Managing Quality & Risk Week 8 – 12 November Risk Management Systems [2] Module leader – Tim Rose

Module route map Semester 1Date (W/c)Content Week 107/09/2015Introduction to Module & Topic Week 214/09/2015The Properties of Risk Management Week 321/09/2015The Properties of Quality Management Week 428/10/2015Risk and Failure Week 505/10/2015Risk and People Week 612/10/2015Quality Monitoring and Controlling Processes 19/10/2015College closed for staff development 26/10/2014Reading week Week 702/11/2015Risk Management Systems [1] Week 809/11/2015Risk Management Systems [2] Week 916/11/2015Independent research Week 1023/11/2015Peer review Week 1130/11/20151:1 Tutorials Week 1207/12/2015Assignment workshop/ revision N/a11/01/2016Exam

Intended learning outcomes By the end of this session you will:  Recap risk assessment tools  Discuss the evolution of the ‘Lean’ approach  Explore waste/ wastage reduction methods  Consider implementation of TQM (Total Quality Management) for your organisation.

Risk management process  Five key steps: 1. Identify 2. Assess 3. Plan 4. Implement 5. Communicate (Embed/Review).

[Risk Model (Initial Decision Matrix). (n.d.). Retrieved November 11, 2015, from

RECAP: FMEA – Failure Mode and Effect Analysis  Checklist to identify failures before they happen  3 key questions: 1. What is the likelihood that failure will occur? 2. What would the consequence of the failure be? 3. How likely is such a failure to be detected before it affects the customer?.

FMEA method Failure Severity Detection Occurrence Risk index Corrective action Monitor [Sadgrove, p.106 (2015), The Complete Guide to Business Risk Management]

Lean “Lean is a term applied to removing waste from business processes. Originally a Toyota system, it has since been applied to IT, government and service businesses. “Lean sees waste as anything that isn’t contributing value to the customer. “In other words, it is much more than just the physical waste that occurs in a process.” [Sadgrove, p.105 (2015), The Complete Guide to Business Risk Management]

Wastage that the Lean approach tackles  Inventory  Motion  Transportation  Waiting  Over-processing  Over-production  Defects & Scrap This list is known as ‘Muda’; Japanese word meaning wastage, wastefulness.

Workplace organisation – 5s  Lean technique based on drive for continuous improvement – derived from five Japanese words starting with ‘s’  Sort (seiri) - only critical elements remain  Set (seiton) - identify optimum locations  Shine (seiso) - clean workplace  Standardise (seiketsu) - maintain standards  Sustain (shitsuke) - proactive approach to maintain previous steps.

Culture and TQM (Total Quality Management) “Total Quality Management is a management system for a customer focused organisation that involves all employees in continual improvement of all aspects of the organisation. “TQM uses strategy, data, and effective communication to integrate the quality principles into the culture and activities of the organisation.” What Is Total Quality Management Principles What Is Total Quality Management Principles. [ONLINE] Available at: [Accessed 11 November 2015].

TQM elements  Meeting the needs & expectations of customers  Covering all parts of the organisation  Includes every person in the organisation  Examines all costs related to quality  ‘Right first time’ approach  Developing system & procedures which support quality & improvement  Developing a continuous process of improvement.

Implementing TQM  TQM elements approach  The guru approach  Organisation model approach  Japanese total quality approach.

Learning outcomes from this session Throughout this session you have: Recapped risk assessment tools Discussed the evolution of the ‘Lean’ approach Explored waste/ wastage reduction methods Considered implementation of TQM (Total Quality Management) for your organisation.

Out of class activity  Complete your draft for Assignment 1  Suggested reading: Sadgrove, K (2015) The Complete Guide to Business Risk Management  Chapter 5: Product and Service Problems  Further reading Case Study: The Quest for Quality Improvement: Using Six Sigma at Starwood Hotels and ResortsThe Quest for Quality Improvement: Using Six Sigma at Starwood Hotels and Resorts 