuous

impro$ement*

Total *ualit% Management 9T*M: is a !omprehensive and stru!tured

approa!h to organi2ational management that see)s to improve the &ualit% ofprodu!ts and servi!es through ongoing renements in response to

!ontinuous feedba!). A philosoph% that sees improvement in produ!tivit% as

a gradual and methodi!al pro!ess. ;ai2en is a !ient and e0e!tive

b% !reating a team atmosphere( improving ever%da% pro!edures( ensuring

emplo%ee satisfa!tion and ma)ing a 4ob more fullling( less tiring and safer.


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1:a: hat is total &ualit% management5 And what is meant b% the ;ai2en

approa!h to &ualit% management5 9? mar)s:

%ns(er3 Total *ualit% Management 9T*M: is a !omprehensive and

stru!tured approa!h to organi2ational management that see)s to improvethe &ualit% of produ!ts and servi!es through ongoing renements in response

to !ontinuous feedba!). A philosoph% that sees improvement in produ!tivit%

as a gradual and methodi!al pro!ess. ;ai2en is a !ient and e0e!tive

b% !reating a team atmosphere( improving ever%da% pro!edures( ensuring

emplo%ee satisfa!tion and ma)ing a 4ob more fullling( less tiring and safer.

b: E#plain @ benets and @ drawba!)s of the te!hni&ue total &ualit%management to a rm. 91 mar)s:

%ns(er3

+enefts

"ost reduction – hen applied !onsistentl% over time( T*M !an redu!e

!osts throughout an organi2ation( espe!iall% in the areas of s!rap( rewor)(

eld servi!e( and warrant% !ost redu!tion. Sin!e these !ost redu!tions

-ow straight through to bottom+line prots without an% additional !ostsbeing in!urred( there !an be a startling in!rease in protabilit%.

"ustomer satisaction – Sin!e the !ompan% has better produ!ts and

servi!es( and its intera!tions with !ustomers are relativel% error+free(

there should be fewer !ustomer !omplaints. /ewer !omplaints ma% also

mean that the resour!es devoted to !ustomer servi!e !an be redu!ed. A

higher level of !ustomer satisfa!tion ma% also lead to in!reased mar)et

share( as e#isting !ustomers a!t on the !ompan%7s behalf to bring in more

!ustomers.

Morale – The ongoing and proven su!!ess of T*M( and in parti!ular the

parti!ipation of emplo%ees in that su!!ess !an lead to a noti!eable

improvement in emplo%ee morale( whi!h in turn redu!es emplo%ee

turnover( and therefore redu!es the !ost of hiring and training new

emplo%ees.


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Dra(!ac,s

Pulling %(ay Manpo(er – etting ever%one in an organi2ation up to speed

on a new pro!ess li)e T*M ta)es time awa% from a!tual produ!tion.

E#tensive training in statisti!al anal%sis and problem solving ++ although

useful in the long+term ++ has the real potential of redu!ing wor)er output b%

pulling wor)er a!tivit% awa% from their primar% tas)s. Emplo%ers should )eep

this ramp+up time in mind prior to instituting T*M in their wor)pla!e.

"ost in 3ime and Money – 'mplementing T*M s%stems !an ta)e man%

%ears. Emplo%ees !ome and go( with ea!h of them re&uiring this training tosta% up to speed with the rest of the organi2ation7s goals and members.

Training ta)es time and involves signi!ant investment b% the !ompan% in

dollars and resour!es. As su!h( T*M implementation must be viewed as a

long+term investment that will not immediatel% improve pro!ess a!ross all

individuals and departments.

People Fear "hange + Although some e#e!utives might have a !lear

understanding of T*M theor% and implementation( not ever% emplo%ee will.

lobal !hanges in training and pro!esses !reate fear( un!ertaint% and doubtwithin organi2ations. T*M implementations are top+down initiall%( but rel% on

bottom+up improvements to ea!h emplo%ee7s output and e>!ien!%. 'f there

isn7t total bu%+in( the pro!ess will be hindered. Sometimes radi!al new

implementations are viewed as pre!ursors to massive organi2ational

!hanges( su!h as la%o0s or restru!turing. Crgani2ations attempting to

implement this s%stem ma% initiall% e#perien!e a redu!tion in output(

emplo%ee turnover and possible harm to the !ompan%7s !ulture.

!: Suggest D wa%s in whi!h the use of &ualit% !ir!les !an in!reaseprodu!tivit%. 9 mar)s:

• Brainstorming – this wor)s b% fo!using on a problem( and then

deliberatel% !oming up with as man% solutions as possible and b%

pushing the ideas as far as possible. Cne of the reasons it is so

e0e!tive is that the brainstormers not onl% !ome up with new ideas in


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a session( but also spar) o0 from asso!iations with other people7s ideas

b% developing and rening them.

• A shbone diagram( also !alled a !ause and e0e!t diagram or

'shi)awa diagram( is a visuali2ation tool for !ategori2ing the potential

!auses of a problem in order to identif% its root !auses.

• ,andomised Sampling + A subset of a statisti!al population in whi!h

ea!h member of the subset has an e&ual probabilit% of being !hosen. A

simple random sample is meant to be an unbiased representation of a

group.

• areto Anal%sis is a statisti!al te!hni&ue in de!ision+ma)ing used for

the sele!tion of a limited number of tas)s that produ!e signi!ant

overall e0e!t. 't uses the areto rin!iple 9also )nown as the FGF

rule: the idea that b% doing FH of the wor) %ou !an generate FH of

the benet of doing the entire 4ob.


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: B


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"ustomer #atisaction – *ualit% has a dire!t bearing on !ustomersatisfa!tion. 'f a !ompan% produ!es a &ualit% produ!t( satised !ustomers willran) that !ompan% higher in surve%s than !ompanies that fail to provide&ualit% produ!ts or servi!es. 'n addition( dissatised !ustomers are morevo!al in their !riti!isms of a !ompan% with &ualit% problems. Jarious websites

will ran) di0erent !ompanies a!!ording to !ustomer satisfa!tion and &ualit%produ!ts. oor !ompanies ma% get an initial sale of a produ!t or servi!e but itwill not !reate repeat !ustomers.

!: Cutline @ te!hni&ues that B;< !an use to improve &ualit% !ontrol and

&ualit% assuran!e. 9K mar)s:

mpro$e 3raining – oor training ma% be the !ause of substandard &ualit%of %our produ!ts and !an also adversel% a0e!t produ!tion time. 'nvesting inproper training for new hires !an eliminate !ostl% mista)es and ensure that

the wor) is done right the rst time. This !an also redu!e the need for &ualit%!ontrol pro!edures and improve the overall speed of %our produ!tionpro!ess. "onsider designating one person as a trainer( preferabl% someonewith e#perien!e and e#pertise in %our produ!tion pro!ess.

6sta!lish 7oals – Establish produ!tivit% and &ualit% goals and tie them toin!entives. oals !an help %our wor)ers sta% fo!used( whi!h !an in!reasespeed or eliminate errors. oals should be spe!i! and measurable( su!h asin!reasing wor)er produ!tion b% ve units per da% while maintaining a K+per!ent &ualit% standard. 'n!entives for rea!hing the goals !ould in!ludemone%( time o0 or re!ognition.

mplement 7radual "hanges – 'f %ou need to ma)e !hanges in %ourprodu!tion pro!esses( implement them graduall%( su!h as !hanging oneaspe!t of the pro!ess at a time. ,apid wholesale !hanges ma% frustrate %ouremplo%ees or !ause them to fear that the% won7t be able to adapt. An abrupt!hange !an also signi!antl% redu!e produ!tivit% be!ause of the e0e!t of the=learning !urve.=

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