human resources and tqm

8/12/2019 Human Resources and TQM

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HUMAN RESOURCES

YEAR 2TQM YEAR 4


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Human Resources


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Production Staffing


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Recruiting & Separation

Costs

Recruiting costs Incurred when new workers are hired. Recruiting costs

average $1,000 per worker.

Decreasing Production Schedules, whether it is because capacity has been

sold, or production curtailed to sell excess inventory, willresult in lay-offs.

Separation Costs

Generated when workers are laid-off. Separation costsaverage $5,000 per worker.


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Recruitment

$2,000 has been entered in Recruiting Spend, theamount of money spent per worker to attract ahigher caliber worker.

Note: In this example the Productivity Index remains at 100%. As the rounds progress,

Recruiting Spend and Training Hours expenditures will increase the Productivity Index.


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2nd Shift and Overtime

Your plant has one production line for each product. Each line contains workstations, and a worker staffs each

station.

Each line has a capacity, which is defined as the number of

units that can be produced per year with a single shift. The plant can work into the night by adding workers

to a 2nd shift. 2nd shift labor costs are 50% more than 1st shift labor costs.

If you schedule a production run in excess of your 1st shiftcapacity, a 2nd shift or overtime will be required.

Increasing capacity will reduce the number of workerson the 2nd Shift, and therefore decrease labor costs. Increasing capacity will not decrease the overall Needed

Complement, it will simply move 2nd Shift workers to the 1stShift.


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2nd Shift and Overtime

Production schedule set to 1550.

The Staffing area reflects the informationthat has been entered on the Production

schedule. The Needed Complement is now 298, but the

Complement has held steady at 248.

Overtime has jumped to 32.6%.

The Turnover Rate has gone to 13.3%

workers are leaving because they aredisgruntled about the Overtime.


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Total Quality Management


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Yearly investments of< $250,000 will create littleimprovementYearly investments above$1,000,000 producesabsolutely no additionalbenefitInvesting more than$2,000,000 in the sameinitiative over 2- 3 yearperiod creates little or no

additional improvement


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Process Management

Initiatives

These initiatives improve business procedures,resulting in improved efficiencies and cost structures

CPI (Continuous Process Improvement) Systems-Reduces Material cost and to a lesser degree Labor costs

Vendor/JIT (Just in Time [Inventory])- Reduces Materialcosts and Administrative overhead

QIT (Quality Initiative Training) - Reduces Labor costs

Channel Support SystemsIncreases the effectiveness ofthe Sales Budget, and therefore demand

Concurrent Engineering- Reduces R&D cycle time, thetime needed to move products on the Perceptual Map and tochange MTBF specifications.


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Continuous Process

Improvement

A processis a series of progressive andinterdependent steps by which an end is attained.

Continuous Process Improvement (CPI) is a strategicapproach for developing a culture of continuousimprovement in the areas of: reliability

process cycle times

costs in terms of less total resource consumption

quality, and productivity.

Deployed effectively, it increases quality andproductivity, while reducing waste and cycle time.


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Just in Time Inventory

Just-in-Time inventory system is designed toensure that materials or supplies arrive at a facility

just when they are needed so that storage andholding costs are minimized.

The Just-in-Time system requires considerablecooperation between the supplier and thecustomer. The customer must specify what will be needed, when, and

in what amounts. The supplier must be sure that the right supplies arrive at

the agreed-on time and location.


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Quality Initiative Training

Leaders of quality initiatives (project managers,managers, and senior leaders) develop useful andrelevant knowledge and skills to ensure that companyresources and efforts are utilized in the most effectivemanner.

Leaders gain useful and skill based learning in thesecore quality leadership areas: Leading Teams Through Quality Initiatives

Quality Philosophies and Approaches and Lessons Learnedat Other Firms

Customer Needs and Expectations

Quality Improvement Management Systems

Ethical Decision Making


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Channel Support Systems

Support system to facilitate information sharing thatincreases productivity and profitability, untangling theweb that once blocked the transfer of information. Predictive modeling.Determine how to market the right

product to the right person at the right price and the right time.

Customer, product and business line profitability.Identifythe customer, product, organization and business lineprofitability bottom line.

Product development and creation. Determine whatproducts will sell; define the distinctive product characteristics

and pricing. Target marketing.Sell the right product to the right person at

the right time at the appropriate return.

Sales execution and tracking. Collect information pertainingto who sells what product to whom, when and where.


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Concurrent Engineering

Concurrent engineering is a business strategy replaces the traditional product development process with one in

which tasks are done in parallel

there is an early consideration for every aspect of a product'sdevelopment process.

Concurrent engineering provides a collaborative, co-operative, collective and simultaneous engineeringworking environment.

The concurrent engineering approach is based on five

key elements: a process

a multidisciplinary team

an integrated design model

a facility

a software infrastructure


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TQM Initiatives

These initiatives improve product quality whilereducing the time and resources required todesign, manufacture, warehouse and ship

products. Benchmarking- Reduces Administrative overhead

Quality Function Deployment Effort -Reduces R&Dcycle time and enhances the effectiveness of the Promo

and Sales Budgets

CCE (Concurrent Engineering)/6 Sigma Training -Reduces Material costs and Labor costs.

GEMI TQEM Sustainability Initiatives - ReducesMaterial costs and Labor costs.


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Benchmarking

A process in which organizations evaluate variousaspects of their processes in relation to best practice,usually within their own sector.

This allows organizations to develop plans on how toadopt such best practice, usually with the aim ofincreasing some aspect of performance.

Benchmarking may be a one-off event, but is oftentreated as a continuous process in which organizations

continually seek to challenge their practices.


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Benchmarking Procedure

Identify your problem areas

Identify other industries that have similar

Identify organizations that are leaders in these areas

Survey companies for measures and

Visit the "best practice" companies to identify leading

edge practices

Implement new and improved business practices


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Quality Function Deployment

Effort

Flexible and comprehensive group decision makingtechnique used in product or service development,brand marketing, and product management.

QFD transforms customer needs into engineering

characteristics of a product or service, prioritizing eachproduct/service characteristic while simultaneously settingdevelopment targets for product or service development.

QFD can strongly help an organization focus on the criticalcharacteristics of a new or existing product or service from the

separate viewpoints of the customer market segments,company, or technology-development needs.


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Six Sigma Training

Six Sigma is a management technique that aims todevelop and deliver near perfect products and services.

"Six Sigma" refers to statistical constructs that measurehow far a given process deviates from perfection.

Processes are designed from the perspective of thecustomer and are enabled by a commitment to thinkingin terms of processes across the organization.

Metrics such as performance, reliability, price, on-timedelivery, service and accuracy provide the targets.

human resources and tqm

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