MNO3701 Part III Interactive Slides The purpose of this interactive PowerPoint presentation is to provide a high level overview (only) on the different concepts in each chapter of MNO3701. It only serves as an aid to assist students, and students are still required to study the complete study guide and handbook. All references in this PowerPoint presentation apply to Pycraft et al., 2010. Go to “Slide Show” > “From Beginning” > Double click on first topic >

MNO3701 Part III Topic 8 Chapter 18 Measuring and improving performance (p544) Improvement priorities (p550) Approaches to improvement (p554) The techniques of improvement (p562) Summary (p567)

Measuring and improving performance Performance measurement: The activity of measuring and assessing the various aspects of a process or whole operation’s performance Polar diagram: A diagram that uses axes, all of which originate from the same central point, to represent different aspects of operations performance.

Improvement Priorities The needs and performance of customers The performance and activities of competitors Judging importance of customers Order winning Qualifying Less important competitive factors Pycraft et al., 2010: 550

Approaches to improvement Breakthrough improvement Continuous improvement DMAIC cycle – increasingly used improvement cycle model, pupularised by the Six Sigma approach to operations improvement. Business process re-engineering (BPR) – the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. Pycraft et al., 2010: 554 - 559

Techniques of improvement Scatter diagrams Process maps (flow charts) Cause-effect diagrams Pareto diagrams Why-Why analysis Pycraft et al., 2010: 562 - 566

MNO3701 Part III Topic 8 Chapter 20 TQM and the management of improvement (p609) What is TQM? (p610) Implementing improvement programmes (p621) Quality awards (p624) Summary (p626)

TQM and the management of improvement A holistic approach to the management of quality that emphasises the role of all parts of an organisation and all people within an organisation to influence and improve quality; heavily influenced by various quality “gurus”, it reached its peak of popularity in the 1980’s and 1990s. Pycraft et al., 2010: 609

What is TQM? TQM is a philosophy of how to approach the organisation of quality improvement Pycraft et al., 2010: 610

Implementing improvement programmes TQM implementation A quality strategy Top-management support A steering group Group based improvement Success is recognised Training is the heart of quality improvement Six Sigma approach to organising improvement Master Black Belt Black Belt Green Belt Pycraft et al., 2010: 621 - 623

Quality Awards TDeming Prize The Malcolm Baldrige National quality award The EFQM Excellence Model Pycraft et al., 2010: 625

MNO3701 Part III Topic 9 Chapter 19 Operations failure (p577) Failure detection and analysis (p584) Improving process reliability (p589) Recovery (p597) Summary (p601)

Operations failure Why things fail Design failure Facilities failure People failure Errors Violations Supplier failure Customer failure Pycraft et al., 2010: 577 - 578

Failure detection and analysis Mechanisms to detect failure: In-process checks Machine diagnostic checks Point-of-departure interviews Phone surveys Focus groups Complaint or feedback cards and questionnaires Failure analysis the use of techniques to uncover the root cause of failures; techniques may include accident investigation, complaint analysis, etc. Pycraft et al., 2010: 584

Improving process reliability Redundancy – The extent to which a process, product or service has systems or components that are used only when other systems or components fail. Fail-safeing (Poka-yoke) – Building in, often simple, devices that makes it difficult to make the mistakes that could lead to failure; also known by the Japanese term poka-yoke. Maintenance – The activity of caring for physical facilities so as to avoid or minimise the chance of those facilities failing. Total productive maintenance (TPM) – An approach to maintenance management that adopts a similar holistic approach to total quality management. Reliability-centred maintenance – An approach to maintenance management that uses different types of maintenance for different parts of a process depending on their pattern of failure. Pycraft et al., 2010 589– 595

Recovery Failure planning Business continuity Identify and assess risks Identify core business processes Quantify recovery times Determine resources needed Communicate Pycract et al., 2010: 597- 600

MNO3701 Part III Topic 10 Chapter 21 Why Challenges? (p634) Globalisation (p634) Corporate social investment (CSI) (p636) Environmental responsibility (p638) Technology (p643) Knowledge management (p644) Summary (p647)

Why challenges? Globalisation Environmental protection Corporate social responsibility Technology awareness Knowledge management Pycraft et al., 2010: 634

Globalisation The extension of operations’ supply chain to cover the whole world. Pycraft et al,. 2010: 635

Corporate social investment (CSI) Organisations and their operations functions have responsibility for the general well-being of society beyond short-term economic self interest. Pycraft et al., 2010: 636

Environmental responsibility Environmental burden (EB) EB = P x A x T P = the size of the population A = the affluence of the population T = technology Pycraft et al,. 2010: 639

Technology Disruptive technologies – Technologies which in the short term cannot match the performance required by customers but may improve faster than existing technology to make that existing technology redundant. Pycraft et al., 2010: 644

Knowledge management Operations management creates and deploys knowledge Explicit knowledge – knowledge is codified Tacit knowledge – knowledge embedded deep within individuals in the organisation Pycraft et al., 2o1o: 647

End of Part III Good Luck!