Productivity and Quality Management (HRM 11/12)

Take Away:
from lecture,

Production system:
input{raw material,parts,personnel,machine-->
Conversion{transport,warehousing,production}-->
Output{

• Direct(Product:Goods,Services);

• Indirect(Wages,Environmental,Community impact)

}

Efficiency-Effective Matrix:

Effectiveness(Customer needs)
^
|
| High
|
| ...............Survive(under threat) | Thrive
| --------------------------------------------------------------------
| ...............Death .....................| Slow Death
|
| Low
| ...... Low.................................................. High
------------------------------------------------------------>Efficient(Resources)

Effective { Goals,Doing the right thing}
Efficient {inputs & outputs,low resource waste,doing things right}

Techniques:

[1]JIT(Just in time):

Produce only what is need - Eliminate all waste!

Best Conditions Inventory management:

1. Stable Demand - require good forecasting
   
2. Standard Products - Large amt can be generated
3. Smooth,Continuous production
4. Defect-free materials
5. Reliable suppliers
6. Efficient Production Control
7. Motivated Workforce

Ship analogy => Water as inventory low water ship in trouble hitting rocks.


[2]TQM(Total Quality Management):

All involve,inclusive of suppliers to customers.Stress commitment by management for all areas {Marketing sales,engineering,purchasing,personnel,packing,customer service}

• Quality is key to effective strategy ->Competitive edge
  
• Clear strategic goal,vision,mission
• High quality goals
• Right Operational plans & policies
• Feedback mechanism
• String Leadership
  

TQM Dimensions:

1. Customer defines quality
2. Top management leadership
3. Quality as a strategic issue
4. All employee responsible for quality
5. Continuous improvement
6. Shared problem solving
7. Statistical quality control ->online data collection
   
8. Training and Education for all employee