BRIGHT NSIAH FORDJOUR INNOVATION IN BUSINESS CREATION AND MANAGEMENT

Business and Quality Improvement Programs  A business can be defined as an organization that provides goods and services to others who want or need them.  Many managers have learned that cherished ways of doing business don't work any more and that major changes must be made in how organizations are managed and in how work gets doneorganizations

Revolution of Business and Quality improvement Programs  Since the early 1980s, many companies have gone through several waves of Business and Quality improvement programs  Starting with Just-In-Time (JIT) and passing onto Total Quality Management (TQM), Process reengineering, and various other management programs-including in some companies The Theory of Constrains (COT)Just-In-Time (JIT)Total Quality Management (TQM) Process reengineeringTheory of Constrains (COT)

Types of Quality Improvement Programs  Just in time (JIT) manufacturing system Just in time (JIT) manufacturing system  KANBAN KANBAN  Total quality management (TQM) system Total quality management (TQM) system  Six sigma Six sigma  Business process reengineering (BPR) Business process reengineering (BPR)  Theory of constraints (TOC) Theory of constraints (TOC)

Just in time manufacturing and inventory control system  Just-in-time (JIT) is defined as “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity  Just In Time (JIT) is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand

Key elements of JIT  Reduce or eliminate setup times  Reduce lot sizes (manufacturing and purchase)  Reduce lead times (production and delivery)  Preventive maintenance  Flexible work force  Require supplier quality assurance and implement a zero defects quality program

Kanban Production Control  A kanban or “pull” production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center.  A Kanban system is a means to achieve just in time (JIT) production

 As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container.  It identifies the part number and container capacity, along with other information, and is used to provide an easily understood, visual signal that a specific activity is required.

There are two main types of kanban:  1. Production Kanban : signals the need to produce more parts  2. Withdrawal Kanban (also called a "move" or a "conveyance” kanban): signals the need to withdraw parts from one work center and deliver them to the next work center.

Total Quality Management (TQM) System  Total quality management (TQM) is an improvement program which provides tools and techniques for continuous improvement based on facts and analysis  If properly implemented, it avoids counterproductive organizational infighting..

Characteristics of total quality management  A focus on serving customers and  Systemic problem solving teams made up of front line workers

Advantages of TQM  Improves reputation- faults and problems are spotted and sorted quicker (zero defects)  Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM  Lower costs – Decrease waste as fewer defective products and no need for separate  Quality Control inspectors

Disadvantages of TQM  Initial introduction costs- training workers and disrupting current production whilst being implemented  Benefits may not be seen for several years  Workers may be resistant to change – may feel less secure in jobs

“SIX SIGMA” – The statistical representation  Six Sigma is a process of quality measurement, which helps the organization in the improvement of their quality.  Six Sigma is a systematical process of “quality improvement through the disciplined data- analyzing approach, and by improving the organizational process by eliminating the defects or the obstacles which prevents the organizations to reach the perfection”.

Advantages of Six Sigma  The Six Sigma ensures the quality control, total quality management and zero defects.  Through the implementation of the Six Sigma it is made sure that the goals are set on the improvement of all processes to reach the level of better quality.  “The Six Sigma” shows the organization’s ability of highly capable processing in producing the outputs within the limited specifications.

Business ProcessReengineering  The analysis and design of workflows and processes within an organization.  A business process is a set of logically related tasks performed to achieve a defined business outcome.  Re-engineering is the basis for many recent developments in management.

 Business Process Reengineering (BPR) began as a private sector technique to help organizations fundamentally rethink how they do their work in order to dramaticallyorganizations  improve customer servicecustomer service  cut operational costsoperational costs  and become world-class competitorscompetitors

 A key stimulus for reengineering has been the continuing development and deployment of sophisticated information systems and networks.information systemsnetworks  Leading organizations are becoming bolder in using this technology to support innovative business processes, rather than refining current ways of doing work

Theory of constraints(TOC) The underlying premise of Theory of Constraints is that organizations can be measured and controlled by variations on three measures: throughput, operating expense, and investment. Throughput is money (or goal units) generated through sales. Investment is money the system invests in order to sell its goods and services. Operating expense is all the money the system spends in order to turn the investment into throughput.

 A constraint is anything that prevents the system from achieving more of its goal  Constraints can be internal or external to the system  An internal constraint is in evidence when the market demands more from the system than it can deliver.  An external constraint exists when the system can produce more than the market will bear. If this is the case, then the organization should focus on mechanisms to create more demand for its products or services.

Types of (internal) constraints  Equipment: The way equipment is currently used limits the ability of the system to produce more salable goods / services.  People: Lack of skilled people limits the system. Mental models held by people can cause behavior that becomes a constraint.  Policy: A written or unwritten policy prevents the system from making more.