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INTRODUCTION TO BUSINESS
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Managing Quality and Productivity
http://www.slideshare.net/Subjectmaterial
Chapter 16
2
QUIZ
1. In a production business what is most important in order to get more profits
One word answer
2. How would you ensure your customers stay with you
3 bullet points
Sr.Chapter Chapter HeadingNo.No.
1. 3 Understanding the Global context of business (031012)2. 4 Conducting Business Ethically and Responsibly (250212)3. 6 Organizing the Business Enterprise (030312)4. 7 Understanding Entrepreneurship and Small Business
(100312)5. 8 Managing Human Resources (240312)6. 9 Understanding Employee Motivating, Satisfying &
Leadership (310312)
7. 11 Understanding Marketing Processes and Consumer Behavior (140412)
8. 16 Managing Quality and Productivity (280412)9. 17 Managing Information Systems and Communication
Technology10. 19 Understanding Money and Banking11. 20 Intermediate Term and Lease Financing
Course Outline
FINAL PROJECT
GENERATE REVENUE Proposal Timelines Sponsors Groups
TOC
1.THE PRODUCTIVITY- QUALITY CONNECTION
2.TOTAL QUALITY MANAGEMENT
3.TOOLS FOR TQM
4. TRENDS IN PRODUCTIVITY AND QUALITY MANAGEMENT
5. PRODUCTIVITY AND QUALITY AS COMPETITIVE TOOLS
THE PRODUCTIVITY- QUALITY CONNECTION
The more we can produce while using fewer resources, the more productivity grows and the more profitable businesses are
is measured as a ratio of outputs to inputs
Quality: A product’s fitness for use plus its
success in offering features that consumers want
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PRODUCTIVITY CHALLENGE
Quality declines, demand declines, profits decline
Country that improves its ability to make something out of its existing resources can increase the wealth of all its inhabitants
Gross Domestic Product: Dollar value of all goods and services
produced in a country over a specified time period
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TOTAL QUALITY MANAGEMENT
TQM: The sum of all activities involved in getting
high quality products into the market place Quality ownership:
The principle of TQM that holds that quality belongs to each person who creates it while performing a job
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TOOLS FOR TQM
Competitiv
e Produ
ct Analy
sis
•Process by which a company analyses a competitor’s products to identify desirable improvements in its own
Value-Adde
d Analy
sis
•Process of evaluating all work activities, material flows and papers work to determine the value they add for customers
Statistical
process
control
•Methods for gathering data to analyze variations in production activities to see when adjustments are needed•Pro
cess variations, Control charts
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TOOLS FOR TQM
Quality/
Cost
studies
•Method of improving quality by identifying current costs and areas with the greatest cost-saving potential•Inte
rnal failures: costs incurred for correction of bad products while production and before they leave plant
•External failures: corrective costs, after bad product has left the plant
Quality
improvement teams
•TQM tool in which groups of employees work together to improve quality
Benchmarkin
g
•Process by which a company implements the best practices from its own past performance and those of other companies to improve its own products
Getting
Closer to Customer
•The most successful companies keep close to their customers and know what they want in the products they consumer
ISO 9000:2000 Program certifying that a company meets the
rigorous quality standards of the International Organization for Standardization (ISO)
To earn the rating firms are measured by qualified consultants
product testing employee training record-keeping correcting defects
ISO 14000
certifies improvements inenvironmental performance
need an environmental management system
plan to improve resource use and manage pollution
covers practices in environmental labelling
assesses total impact of firm’s products
Process Re-engineering
Radical redesign of processes
to improve performancedramatically
Supply Chain Management Supply chain = group of companies and
stream of activities involved in getting the product from raw materials to end consumer.
each stage adds value and depends on the others Supply chain management looks at the chain
as a whole to improve overall flow Improved coordination Enhanced communication Reduced inefficiencies Minimized costs
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