Problem Solving and decision Making

1. PROBLEM-SOLVING AND DECISION-MAKING TOOLS The models presented in the previous section can help orga­nizations determine better solutions and make better deci­sions, provided that they are based on facts. Decisions and solutions based on information that is inaccurate or tainted by personal opinions, exaggeration, or personal agendas are not likely to be optimal, regardless

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Quality Function deployment

1. WHAT IS QUALITY FUNCTION DEPLOYMENT? Quality Function Deployment (QFD) is a specialized method for making customer needs/wants important com­ponents of the design and production of the product or ser­vice. We advise you not to get hung up on the name of the process. There has been both a loss of meaning in the

Optimizing and Controlling Processes through Statistical Process Control

1. STATISTICAL PROCESS CONTROL DEFINED Although SPC is normally thought of in industrial applica­tions, it can be applied to virtually any process. Everything done in the workplace is a process. All processes are affected by multiple factors. For example, in the workplace a process can be affected by the environment and the machines em­ployed,

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Implementation and Deployment of Statistical Process control

SPC is not something to go into lightly or approach in a half­hearted manner. It requires the time and commitment of key personnel. It involves training and the expenses that go with it. It may even involve hiring one or more new people with spe­cialized skills. There may be expenses for consultants to help

Inhibitors of Statistical Process control

A number of factors can inhibit the implementation of SPC. With SPC, there is not usually the kind of philosophical re­sistance that is common with some aspects of total quality management. However, it is true even with SPC that there must be a management commitment because there will be start-up costs associated with implementation.

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Introduction to Quality Continual Improvement

1. RATIONALE FOR CONTINUAL IMPROVEMENT Continual improvement is fundamental to success in the global marketplace. A company that is just maintaining the status quo in such key areas as quality, new product devel­opment, adoption of new technologies, and process per­formance is like a runner who is standing still in a race. Competing in the

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The Scientific Approach of Quality Continual Improvement

1. THE SCIENTIFIC APPROACH The scientific approach is one of the fundamental concepts that separates the total quality approach from other ways of doing business. Scholtes and his colleagues describe the sci­entific approach as “making decisions based on data, looking for root causes of problems, and seeking permanent solu­tions instead of relying on quick

The Kaizen Approach

Kaizen is the name given by the Japanese to the concept of continual incremental improvement. Kai means “change” and zen means “good.” Kaizen, therefore, means making changes for the better on a continual, never-ending basis. The improvement aspect of Kaizen refers to people, pro­cesses, and products. If the Kaizen philosophy is in place, all

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The CEDAC Approach

CEDAC is an acronym for cause-and-effect diagram with the ad­dition of cards.21 It was originally developed by Dr. Ryuji Fukuda of Sumitomo Electric, a Japanese manufacturing firm. Its pur­pose is to facilitate continual improvement in the workplace. CEDAC is based on the supposition that three condi­tions must exist in order for continual improvement to

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The Lean Approach

Lean was originally developed as a manufacturing concept and, as such, is often referred to as lean manufacturing. However, as has happened with so many quality manage­ment-related concepts, the service sector—impressed with the results enjoyed by practitioners of lean manufactur- ing—began to adopt and adapt the concept to this sector. Consequently, we use the

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The Six Sigma Approach

We touched on Six Sigma in our discussion of histograms in Chapter 15. Now we must take a deeper look at this concept. In 1981, Robert Galvin, who was the president of Motorola, issued a challenge to his company: Improve performance tenfold over the next five years. Motorola responded and achieved the goal. That

The Lean Six Sigma Approach

The name Lean Six Sigma has to be understood before we go any further. Failure to do so will lead to a misunder­standing of the concept itself and its purpose. Clarification is best begun by stating what Lean Six Sigma is not. It most definitely is not some kind of a Lite Six Sigma,

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The Theory of Constraints and Integrated TOC, Lean, Six Sigma (ITLS) Approach

In his 1984 book The Goal, Dr. Eliyahu M. Goldratt in­troduced a management concept called the Theory of Constraints (TOC). An intuitive framework for organiza­tional management, the Theory of Constraints embraces the idea of continually improved performance and promotes a never-ending process of improvement. TOC requires the organization to have a clearly defined goal,

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Benchmarking Defined

Benchmarking has been around since the early 1980s, but it wasn’t until the early 1990s that it became a widely ac­cepted means of improving company performance. In 1985, almost no benchmarking activity existed among the Fortune 500 companies. By 1990, half of the Fortune 500 compa­nies were using this technique. Today companies large and

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Prerequisites to Benchmarking

Before getting involved in benchmarking, an organization should check the prerequisites—those philosophical and at- titudinal mind-sets, skills, and necessary preliminary tasks that must precede any benchmarking efforts. 1. Will and Commitment Without the will and commitment to benchmark, an orga­nization cannot proceed. Don’t waste time or the time of a benchmarking partner in the

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Obstacles to Successful Benchmarking

Like most human endeavors, benchmarking can fail. Failure in any activity usually means that the participant failed to prepare adequately for the venture—failed to learn enough about the requirements, the rules, and the pitfalls. So it can be with benchmarking. In this section, some of the common obstacles to successful benchmarking as drawn from

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Role of Management in Benchmarking

Management plays a crucial role in the benchmarking pro­cess. In fact, without the approval and commitment of top management, benchmarking is not possible. Benchmarking is not something that can occur from the grassroots up with­out management’s direct involvement. Several benchmark­ing considerations require management’s approval before the process can start: commitment to change, funding, human

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Benchmarking Approach and Process

The benchmarking process is relatively straightforward, but steps must flow in a sequence. A number of variations are possible, but the process should follow this general sequence: Obtain management commitment. Baseline your own processes. Identify your strong and weak processes and document them. Select processes to be benchmarked. Form benchmarking teams. Research the best-in-class.

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Making Full use of Benchmarking Data

At the conclusion of the benchmarking project with your partner, data analysis will have produced both quantitative and qualitative information. The quantitative information is effectively the “stake driven into the ground” as the point from which future progress is measured. It is also used as the basis for improvement objectives. Qualitative information covers such

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Perpetual Benchmarking and Benchmarking Resources

1. PERPETUAL BENCHMARKING If you have been through a series of benchmarking activi­ties and have implemented changes that have significantly improved processes, your organization may develop a ten­dency to leave benchmarking. After all, there are other things that need attention and resources. But this can be a costly mistake. At this point, the organization

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