Lecture 5 : Opertational Improvement Perspectives

Question 1

What is operational improvement

Answer 1

Developing operational capabilities to further improve performance

Question 2

Qualifying management (three approaches)

Answer 2

Three approaches to understanding quality management as an improvement strategy:

• The manufacturing-based approach assumes quality is all about making or providing error-free products or services

-The user-based approach assumes quality is all about providing products or services that are fit for their purpose

• The product-based approach views quality as a precise and measure able set of characteristics

Question 3

Improving productivity

Answer 3

Generating more output from the same or fewer inputs

Every organisation is interested in improving its productivity:
o Reduce the cost of operations
o Improves efficiency of plant and people
o Requires less working capital
o Higher level of quality for lower costs

Question 4

Improving productivity approaches

Answer 4

Benchmarking

Statistical process control (SPC)

Six Sigma

Business process reengineering (BPR)

Question 5

Benchmarking

Answer 5

process of identifying best practices by comparing critical processes within one’s company with that of other organisations both within snd outside the industry

Plan > Do > Check > Act (PDCA)

Question 6

Statistical process control (SPC)

Answer 6

A method of collecting measured data about the operational process to see if quality standards are being met or whether corrections needed

Question 7

Six Sigma

Answer 7

A structured approach to solving specific problems, using DMAIC framework (define, measure, analyse, improve, control)

Question 8

Business Process Re-engineering (BPR)

Answer 8

Radical redesign of existing business processes to achieve breakthrough improvements by focusing on critical performance criteria

Question 9

Measure performance

Answer 9

Performance can be measured by finance, the level of operation, customer feedback and employee statistics/feedback

Question 10

To improve performance measurement measure with:

Answer 10

o Market – tracking our ability to respond to market dynamics
o Stakeholders – understanding the diversity if expectations
o Strategic – nature of our competitiveness
o Resource
o Sustainability
o Operations

Question 11

Operational improvement – Two different approaches

Answer 11

1. Breakthrough improvement: an approach to operations improvement that implies major and dramatic change in the way the operations work (jagged improvement)
2. Continuous improvement: an approach to operations improvement that assumes many, relatively incremental improvements in performance (steady improvement)

Question 12

Operational excellence

Answer 12

• Where the core operational functions are so weak planned and controlled that the business as a whole has excellent reputation
• It is built in well developed and managed operational processes