Quality Management for Organizational Excellence Lecture/Presentation NotesNineteen: Continual Improvement Methods with Six Sigma, Lean, and Lean Six SigmaNineteen: Continual Improvement (Continued)Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.1Quality Managementfor Organizational ExcellenceLecture/Presentation NotesBy:Dr. David L. Goetsch and Stanley DavisBased on the book Quality Management for Organizational Excellence (Sixth Edition)2Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement Methods with Six Sigma, Lean, and Lean Six SigmaMAJOR TOPICSRationale for Continual ImprovementManagement’s Role in Continual ImprovementEssential Improvement ActivitiesStructure for Quality ImprovementThe Scientific ApproachIdentification of Improvement Needs3Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Development of Improvement PlansCommon Improvement StrategiesAdditional Improvement StrategiesThe Kaizen ApproachGoldratt’s Theory of ConstraintsThe CEDAC ApproachSix Sigma ConceptLean OperationsLean Six SigmaMajor Topics Continued4Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)The rationale for continual improvement is that it is necessary in order to compete in the global marketplace. Just maintaining the status quo, even if the status quo is high quality, is like standing still in a race.Management’s role in continual improvement is leadership. Executive-level managers must be involved personally and extensively. The responsibility for continual improvement cannot be delegated.5Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Essential improvement activities include the following: Maintaining communicationCorrecting obvious problemsLooking upstreamDocumenting problems and progressMonitoring change6Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)●Structuring for quality improvement involves the following:Establishing a quality councilDeveloping a statement of responsibilitiesEstablishing the necessary infrastructure7Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)●Using the scientific approach means:Collecting meaningful dataIdentifying root causes of problemsDeveloping appropriate solutionsPlanning and making changes.●Ways of identifying improvement needs include the following:MultivotingSeeing customer inputStudying the use of timeLocalizing problems.8Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Developing improvement plans involves the following steps:Understanding the processEliminating obvious errorsRemoving slack from processesReducing variation in processesPlanning for continual improvement.9Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Commonly used improvement strategies include the following:Describing the processStandardizing the processEliminating errors in the processStreamlining the processReducing sources of variationBringing the process under statistical controlImproving the design of the process.10Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Additional improvement strategies include the following:Reducing leadtimeFlowing productionUsing group technologyLeveling productionSynchronizing productionOverlapping productionUsing flexible schedulingUsing pull controlUsing visual controlUsing stockless production11Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)●Additional improvement strategies include the following: Using jidokaReducing setup timeApplying in-process controlImproving qualityApplying total cost cyclesUsing cost curvesUsing the mushroom conceptMaking suppliers comakersApplying total industrial engineeringApplying total productive maintenance12Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Kaizen is the name given by the Japanese to the concept of continual incremental improvement. It is a broad concept that encompasses all of the many strategies for achieving continual improvement and entails the following five elements:Straighten upPut things in orderClean upPersonal cleanlinessDiscipline13Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)Goldratt’s theory of Constraints is another approach used to achieve continual improvement in the workplace. It involves the following steps:IdentifyExploitSubordinateEliminate restraintsOvercome inertia14Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.Nineteen:Continual Improvement(Continued)The following tools are used in applying Goldratt’s Theory of Constraints:Effect-cause-effectEvaporating cloudsPrerequisite treesThe Socratic Method15Quality Management, 6th ed.Goetsch and Davis© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. •
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