Mosley 9e ppt_ch14

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

CHAPTER 14

CONTROLLING PRODUCTIVITY, QUALITY, AND

SAFETY

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

• Explain the concept of productivity• Identify and explain the ways in which

management, government, unions, and employees affect productivity• Describe some steps supervisors can take to

increase productivity• Differentiate between total quality and quality

control• Describe the role of variance in controlling

quality

LEARNING OBJECTIVES


• Identify some important tools for controlling quality• Describe the supervisor’s role in supporting

lean organizations• Explain what the Occupational Safety and

Health Administration (OSHA) does• Describe the supervisor’s role in promoting

safety

LEARNING OBJECTIVES


• Measure of efficiency that compares outputs to inputs• Basic productivity ratio Total output of goods/services

Total costs• Can be increased by:• Increasing total output without changing total

costs• Decreasing total inputs costs without changing

total output• Increasing output and decreasing input costs

PRODUCTIVITY


EXHIBIT 14.3 - EXAMPLES OF PRODUCTIVITY MEASUREMENTS


IMPORTANCE OF PRODUCTIVITY


GROUPS INFLUENCING PRODUCTIVITY


HOW SUPERVISORS CAN IMPROVE EMPLOYEE PRODUCTIVITY


HOW SUPERVISORS CAN IMPROVE EMPLOYEE PRODUCTIVITY


• Make use of budgets to: • Help control costs• Evaluate a department’s actual performance• Identify areas that need attention

• Look to generate favorable variances to offset unfavorable variances • Technology provides up-to-the-minute cost

data that supervisors can share with their teams• And challenge the team to look for ways to cut

costs

SUPERVISOR’S ROLE IN COST CONTROL


• Robot: Machine controlled by a computer that can be programmed to perform a number of repetitive manipulations of tools or materials• RFID: Radio frequency identification technology

uses radio waves to identify inventory• Computer-assisted manufacturing (CAM):

Special computers assist equipment in performing processes

PRODUCTIVITY IMPROVEMENT METHODS FOR CONTROLLING QUALITY


DEMING’S FOURTEEN POINTS FOR QUALITY


DEMING’S FOURTEEN POINTS FOR QUALITY

14–13


• Establish a plan to seek improvement continuously in all phases of operations

• Put in place a system that accurately tracks and measures performance in those areas

• Establish a long-term strategic plan based on performance targets that compare with the world’s best in that particular industry

• Link with suppliers and customers in a way that provides feedback for continuous improvement

REQUIREMENTS TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD


• Demonstrate a deep understanding of customers to convert their wants into products

• Establish and maintain long-lasting customer relationships

• Focus on preventing mistakes • Make a commitment to quality improvement

throughout all levels of the organization

REQUIREMENTS TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD


• Quality directly affects the bottom line • In terms of cost of scrapped materials, wasted

time, costs of rework, and customers’ exercise of warranties

• Vigorous global competition• Firms are required to achieve ISO 9000

certification• Increased information available to the public

regarding product and service quality

REASONS FOR GREATER QUALITY EMPHASIS


• Total quality: Organization’s overall effort to achieve customer satisfaction through continuous improvement of products or services

• Quality control: Defined measurements designed to check whether the desired quality standards are being met

TOTAL QUALITY AND QUALITY CONTROL


EXHIBIT 14.14 - THE TOTAL QUALITY CHAIN


• Nature of processes is to exhibit variation• Measurable dimensions will vary in items

produced in a manufacturing process• Types of variation

• Common cause variation - General, routine variation built into the system

• Special cause variation - Occurs intermittently and is associated with a specific event

UNDERSTANDING VARIANCE IN CONTROLLING QUALITY


• Reducing variation• Common cause variation can be corrected only

through management action to improve the process

• Special cause variation can be reduced by identifying the problem, isolating it, examining the cause, and remedying it

• Six Sigma • Quality control technique• Helps reduce the number of defects in a

company’s end-to-end process

UNDERSTANDING VARIANCE IN CONTROLLING QUALITY


TOOLS FOR CONTROLLING QUALITY


EXHIBIT 14.15 - TYPE OF POWER FAILURES

Source: From Martin K. Starr Production and Operations Management, 2nd ed. Copyright 2008, Atomic Dog, a part of Cengage Leaning, Inc. Reproduced by permission. www.cengage.com/permission


EXHIBIT 14.16 - FLOWCHART OF A FAST-FOOD DRIVE-THROUGH PROCESS


EXHIBIT 14.17 - HISTOGRAM SHOWING FREQUENCY AND LENGTH OF TIME TAKEN BY HOME OFFICE TO PROCESS LOAN REQUEST

Source: From James W. Dean and James R. Evans. Total Quality, Management, Organization, and Strategy, 4e.Copyright © 2005 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions.


EXHIBIT 14.18 - RUN CHART OF PERCENTAGE OF RESTAURANT CUSTOMERS WAITING IN EXCESS OF 1 MINUTE TO BE SEATED

Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146.0030078660. Copyright © 1995 by Joseph Van Matre. Reprinted with permission of the author.


TOOLS FOR CONTROLLING QUALITY


EXHIBIT 14.19 - PARETO CHART OF CUSTOMERS’ COMPLAINTS ABOUT RESTAURANTS

Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146. 0030078660. Copyright © 1995 by Joseph Van Matre. Reprinted with permission of the author.


EXHIBIT 14.20 - CAUSE-AND-EFFECT DIAGRAM FOR “WHY TABLES ARE NOT CLEARED QUICKLY”

14–28

Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146. 0030078660. Copyright © 1995 by Joseph Van Matre. Reprinted with permission of the author.


EXHIBIT 14.21 - EXAMPLE OF A CONTROL CHART

Source: From James W. Dean and James R. Evans. Total Quality, Management, Organization, and Strategy, 4th ed. Copyright © 2005 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/ permissions.


• Emphasize the importance of high quality• Provide information, support, and feedback to

help employees achieve quality• Let employees know quality performance is

expected• Involve workers in achieving and controlling

quality

SUPERVISOR’S ROLE IN ACHIEVING QUALITY


EXHIBIT 14.22 - CHARACTERISTICS OF EFFECTIVE EMPLOYEE INVOLVEMENT TEAMS


• Increasing value for the customer while using fewer resources• Strategies • Eliminating waste• Seven types of waste: Overproduction,

movement, transportation, waiting, extra processing, defects and inventory

LEAN APPROACH


• Just-in-time inventory control (JIT): Materials arrive as close as feasible to the time they are needed in the production or service process

• 5s practices: Sort, straighten, shine, standardize, and sustain to promote good housekeeping

LEAN APPROACH


• Federal Occupational Safety and Health Administration, created to ensure safe working conditions for employees• Functions• Requires organizations to keep safety logs and

records of injuries incurred on the job• Develops standards, conducts inspections, and

enforces compliance by issuing citations and penalties

• Performs pre-investigations upon invitation from the organization

OSHA


FACTORS INFLUENCING SAFETY


• Human factors • Account for most work-related injuries

• Technical factors • Unsafe mechanical, chemical, and physical

conditions• Environmental factors • Agents that surround the job

CAUSES OF ACCIDENTS


• Push for upgraded safety equipment and safer work methods• Establish safety goals for the department• Communicate safety requirements to

employees• Listen to complaints about safety-related

matters

WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY


• Ensure new employees understand safety rules• Make sure safety rules are kept up to date• Prohibit use of unsafe or damaged equipment• Encourage safety suggestions from workers• Post posters to reinforce the need for safety• Refuse to tolerate relaxed safety standards• Set a proper example



• Conduct regular safety meetings, with demonstrations by safety specialists • Refuse to tolerate horseplay• Compete with other departments in safety

contests• Report to employees any accidents that occur

elsewhere in the company



• Review past accident records for insights• Encourage reporting of unsafe conditions• Make regular safety inspections of all

equipment• Include employees in periodic safety tours • Enforce the rules when they are broken



• Look for and ensure relief from fatigue for employees• Investigate all accidents and remedy the causes• Have a system to reward excellent safety

conduct



• Cause-and-effect diagram• Check sheets• Computer-assisted

manufacturing (CAM)• Control chart• Deming’s 85–15 rule• Flowchart• Histogram

IMPORTANT TERMS

• Just-in-time (JIT) inventory• Lean approach• Occupational safety

and health administration (OSHA)• Pareto charts• Productivity


• Quality control• Radio frequency

identification (RFID)• Robot• Run chart• Total quality

IMPORTANT TERMS

• Toyota production system• 5S practices• 7 types of waste

Education

Mosley 9e ppt_ch14