Tqm ch 10

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Tqm ch 10

  1. 1. Chapter 10 Productivity, Quality, and ReengineeringTHE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1
  2. 2. productivity and Quality The misconception exist that productivity and cost must be sacrificed if quality is to be improved, but it seems to be the view of those who rank production ahead of quality as the top priority. 2THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  3. 3. The Leverage of Productivity and Quality the leverage is even more dramatic if a smaller and more realistic return on sale is used. There are also potential additional companion benefits that can be achieved in quality. Management System VS. Technology 3THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  4. 4. Measuring Productivity Carl G. Thor principle of measurement for productivity and Quality: • Meet the customer need • Feedback • Measure what is important • Measure should be controllable and understandable • Base measures on available data. 4THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  5. 5. Basic Measure Of Productivity Ratio Of Output To Input • Total Factor: Total Output Labor+Material+Energy+Capital • Partial Factor: Total Output Labor Input • Functional Department Measure • Individual Measure • Industry and competitive Measure 5THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  6. 6. White-Collar Productivity Causes of wasted time include: • Poor Scheduling • Slack start and quit times • Lack of communication • Between function • Information overload • Poor staffing • Inadequate communication of assignments • Unproductive meetings and telephone conversations 6THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  7. 7. Five ways to increase Productivity • Reduce cost • Manage growth • Work smarter • Pare down • Work effectively 7THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  8. 8. Reengineering • It has been suggested that in order to reinvent their companies, manager need to abandon the organizatioanl and operational principles and procedures they are now using and create entirely new ones. These new ones can be combined into an emerging idea called business reengineering. 8THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM
  9. 9. Principle of Reengineering • Organize around outcomes not tasks. • Have those who use the output of the process perform the process. • Subsume information processing work into the real work that produces the information. • Treat geographical dispersed resources as though they were centralized. • Link parallel activities instead of integrating their result • Put the decision point where the work is performed • Capture information once and at the source. 9THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

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