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INTRODUCTION TO PRODUCTION AND QUALITY MANAGEMENT
While Production and Quality Management has proven to be an effective process for improving organizational functioning, its value can only be assured through a comprehensive and well thought out implementation process. The purpose of this project is to outline key aspects of implementation of large scale organizational change which may enable a practitioner to more thoughtfully and successfully implement P&Q Management. First, the context will be set. P&Q management is,in fact, a large scale systems change, and guiding principles and considerations regarding this scale of change will be presented. Without attention to contextual factors, well intended changes may not be adequately designed. As another aspect of context, the expectations and perceptions of employees (workers and managers) will be assessed, so that the implementation plan can address them.
Specifically, sources of resistance to change and ways of dealing with them will be discussed. This is important to allow a change agent to anticipate resistances and design for them, so that the process does not bog down or stall. Next, a model of implementation will be presented, including a discussion of key principles. Visionary leadership will be offered as an overriding perspective for someone instituting P&Q Management. In recent years the literature on change management and leadership has grown steadily, and applications based on research findings will be more likely to succeed. Use of tested principles will also enable the change agent to avoid reinventing the proverbial wheel. Implementation principles will be followed by a review of steps in managing the transition to the new system and ways of helping institutionalize the process as part of the organization's culture. This section, too, will be informed by current writing in transition management and institutionalization of change. Finally, some miscellaneous do's and don’ts will be offered.
Production and Quality Management as Large Sale Systems Change
P&QM is at first glance seen primarily as a change in an organization's technology its way of doing work. In the human services, this means the way clients are processed the service delivery methods applied to them and ancillary organizational processes such as paperwork, procurement processes, and other procedures. But TQM is also a change in an organization's culture its norms, values, and belief systems about how organizations function. And finally, it is a change in an organization's political system: decision making processes and power bases. For substantive change to occur, changes in these three dimensions must be aligned: TQM as a technological change will not be successful unless cultural and political dimensions are attended to as well.
Kaizen
Kaizen (改善, Japanese for "change for the better" or "improvement", the English translation is "continuous improvement", or "continual improvement.") is an approach to productivity improvement originating in applications of the work of American experts such as Frederick Winslow Taylor, Frank Bunker Gilbreth, Walter Shewhart, W. Edwards Deming and of the War Department's Training Within Industry program by Japanese manufacturers after World War II. The development of Kaizen went hand-in-hand with that of quality control circles, but it was not limited to quality assurance.
Summary of Kaizen
The goals of kaizen include the elimination of waste (defined as "activities that add cost but do not add value"), just-in-time delivery, production load leveling of amount and types, standardized work, paced moving lines, right-sized equipment, etc. In this aspect it describes something very similar to the assembly line used in mass production. A closer definition of the Japanese usage of Kaizen is "to take it apart and put back together in a better way." What is taken apart is usually a process, system, product, or service.
Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates hard work (both mental and physical), and teaches people how to do rapid experiments using the scientific method and how to learn to see and eliminate waste in business processes.
"Kaizen" is the correct usage. "Kaizen event" or "kaizen blitz" are incorrect usage.
Kaizen is often misunderstood and applied incorrectly, resulting in bad outcomes including, for example, layoffs. This is called "kaiaku" - literally, "change for the worse." Layoffs are not the intent of kaizen. Instead, kaizen must be practiced in tandem with the "Respect for People" principle. Without "Respect for People," there can be no continuous improvement. Instead, the usual result is one-time gains that quickly fade.
Importantly, kaizen must operate with three principles in place: process and results (not results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non-judgmental, non-blaming (because blaming is wasteful).
Everyone participates in kaizen; people of all levels in an organization, from the CEO on down, as well as external stakeholders if needed. The format for kaizen can be individual, suggestion system, small group, or large group.
The only way to truly understand the intent, meaning, and power of kaizen is through direct participation, many, many times.
Lean manufactoring and just in time production are related concepts.
Translation
The original kanji characters for this word are:
In Japanese this is pronounced 'kaizen'.
改 ('kai') means 'change' and
善 ('zen') means 'good'.
In Chinese this is pronounced 'gai shan':
改善 ('gai shan') means 'change for the better' or 'improve'.
改 ('gai') means 'change' or 'the action to correct'.
善 ('shan') means 'good' or 'benefit'. 'Benefit' is more related to the Taoist or Buddhist philosophy, which gives the definition as the action that 'benefits' the society but not one particular individual (i.e. multilateral improvement). In other words, one cannot benefit at another's expense. The quality of benefit that is involved here should be sustained forever, in other words the 'shan' is an act that truly benefits others.
The principles of Kaizen
The emphasis on respect for people, system thinking, process and results focus, as well as a blame-free approach are key characteristics to kaizen. ...
1. Discard conventional fixed ideas.
2. Think of how to do it, not why it cannot be done.
3. Do not make excuses. Start by questioning current practices.
4. Do not seek perfection. Do it right away even if it will only achieve 50% of target.
5. If you make a mistake, correct it right away.
6. Throw wisdom at a problem, not money.
7. Ask 'WHY?" five times and seek root causes.
8. Seek the wisdom of ten people rather than the knowledge of one.
9. Don't ask workers to leave their brains at the factory gate.
KAIZEN is thus a (relatively) low cost, simple, team-based approach. Teams are trained in the techniques and tools of KAIZEN. They then brainstorm improvement ideas and vote on them for priority action. They then create an action/implementation plan which is submitted to management for approval. Assuming it is approved, the team then sets about implementation (with professional help if appropriate). The team then meets weekly to review progress, identify/overcome barriers, celebrate successes, and document the resulting changed processes.
History
In Japan, after World War II, American occupation forces brought in American experts in statistical control methods and who were familiar with the War Department's Training Within Industry (TWI) training programs to restore a war-torn nation. TWI programs included Job Instruction (standard work) and Job Methods (process improvement). In conjunction with the Shewhart cycle taught by W. Edwards Deming, and other statistics-based methods taught by Joseph M. Juran, these became the basis of the kaizen revolution in Japan that took place in the 1950s.
Gemba Kaizen
A term commonly used in Japan is gemba kaizen. It is an expression that conveys commitment to continuous improvement of practices and processes as a business philosophy. Translated to English "gemba" means shop floor and "kaizen" means continuous improvement. This certificate prepares students/workers to actively participate in implementing ongoing, world-class manufacturing activities necessary to keep their company globally competitive now and into the future.
The term "gemba" was introduced to Westerners by Masaaki Imai in 1997 to describe the "real place" where products are developed and made, and where services are provided. Small kaizen enhancements to these key operations will multiply into greater success and profits many times over. One of the more attractive features of gemba kaizen as a management philosophy is its independence from technology, complex procedures, or equipment, because gemba kaizen techniques focus on techniques like total quality management, just-in-time, total product maintenance, and visual management to deliver maximum quality. For some companies, gemba kaizen has become a leading philosophy for implementing "lean thinking" into their processes and products. The result has been elimination of waste (in terms of materials, effort, money, time, etc.) and an improvement in fiscal performance. Not surprisingly, gemba kaizen's approaches to eliminating waste are also one of the easiest and least costly steps to take in improving environmental performance.
The concept of gemba management has its own "golden rules", and the first rule is: when a problem arises, go to gemba first. Much of what occurs in gemba can be passed off as routine, repetitive, and even boring work tasks, but it's amazing how often we tend to overlook the importance of understanding the processes in gemba to financial and environmental performance. To take the concept of gemba performance to its ultimate level of simplicity, gemba kaizen offers the "5S" steps of good housekeeping:
Seire: Distinguish between necessary and unnecessary items in gemba and discard the latter.
Seiton: Arrange all items remaining after seiri in an orderly manner.
Seiso: Keep machines and working environments clean.
Seiketsu: Extend the concept of cleanliness to oneself and continuously practice the above three steps. Shitsuke: Build self-discipline and make a habit of engaging in the 5S by establishing standards.
Western companies typically modify the above approach into the following 5S:
Sort: separate out all that is unnecessary and eliminate it.
Straighten: Put essential things in order so that they can be easily accessed.
Scrub: Clean everything &endash; tools and workplaces &endash; removing stains, spots, and debris and eradicating sources of dirt.
Systematize: Make cleaning and checking routine.
Standardize: Standardize the previous four steps to make the process one that never ends and can be improved upon.
STEPS OF QUALITY IMPROVEMENT
Continuous Improvement Firm (CIF)
CIF is a firm continuously improving on customer value due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs.
The key success factor in this endogenous, incremental and continuous technological and operational change is the organization and management of the firm in such a way that all members are motivated to promote change and are supported in their effort to do so. What is remarkable about the CIF is its ability to operate simultaneously in all innovative arenas: strategy, new products, new technology, new organizational forms, and new customer relationship management.
CIF versus Mass Production (MP) Firms
The ultimate competitive goal of the CIF is the ability to produce consumer goods on a custom basis for immediate delivery at costs lower than those featured by standard MP firms. The key to achieving this flexibility and lower costs lies in the generalization of the work force.
Get Employees Involved
Management consultant Bernie Sender has developed a list of ways to involve employees and to elicit their ideas for improvements:
Challenge employees to seek out empowering role models in the workplace...
Energize Employees
To cope with today's rapid change, organizations need energized people. "Open-book management, employee empowerment, continuous improvement, participative management, and self-directed work teams are all concepts that seek to energize employees by making them a more integral part of the workplace.
Create a Process-managed Enterprise
Enterprise-wide business process management "integrates everyone and everything once; thereafter, process design, transformation and experience take place freely and continuously, not as a series of infrequent, long-winded, piecemeal and distracting "integration projects" for each new process design. In this way, participants truly learn about the process and the side effects of change on the business.
Lean Manufacturing and Six Sigma
Lean manufacturing, supplemented by Six Sigma principles, can help your company attain the goal of continuous improvement – but only when embraced as a core corporate philosophy and rooted in the corporate culture. Management slogans often boil down to little more than platitudes in slick consultancy packaging. But some corporate lingo stands for more than a passing fad.10 "Lean manufacturing", a shorthand for a commitment to eliminating waste, simplifying procedures and speeding up production, is one such concept.
Six Sigma, the quality-assurance principles that are often integrated with lean production and enterprise-wide process management efforts, is another. The principles and techniques that the two terms encompass deliver impressive bottom-line results in industrial manufacturing.
While Production and Quality Management has proven to be an effective process for improving organizational functioning, its value can only be assured through a comprehensive and well thought out implementation process. The purpose of this project is to outline key aspects of implementation of large scale organizational change which may enable a practitioner to more thoughtfully and successfully implement P&Q Management. First, the context will be set. P&Q management is,in fact, a large scale systems change, and guiding principles and considerations regarding this scale of change will be presented. Without attention to contextual factors, well intended changes may not be adequately designed. As another aspect of context, the expectations and perceptions of employees (workers and managers) will be assessed, so that the implementation plan can address them.
Specifically, sources of resistance to change and ways of dealing with them will be discussed. This is important to allow a change agent to anticipate resistances and design for them, so that the process does not bog down or stall. Next, a model of implementation will be presented, including a discussion of key principles. Visionary leadership will be offered as an overriding perspective for someone instituting P&Q Management. In recent years the literature on change management and leadership has grown steadily, and applications based on research findings will be more likely to succeed. Use of tested principles will also enable the change agent to avoid reinventing the proverbial wheel. Implementation principles will be followed by a review of steps in managing the transition to the new system and ways of helping institutionalize the process as part of the organization's culture. This section, too, will be informed by current writing in transition management and institutionalization of change. Finally, some miscellaneous do's and don’ts will be offered.
Production and Quality Management as Large Sale Systems Change
P&QM is at first glance seen primarily as a change in an organization's technology its way of doing work. In the human services, this means the way clients are processed the service delivery methods applied to them and ancillary organizational processes such as paperwork, procurement processes, and other procedures. But TQM is also a change in an organization's culture its norms, values, and belief systems about how organizations function. And finally, it is a change in an organization's political system: decision making processes and power bases. For substantive change to occur, changes in these three dimensions must be aligned: TQM as a technological change will not be successful unless cultural and political dimensions are attended to as well.
Kaizen
Kaizen (改善, Japanese for "change for the better" or "improvement", the English translation is "continuous improvement", or "continual improvement.") is an approach to productivity improvement originating in applications of the work of American experts such as Frederick Winslow Taylor, Frank Bunker Gilbreth, Walter Shewhart, W. Edwards Deming and of the War Department's Training Within Industry program by Japanese manufacturers after World War II. The development of Kaizen went hand-in-hand with that of quality control circles, but it was not limited to quality assurance.
Summary of Kaizen
The goals of kaizen include the elimination of waste (defined as "activities that add cost but do not add value"), just-in-time delivery, production load leveling of amount and types, standardized work, paced moving lines, right-sized equipment, etc. In this aspect it describes something very similar to the assembly line used in mass production. A closer definition of the Japanese usage of Kaizen is "to take it apart and put back together in a better way." What is taken apart is usually a process, system, product, or service.
Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates hard work (both mental and physical), and teaches people how to do rapid experiments using the scientific method and how to learn to see and eliminate waste in business processes.
"Kaizen" is the correct usage. "Kaizen event" or "kaizen blitz" are incorrect usage.
Kaizen is often misunderstood and applied incorrectly, resulting in bad outcomes including, for example, layoffs. This is called "kaiaku" - literally, "change for the worse." Layoffs are not the intent of kaizen. Instead, kaizen must be practiced in tandem with the "Respect for People" principle. Without "Respect for People," there can be no continuous improvement. Instead, the usual result is one-time gains that quickly fade.
Importantly, kaizen must operate with three principles in place: process and results (not results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non-judgmental, non-blaming (because blaming is wasteful).
Everyone participates in kaizen; people of all levels in an organization, from the CEO on down, as well as external stakeholders if needed. The format for kaizen can be individual, suggestion system, small group, or large group.
The only way to truly understand the intent, meaning, and power of kaizen is through direct participation, many, many times.
Lean manufactoring and just in time production are related concepts.
Translation
The original kanji characters for this word are:
In Japanese this is pronounced 'kaizen'.
改 ('kai') means 'change' and
善 ('zen') means 'good'.
In Chinese this is pronounced 'gai shan':
改善 ('gai shan') means 'change for the better' or 'improve'.
改 ('gai') means 'change' or 'the action to correct'.
善 ('shan') means 'good' or 'benefit'. 'Benefit' is more related to the Taoist or Buddhist philosophy, which gives the definition as the action that 'benefits' the society but not one particular individual (i.e. multilateral improvement). In other words, one cannot benefit at another's expense. The quality of benefit that is involved here should be sustained forever, in other words the 'shan' is an act that truly benefits others.
The principles of Kaizen
The emphasis on respect for people, system thinking, process and results focus, as well as a blame-free approach are key characteristics to kaizen. ...
1. Discard conventional fixed ideas.
2. Think of how to do it, not why it cannot be done.
3. Do not make excuses. Start by questioning current practices.
4. Do not seek perfection. Do it right away even if it will only achieve 50% of target.
5. If you make a mistake, correct it right away.
6. Throw wisdom at a problem, not money.
7. Ask 'WHY?" five times and seek root causes.
8. Seek the wisdom of ten people rather than the knowledge of one.
9. Don't ask workers to leave their brains at the factory gate.
KAIZEN is thus a (relatively) low cost, simple, team-based approach. Teams are trained in the techniques and tools of KAIZEN. They then brainstorm improvement ideas and vote on them for priority action. They then create an action/implementation plan which is submitted to management for approval. Assuming it is approved, the team then sets about implementation (with professional help if appropriate). The team then meets weekly to review progress, identify/overcome barriers, celebrate successes, and document the resulting changed processes.
History
In Japan, after World War II, American occupation forces brought in American experts in statistical control methods and who were familiar with the War Department's Training Within Industry (TWI) training programs to restore a war-torn nation. TWI programs included Job Instruction (standard work) and Job Methods (process improvement). In conjunction with the Shewhart cycle taught by W. Edwards Deming, and other statistics-based methods taught by Joseph M. Juran, these became the basis of the kaizen revolution in Japan that took place in the 1950s.
Gemba Kaizen
A term commonly used in Japan is gemba kaizen. It is an expression that conveys commitment to continuous improvement of practices and processes as a business philosophy. Translated to English "gemba" means shop floor and "kaizen" means continuous improvement. This certificate prepares students/workers to actively participate in implementing ongoing, world-class manufacturing activities necessary to keep their company globally competitive now and into the future.
The term "gemba" was introduced to Westerners by Masaaki Imai in 1997 to describe the "real place" where products are developed and made, and where services are provided. Small kaizen enhancements to these key operations will multiply into greater success and profits many times over. One of the more attractive features of gemba kaizen as a management philosophy is its independence from technology, complex procedures, or equipment, because gemba kaizen techniques focus on techniques like total quality management, just-in-time, total product maintenance, and visual management to deliver maximum quality. For some companies, gemba kaizen has become a leading philosophy for implementing "lean thinking" into their processes and products. The result has been elimination of waste (in terms of materials, effort, money, time, etc.) and an improvement in fiscal performance. Not surprisingly, gemba kaizen's approaches to eliminating waste are also one of the easiest and least costly steps to take in improving environmental performance.
The concept of gemba management has its own "golden rules", and the first rule is: when a problem arises, go to gemba first. Much of what occurs in gemba can be passed off as routine, repetitive, and even boring work tasks, but it's amazing how often we tend to overlook the importance of understanding the processes in gemba to financial and environmental performance. To take the concept of gemba performance to its ultimate level of simplicity, gemba kaizen offers the "5S" steps of good housekeeping:
Seire: Distinguish between necessary and unnecessary items in gemba and discard the latter.
Seiton: Arrange all items remaining after seiri in an orderly manner.
Seiso: Keep machines and working environments clean.
Seiketsu: Extend the concept of cleanliness to oneself and continuously practice the above three steps. Shitsuke: Build self-discipline and make a habit of engaging in the 5S by establishing standards.
Western companies typically modify the above approach into the following 5S:
Sort: separate out all that is unnecessary and eliminate it.
Straighten: Put essential things in order so that they can be easily accessed.
Scrub: Clean everything &endash; tools and workplaces &endash; removing stains, spots, and debris and eradicating sources of dirt.
Systematize: Make cleaning and checking routine.
Standardize: Standardize the previous four steps to make the process one that never ends and can be improved upon.
STEPS OF QUALITY IMPROVEMENT
Continuous Improvement Firm (CIF)
CIF is a firm continuously improving on customer value due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs.
The key success factor in this endogenous, incremental and continuous technological and operational change is the organization and management of the firm in such a way that all members are motivated to promote change and are supported in their effort to do so. What is remarkable about the CIF is its ability to operate simultaneously in all innovative arenas: strategy, new products, new technology, new organizational forms, and new customer relationship management.
CIF versus Mass Production (MP) Firms
The ultimate competitive goal of the CIF is the ability to produce consumer goods on a custom basis for immediate delivery at costs lower than those featured by standard MP firms. The key to achieving this flexibility and lower costs lies in the generalization of the work force.
Get Employees Involved
Management consultant Bernie Sender has developed a list of ways to involve employees and to elicit their ideas for improvements:
Challenge employees to seek out empowering role models in the workplace...
Energize Employees
To cope with today's rapid change, organizations need energized people. "Open-book management, employee empowerment, continuous improvement, participative management, and self-directed work teams are all concepts that seek to energize employees by making them a more integral part of the workplace.
Create a Process-managed Enterprise
Enterprise-wide business process management "integrates everyone and everything once; thereafter, process design, transformation and experience take place freely and continuously, not as a series of infrequent, long-winded, piecemeal and distracting "integration projects" for each new process design. In this way, participants truly learn about the process and the side effects of change on the business.
Lean Manufacturing and Six Sigma
Lean manufacturing, supplemented by Six Sigma principles, can help your company attain the goal of continuous improvement – but only when embraced as a core corporate philosophy and rooted in the corporate culture. Management slogans often boil down to little more than platitudes in slick consultancy packaging. But some corporate lingo stands for more than a passing fad.10 "Lean manufacturing", a shorthand for a commitment to eliminating waste, simplifying procedures and speeding up production, is one such concept.
Six Sigma, the quality-assurance principles that are often integrated with lean production and enterprise-wide process management efforts, is another. The principles and techniques that the two terms encompass deliver impressive bottom-line results in industrial manufacturing.