Business Management Strategies Business Business Management ...

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Business Management Strategies Business Business Management ...

  1. 1. Lecture 1.1 Business Management Management Strategies Paolo PRINETTO Politecnico di Torino (Italy) University of Illinois at Chicago, IL (USA) Paolo.Prinetto@polito.it prinetto@uic.edu www.testgroup.polito.it www.comitato-girotondo.org
  2. 2. Goal • The lecture first introduces the concept of Product Life Cycle and then presents basic concepts related to business management strategies, with peculiar emphasis on • Quality • Total Quality Management • Concurrent Engineering • Six Sigma. Slide # 1-3.2 © Prinetto - 2008
  3. 3. Homework (cont’d) • Students are warmly invited to look for additional materials related to the topics. Slide # 1-1.3 © Prinetto - 2008
  4. 4. Prerequisites • No particular requirement Slide # 1-3.4 © Prinetto - 2008
  5. 5. Further readings • No particular suggestion Slide # 1-3.5 © Prinetto - 2008
  6. 6. User’s requirements Design Re-cycling t The product life-cycle In-field Production operation
  7. 7. Time To Market (TTM) The length of time it takes from a product being conceived until its being available for sale Shared # 1-1.7 © Prinetto - 2008
  8. 8. User’s requirements Design Time-To-Market ( TTM ) t Production
  9. 9. Introduction Growth Maturity Decline Time to Money Time to Volume TT$ TTV Profits Time to Market TTM Costs Revenues Shared # 1-1.9 © Prinetto - 2008
  10. 10. Quality International The set of properties Organization for and characteristics of Standardization a product (a service) capable of guaranteeing customer’s satisfaction [ISO 8402] Shared # 1-1.10 © Prinetto - 2008
  11. 11. The quality of any product or The quality of any product or service is what the customer service is what the customer says it is says it is Shared # 1-1.11 © Prinetto - 2008
  12. 12. Quality Management System Standards A series of standards comprising ISO 9001:1987 ISO 9002:1987 [ISO] ISO 9003:1987 Shared # 1-1.12 © Prinetto - 2008
  13. 13. ISO 9000 • Are meant to certify the processes and the system of an organization and not the product or service itself. • Do not certify the quality of the product or service. Shared # 1-1.13 © Prinetto - 2008
  14. 14. Total Quality Management A business management strategy aimed at embedding awareness of quality in all organizational processes Shared # 1-1.14 © Prinetto - 2008
  15. 15. [ Total Quality Management A management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through [ISO 8402] customer satisfaction, and benefits to all members of the organization and to society.
  16. 16. Total Quality Management A set of management processes that create delighted customers and empowered employees [Juran Institute ] Shared # 1-1.16 © Prinetto - 2008
  17. 17. Why “Total” ? • Involves the entire organization, supply chain, and product life cycle • Aimed at satisfying the needs of the shareholders, and the quality of products Shared # 1-1.17 © Prinetto - 2008
  18. 18. TQM backgrounds • 1900 : Ford Motor Co. • 1920-1940: − first statistical process control − W. A. Shewhart developed his control charts, and the plan-do-check-act (PDCA) • 1940-1960: − reliability engineering − Training and education for everyone in the organization − failure mode and effects analysis Shared # 1-1.18 © Prinetto - 2008
  19. 19. TQM backgrounds • 1960-1980 - intensive customer focus: − quality assurance centered − P. Crosby's concept of zero defects − Concurrent Engineering • 1980-today: − evolution from quality assurance to total quality management − big focus on teamwork − managing by fact, not guess − TQM, Six Sigma Shared # 1-1.19 © Prinetto - 2008
  20. 20. Concurrent Engineering A systematic approach to the integrated, concurrent design of products and their related processes, [Institute for Defense Analyses, including USA] manufacture and support Shared # 1-1.20 © Prinetto - 2008
  21. 21. Concurrent Engineering Is intended to cause the developers, from the outset, to consider all the elements of the product life cycle from conception through [Institute for Defense Analyses, disposal, including USA] quality, cost, schedule, and user requirements Shared # 1-1.21 © Prinetto - 2008
  22. 22. Redo until right First time right Shared # 1-1.22 © Prinetto - 2008
  23. 23. Concurrent Engineering Teamwork Redo until right First time right Shared # 1-1.23 © Prinetto - 2008
  24. 24. Concurrent Engineering Teamwork Redo until right (TigerTeam) First time right Shared # 1-1.24 © Prinetto - 2008
  25. 25. TigerTeam People from many departments collaborate over the life of a product to ensure that it reflects customers’ needs and desires. Shared # 1-1.25 © Prinetto - 2008
  26. 26. Diagnosability Manufacturability Dependability Design for ∗-ability Integrability Re-cyclability Testability Verifiability Concurrent Engineering
  27. 27. Six Sigma (6σ) A business management strategy to identify and remove the causes of defects and errors in manufacturing [Motorola] and business processes Shared # 1-1.27 © Prinetto - 2008
  28. 28. Six sigma (6σ) • Developed by Motorola in 1986 • Today enjoys wide-spread application in many sectors of industry Shared # 1-1.28 © Prinetto - 2008
  29. 29. Six sigma (2) • It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization (“Black Belts”) who are experts in these methods. • Each 6σ project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction or profit increase) • A 6σ process produces 3.4 DPMO (Defective Parts per Million Opportunities): Six Sigma = 3.4 DPMO = 99.9997% efficiency.
  30. 30. 6σ Methodologies 6σ has two key methodologies: • DMAIC : − Define Measure Analyze Improve Control − used to improve an existing business process • DMADV : − Define Measure Analyze Design Verify − used to create new product or process designs − also known as DFSS (Design For Six Sigma)
  31. 31. DMAIC Consists of the following five steps: 1. Define process improvement goals that are consistent with customer demands and the enterprise strategy 2. Measure key aspects of the current process and collect relevant data 3. Analyze the data to verify cause-and-effect relationships. Determine what the relationships are, and attempt to ensure that all factors have been considered Shared # 1-1.31 © Prinetto - 2008
  32. 32. DMAIC (2) 4. Improve or optimize the process based upon data analysis using techniques like Design of Experiments 5. Control to ensure that any deviations from target are corrected before they result in defects. Set up pilot runs to establish process capability, move on to production, set up control mechanisms and continuously monitor the process. Shared # 1-1.32 © Prinetto - 2008
  33. 33. DMADV Consists of the following five steps: 1. Define design goals that are consistent with customer demands and the enterprise strategy. 2. Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks. 3. Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design. Shared # 1-1.33 © Prinetto - 2008
  34. 34. DMADV (2) 4. Design details, optimize the design, and plan for design verification. This phase may require simulations. 5. Verify the design, set up pilot runs, implement the production process and hand it over to the process owners. Shared # 1-1.34 © Prinetto - 2008
  35. 35. Малые Автюхи, Калинковичский район, Республики Беларусь Shared # 1-1.35 © Prinetto - 2008

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