Critical Success Factors of QRM

Critical Success Factors of QRM
ProductionandOperationsManagement –Assignment2‘Critical SuccessFactorsof QRM’ pg. 1
Table of Contents
Abstract.......................................................................................................................................1
Introduction .................................................................................................................................2
What is QRM?.............................................................................................................................. 2
Why QRM? ..................................................................................................................................3
Critical Success Factors................................................................................................................ 3
Product Grouping ..................................................................................................................... 3
Product Flow ............................................................................................................................ 4
Organisational Structure and Culture.......................................................................................... 4
Economic Order Quantity..........................................................................................................5
Product Control Strategy ...........................................................................................................5
Supply Chain Management........................................................................................................6
Continuous Improvement and Effective Communication ............................................................. 6
 Teamwork..................................................................................................................... 6
 Effective communication................................................................................................ 7
Conclusion...................................................................................................................................7
References....................................................................................................................................8
Abstract
Aimsto define the critical successfactorsof aQuickResponse Manufacturingsystem(QRM),which
isdefinedasthe pursuitof everdecreasingleadtimesthatinvolvesthe implementationof cellular
manufacture,leadtime reductionasthe keyperformance measure,the incorporationof adynamic
systemandimplementationonanenterprise-widebasis. Basedonanalysisandresearchfroma
numberof reportsand literature sevencritical successfactorsare outlinedwithatheme of effective
and efficientteamwork,employee empowermentandeffectiveandefficientcommunication
runningthroughouteachof the sevencritical successfactors.

Introduction
All modern production processes are complex and costly operations which require capital assets,such
as machines, computers and materials, to be integrated and blended seamlessly with human labour to
enable the production system to carry out operations in a cost effective manner. Thus production
processes require careful planning and control (Cole, 2004, pg. 306)
The result of this carefulplanning and control should be the emergence of a world class
manufacturing organisation. As stated by the Infor Corporation (2007) there are 7 keys to achieving
world class manufacturing;
 Reduce lead times
 Speed time to market
 Cut operations costs
 Exceed customer expectations
 Manage the global enterprise
 Streamline outsourcing processes
 Improve business performance visibility
In order to achieve these seven keys it is essential that a manufacturing facility implements an
operations management system in order to facilitate the organisation’s pursuit and accomplishment of
these goals. One system which is highlighted as being particularly good at achieving each one of
these seven keys is Quick Response Manufacturing, (Joing, 2004)
What is QRM?
The most impressive characteristic of QRM is how it addresses the current pressures for business in
an age of complexity, consumer demands and expectations, (University of Wisconsin Press Release,
2006). QRM obtains this characteristic by maintaining its stance that a singular focus placed on lead
time is the correct strategy for certain companies or certain markets and the method is aimed at
creating and maintaining a competitive advantage in the market place and improving internal
manufacturing operations within an organisation, (Joing, 2004).
The philosophy of Quick Response manufacturing (QRM) is widely seen to be more applicable in
some cases when compared to other systems such as Lean. In comparison with Lean Manufacture,
where the emphasis is on waste reduction, QRM is concerned with the pursuit of ever decreasing lead
times, which is the time taken from the customer placing an order to the fulfilment of that order, this
is referred to as Manufacturing Critical Path Time by Suri (2010). This is the internal aspect of QRM,
as defined by Suri (2010), the external aspect is responding to customer’s needs by rapidly designing
and manufacturing products which are customised to those needs.
As with many other production operations systems, such as Lean Manufacture,Quick Response
Manufacturing is only suitable for implementation when specific production output characteristics are
required. With Quick Response Manufacturing the main characteristic is high-mix, low-volume
production, in stark contrast to the low-mix, high-volume production required for Lean Manufacture.
The other two production characteristics critical for the implementation of QRM are high demand
variability, where a lot of changes in customer demand is received over a period of time, and a high
degree of customisation, where the materials and parts used within a specific production process are
unique to a specific customer order, (Joing, 2004).

Why QRM?
The introduction of QRM into a manufacturing facility will result in many benefits for the
organisation, the most prominent of which is the time and money which is saved throughout the entire
production process, (University of Wisconsin Press Release,2006). However,as stated by the Infor
Corporation, (2007), there are many other benefits in the successfulintroduction of a Quick Response
Manufacturing system.
The system’s focus on reducing lead time results in the ability of the production facility to deliver the
end product sooner enabling the organisation to deter business away from competitors which
manufacture products with similar features,quality and at the same price. This inherent ability to
deliver the goods promptly will also justify a premium price should it be deemed suitable. Customer
satisfaction will be enhanced through the quick delivery and also by offering a high degree of
customisation, allowing the customer to order a unique product. The introduction of shorter lead
times will increase flexibility and agility across the whole organisation, reduce the need for inventory
buffers and lower obsolescent risk, (Infor Corporation, 2007). However,these benefits will not
become a reality unless some key, critical entities and approaches are established within the
implementation of a Quick Response Manufacturing System.
Critical Success Factors
As outlined by Joing, (2004), the performance of a QRM system is determined by four key factors;
 Cost
 Quality
 Delivery
 Flexibility
However,without determining the correct basis on which to implement a QRM system then these
performance factors will never be achieved. The critical success factors for the implementation of
Quick Response Manufacturing, as outlined by Suri (2010), is based on four core concepts; a) the
power of time, b) organization structure,c) system dynamics, and d) enterprise-wide application.
These concepts have been taken and explored further below;
Product Grouping – With a large variety of products being produced then a point will be reached
where distinct categories of products with similar requirements become evident. This will result in a
cellular manufacturing layout of the manufacturing facility, (Slack, N., Chambers, S., and Johnston,
R., 2001, pg. 137). This physical layout will develop many beneficial outcomes which are significant
contributors to the success of the Quick Response Manufacturing system.
A cellular layout gives a good compromise between cost and flexibility for relatively high-variety
operations, results in a fast throughput and the group work which results from the cell layout can
result in good motivation amongst employees, (Slack, N., Chambers,S., and Johnston, R., 2001, pg.
199). (The cellular groups in QRM are designed around focused target market segments, (Suri,
2010)). As stated by Suri, (2010), a QRM cell is a set of dedicated, collocated, multi-functional
resources selected so that this set can complete a sequence of operations for all jobs belonging to a
specified FTMS. This includes a team of cross-trained people who have complete ownership of the
cell, resulting in the afore mentioned motivation and group working benefits.
The findings of Psychologist Elton Mayo, as stated by Cole, (2004), showed that social relations at
work were every bit as important as monetary incentives and good physical working conditions and

also demonstrated the powerful influence of groups in determining behaviour at work. Cole, (2004),
also quotes the ideas of another psychologist when he states that “the emphasis is still on people as the
most crucial factor in determining organisation effectiveness.” These findings suggest that without
motivated, hard-working employees the organisation as an entity, regardless of the type of operations
system in place, would fail as a consequence.
Product Flow – The flow of products determines the success of the layout and these general
objectives of flow are relevant to all operations and the systems which govern them. The flow of
materials and information should be channelled by the layout so as to be appropriate for the objectives
of the layout. When placing this in a Quick Response Manufacturing context this means minimising
the distance travelled by transformed resources so as to reach the target of reduced lead time. The
flow of all materials should also be well signposted, clear and evident to staff. In QRM this includes
the use of clearly marked gangways. By utilizing a ‘U’ or serpentine arrangement of product flow
within the cellular layout style in Quick Response Manufacturing, then movement will be kept to a
minimum and this will enable staff to help each other during the production process. It will also help
to increase motivation, which as discussed before is critical for success,but also changes the culture
and structure of the organisation, (Slack, N., Chambers,S., and Johnston, R., 2001).
Organisational Structure and Culture - QRM recommends turning the traditional top-down
management style on its head in order to create a structure where the first level worker is given the
most focus. Supervisors, managers and engineers are there to support the operators but it is the
operator who is expected to make the decisions and take responsibility for their output. The cellular
approach within QRM also enables the belief in creating ownership among front-line operators,
(Joing, 2004). This decentralised style of organisational structure has many advantages which
contribute to the success of a QRM system;
 It prevents top-management overload by freeing them from many operational decisions and
enabling them to concentrate on their strategic responsibilities
 It speeds up operational decisions by enabling line units to take local actions
 It enables local management to be flexible in their approach to decisions in the light of local
conditions, and thus be more adaptable to situations of rapid change
 It can contribute to staff motivation by enabling middle and junior management to get a taste
of responsibility, and by generally encouraging the use of initiative by all employees, (Cole,
2004)
As the structure and culture of an organisation are interlinked with one another, a change in
organisation structure also results in a change of culture. There are six cultural dimensions and by
considering the organisational structure in place within a QRM system then the following six
dimensions must exist in the organisational culture of the company for QRM to succeed;
1) Process oriented vs. results oriented – QRM is product oriented as the focus of the system is
on reducing the time taken to process the product before the customer’s order is fulfilled
rather than on the amount of products produced.
2) Employee oriented vs. job oriented – There must be an evident balance between these cultural
dimensions within QRM as there must be a focus on completing the job within an appropriate
time but as discussed in the sections above there is also an evident concern for employees and
people involved in the process
3) Parochial vs. professional – In an established QRM organisational culture employees
definitely define themselves as professional and recognise that they have been hired for their

skills. This is incubated in the professional pride they feelwhich is initiated through the sense
of responsibility and motivation achieved within the structure of the organisation
4) Open system vs. closed system – QRM promotes an open system culture where teamwork is
encouraged and essential if lead time targets are to be reached
5) Loose control vs. tight control – The aim of reduced lead times automatically places QRM in
the area of tight control as this establishes a strict adherence to the matter of timeliness
6) Normative vs. pragmatic approach to customers – There must be a pragmatic approach to
customers as it is essential the organisation is flexible in order to meet the customers’ wants
and needs. If this culture is not achieved then a successfulQuick Response Manufacturing
system will not be achieved as one of the fundamental principles of the system is flexibility
and a high degree of customisation in customer demands, (Cole, 2004, pg. 108).
Economic Order Quantity – This is the common approach to deciding how much of a particular
item must be ordered. The approach attempts to find the best balance between the advantages and
disadvantages of holding stock. Holding stock costs the organisation money and by taking into
account;
 Working capital costs
 Storage costs
 Obsolescence risk costs
In order to ensure the optimum EOQ value is achieved, a JIT system must be implemented within the
inventory applications of a Quick Response Manufacturing system. JIT objectives are stated as
‘meeting demand instantaneously with perfect quality and no waste’,which evidently compliments
the aim of QRM, ‘a focus on reducing lead time which results in the ability of the production facility
to deliver the end product sooner and with premium quality.’ (Slack, N., Chambers, S., and Johnston,
R., 2001)
The quantity of goods to be ordered and the time at which they should be ordered are major
considerations in a production operation. Insufficient quantities will create delays in production;
however, on the other hand larger quantities will need to go into stock as temporarily idle resources
which, as explained above are costly for the business. It is therefore essential that any successful
production operation has a good functioning ordering system, making this a critical success factor.
(Cole, G.A, 2004)
Product Control Strategy – Once reducing lead times has been established as the driving metric
within QRM, changing lot sizes which influence lead times must become a primary concern. Only
once this is done can any new production control system be implemented, MRP will be used for
material planning and POLCA,a unique system, is used to manage the flow of products through the
factory.
POLCA,(Paired-cell Overlapping Loops of Cards with Authorization), is a pull control system which
combines elements of Kanban, CONWIP,and MRP to create,what was described by Dr Rajan Suri,
as the best system for QRM-suited environments. As stated by Joing, (2004), ‘POLCA can work with
a functional layout, but it is made much less complicated by the implementation of some groups of
machines or processes into cells. Suri does not specify the production control system to be used
within the cells, so the production control system could be a combination of push or pull control
systems or a combination of two different forms of pull control systems.’ It is therefore evident that a
product control strategy is essential to the success of QRM implementation. (Joing, 2004)

Supply Chain Management – In many large organisations there can be hundreds of strands of linked
operations passing through the operation; these are the organisations supply chains. As defined by
Slack, Chambers and Johnston, (2001), supply chain management is the management of the
interconnection of organisations which relate to each other through upstream and downstream
linkages between the different processes that produce value in the form of products and services to the
ultimate customer. There are substantial benefits to managing across company boundaries and the
two key objectives of supply chain management are;
 Effectively satisfying customers
 Doing so efficiently
When a customer decides to make a purchase,the action triggers a reaction along the entire supply
chain. The purpose of supply management is making sure that each operation in the chain, which has
their own intermediate objective, fully appreciates how, together, they can satisfy the end customer,
and this requires an efficient system and effective communication. (Slack, N., Chambers, S., and
Johnston, R.,2001, pg. 413)
Achieving an efficient supply chain involves preventing too much inventory accumulation, avoiding
bottlenecking and allowing opportunities for analysis and improvement, (Slack, N., Chambers, S., and
Johnston, R.,2001). It is therefore important to have a supply chain management system to achieve
success for the implementation of QRM but this management also requires integration with the final
critical success factor.
Continuous Improvement and Effective Communication – Continuous improvement is an
approach which assumes more and simpler incremental improvement steps to ensure that small steps
towards better performance are continuously implemented throughout the life-cycle of production
operations.
Continuous improvement is less ambitious than breakthrough improvement however it stresses
adaptability, teamwork and attention to detail throughout the process. This improvement process is
like running a marathon, it concentrates on spreading improvement over a long period of time, it does
not require expertise but it does require effective communication. All of the focuses outlined for
continuous improvement are critical to the success of QRM and any manufacturing system, (Slack,
N., Chambers,S., and Johnston, R., 2001);
 Teamwork - According to Adair, as stated by Cole (2004), a team is more than just a group
with a common aim; it is a group in which the contributions of individuals are seen as
complementary. The relative effectiveness of a group in achieving their goals and satisfying
the needs of their members can be based on the following characteristics;
i) Clear objectives and agreed goals
ii) Openness and confrontation
iii) Support and trust
iv) Cooperation and conflict
v) Sound procedures
vi) Appropriate leadership
vii) Regular review
viii) Individual development
ix) Sound intergroup relations

After assessing these characteristics it is clear to see why teamwork within a systems plays such a
major role, the breakdown of a team will result in the breakdown of the system. With this firmly in
mind Adair, quoted by Cole (2004), states that the selection of team members should be based on not
only technical or professional competence but also the ability to work in a team, the possession of
‘desirable personal attributes’ such as willingness to listen, flexibility of outlook, and the capacity to
give and accept trust.
 Effective communication – Due to the nature of QRM a lateral communication flow across
the organisation is integral to the implementation of the system. In this set-up the flow of
information is between people of similar specialisms or those working on the same task, and
the information flowing is mainly technical or task-oriented. Information in this case is only
passed ‘up the line’ to managers or supervisors if it is of particular significance, this results in
less ‘lost time’ and a greater sense of responsibility for the employee, which, as already
established, is a key factor in the success of the organisation and implementation of QRM.
Simple communication however is not enough; the communication flow must be effective
and efficient. This means the method of communication is vital and in the 21st
century must
be linked with electronic media. The electronic age has enabled communication on a faster
and more global base than before. Information can be sent to colleagues in an instant. This
has unreivled benefits and the success of the entire system hinges on the integration of a good
quality communication system placed within it, (Cole, 2004).
Conclusion
It has been established that there are four core competencies within Quick Response Manufacturing;
 The power of time
 Organisation structure
 System dynamics
 Enterprise-wide application
These four areas promote the incorporation of the seven critical success factors as outlined above;
 Product grouping
 Product flow
 Organisation structure and culture
 Economic order quantity
 Product control strategy
 Supply chain management
 Continuous improvement and effective communication
Without the inclusion of these critical areas then the implementation of QRM within a manufacturing
operation would fail. However,as shown above these seven areas,when broken down into detail,
show that the main success factors behind these key areas are effective and efficient team work,
employee empowerment and effective and efficient communication. These three characteristics alone
improve behaviour at work, morale amongst the work force and drive-up motivation and production
rates. Therefore QRM relies on these three characteristics acting simultaneously within the seven
critical areas which have been identified. Failure to do so will result in poor performance and the
failure to meet set targets.

References
[1] Cole, G.A, (2004), Management Theory and Practice,South-Western, Hampshire
[2] Infor Corporation, (2007), “The Seven Keys to World Class Manufacturing”, Whitepaper, pg. 3
[3] Joing, M.J, (2004), “Applicability of Lean Manufacturing and Quick Response Manufacturing in a
High-Mix Low-Volume Environment”, Massachusetts Institute of Technology
[4] Slack, N.,Chambers, S., and Johnston, R.,(2001), Operations Management, Prentice-Hall, Essex
[5] Suri, R., (2010), It’s About Time – The Competitive Advantage of Quick Response
Manufacturing, Taylor and Francis Group, New York
[6] University of Wisconsin, (2006), News Release…Rajan Suriand Quick Response Manufacturing
Theory Recognised by International Award from Society of Manufacturing Engineers, University of
Wisconsin Press,Wisconsin

Critical Success Factors of QRM

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