Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.1 Part Four IMPROVEMENT Chapter 18 Operations improvement

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.2 Performance Time Continuous improvement Standardize and maintain Improvement Figure 18.2(b) ‘Continuous’ improvement (Continued)

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.3 Performance Time PDCA cycle repeated to create continuous improvement Continuous improvement (Continued) Plan Do Check Act

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.4 Business process re-engineering (BPR) – a radical approach to improvement that attempts to redesign operations along customer- focused processes rather than on the traditional functional basis. Total quality management (TQM) – puts quality and improvement at the heart of everything that is done by an operation. Lean – an approach that emphasizes the smooth flow of items synchronized to demand so as to identify waste. Six Sigma – a disciplined methodology of improving every product, process and transaction. All these improvement approaches share overlapping sets of elements. Four broad approaches to managing improvement

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.5 The plan-do-check-act, or ‘Deming’ improvement cycle, and the define-measure-analyse-improve-control, or DMAIC six sigma improvement cycle Define Measure AnalyseImprove Control PlanDo CheckAct Plan Two improvement cycles Figure 18.3 (a) The plan–do–check–act, or ‘Deming’ improvement cycle, and (b) the define–measure– analyse–improve–control, or DMAIC Six-Sigma improvement cycle

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.6 Define – identify problem, define requirements and set the goal Measure – gather data, refine problem and measure inputs and outputs Analyse – develop problem hypotheses, identify ‘root causes’ and validate hypotheses Improve – develop improvement ideas, test, establish solution and measure results Control – establish performance standards and deal with any problems The DMAIC cycle

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.7 Many techniques described throughout Slack et. al. could be considered improvement techniques. Specific ‘improvement techniques’ include…  Scatter diagrams, which attempt to identify relationships and influences within processes.  Flow charts, which attempt to describe the nature of information flow and decision-making within operations.  Cause–effect diagrams, which structure the brainstorming that can help to reveal the root causes of problems.  Pareto diagrams, which attempt to sort out the ‘important few’ causes from the ‘trivial many’ causes.  Why–why analysis that pursues a formal questioning to find root causes of problems. What techniques can be used for improvement?

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7 th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014 Slide 18.8 Some common techniques for process improvement Cause-effect diagramsWhy-why analysis Why? Flow chartsScatter diagrams x x xx xxx x x xx Input/output analysis InputOutput Pareto diagrams