OPERATIONS MANAGEMENT UNIT 3, AREA OF STUDY 3. KEY KNOWLEDGE the operations function and its...
If you can't read please download the document
OPERATIONS MANAGEMENT UNIT 3, AREA OF STUDY 3. KEY KNOWLEDGE the operations function and its relationship to business objectives and business strategy;
KEY KNOWLEDGE the operations function and its relationship to
business objectives and business strategy; characteristics of
operations management within large-scale manufacturing and service
organisations; key elements of an operations system (inputs,
processes and outputs) in different types of large-scale
organisations; productivity and business competitiveness, their
importance for and impact on the operations system; strategies
adopted to optimise operations, including: facilities design and
layout materials management management of quality extent of the use
of technology; ethical and socially responsible management of an
operations system. accurately use relevant management terms;
research aspects of operations management using print and online
sources; analyse business information and data; apply operations
management knowledge and concepts to practical and/or simulated
situations; discuss key aspects of operations management; analyse
strategies that arise through practices within operations
management. KEY SKILLS
Slide 3
KEY TERMS TO ADD TO YOUR DEFINITIONSSO FAR! Assembly line
Automation Batch production Cell production Closed factory
Competitive advantage Competitive scope Computer Aided Design
Customisation Environmental management system Facility layout Fixed
position layout Functional layout Inputs Inventory Inventory
control Just In Time Lean manufacturing Mass production
Multi-skilling Office layout Operations Operations management
Operations manager Outputs Proactive Process layout Product layout
Production process Productivity Quality Quality assurance Quality
circle Retail layout Robotics Transformation Virtual factory
Slide 4
THE OPERATIONS FUNCTION AND ITS RELATIONSHIP TO BUSINESS
OBJECTIVES AND BUSINESS STRATEGY
Slide 5
WHAT IS OPERATIONS MANAGEMENT?
Slide 6
INPUTS PROCESSES / TRANSFORMATION OUTPUTS Procuring materials,
labour, technology, finance etc. Final good or service for sale
ROTE LEARN ALERT: Operations refers to the actual work done to
transform inputs into outputs and delivering the goods and / or
services for sale. Operations management is the management of
resources to achieve the efficient output of goods and services.
Utilising the inputs in the production process
Slide 7
ACTIVITY TIME! BAKING BREAD AT BENNYS BAKERY What are the
inputs required to bake bread? What are the processes required to
bake bread? What is the output?
Slide 8
OPERATIONS MANAGEMENT NOTE TAKING EXERCISE Read through
pp.131-133. Definition of 'operations management' The role of the
operations manager. What do operations managers do? Why is the
operations management function important? How does it assist the
organisation to achieve its objectives?
Slide 9
WHAT IS AN OPERATIONS MANAGER? ROTE LEARN ALERT: An operations
manager is responsible for the management of resources, the
transformation process and the delivery of finished products. The
operations manager aims to achieve the efficient and effective use
of resources to create the best-quality products at the lowest
possible price.
Slide 10
THE ROLE OF THE OPERATIONS MANAGER Levels of planning and
decision making in operations management Somers, Cain and Jeffery
(2011) p.133
Slide 11
OPERATIONS MGMT: THE HEART OF ALL ORGANISATIONS Objective of
all organisations To produce their product (the good or service
they sell) as efficiently as possible Operations management The
strategy that organisations use to achieve this objective
Operations (producing the actual good or service for sale) is the
core function or purpose of an organisation. It is what generates
the revenue! How operations management is designed and executed
affects the: quality of the goods or services, the cost of
production, and the capacity of the production process (the number
of goods or services) that can be supplied to the market.
Slide 12
LINK BETWEEN OPS MAN & BUS. OBJECTIVES & STRATEGY
Operations management decision Impact on operations management
Impact on achievement of business objectives Change to a cheaper
flour supplier. Reduce the cost of an input to production - flour
Increase profit because costs have decreased. Undertake regular
quality control tests on jam doughnuts. Ensures that each batch of
jam doughnuts includes the right amount of jam. Increase profit
because sales will increase if the quality of the product is high
and consistent between batches. Purchase a bigger oven.Increase
capacity of the bakery and decrease overall production time. More
can be produced in less time = Can cut bakers shifts. Increase
profit because costs have decreased. Regularly service and maintain
ovens Minimise time lost due to machine break down. Increase
productivity because there is no lost time. Minimise human labour
by investing in machinery to knead and mix ingredients. Reduce the
number of bakers required. Reduce the cost of an input to
production labour. Increase profit because costs have
decreased.
Slide 13
Operations management influences the quality, cost availability
of goods and services and therefore profit generated by the
company. Therefore, it influences the achievement of other business
objectives, including the ability of the LSO to increase market
share, profits, increase quality & returns to investors.
Predict what would happen to bread prices at Bennys Bakery if Benny
was able to change suppliers and decrease the cost of flour from
1.00 p/kg to 50 cents p/kg? Predict what would happen to bread
prices at Bennys Bakery if Benny purchased a larger oven? How does
the operations management function assist the business to achieve
its objectives?
Slide 14
PRACTICE SAC QUESTION CASE STUDY INFORMATION Bennys Bakery is a
Melbourne based large scale organisation with stores in all major
shopping centres in Victoria. It produces baked goods including
loaves of bread, bread sticks, bread rolls, doughnuts, sweet
scrolls, savoury scrolls, meat pies and scones. According to the
founder, Bennys Bakery has a passion for fresh, delightful bread.
The company has the following overall objectives: To provide
customers with quality baked goods. To sell products at an
affordable price. To increase sales and market share. Analyse the
relationship between the operations function and the achievement of
business objectives, using Bennys Bakery as an example.
Slide 15
SUGGESTED SOLUTION The operations function transforms inputs
into outputs for sale through a range of processes. It is the core
function or purpose of an organisation because it is what generates
the revenue for the business. Bennys Bakery has three objectives;
to provide quality goods at an affordable price and in doing so,
increase sales and market share. It is the operations function at
Bennys Bakery that will determine whether or not these objectives
are achieved. For example, putting in place a quality management
strategy like quality control will help Benny to monitor the
quality of his goods. This involves setting quality standards and
checking the quality of his products against these standards. Thus,
Benny can determine whether he is producing quality products and
identify necessary changes to the process. Benny could put in place
strategies to reduce waste in the production process. For example,
maximise the number of scones cut out of a batch. This will assist
Benny to minimise his costs and therefore his prices. By lowering
his product prices, Benny will be able to increase his sales and
therefore his market share. In summary, the way that the operations
function is designed and executed affects the quality of the goods
and the cost of production, which has a direct impact on the
achievement of Bennys organisational objectives.
Slide 16
CHARACTERISTICS OF OPERATIONS MANAGEMENT WITHIN LARGE-SCALE
MANUFACTURING AND SERVICE ORGANISATIONS
KEY POINT! The nature of operations varies. Different products
utilise different production processes. The nature and type of
operations used to produce goods are different to the process used
to produce services.
Slide 22
Somers, Cain and Jeffery (2011) p.136 Its important to know the
differences between goods and services with respect to the
operations management function. OPERATIONS MANAGEMENT: KEY
DIFFERENCES BETWEEN GOODS & SERVICES
Slide 23
KEY ELEMENTS OF AN OPERATIONS SYSTEM IN DIFFERENT TYPES OF LSO
INPUTS PROCESSES / TRANSFORMATION OUTPUTS
Slide 24
Inputs Raw materials and components Plant and capital equipment
TechnologyLabour Information and knowledge Time Capital. Money
Inputs are the resources used in the process of production. In
order to be competitive, LSO s attempt to procure high quality
inputs for the lowest possible price.
Slide 25
TRANSFORMATION The conversion of inputs (resources) into
outputs (goods and services). The conversion process used to
produce goods is different to the process for services. LSOs that
produce goods are likely to use a process that is highly
mechanised, utilises sophisticated machinery where it can instead
of using human labour. LSOs that produce services rely much more
heavily on the interaction between staff members and the customer.
For example, financial advice provided at a bank. In order to stay
competitive, LSO s must ensure their transformation processes are
efficient. An efficient production process is one where there is
little waste.
Slide 26
OUTPUTS The end result of the organisations efforts. Either a
good or a service. Good purchased: A good changes hands from the
seller to the buyer. Service purchased: The seller provides her or
her labour to the buyer. In order to stay competitive, LSO s must
produce what the market wants and remain responsive to changes in
custmer preferences.
Slide 27
ACTIVITY TIME! VIRTUAL OPS SYSTEMS TOUR Visit the website
http://manufacturing.stanford.edu. Select two products to explore
and summarise the operations process in table.
Slide 28
PRODUCTIVITY AND BUSINESS COMPETITIVENESS, THEIR IMPORTANCE FOR
AND IMPACT ON THE OPERATIONS SYSTEM
Slide 29
PRODUCTIVITY & BUSINESS COMPETITIVENESS Productivity is a
measure of efficiency. It is the amount of output produced compared
to the inputs required. Productivity can be measured using the
formula: Businesses aim to maximise their productivity. In other
words, businesses aim to get as much they can out of the inputs
they use in the production process.
Slide 30
PRODUCTIVITY & BUSINESS COMPETITIVENESS The more productive
an organisation becomes, the more competitive it becomes. The
flour, meat and pastry costs $5. Therefore, in this scenario each
pie cost $2.50 to make. The flour, meat and pastry costs the same
amount. Therefore, in this scenario each pie cost $1 to make. A
business has a competitive advantage when it can produce goods
better than its competitors. Say the business above improved its
productivity by upgrading its cutting equipment and reducing waste.
This improvement more than halved the production cost per pie.
Slide 31
ACTIVITY TIME!
Slide 32
WHAT FACTORS DETERMINE BUSINESS PRODUCTIVITY? The use of
technology Research and development The quality and maintenance of
equipment and facilities The types of tasks and the methods used
The layout of facilities Communication processes use of
participative management style! Workplace safety The level of
training of staff Communication in the workplace. Getting employees
to buy in - Share ownership schemes
Slide 33
OPTIMISING OPERATIONS MANAGEMENT The operations manager aims to
extract maximum productivity and levels of quality from the
production process whilst also achieving ethical and social
responsibility objectives. There are four strategies they use to
achieve this: 1.Facilites design and layout. 2.Materials
management. 3.Management of quality. 4.The extent of the use of
technology.
Slide 34
FACILITIES DESIGN AND LAYOUT (FLOOR PLAN) Consider the
following scenarios: An office worker needs to walk to the next
floor up to collect paper from the printer. A hamburger restaurant
locates the sliced tomato on the opposite end of the kitchen to the
chopped lettuce and sliced cheese. The local independent
supermarket places the milk and bread next to one another at the
front of the store as you walk in. Consider the following
scenarios: An office worker needs to walk to the next floor up to
collect paper from the printer. A hamburger restaurant locates the
sliced tomato on the opposite end of the kitchen to the chopped
lettuce and sliced cheese. The local independent supermarket places
the milk and bread next to one another at the front of the store as
you walk in. KEY IDEA: The physical layout of plant and equipment
impacts the efficiency of the organisations operations. Consider
how the layouts described affect the operation of the system and
therefore affect the achievement of the organisations
objectives.
Slide 35
CHOOSING A LAYOUT STRATEGY A number of factors influence the
location and the layout strategy, including: The product being
manufactured / the service being produced. The process to be
undertaken. The volume of output required to be produced or
services provided. Actual amount of physical pace required and the
location. Occupation health and safety standards NOTE: Operations
facilities are expensive and are constructed to be permanent, so
questions of design and layout are critical to operational
efficiency and to longer- term business success. Facilities are not
easily changed.
Slide 36
THINGS TO THINK ABOUT WHEN MAKING FACILITIES DESIGN AND LAYOUT
DECISIONS Occupational health and safety laws must be adhered to.
People need an adequate amount of space to work in. People need to
be able to communicate with their colleagues easily. Equipment
needs to be located so that it is easily accessible. Equipment
needs to be serviced regularly to avoid breakdown. Inputs must be
located so that they can be accessed & used when needed. Ouputs
need to be stored where they can be packed & delivered safely.
Ergonomics must be considered: furniture, equipment, high of
workbenches, protective clothing, lighting, temperature. Facilities
design and layout impacts on the health, safety & happiness of
employees and it therefore affects their productivity.
Slide 37
LAYOUT STRATEGIES FIXED POSITION / PROJECT PRODUCT MASS
CUSTOMISATION PROCESS / FUNCTIONAL OFFICE LAYOUTRETAIL LAYOUT
VIRTUAL FACTORY
Slide 38
FIXED-POSITION (PROJECT) LAYOUT Features The product remains in
one position whilst being built. The workers and equipment come to
the product. Each individual product is finished before the next
one is started. Application: For large and bulky items that cannot
be moved. Used to produce a customised product. Advantage: Flexible
build to specifications. Disadvantage: Expensive and time consuming
high labour input Storing materials can be difficult. Examples:
Bridges, ships, aircraft, buildings. Aircraft assembly:
http://www.youtube.com/watch?v=H_oIh7qxCbQhttp://www.youtube.com/watch?v=H_oIh7qxCbQ
Slide 39
PRODUCT LAYOUT Features Products move along a conveyor belt.
Standardised inputs are put through standard processes to product
the required output. Involves automation and high levels of
technology. Application Used when one standardised product is being
produced in large volumes. Advantages Low per unit cost Consistency
in output rate and quality. Disadvantages Expensive to set up
initially capital-intensive high tech. Employees can become
unmotivated through repetitive tasks. No allowance for any
customisation. The assembly lines stops if there is an issue in one
section. Examples: Yakult, chocolate Fridge assembly:
http://www.youtube.com/watch?v=f3G3Vm60nqEhttp://www.youtube.com/watch?v=f3G3Vm60nqE
Slide 40
MASS CUSTOMISATION Features Uses an assembly line. Employs
multi-skilled workforce. Inputs are added to create variations of
the same product. Involves automation and high levels of
technology. Application Used when one product is being produced in
large volumes but the product can be customised in some way.
Advantages Low per unit cost. Consistency in output rate and
quality. Employees get some variety. Allows for customisation.
Disadvantages Expensive to set up initially capital-intensive high
tech. The assembly lines stops if there is an issue in one section.
Examples: Automotive manufacturing, computer manufacturing
Slide 41
PROCESS / FUNCTIONAL LAYOUT Features Equipment and workstations
are grouped together according to their function (the task they
carry out). Application Where there are a variety of products or
variations on a single product generally only produced in small
amounts. Suits batch production, where groups of different products
move through the system one at a time. Advantages: Allows for
variation in volume produced. Allows for specification good or
service to be tailored. Disadvantage: Can become monotonous for
staff involved in only one stage icing the doughnuts! Examples:
Medical care, bakery
Slide 42
VIRTUAL FACTORY Features Operations is outsourced. Application
Where some or all of the operations system can be done more
efficiently somewhere else. Advantages: Reduced fixed costs from
plant and equipment. Ability to take advantage of the cost savings
offered in low-wage countries. Disadvantage: Language and cultural
barriers. High set-up costs. Difficult to change suppliers.
Possibility of political and economic disruptions in developing
countries. Ethics and social responsibility issues. Examples:
Clothing, IT, customer service.
Slide 43
RETAIL LAYOUT Features Customers are guided through different
sections. It can be difficult for customers to get what they want
because of barriers established to showcase different goods. Locate
high-impulse or high-margin products in prominent locations. Locate
high-draw items at opposite ends of the store Locate high power
(high-priority) items at intervals throughout the store.
Application Used in retail stores where exposure to product is the
critical consideration. Advantages: Customers are exposed to
products they did not intend to purchase when they walked into the
store = potential for further sales. Disadvantage: Customers can
get frustrated because they cant find what they need efficiently.
Examples: Supermarkets and variety stores (Kmart, BigW)
Slide 44
OFFICE LAYOUT Features Requires efficient movement of
information and people and proximity to resources (photocopiers,
computers etc.) May co-locate colleagues who work in same
department together. Privacy is often a key consideration. Should
include space for employees to take their breaks. Personal storage
space and meeting rooms. May be open plan or in pods. Employees
need to develop a code of conduct cubicle etiquette: minimum noise,
tidy work area etc. Application Used in office buildings, service
organisations. Advantages: Employees have the space and privacy
they need to work individually as well as proximity to colleagues
which enables them to work efficiently with others in their team.
Disadvantage: Innovations are removing the traditional office
layout. Some employees claim that decreased privacy, uncertainty
and distance from colleagues and resources actually decreases their
productivity. Examples: Bank, Law Firm, School staff room.
Slide 45
LEAN MANUFACTURING A philosophy not a facilities option. Its
about streamlining production and minimising the use of resources.
Its about removing activities and processes that dont add value to
the product. It involves. 1.Identify what the customers want
(quality, customer service, variety etc.) 2.Identify all steps
taken to make the product. 3.Make all processes flow. 4.Remove
processes that dont produce what the customer wants. 5.Ensure that
the process only produces the quantity demanded by the customer.
6.Identify and remove waste wherever it exists. Examples: Reducing
unnecessary movement of workers, machines and products. Minimising
storage required. Reducing defects in products and equipment
breakdown. Reducing waste. Reducing the time workers wait for work
to come through Shortening the time taken to switch equipment and
people to produce new products.
Slide 46
THE USE OF TECHNOLOGY KEY IDEA: The acquisition of up-to-date
technology is one strategy which operations managers use to
optimise operations.
Slide 47
ACTIVITY TIME! USE OF TECH. BRAINSTORM How does the use of
technology change operations in service and manufacturing
organisations? Brainstorm technology used in manufacturing and
service organisations.
Slide 48
HOW DOES TECHNOLOGY IMPACT OPERATIONS? in human labour = in
labour costs and in human error technology = in precision; in
quality in transformation time; in efficiency Read top of
p.128
Slide 49
OFFICE TECHNOLOGY Refer to office technology p.128
Slide 50
ACTIVITY TIME! TIME TRAVEL. Lets consider how some service
industries might have operated without modern technology.
Slide 51
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) CRM stores information
about existing and potential customers. Information can be entered
and retrieved by employees all over the business. This means that
information is easily accessible, it is not duplicated, and
therefore it is accurate.
Slide 52
MANUFACTURING TECHNOLOGY Robotics: Highly specialised forms of
technology capable of complex tasks.
http://www.youtube.com/watch?v=1X0-58OuFhE Computer aided design
(CAD): Software that can creation and modify product designs.
http://www.youtube.com/watch?v=Fyd8ld2s76A Computer aided
manufacturing (CAM): Software that controls manufacturing processes
remotely. Computer integrated manufacturing (CIM): A method of
manufacturing in which the entire production process is controlled
by a computer.
Slide 53
ACTIVITY TIME! BRW USE OF TECHNOLOGY IN MANUFACTURING (4
minutes) http://tv.brw.com.au/video/8395?play=1#7425 FUTURE USE OF
TECHNOLOGY IN MANUFACTURING (9:42) minutes)
http://www.youtube.com/watch?v=hmxjLpu2BvY
Slide 54
THE USE OF TECHNOLOGY: ETHICS AND SOCIAL RESPONSIBILITY
CONSIDERATIONS Technology can replace some peoples jobs. However,
it can also create new jobs! How do we transition to a technology
intensive process in an ethical and socially responsible manner?
Assist redundant employees to find new jobs. Try and re-deploy
redundant employees into other areas of the business. Train
employees to use and maintain the new technology. Multi-skill
employees so they can do various jobs.
Slide 55
MATERIALS MANAGEMENT KEY IDEA: Its about managing the use,
storage and delivery of materials to ensure the right amount of
inputs are available when required.
Slide 56
MATERIALS AND SUPPLY CHAIN MANAGEMENT: ELEMENTS INVENTORY
MANAGEMENT PROCURMENT OF INPUTS TRANSPORT AND DISTRIBUTION
(LOGISTICS) Supply chain management definition: The process of
integrating and planning, implementing and controlling the system
of organisations, people, technology, activities, information and
resources that transforms inputs into finished outputs.
Slide 57
MATERIALS HANDLING AT TOYOTA!
https://www.youtube.com/watch?v=Ohu9WH3a5FM
Slide 58
MATERIALS PLANNING 1.Develop a production plan: Outline the
activities necessary to combine resources (inputs) to create goods
or services (outputs). 2.Develop a master production schedule
(MPS): Provide details of what is to be produced and when.
3.Develop a materials requirements plan (MRS): Create a list of all
the materials required to meet the orders outlined in the MPS.
Consider: Supplier lead times Exact number of inputs required.
Stock already on hand purchasing procedures (bulk, in
advance?)
Slide 59
MATERIALS MANAGEMENT APPROACHES Approaches Bar codingStock
taking Materials handling Master production scheduling Materials
requirements planning Just-in-time delivery Supply chain
management
Slide 60
THE MANAGEMENT OF QUALITY Consumers look for high quality at
the lowest price. High quality producers gain a competitive
advantage over their rivals. Quality management programs aim to:
Minimise waste Minimise defects rates Produce consistently high
quality goods and services Achieve quality standards or
benchmarks
Slide 61
THE MANAGEMENT OF QUALITY BRAINSTORM What is quality? What are
the features of a quality product? What strategies can you put in
place to maintain the quality of your product?
Slide 62
QUALITY WHAT IS IT? Quality is the degree of excellence of
goods or services and their fitness for a stated purpose. Quality
products Reliable Durable Consistent Conform to established
standards Easy to use Well designed Delivered on time Include after
sales service Of an agreeable appearance
Slide 63
ACTIVITY TIME! List and explain the characteristics you would
look for in each of the following products/services for it to be
judged as quality: An education A car A hamburger A business suit A
bathroom renovation A taxi ride A household appliance A mobile
phone service
Slide 64
Quality management Quality control Quality assurance Total
quality management Quality management in LSOs may take the form of
one or a combination of the following approaches.
Slide 65
QUALITY CONTROL Physical checks at different stages of the
production process. Aim is to ensure products and services meet
established standards Defective products are rejected and may be
sold as seconds. Its a reactive process, meaning it aims to detect
defects after they have happened. Ops. Manager decides whether
production must be stopped. Sometimes a product recall may be
necessary. What quality control measures did Yakult have in
place?
Slide 66
QUALITY CONTROL STAGES
Slide 67
QUALITY ASSURANCE Aim is to build quality into work processes.
Its a proactive process, meaning it aims to avoid errors before
they occur. Organisations may enlist the help of an external body
to certify their processes against national or international
quality standards. What are the benefits of external quality
certification? http://www.saiglobal.com/Assurance/quality-business-
management/Benefits_of_ISO9001.htm
http://www.saiglobal.com/assurance/quality-business- management/
ISO International Organisation for Standardisation
Slide 68
BENEFITS OF EXTERNAL CERTIFICATION Help reduce costs by
identifying areas of waste or duplication. By having the entire
process laid out and viewed regularly, it provides insight into
where efficiencies may be gained. The FiveTick StandardsMark logo
clearly lets customers know that you are certified with the market
leading certification body in Australia. Improved product or
service quality and consistency so your customers know what they
are getting time and time again. Exporting into global markets
customers may demand an Internationally recognised certification.
Contracts and tenders, especially in government, may request ISO
9001 certification as a pre-requisite. Competitive edge over other
companies that dont have a system in place. Documenting processes
and locking in system changes. Can help ensure that your business
can continue to operate effectively, even if staff leave. Staff can
follow the systems and procedures giving you more time to deal with
more critical business issues. Locking in best practice and using
this as a benchmark to further improve. Reviewing and documenting
issues and potential issues, helps identify key trends and
eliminate problems. You can then base any actions on real
data.
Slide 69
QUALITY CERTIFICATION PROCESSES
Slide 70
AREAS OF CERTIFICATION Standards cover aspects such as:
Production process Training of staff Documentation of processes
Controls Corrective Action Auditing of processes What does the
globe have to do with quality assurance certification?
Slide 71
KEY QUESTION What is the difference between quality control
(QC) and quality assurance (QA)?
Slide 72
KAIZEN! (CONTINUOUS IMPROVEMENT) = TQM William Edwards Deming,
an American statistician first developed TQM in Japan after WWII.
He was sent to Japan to assist with the reconstruction. His idea
was that if companys tried to build a product the right way the
first time, organisations would avoid the expense of inspection and
the waste of rejected products. The Japanese adopted Demings
philosophy and developed them further.
Slide 73
TOTAL QUALITY MANAGEMENT (TQM) A holistic approach to quality.
Organisation wide commitment to excellence. All members of an
organisation participate in ongoing improvement. Quality is a
commitment and a responsibility of everyone. Aim is to improve
performance at every level in every aspect. Core TQM concepts:
1.Continuous process improvement 2.Customer focus 3.Defect
prevention 4.Universal responsibility Core TQM concepts:
1.Continuous process improvement 2.Customer focus 3.Defect
prevention 4.Universal responsibility See p.125 of your text
book
Slide 74
TQM CONCEPTEXPLANATION CONTINUOUS IMPROVEMENT Empower employees
by placing them into a quality circle, a work team. Quality circles
are responsible for analysing problems with their part of the
overall business and developing solutions to fix it. In this way,
employees are constantly striving for improvement. CUSTOMER FOCUS
Find out what the customer (both internal and external)needs and
wants and ensure the process provides it DEFECT PREVENTION Tries to
prevent defects from occurring by creating reliable production
process. UNIVERSAL RESPONSIBILITY No one person is responsible for
quality. Everyone plays a part and should seek new ways to improve
their product or service.
Slide 75
KEY QUESTION Why do you think quality circles are so successful
in identifying strategies for quality improvement?
Slide 76
ETHICS AND SOCIAL RESPONSIBILITY Brainstorm Refer to the ethics
and social responsibility chapter (chapter 12) focussing on
operations management Environmental management system (EMS)
Triple-bottom line reporting Social responsibility report