Operation part 1

• Total Quality Management (TQM)

  An all-inclusive and well-thought-out means to organizational management that searches to advance the quality of processes, products, services, and culture through continuing minor changes in reply to constant feedback
• Importance of quality


  • High quality goods and services can provide an organization with a competitive edge
  • A reputation for high quality generates satisfied and loyal customers who reward the organization with continued patronage and favorable word-of-mouth advertising
  • Failure to adequately address quality can be devastating
• Process level quality


  Focuses on products/services most important to external customers, processes that produce those, key inputs to process, processes with major effect on customer-driven performance standards, internal customer needs
• Performer/Job/Task Design Level quality


  Developing standards to measure each individual key output based on organization and process level requirements, areas to be measured include accuracy, completeness, innovativeness, reliability, ease of use, timeliness, volume, rate, cost, and flexibility
• Custom-craft paradigm


  Focuses on the product specification relative to customer demands, results in higher customer satisfaction and better understanding of customer need but is relatively expensive with longer delivery time
• Mass production and sorting paradigm


  Focuses on producing large quantities of products or services without involving the customer directly, quality is ensured by inspecting and sorting the products or services after they are produced
• Statistical quality control paradigm


  Uses statistical methods to monitor and maintain the quality of products or services during the production process, aims to reduce variation and defects and improve efficiency and effectiveness
• Internal Failure Cost


  • Acquired to treat defects revealed earlier when the product or service is delivered to the customer
  • Occur when the results of work fail to attain design quality standards and are noticed before they are transferred to the customer
  • Include the cost of reworking, scrapping, failure analysis, and other activities to correct or prevent the defects
• External Failure Cost


  • Obtained to treat defects exposed by customers
  • Occur when products or services that fail to attain design quality standards are not discovered until after transfer to the customer
  • Include the cost of repairing, replacing, refunding, or compensating the customer for the defects, as well as the cost of losing customer loyalty, reputation, and future sales
• Kaizen


  Japanese term that translates to "change for the better" or "continuous improvement"
• Kaizen


  • Encompasses both an action plan and a philosophy
• Philosophy of Kaizen


  Kaizen calls for people and organizations to experience ongoing improvement at every level
• Objective of Kaizen


  Construct effective and efficient processes, leading to quality outputs
• Workplace Application of Kaizen


  Continuing improvement within the organization
• Origins and Evolution of Kaizen


  1. Kaizen originated in Japan, particularly after World War II

  2. Influenced by American business leaders like Dr. W. Edwards Deming

  3. Concept first introduced through a 1951 training film created by the American Economic and Scientific Section (ESS)

  4. Toyota is renowned as the initial company that embraced Kaizen, using the Toyota Production System
• Meaning of "Kaizen"

  "kai" (meaning "change") and "zen" (meaning "good")
• Kaizen Concepts


  • Describes a company culture where everyone, from the CEO to the front desk clerk, regularly evaluates their work and seeks ways to improve it
  • Associated with terms like productivity, total quality control (TQC), zero defects (ZD), and just-in-time (JIT)
• Types of Kaizen Objectives

  • Gemba Kaizen (Actual Workplace): An action-oriented approach involving improvement activities carried out directly in the actual workplace
  • Teian Kaizen (Plan): Represents a theory-based approach
• Kaizen and Management


  • Maintenance Function: Maintains current technological, managerial, and operating standards, establishes policies, rules, directives, and standard operating procedures (SOPs)
  • Improvement Function: Aims to improve existing standards, constantly modifies standards, striving for higher ones
• Continuous Improvement (Kaizen)


  Kaizen emphasizes ongoing incremental improvements in processes, products, and services
• Application of Continuous Improvement


  Organizations should encourage employees at all levels to identify areas for improvement and make small, consistent changes
• Application of Continuous Improvement


  • Regularly reviewing and optimizing production processes to reduce waste or enhance quality
• Employee Involvement and Empowerment

  • Kaizen involves everyone, from top management to frontline workers
  • Employees are empowered to suggest improvements and participate actively
  • Engaged employees contribute fresh ideas and feel a sense of ownership
• Standardization and Documentation


  Establishing clear, documented procedures for tasks, leading to consistency, reduced variability, and easier training
• Standardization and Documentation


  • Creating standard operating procedures (SOPs) for assembly line processes
• Waste Reduction (Muda)


  • Kaizen aims to eliminate waste in all forms (e.g., time, materials, motion)
  • Inspired by lean principles, Kaizen seeks to minimize non-value-added activities
• Waste Reduction Tools


  • Techniques like 5S, value stream mapping, and just-in-time (JIT) help reduce waste
• Quality Focus (Jidoka)


  • Detect and address defects as soon as they occur
  • Implement error-proofing mechanisms to prevent defects
• Quality Focus


  • Inspecting products during production rather than at the end of the line
• Small Steps and Quick Wins


  Kaizen encourages small, manageable improvements, leading to a cumulative impact over time without disrupting operations
• Small Steps and Quick Wins


  • Reducing setup time for machines by a few seconds each day
• Data-Driven Decision Making

  • Use data to identify areas for improvement
  • Continuously cycle through planning, implementing, checking results, and adjusting (PDCA Cycle)
• Data-Driven Decision Making


  • Analyzing defect rates to pinpoint root causes
• Long-Term Perspective

  • Kaizen is not a one-time event; it's a long-term commitment
  • Organizations must foster a culture of continuous improvement
• Long-Term Perspective


  • Regularly reviewing and updating processes even after initial gains