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ITS 631: Paper #6
Summer 2018 IG
Dr. Ward
______________________________________________________________________________
Chapter 16: Operations Improvement & Ch. 17: Quality Management
Any company, regardless of size, product or service, is one to which you can apply the principles
of operational excellence. The basis for this paper will be either a factual case from your own
work experience or a published case. For this paper, you will describe the situation in the case
and then apply appropriate principles of operations improvement (Ch. 16) and quality
management (Ch. 17). The case should be treated as a problem presented to you by your
companyâ??s top management for analysis and a recommended course of action. In the paper,
you will discuss and make a recommendation for improvement in the operations of the
company based on the concepts you learned in chapters sixteen and seventeen.
Your paper should be at minimum 8 double-spaced paragraphs. Each paragraph should
contain at minimum 4 sentences. You must include at least one reference, at minimum the
course textbook.
Your paper will include the following.
Paragraph 1: Company Overview
Paragraph 2: Situation/Problem
Paragraphs 3-5: Recommendations from Ch. 16: Operations Improvement
Paragraphs 6-8: Recommendations from Ch. 17: Quality Management
References must be formatted in APA. Plagiarism will not be tolerated and will result in a
zero grade. Please review the Academic Dishonesty Policy outlined in the syllabus and in your
student handbook.
Rubric for
Criteria for Grading Papers 1-6
Criteria
A
B
C
F
Student showed depth
Student showed
Student showed
of knowledge of subject
Student showed little
knowledge of subject knowledge of subject
matter well beyond
knowledge of subject
matter beyond citing matter primarily limited
citing the textbook;
matter; writer may not
the textbook; writer
to the textbook; writer
writer cited more than
have cited the minimum
Knowledge
cited the minimum
cited the minimum
the minimum number of
number of references;
of Subject
number of references; number of references;
references; all
many statements and
Matter
most statements and some statements and
statements and
opinions were not
(40 pts)
opinions were
opinions were not
opinions were
supported by
supported by
supported by
supported by
appropriate citations
appropriate citations
appropriate citations
appropriate citations
from the literature.
from the literature.
from the literature.
from the literature.
27 points
35 â?? 32 points
31 â?? 28 points
40 â?? 36 points
Comments
Points
Earned
ITS 631: Paper #6
Summer 2018 IG
Dr. Ward
______________________________________________________________________________
Quality of
Research
(30 pts)
Student did an
exceptional job of
integrating course
readings with additional
research. Sources
listed were all scholarly
or practitioner journals,
newspapers, or
academic books from
the last ten years.
30 â?? 27 points
Student did a
satisfactory job of
integrating course
readings with additional
research. Sources
listed were primarily
scholarly or practitioner
journals, newspapers,
or academic books
from the last ten years.
26 â?? 24 points
Student did a less than
satisfactory job of
integrating course
readings with additional
research. Some
sources listed were not
scholarly or practitioner
journals, newspapers,
or academic books
from the last ten years.
23 â?? 21 points
Student did an
inadequate job of
integrating course
readings with additional
research. Many of the
sources listed were not
scholarly or practitioner
journals, newspapers,
or academic books
from the last ten years.
20 points
Comments
Student presented
Student presented
Student presented
Student presented
ideas in a poorly
ideas in a compelling
ideas presented in a
ideas in a coherent
organized or incoherent
manner with no
clear, coherent manner manner with several
Presentation
manner with many
distracting writing,
with few distracting
distracting writing,
of Ideas and
distracting writing,
grammar, or spelling
writing, grammar, or
grammar, or spelling
Mechanics
grammar, or spelling
problems; the page
spelling problems; the
problems; the page
(20 pts)
problems; the page
length requirement was
page length
length requirement may
length requirement may
met.
requirement was met.
not have been met.
not have been met.
20 â?? 19 points
18 â?? 16 points
15 â?? 14 points
13 points
Comments
Most citations,
All citations, quotations,
quotations, and
Some citations,
Most citations,
APA
and references were
references were
quotations, and
quotations, and
formatting
properly formatted or
properly formatted or
references were not
references were not
(10 pts)
contained one or two contained several minor properly formatted or
properly formatted or
minor errors.
errors.
contained major errors. contained many errors.
10 – 9 points
8 points
7 points
6 points
Comments
Total Points Earned
(100 points max)
Operations Management
8th edition
Part Four
Development
Chapter 16
Operations Improvement
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 16.1
This chapter examines operations improvement
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Key questions
In Chapter 16 â?? Operations improvement â?? Slack et al.
identify the following key questionsâ?¦
 Why is improvement so important in operations
management?
 What are the key elements of operations improvement?
 What are the broad approaches to improvement?
 What techniques can be used for improvement?
 How can the improvement process be managed?
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 16.3
The structure of improvement ideas
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Why the focus on operations improvement?
 There is a perceived increase in the intensity of competitive pressures
(or â??value for money in not-for-profit or public sector operations).
 The nature of world trade is changing, introducing cost pressures.
 New technology has both introduced opportunities to improve
operations practice and disrupt existing markets.
 The interest in operations improvement has resulted in the development
in many new ideas and approaches to improving operations which
have, in turn, focused attention on improvement.
 The scope of operations management has widened to embrace all
types of enterprise. So, operations managers can learn from each other.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
The Red Queen effect
In â??Aliceâ??s adventures through the looking glassâ??, by Lewis
Carroll, Alice encounters living chess pieces and, in
particular, the â??Red Queenâ??.
â??Well, in our countryâ??, said Alice, still panting a little, â??youâ??d
generally get to somewhere else â?? if you ran very fast for
a long time, as weâ??ve been doingâ??. â??A slow sort of country!â??
said the Queen. â??Now, here, you see, it takes all the
running you can do, to keep in the same place. If you
want to get somewhere else, you must run at least twice
as fast as that!
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
â??Breakthroughâ?? improvement, does not always deliver
hope for improvements
Performance
Planned â??breakthroughâ??
improvements
Actual improvement
pattern
Time
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Continuous improvement (1 of 2)
Performance
Continuous improvement
Standardize and maintain
Improvement
Time
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Continuous improvement (2 of 2)
Performance
PDCA Cycle repeated to create continuous improvement
Plan
Act
Do
Check
Time
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Performance
Combined improvement
Combined â??breakthroughâ??
and continuous
improvement
Time
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Some key elements of operations improvement?
ï?? Improvement cycles
ï??A process perspective
ï??End-to-end processes
ï??Radical change
ï??Evidence-based problem solving
ï??Customer centricity
ï??Systems and procedures
ï??Reduce process variation
ï??Synchronized flow
ï??Emphasize education/training
ï??Perfection is the goal
ï??Waste identification
ï??Include everybody
ï??Develop internal customerâ??supplier relationships
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Four broad approaches to managing improvement
Business Process Reengineering (BPR) â?? a radical approach to
improvement that attempts to redesign operations along customerfocused processes rather than on the traditional functional basis.
Total quality management (TQM) â?? puts quality and improvement at
the heart of everything that is done by an operation.
Lean â?? an approach that emphasizes the smooth flow of items
synchronized to demand so as to identify waste.
Six Sigma â?? a disciplined methodology of improving every product,
process, and transaction.
All these improvement approaches share overlapping sets of
elements
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Two improvement cycles
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
The DMAIC cycle
Define â?? identify
problem, define
requirements and set
the goal
Control â?? establish
performance
standards and deal
with any problems
Measure â?? gather
data, refine problem
and measure inputs
and outputs
Analyse â?? develop
Improve â?? develop
improvement ideas, problem hypotheses,
identify â??root causesâ??
test, establish
and validate hypotheses
solution and
measure results
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 16.5 BPR advocates reorganizing (reengineering) micro operations to reflect the natural
customer-focused business processes
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Some of the elements of improvement
approaches
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Innovation or â??breakthroughâ?? improvement versus
Kaizen or continuous improvement
Innovation
Short term, dramatic
Large steps
Intermittent
Abrupt, volatile
Few champions
Individual ideas and
effort
Scrap and rebuild
New inventions/theories
Large investment
Low effort
Technology
Profit
Kaizen
Effect
Pace
Timeframe
Change
Involvement
Approach
Mode
Spark
Capex
Maintenance
Focus
Evaluation
Long term, undramatic
Small steps
Continuous, incremental
Gradual and consistent
Everyone
Group efforts, systematic
Protect and improve
Established know-how
Low investment
Large maintenance effort
People
Process
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
What techniques can be used for improvement?
Many techniques described throughout Slack et al. could be considered
improvement techniques. Specific â??improvement techniquesâ?? includeâ?¦
ï?? Scatter diagrams, which attempt to identify relationships and influences
within processes.
ï?? Flow charts, which attempt to describe the nature of information flow and
decision-making within operations.
ï?? Causeâ??effect diagrams, which structure the brainstorming that can help
to reveal the root causes of problems.
ï?? Pareto diagrams, which attempt to sort out the â??important fewâ?? causes
from the â??trivial manyâ?? causes.
ï?? Whyâ??why analysis that pursues a formal questioning to find root causes
of problems.
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Some common techniques for process
improvement
Input/output analysis
Flow charts
Scatter diagrams
x
Input
Output
x
x
Causeâ??effect diagrams
Pareto diagrams
x
x
x
x
x
x
x
x
Whyâ??why analysis
Why?
Why?
Why?
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
8th edition
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Quality Management
Chapter 17
Operations Management
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 17.1
This chapter examines quality management
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
What is total quality management (TQM)?
What steps lead towards conformance to specification?
What is quality and why is it so important?
In Chapter 17 â?? Quality management â?? Slack et al. identify
the following key questionsâ?¦
Key operations questions
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
High quality puts costs down and revenue up
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Source: Adapted from Parasuraman, A. et al. (1985) A conceptual model of service quality and implications for future research, Journal of Marketing, vol. 49, Fall.
A â??Gapâ?? model of Quality
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 17.3
Perceived quality is governed by the magnitude and
direction of the gap between customersâ?? expectations
and their perceptions of the service or product
Marketing, operations,
product/service
development
Marketing, operations,
product/service
development
Operations
Marketing
Ensure consistency between internal
quality specification and the
expectations of customers
Ensure internal specification meets
its intended concept of design
Ensure actual product or service
conforms to internally specified
quality level
Ensure that promises made to
customers concerning the product or
service can really be delivered
Gap 1
Gap 2
Gap 3
Gap 4
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Main organizational
responsibility
Action required to ensure high
perceived quality
Gap
The perceptionâ??expectation gap
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Contact – the nature of the person-to-person contacts
that take place.
Recovery â?? the ease with which problems with the
product or service can be rectified or resolved.
Durability â?? the total useful life of the product or service.
Reliability â?? consistency of product or services
performance over time.
Appearance â?? aesthetic appeal, look, feel, sound and
smell of the product or service.
Functionality â?? how well the product or service does the
job for which it was intended.
Quality characteristics of goods and services
Turbine
blade
Light bulb
Length of blade
Number of defects in a
. blade
turbine
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Light emission of
bulb
Measured on a
continuous scale
Variables
Light bulb works or
does not work
Defective or not defective?
Attributes
Attribute and variable measures of quality
Reliability
ability to continue
working at accepted
quality level
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Attributes
things you can assess
accept/reject
Quality of Conformance
faithfulness with which the
operation agrees with design
Variables
things you can measure
Quality of Design
degree to which
design achieves purpose
Quality
fitness for purpose
Quality
And it never stops!
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Includes all the systems that affect quality.
Includes every opportunity to get things right.
Includes consideration of all costs.
Includes all staff of the organization.
Includes all parts of the organization.
What does Total Quality Management include?
Total Quality Management
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Total quality management can be viewed as a natural
extension of earlier approaches to quality management
Process variability
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 17.9 (a)
The traditional cost of quality model
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 17.9 (b)
The traditional cost of quality model with adjustments
toreflect TQM criticisms
Leadership
Partnerships
and resources
Policy and
strategy
People
Processes
Key
performance
results
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Society
results
Customer
results
People
results
EFQM â??Business excellenceâ?? model
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure 17.10
Increasing the effort spent on preventing errors
occurring in the first place brings a more than equivalent
reduction in other cost categories
Leadership
Partnerships
and resources
Policy and
strategy
People
Processes
Key
performance
results
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Society
results
Customer
results
People
results
EFQM â??Business excellenceâ?? model
Question
â??Why do we do thisâ?? ?
Time
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Some aspect of the performance of a process is often
measured over time
Process control charting (1 of 3)
Some measure of
operations performance
Question â?? â??But why is variation importantâ???
Trend can indicate whether performance is getting better or worse
Process control charting (2 of 3)
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Time
â??And how do we know if the variation in process performance is â??Naturalâ?
in terms of being a result of random causes, or is indicative of some
â??Assignableâ? causes in the processâ???
Some measure of
operations performance
0.8
0.8
3.6
2.2
3.6
By the end of the
day
After the first
sample
2.2
2.2
2.2
3.6
Fitting a normal
distribution to the
histogram of sampled
call times
0.8
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
By the end of the
second day
2.2
3.6
3.6
After the second
sample
0.8
0.8
Sampling over a period of timeâ?¦
Process control charting (3 of 3)
40
100
sigma
Σ=
A standard
deviation
68% of points
â?? 1 standard
deviation
95.4% of points
standard
deviations
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
160
standard
deviations
standard
deviation
Elapsed time of call (seconds)
â?? 2 standard
deviations
â??3 standard
deviations
99.7% of points
The chances of measurement points deviating from
the average is predictable in a normal distribution
Frequency
Time
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
In this case the final point is very likely to be caused by an â??assignableâ?? cause, i.e. the
process is likely to be out of control.
If we understand the normal distribution which describes random variation when the
process is operating normally then we can use the distribution to draw the control
limits.
Process control charting
Some measure of
operations performance
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Figure S17.5
Low process variation allows changes in process
performance to be readily detected
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Copyright © 2016, 2013, 2010 Pearson Education, Inc. All Rights Reserved
Process variation and its effect on process Defects
per Million Opportunities (DPMO)

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