©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 14
CONTROLLING PRODUCTIVITY, QUALITY, AND
SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2
• Explain the concept of productivity• Identify and explain the ways in which
management, government, unions, and employees affect productivity• Describe some steps supervisors can take to
increase productivity• Differentiate between total quality and quality
control• Describe the role of variance in controlling
quality
LEARNING OBJECTIVES
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3
• Identify some important tools for controlling quality• Describe the supervisor’s role in supporting
lean organizations• Explain what the Occupational Safety and
Health Administration (OSHA) does• Describe the supervisor’s role in promoting
safety
LEARNING OBJECTIVES
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4
• Measure of efficiency that compares outputs to inputs• Basic productivity ratio Total output of goods/services
Total costs• Can be increased by:• Increasing total output without changing total
costs• Decreasing total inputs costs without changing
total output• Increasing output and decreasing input costs
PRODUCTIVITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5
EXHIBIT 14.3 - EXAMPLES OF PRODUCTIVITY MEASUREMENTS
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6
IMPORTANCE OF PRODUCTIVITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7
GROUPS INFLUENCING PRODUCTIVITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8
HOW SUPERVISORS CAN IMPROVE EMPLOYEE PRODUCTIVITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9
HOW SUPERVISORS CAN IMPROVE EMPLOYEE PRODUCTIVITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10
• Make use of budgets to: • Help control costs• Evaluate a department’s actual performance• Identify areas that need attention
• Look to generate favorable variances to offset unfavorable variances • Technology provides up-to-the-minute cost
data that supervisors can share with their teams• And challenge the team to look for ways to cut
costs
SUPERVISOR’S ROLE IN COST CONTROL
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11
• Robot: Machine controlled by a computer that can be programmed to perform a number of repetitive manipulations of tools or materials• RFID: Radio frequency identification technology
uses radio waves to identify inventory• Computer-assisted manufacturing (CAM):
Special computers assist equipment in performing processes
PRODUCTIVITY IMPROVEMENT METHODS FOR CONTROLLING QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12
DEMING’S FOURTEEN POINTS FOR QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13
DEMING’S FOURTEEN POINTS FOR QUALITY
14–13
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14
• Establish a plan to seek improvement continuously in all phases of operations
• Put in place a system that accurately tracks and measures performance in those areas
• Establish a long-term strategic plan based on performance targets that compare with the world’s best in that particular industry
• Link with suppliers and customers in a way that provides feedback for continuous improvement
REQUIREMENTS TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15
• Demonstrate a deep understanding of customers to convert their wants into products
• Establish and maintain long-lasting customer relationships
• Focus on preventing mistakes • Make a commitment to quality improvement
throughout all levels of the organization
REQUIREMENTS TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16
• Quality directly affects the bottom line • In terms of cost of scrapped materials, wasted
time, costs of rework, and customers’ exercise of warranties
• Vigorous global competition• Firms are required to achieve ISO 9000
certification• Increased information available to the public
regarding product and service quality
REASONS FOR GREATER QUALITY EMPHASIS
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17
• Total quality: Organization’s overall effort to achieve customer satisfaction through continuous improvement of products or services
• Quality control: Defined measurements designed to check whether the desired quality standards are being met
TOTAL QUALITY AND QUALITY CONTROL
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18
EXHIBIT 14.14 - THE TOTAL QUALITY CHAIN
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19
• Nature of processes is to exhibit variation• Measurable dimensions will vary in items
produced in a manufacturing process• Types of variation
• Common cause variation - General, routine variation built into the system
• Special cause variation - Occurs intermittently and is associated with a specific event
UNDERSTANDING VARIANCE IN CONTROLLING QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20
• Reducing variation• Common cause variation can be corrected only
through management action to improve the process
• Special cause variation can be reduced by identifying the problem, isolating it, examining the cause, and remedying it
• Six Sigma • Quality control technique• Helps reduce the number of defects in a
company’s end-to-end process
UNDERSTANDING VARIANCE IN CONTROLLING QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21
TOOLS FOR CONTROLLING QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22
EXHIBIT 14.15 - TYPE OF POWER FAILURES
Source: From Martin K. Starr Production and Operations Management, 2nd ed. Copyright 2008, Atomic Dog, a part of Cengage Leaning, Inc. Reproduced by permission. www.cengage.com/permission
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23
EXHIBIT 14.16 - FLOWCHART OF A FAST-FOOD DRIVE-THROUGH PROCESS
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24
EXHIBIT 14.17 - HISTOGRAM SHOWING FREQUENCY AND LENGTH OF TIME TAKEN BY HOME OFFICE TO PROCESS LOAN REQUEST
Source: From James W. Dean and James R. Evans. Total Quality, Management, Organization, and Strategy, 4e.Copyright © 2005 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25
EXHIBIT 14.18 - RUN CHART OF PERCENTAGE OF RESTAURANT CUSTOMERS WAITING IN EXCESS OF 1 MINUTE TO BE SEATED
Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146.0030078660. Copyright © 1995 by Joseph Van Matre. Reprinted with permission of the author.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26
TOOLS FOR CONTROLLING QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27
EXHIBIT 14.19 - PARETO CHART OF CUSTOMERS’ COMPLAINTS ABOUT RESTAURANTS
Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146. 0030078660. Copyright © 1995 by Joseph Van Matre. Reprinted with permission of the author.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28
EXHIBIT 14.20 - CAUSE-AND-EFFECT DIAGRAM FOR “WHY TABLES ARE NOT CLEARED QUICKLY”
14–28
Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146. 0030078660. Copyright © 1995 by Joseph Van Matre. Reprinted with permission of the author.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29
EXHIBIT 14.21 - EXAMPLE OF A CONTROL CHART
Source: From James W. Dean and James R. Evans. Total Quality, Management, Organization, and Strategy, 4th ed. Copyright © 2005 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/ permissions.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30
• Emphasize the importance of high quality• Provide information, support, and feedback to
help employees achieve quality• Let employees know quality performance is
expected• Involve workers in achieving and controlling
quality
SUPERVISOR’S ROLE IN ACHIEVING QUALITY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 31
EXHIBIT 14.22 - CHARACTERISTICS OF EFFECTIVE EMPLOYEE INVOLVEMENT TEAMS
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 32
• Increasing value for the customer while using fewer resources• Strategies • Eliminating waste• Seven types of waste: Overproduction,
movement, transportation, waiting, extra processing, defects and inventory
LEAN APPROACH
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 33
• Just-in-time inventory control (JIT): Materials arrive as close as feasible to the time they are needed in the production or service process
• 5s practices: Sort, straighten, shine, standardize, and sustain to promote good housekeeping
LEAN APPROACH
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34
• Federal Occupational Safety and Health Administration, created to ensure safe working conditions for employees• Functions• Requires organizations to keep safety logs and
records of injuries incurred on the job• Develops standards, conducts inspections, and
enforces compliance by issuing citations and penalties
• Performs pre-investigations upon invitation from the organization
OSHA
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 35
FACTORS INFLUENCING SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 36
• Human factors • Account for most work-related injuries
• Technical factors • Unsafe mechanical, chemical, and physical
conditions• Environmental factors • Agents that surround the job
CAUSES OF ACCIDENTS
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 37
• Push for upgraded safety equipment and safer work methods• Establish safety goals for the department• Communicate safety requirements to
employees• Listen to complaints about safety-related
matters
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38
• Ensure new employees understand safety rules• Make sure safety rules are kept up to date• Prohibit use of unsafe or damaged equipment• Encourage safety suggestions from workers• Post posters to reinforce the need for safety• Refuse to tolerate relaxed safety standards• Set a proper example
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39
• Conduct regular safety meetings, with demonstrations by safety specialists • Refuse to tolerate horseplay• Compete with other departments in safety
contests• Report to employees any accidents that occur
elsewhere in the company
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 40
• Review past accident records for insights• Encourage reporting of unsafe conditions• Make regular safety inspections of all
equipment• Include employees in periodic safety tours • Enforce the rules when they are broken
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 41
• Look for and ensure relief from fatigue for employees• Investigate all accidents and remedy the causes• Have a system to reward excellent safety
conduct
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 42
• Cause-and-effect diagram• Check sheets• Computer-assisted
manufacturing (CAM)• Control chart• Deming’s 85–15 rule• Flowchart• Histogram
IMPORTANT TERMS
• Just-in-time (JIT) inventory• Lean approach• Occupational safety
and health administration (OSHA)• Pareto charts• Productivity
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 43
• Quality control• Radio frequency
identification (RFID)• Robot• Run chart• Total quality
IMPORTANT TERMS
• Toyota production system• 5S practices• 7 types of waste