Quality Control and Productivity

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Transcript Quality Control and Productivity

Understanding Management

Chapter 15 Productivity through Management

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Learning Objectives 1.

Define organizational control and explain why it is a key management function.

Describe differences in control focus, including feedforward, concurrent, and feedback control.

Explain the four steps in the control process.

Contrast the bureaucratic and decentralized control approaches.

Discuss how to measure and manage productivity.

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Learning Objectives (Cont’d) 6.

Describe the concept of total quality management (TQM) and major TQM techniques.

Explain the value of open-book management and the balanced scorecard approaches to control in a turbulent environment.

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Organizational Control The systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance.

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Ex. 15.1 Organizational Control Focus

Feedforward Control Anticipates Problems Concurrent Control Solves Problems as They Happen Feedback Control Solves Problems After They Occur

Examples • Pre-employment drug testing • Inspect raw materials • Hire only college Examples • Adaptive culture • Total quality management • Employee graduates self-control Examples • Analyze sales per employee • Final quality inspection • Survey customers

Inputs

Ongoing Processes Outputs

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Budgetary Control The process of setting targets for an organization’s expenditures, monitoring results and comparing them to the budget, and making changes as needed.

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Managing Productivity Productivity is the organization’s output of goods and services divided by its inputs.

• Lean manufacturing – cut waste, improve quality and productivity.

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Total Quality Management (TQM) AAn organization-wide commitment to infuse quality into every activity through continuous improvement.

FFocuses on teamwork, increasing customer satisfaction, and lowering costs.

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TQM Techniques Most companies that have adopted TQM have incorporated: • Quality circles.

• • • • Benchmarking.

Six sigma quality principles.

Reduced cycle time.

Continuous improvement.

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International Quality Standards ISO 9000 • • • A set of international standards for quality management systems.

Process of application and certification for ISO 9000 is expensive and time-consuming.

Recognized standard for evaluating and comparing companies on a global basis.

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Economic Value Added (EVA) • • A way to gauge financial performance.

A company’s net (after-tax) operating profit minus the cost of capital invested in the company’s tangible assets.

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Control Systems for Turbulent Times • • • • Open-Book Management Sharing of financial information and results with all employees in the organization.

Allows employees to see financial condition of the company.

Shows individual employees how his/her job fits into the big picture.

Ties employee rewards to the company’s overall success.

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Control Systems for Turbulent Times (Cont’d) • • The Balanced Scorecard Balances traditional financial measures with operational measures relating to a company’s critical success factors.

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Quality Control and Productivity

Transcript Quality Control and Productivity

Understanding Management

Chapter 15 Productivity through Management

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