1. Chapter 3: Employee Involvement
Motivation
Maslow’s Hierarchy of needs:
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Survival
Security
Social
Esteem
Self actualization
2. Herzberg’s two factor theory
• Motivators- recognition, responsibility, achievement, advancement
etc. (equivalent to Maslow’s upper level)
• Dissatisfiers/hygiene factor-salary, fringe benefits, working condition,
organisational policy and technical supervision.
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3. Employee wants and manager’s perception of
employee wants:
Factors Employee rating Manager rating
Interesting work 1 5
Appreciation 2 8
Involvement 3 10
Job security 4 2
Good pay 5 1
Promotion/growth 6 3
Good working condition 7 4
Loyalty to employees 8 7
Help with personal problems 9 9
Tactful discipline 10 6
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4. Achievement of motivated workforce
1. Know the self
2. Know your employees
3. Establish a positive attitude
4. Share the goals
5. Monitor progress
6. Communicate effectively
7. Celebrate the success
8. Develop interesting work
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Job rotation (Fig. a)
Job enlargement (Fig. b)
Job enrichment (Fig. b)
5. Job rotation, Job enlargement, Job enrichment
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Fig. a. Job rotation
Fig. b. Job enlargement and
job enrichment
Fig. c. Job rotation, Job enlargement and job enrichment
6. Merits of job rotation, job enragement and job
enrichment
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Benefits of job enlargement
• Interesting and challenging job
• Improves in decision making
• Identifies future managerial calibre
• Identifies higher order needs of employees
• Reduces workload of superiors
Benefits of job enrichment
• Gives the worker autonomy, responsibility and control
• The worker get achievement, recognition and self actualisation
• The worker get the sense of belongingness and importance in the organisation
• The workers find the job more meaningful
• Motivates the worker to give best performance
Benefits of job rotation
• Helps managers to explore the hidden talent
• Helps individuals to explore their interest
• Identifies knowledge, skills and attitudes
• Motivate employees to deal with new challenges
7. Team
Importance of team:
• Many heads are more knowledgeable than one
• The whole is greater than the sum of its members
• The team members develop a good relationship with each other
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8. Types of team
• Process improvement team: members 6-10, limited the work unit, life
cycle is temporary.
• Cross functional team: members 6-10, represent a no. of different
functional areas such as engineering, accounting, production, quality
etc. This team is also temporary.
• Natural work team: it is not voluntary. Manager is part of the team.
• Self directed or self managed team
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9. Characteristics of a successful team
1. Sponsor
2. Team charter
3. Team composition
4. Training
5. Ground rules
6. Clear objective
7. Accountability
8. Well-defined decision procedure
9. Resources
10. Trust
11. Effective problem solving
12. Open communications
13. Appropriate leadership
14. Balanced participation
15. Cohesiveness
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10. Types of decision making
1. Nondecision
2. Unilateral decision
3. Handclap decision
4. Minority rule decision
5. Major rule decision
6. Consensus
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11. Methods to involve employees
• Suggestion system
1. Be progressive
2. Remove fear
3. Simplify the process
4. Respond quickly
5. Reward the idea
• Recognition and reward
• Gainsharing: it is a financial reward and recognition that result from
organisational improved performance.
• Performance appraisal
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12. Benefits from employee involvement
• Improves the quality and increases productivity
• Makes better decision using their expert knowledge of the process
• Employees are able to spot and pinpoint areas for improvement
• Employees are better able to take immediate correction for improvement
• Reduces labour/management hassle by more effective communication and
co-operation
• Employees are better able to accept change because they control the work
environment
• Employees have an increased commitment to unit goals because they are
involved
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13. Chapter 4: Continuous Process Improvement
We continuously improve by
1. Viewing all works as process whether it is associated with production or
business
2. Making all the process effective, efficient and adoptable
3. Anticipating changing customer needs
4. Maintaining constructive dissatisfaction with the present level of performance
5. Eliminate waste and rework
6. Investigating the activities that donot add value to the product or service with
the aim of eliminating these
7. Using benchmarking to improve competitive advantage
8. Innovating to achieve breakthroughs
9. Using technical tools-SPC, experimental design, QFD, benchmarking
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15. Improvement of process
• Reduce resources
• Reduce errors
• Meet or exceed the expectation of the customers
• Make the process safer
• Make the process more satisfactory-ergonomic design
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16. Juran triology
1. Planning
a) Determine the customer
b) Discover the need of the customer-stated need and real need
c) Planning to develop the product or service having the required features
d) Develop the process which is able to produce the required or service
e) Translate the process into operation
2. Control
a) Evaluate actual operating performance
b) Compare actual performance to goals
c) Act on difference
3. Improvement
a) Repair
b) Refinement
c) Renovation
d) Reinvention
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17. PDSA cycle
It is a problem solving method. Developed by Shewhart and modified
by Deming.
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Do
PlanAct
Study
Plan carefully what to be done
Carryout the plan
Act on the difference by identifying
what worked as planned what didn’t
18. Phases of PDSA cycle
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Do
PlanAct
Study
Identify the opportunity
Analyze the process
Develop the optimal solution
ImplementStudy the results
Standardise the solution
Plan for future
Ph-1
Ph-2
Ph-3
Ph-4Ph-5
Ph-6
Ph-7
19. KAIZEN 5 S’ Philosophy
• SEIRI (segregation/simplify): simplify what is useful and what is not
• SEITON (orderliness):
• SEISO (cleanliness)
• SEIKETSU (standardisation):continuous improvement requires
evaluation and comparison with a set of target and to make the
process standardised.
• SHITSUKE (sustain): continuous process improvement should repeat
to sustain to achieve a higher level of future development.
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20. Quality circle
Prof. Kaoru Ishikawa is the father of quality circle.
It is voluntary group of people, who meet together on regular basis to identify, analyse and solve quality, productivity, cost reduction, safety
and other problem in their work area leading to improvement in their performance and enrichment of the work life.
• Members: 5-10
• Problem areas: productivity, quality, cost reduction, safety etc
• Composition: member, leader, facilitator and coordinator
• Periodicity: once in a week, however it may vary depending upon the situation
▪ Steps involved in QC:
1. Problem identification
2. Problem selection
3. Problem analysis
4. Recommendation and implementation
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21. Techniques applied by QC
• Brainstorming
• Data analysis
• Pareto analysis
• Cause and effect diagram
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22. Cause and effect diagram
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Latest/conventional
technology
People
Equipment/methods
Material
Environment
Quality of product
/service
Stack holders
Regular/temporary
Trained/untrained
Motivated/demotivated
Composition
Morphology/microstructure
Digital/analog
New/old
Highly precise/less precise
Temperature
Light
Humidity, wind, space etc.
Properties i.e., k, µ, α, c etc.
23. Pareto analysis
(Italian economist, Vilfredo Federico Damaso Pareto)
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Causes/ type of failure
Frequencyofoccurrence
%offrequencyofoccurrence
Vital few Trivial many
24. Just in Time (JIT)
➢A philosophy rather than a technique. Its main aim is to eliminate all
types of wastes and to create a manufacturing system which is
responsive to changing customer/market needs.
➢JIT provides the necessary parts at right quantity and right parts at
right time and place by using minimum facilities.
➢Products are assembled just before they are sold, subassemblies are
made just before they are assembled and components are fabricated
just before they are subassembled.
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25. “When you buy bananas all you want is the fruit not the skin, but you have to pay for the
skin also. It is a waste. And you the customer should not have to pay for the waste.” -
Shigeo Shingo
7 wastes (Shigeo Shingo, Japanese industrial engineer, Toyota Production
System, TPS)
• Waste of overproduction
• Waste of waiting
• Waste of transportation
• Waste of processing itself
• Waste of stock
• Waste of motion
• Waste of making defective products
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JIT contd.
27. Benefits of JIT
1. Product cost: Due to reduction in manufacturing cycle time, waste
and inventories.
2. Quality: Because of continuous quality improvement programme.
3. Design: Due to flexible system, alternative design can be brought
quickly into the shop floor by fast respond to changing market.
4. Administrative ease and simplicity
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30. 6 generally accepted rules for KANBAN
1. Downstream may only withdraw items in the precise amount
specified on the Kanban.
2. Upstream process may only send downstream in the precise
amount and sequences specified by the Kanban.
3. No items are made or moved without a Kanban.
4. A kanban must accompany each item at all the time.
5. Defects and incorrect amounts are never sent to the next
downstream process.
6. The number Kanban should be monitored carefully to reveal
problems and opportunities for improvement.
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31. Chapter 5: Supplier Partnership
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3 key elements:
1. Long term commitment
2. Trust
3. Shared vision
32. Type of sourcing
• Sole source: patent, specification, raw material, location etc.
• Multiple sourcing: 2 or more suppliers. Competition results in better
quality, low price and better service.
• Single sourcing: planned decision to select one supplier where
suppliers are available. Results in long term commitment, patterning
relation, trust etc.
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33. Supplier selection
Make or buy decision
Conditions :
1. The supplier understands and appreciate the management philosophy of the
organisation.
2. The supplier has stable management system
3. The supplier maintains high technical specifications/standards.
4. The supplier can supply precisely those items which are required by the customer
5. The supplier has the capability to produce the amount of production needed.
6. There is no danger of supplier separating corporate secrets
7. The price is right and delivery date is maintained. They are easily accessible in terms of
transportation and communication.
8. The supplier is sincere in implementing the contract provision
9. The supplier has an effective quality system-ISO/QS 9000 etc.
10. The supplier has a tract record of customer satisfaction and organisational credibility.
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34. Chapter 6: Performance Measures
Objectives:
1. Establish a baseline measures and reveal the trends
2. Determine which process needs to improve
3. Indicate process gain or losses
4. Compare goals with actual performance
5. Provide information for individual or team evaluation
6. Determine overall performance of the organisation
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35. Typical measurements
• Human resources: lost time due to accident, absenteeism, employee satisfaction index,
training hours per employee, training cost per employee, number of grievences.
• Customer : no of complaints, no of on time deliveries, customer satisfaction index, time
to resolve complaints, report cards
• Production : SPC chart, amount of scrap/rework, machine downtime period, cost per
unit, actual performance to goal.
• R & D : new product time to market, design change period, average time to process
proposal.
• Suppliers : on time delivery, billing accuracy, JIT delivery target, supplier that are error
free.
• Marketing and sales: sales expense to revenue, order accuracy, new customer, gain or
loss account, no of successful customer per week.
• Administration : revenue per employee, expense to revenue, cost of poor quality,
percent of payroll distributed on time.
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36. Basic characteristics that measure the
performance of a product, process or service
1. Quantity
2. Cost
3. Time
4. Accuracy
5. Function
6. Service
7. Aesthetics
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37. 1. Time series graph
2. Control chart
3. Capability index
4. Taguchi’s loss function
5. Cost of poor quality
6. Malcolm Baldrige National Quality Award
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Presentation of performance measures
39. 3. Capability index: ratio of tolerance
to process capability, i.e., 𝑐 𝑝 =
30−20
32−18
=
10
14
=< 1
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40. 4. Taguchi’s loss function
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Step function/traditional view
Continuous or quadratic function
/ Taguchi’s viewTarget
41. Cost associated with any product, process or system when they are
deviated from its perfectness. Cost associated with poor quality.
Quality cost bases:
• Labour : quality cost per hour of direct labour.
• Production: quality cost per dollar of production.
• Sales: quality cost per dollar of net sales.
• Unit: quality cost per unit, e.g., no. of boxes, kilogram of material,
meter of cloth etc.
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5. Cost of poor quality:
42. Elements of quality cost
1. Preventive cost: cost incurred in taking precautions to prevent and
recurrence the causes of failures in upcoming products or services.
2. Appraisal cost: cost associated with all types of inspection, tests,
audits and evaluation of any product or service.
3. Failure cost
a) Internal failure: cost associated in evaluating, disposal, replace or rework of
any defective products found after production.
b) External failure: cost incurred for the products or services not meeting the
customer requirement after delivery to the customer. E.g., warranty claim,
liability lost, penalties, lost sale etc.
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44. Quality improvement strategy
Every failure has some root causes and causes are preventable and prevention is cheaper
and better than detection.
Some strategies:
• Reduce failure cost by problem solving: concentrate on external failure cost as it gives
more return on investment
• Invest right prevention activities:
1. Comprehensive review before release of a product
2. Involve the personal of appropriate functional areas at beginning (concurrent
engineering)
3. Selection of supplier based on quality not on price.
4. Reliability testing
5. Proper training
• Reducing appraisal cost:
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45. Reducing appraisal cost:
1. Is 100% inspection is required?
2. Can inspection be reduced, relocated or eliminated?
3. Is the inspection method most efficient?
4. Could inspection be made automated?
5. Should SPC be used?
6. Should operating personal be responsible for inspection?
7. Is appraisal is being used as the substitute of prevention?
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46. MBNQA
The award is given to the US organisations for their excellence in
performance. The name of the award is given after the name of US
secretary of commerce during 1981-87.
Eligible organisations:
1. Manufacturing
2. Service
3. Health care
4. Small business
5. Education
6. Non profit
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47. Baldrige criteria for performance excellence
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1. Leadership: how the mgt. leads the organisation and organisation leads the community.
2. Strategic planning: how the organisation plans to implement in strategic direction.
3. Customer and market focus: how the organisation builds and maintains the strong and
long lusting relations with customers.
4. Information and analysis: how the mgt. uses data to support key processes and
organisational performance.
5. Human resources focus: how the organisation empowers and involves the work force.
6. Process management: how the organisation design, manage and improve the key
processes.
7. Business/organisational performance results: How the organisation performs in terms
of customer satisfaction, finance, operations, governance, social responsibility and how
the organisations compares with its competitors.