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Mar 20, 2009

Operations Management

Eliminate Numerical Quotas:

Deming advocates the removal of quotas, ecause the! end up encouraging people tofocus on quantit! often at the e"pense of qualit!# $ompanies should focus on qualit!issues instead of lindl! pursuing numers#

Dued %irline of the &ear ! %ir transport 'orld in (eruar! )99) and ran*ed numerone in all $onsumer +eports airline categories, %las*a %irlines relies on high servicequalit! to gro profits# %lthough the airline industr! as a hole lost more than -. illionin )990, %ir %las*a posted profits of -)/ million# Once referred to as Elastic %irlines1for frequentl! running late and often changing flight schedules, %las*a %irlines nostresses punctual performance and customer service# (ocusing on qualit!, not quantit!enales the compan! to attract profitale, full fare usiness fliers# (or more than ten

!ears, revenues of the %las*a %ir roup have gron at a rate of more than 23 percent a!ear, to - )#0. million in )990#

+emove 4arriers to pride of 'or*manship:

Deming maintains that annual rating or merit s!stems should e eliminated# 5f peopleinherentl! ant to perform ell, as Deming assumes, then the! do not need suchincentive s!stems# 'hat the! need is assistance in over coming ostacles imposed !inadequacies in Materials, equipment, and training# 6!stems that endeavor to removesuch ostacles should replace s!stems that attempt to coerce performance ! ma*ingor*ers feel that the! are ala!s eing 7udged, ran*ed, and rated#

% lean or*force of ).0 full! empoered emplo!ees produces air conditionercompressors in $arrier $orporation8s %r*adelphia, %r*ansas, plant# Empoered plantemplo!ees do not punch a time cloc* or have to prove illness of asent#

he empoered, team ased or*force in $arrier8s highl! automated plant is e"tremel!fle"ile# 'or*ers are trained in several 7o assignments and can fill in at numerous pointson the asseml! line# Often, emplo!ees intervie their prospective managers# hemanager ill not e hired if emplo!ees decide the compatiilit! eteen the managerand or*ers is not 7ust right#

5nstitute a vigorous rogram of Education and training:

Deming emphasi;es training# his includes a thorough foundation in the tools andtechniques of qualit! control, as ell as additional instruction in teamor* and thephilosoph! of QM culture#

5nfiniti, the lu"ur! car division of Nissan Motor $ompan!, runs a si" da! camp for dealerpersonnel# he goal of the innovative training program is to ma*e 5nfiniti dealership

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unequalled in the treatment of customers# he car ma*er requires that all dealeremplo!ees, even cler*s and receptionists, attend the training programs conducted ever!other !ear in hoeni" %ri;ona# %ttendees are taught to change their attitudes and nolonger thin* of dealership visitors as tire *ic*ers1 or mere customers# 5nstead, potentialcar u!ers are to e treated as honored guests# 5n !tec, a )99) 4aldrige inner has revamped its entire strategic planning process in order

to achieve the highest level of qualit! possile# he compan! uses formal and informalmeans to collect data from customers for mar*et research and to help it improve its onoperations# % five !ear strategic plan is developed ! si" cross functional teams, and thenrevieed and critiqued ! aout 20 percent of the compan! ?).0 emplo!ees@ A from allshifts, departments and e"pertise# (eedac* on the plan is also solicited from a handful ofcustomers and suppliers efore it is finali;ed ! >!tee e"ecutives#