easternisation of management
Post on 25-Oct-2014
107 Views
Preview:
TRANSCRIPT
Controlling
Total Quality ManagementHOW CAN QUALITY BE IMPROVED?
Total quality management (TQM) is a comprehensive approach, led by top manager and supported throughout the organization, dedicated to continuous quality improvement, training, and customer satisfaction The two core principles of TQM are people orientation (everyone involved in the organization should focus on delivering value to customers), and improvement orientation (everyone should work on continuously improving work processes) There are several techniques for improving quality including employee involvement, benchmarking, outsourcing, reduced cycle time, and statistical process control
Total Quality ManagementHOW CAN QUALITY BE IMPROVED?
Total quality management (TQM) is a comprehensive approach, led by top manager and supported throughout the organization, dedicated to continuous quality improvement, training, and customer satisfaction The two core principles of TQM are people orientation (everyone involved in the organization should focus on delivering value to customers), and improvement orientation (everyone should work on continuously improving work processes) There are several techniques for improving quality including employee involvement, benchmarking, outsourcing, reduced cycle time, and statistical process control
Fall 2010 Mugan 5/ 45
Complete productsjust in time to
ship customers.
Complete productsjust in time to
ship customers.
Complete partsjust in time for
assembly into products.
Complete partsjust in time for
assembly into products.
Scheduleproduction.
Scheduleproduction.
Receive materialsjust in time for
production.
Receive materialsjust in time for
production.
Receivecustomer
orders.
Receivecustomer
orders.
Fall 2010 Mugan 6/ 45
Flexibleworkforce
Flexibleworkforce
Reducedsetup time
Reducedsetup time
Zero productiondefects
Zero productiondefects
Improvedplant layout
Improvedplant layout
JIT purchasingFewer, but more ultrareliable suppliers.
Frequent JIT deliveries in small lots.Defect-free supplier deliveries.
JIT purchasingFewer, but more ultrareliable suppliers.
Frequent JIT deliveries in small lots.Defect-free supplier deliveries.
Fall 2010 Mugan 7/ 45
More rapidresponse to
customer orders
More rapidresponse to
customer orders
Freed-up fundsFreed-up fundsReducedinventory
costs
Reducedinventory
costs
Greatercustomer
satisfaction
Greatercustomer
satisfactionHigher qualityproducts
Increased throughput
Fall 2010 Mugan 8/ 45
Disadvantage:Just-In-Time (JIT) systems have many advantages, but they are vulnerable to unexpected disruptions in supply. A production line can quickly come to a halt if essential parts are unavailable. Toyota, the developer of JIT, found this out the hard way. One Saturday, a fire at Aisin Seiki Company’s plant in Aichi Prefecture stopped the delivery of all brake parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly lines. By the time the supply of brake parts had been restored, Toyota had lost an estimated $15 billion in sales.Source: “Toyota to Recalibrate ‘Just-in-Time,’” International Herald Tribune, February 8, 1997, p. 9.
Fall 2010 Mugan 9/ 45
is
ContinuousImprovement
TQM improves productivity by encouraging the use of fact and analysis for decision making and if properly implemented,
avoids counter-productive organizational infighting.
Systematic problem solving using tools such as benchmarking
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES
Management By ObjectivesMBO (Management By Objectives)
A process of joint objective setting between superior and subordinate
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES
Quality ControlTotal Quality Management (TQM)
commits to quality objectives, continuous improvement, and doing things right the first time.
Quality Circle is a small group that meets regularly to discuss ways of
improving work quality.Four Absolutes of Quality Control
1. Quality means conformance to standards. Workers must know exactly what performance standards they are expected to meet.
2. Quality comes from defect prevention, not defect correction. Leadership, training, and discipline must prevent defects in the first place.
3. Quality as a performance standard must mean defect-free work. The only acceptable quality standard is perfect work.
4. Quality saves money. Doing things right the first time saves the cost of correcting poor work.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES
Purchasing And Inventory Controls
Purchasing Control buying what is needed at the right quality, at a good price,
and for on-time delivery. Supply Chain Management
uses information technology to link suppliers and purchasers in cost efficient ways.
Inventory Control ensures that inventory is only big enough to meet immediate
needs. Economic Order Quantity
places new orders when inventory levels fall to predetermined points.
Just-in-time Scheduling routes materials to workstations just in time for use.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES
Breakeven AnalysisBreakeven Point
is the point at which revenues equal costsBreakeven Analysis
calculates the point at which sales revenues cover costs.
How to Calculate a Breakeven Point Breakeven Point = Fixed Costs / (Price - Variable Costs)
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES
Breakeven Analysis
top related