1. Unit 5 Operations Management Quality Improvement

2. Learning Objectives HL – Explain the role of Kaizen in quality improvement HL – Evaluate different approaches to quality improvement

3. Kaizen – ‘Change for the better’ Japanese term meaning continuous improvement Key features – Internal relationships between workers and their superiors and subordinates are seen to be as important as the external relationships that exist between the business and its customers and suppliers – TQM must be seen to be a policy that is followed by, and has the commitment of, all workers, from senior management to shop floor employees – The business must monitor all its activities and processes in order to identify any areas for improvement and to ensure that quality is being achieved – Team-working is important, since a group of people working together will develop a wider range of skills, co-operation, and higher motivation than if workers were performing repetitive tasks on their own – Regular market research must be undertaken to ensure that customers are happy with the level of service that they receive (any complaints can be used to improve the existing systems)

5. Kaizen – Quality Circles A group of workers that meets at regular intervals during the working week in order to identify any problems with quality within production They consider the alternative solutions to these problems, and then recommend to management the solution that they believe will be the most successful The members of the quality circle are also involved in the implementation and monitoring of the solution This should help to improve the level of motivation amongst the workers because it makes each person in the group feel valued and that they are making a significant contribution to the improvements on the factory-floor

6. Kaizen – An evaluation There are some limitations… – Some changes cannot be introduced gradually and may need a radical and expensive solution (new technology) – There may be real resistance from senior managers because of culture – authoritarian managers will find it very difficult – Short term tangible costs – Most important advances tend to be made early on during the Kaizen programme, later changes can be less significant

7. Benchmarking Comparing the performance – including quality, of a business with performance standards throughout the industry

8. Stages in the benchmarking process Identify the areas of the business to be benchmarked – this could be revealed through research Measure performance in these areas - EG. Reliability records, delivery records and customer complaints Identify the firms in the industry that are considered to be the best Use comparative data from the best firms to establish the main weaknesses in the business – could be from mutual agreements, published accounts contacts Set standards for improvements Change processes to achieve the standards set Re-measurement to see if the business is achieving the higher standards This should be a continuous process not a one off

9. Benchmarking Benefits Offers a faster and cheaper way of solving problems Areas of greatest significance for customers are identified and action can be taken Process that can assist the firm to increase international competitiveness If the workforce is involved in the comparison exercise, their participation can lead to better ideas Limitations Process depends on obtaining relevant information from other firms, sometimes difficult to obtain this Copying practices and ideas of other firms may discourage original ideas Costs may not be recovered

10. Quality Issues – An Evaluation Quality is not an option, it is fundamental to all successful businesses Quality is an issue for all firms Involving staff in quality improvement programmes can lead to a more motivated workforce