MODERN PRACTICES IN MANAGEMENT IN INDUSTRY

MODERN PRACTICES IN MANAGEMENT IN INDUSTRY

1. ChaptER 3MODERN PRACTICES IN MANAGEMENT TOTAL QUALITY MANAGEMENT (TQM) KAIZEN LEAN MANAGEMENT

2. Success of a company relies on continuous quality improvement through Total Quality Management (TQM) . TQM implementation requires the participation and action of everyone in the company . The need is for integrated TQM , with teams working together across all departments. Total Quality Management

3. Customer expectations Problem prevention Building a commitment to quality among all managers and staff Promoting open and transparent decision-making . TQM focuses on:Customer

4. involves organization-wide efforts to create a permanent culture of continuous improvement . The goal is to improve the organization’s ability to deliver high-quality products and services to customers . There is no single agreed-upon approach to implementing TQM . TQM efforts often rely on previously developed quality control tools and techniques . Total Quality Management (TQM)

5. “Total” indicates that all employees at every level and function of the organization are involved in pursuing quality . “ Quality” refers to achieving excellence in every aspect of the organization . “ Management” signifies achieving quality results through a quality management process .This process begins with strategic management and spans all areas, including product design, manufacturing, marketing, and finance . TQM integrates previous definitions of quality into a continuous improvement process. Total Quality Management (TQM)

6. "A management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization. British Standards Institution  

7.  Product  Process  System  People  Leadership Five Pillars of TQM are ,

8. “Total Quality Management is an effective system for integrating the quality development, quality maintenance and quality improvement efforts of various groups in an organization continuously, so as to enable marketing, engineering, production and service at the most economic levels which allow for full customer satisfaction.”

9. The fundamental concepts, practices, and characteristics of TQM are as follows. 1. Create constant purpose toward quality improvement of products and service. 2. Adopt the new concept of ‘zero defect’ that we no longer accept the commonly accepted levels of delays, mistakes, and defective products. 3. Stop the dependence on mass inspection of quality control to achieve the quality assurance; instead, set up the built-in quality system in the production processes. 4. Cease the practice of material purchases based on the decision of the price alone. 5. Use statistical methods to find the root causes of the problems and ultimately eliminate these problems. The fundamental concepts, practices, and characteristics of TQM are as follows.

10.   Customer satisfaction oriented benefits 1. Improvement in product quality 2. Improvement in product design 3. Improvement in production flow 4. Improvement in employee morale and quality consciousness 5. Improvement in product service 6. Improvement in market place acceptance Benefits of TQM

11. 1. Reduction in operating costs 2. Reduction in operating losses 3. Reduction in field service costs 4. Reduction in liability exposure. Economic improvement oriented benefits :

12. Kaizen focuses on creating continuous improvement through small, ongoing positive changes . It relies on cooperation and commitment rather than radical changes or top-down directives . Core to lean manufacturing and The Toyota Way . KAIZEN Management

13. Reduce defects Eliminate waste Boost productivity Encourage worker purpose and accountability Promote innovation Developed in the manufacturing sector to

14. 1. Let go of assumptions. 2. Be proactive about solving problems. 3. Don't accept the status quo. 4. Let go of perfectionism and take an attitude of iterative, adaptive change. 5. Look for solutions as you find mistakes. 6. Create an environment in which everyone feels empowered to contribute. 7. Don't accept the obvious issue; instead, ask "why" five times to get to the root cause. 8. Cull information and opinions from multiple people. 9. Use creativity to find low-cost, small improvements. 10. Never stop improving . Ten principles of Kaizen

15. Reducing Waiting Time: In a hospital setting, Kaizen might involve small changes to reduce patient wait times, such as rearranging the scheduling process or reconfiguring the layout of the waiting area. Workstation Optimization: In a manufacturing plant, adjusting the placement of tools and materials to minimize the time workers spend reaching for them can boost productivity and reduce motion waste. 5S Implementation: Organizing the workplace through the 5S methodology (Sort, Set in order, Shine, Standardize, Sustain) helps maintain cleanliness and efficiency, improving workflow. Error Proofing (Poka-Yoke): Introducing a simple system to prevent errors, like color-coded parts or labels, can help reduce defects and mistakes in production. Employee Suggestions: Encouraging employees to provide small, actionable improvement ideas regularly can lead to innovations in efficiency and quality. Example of Kaizen

16. Lean management supports the concept of continuous improvement . It takes a long-term approach to work, focusing on small, incremental process changes . The goal is to improve efficiency and enhance quality systematically. Lean Management:

17. Produce value for the customer by optimizing resources . Create a steady workflow aligned with real customer demands . Focus on eliminating waste of time, effort, or money . Identify each step in a business process and revise or remove non-value-adding steps .Lean management has its roots in manufacturing . Lean Management

18. Lean management focuses on: Defining value from the standpoint of the end customer. Eliminating all waste in the business processes. Continuously improving all work processes, purposes and people Lean Management

19. Lean management facilitates shared leadership and responsibility; continuous improvement ensures that every employee contributes to the improvement process. The management method acts as a guide to building a successful and solid organization that is constantly progressing , identifying real problems and resolving them Lean Management

20. 1. Identify value 2. Value stream mapping 3. Create a continuous workflow 4. Establish a pull system 5. Facilitate continuous improvement 5 principles of lean management

21.  A more intelligent business process - The pull system ensures work is only carried out when there is an actual demand and need for it.  Improved use of resources - The pull system also ensures the organization is only using resources when they are needed since it operates based on real customer demand.  Improved focus - Lean management decreases the amount of wasteful activities, therefore allowing the workforce to increase their focus on tasks that produce value. Enhanced productivity and efficiency - Improved focus leads to a more productive and efficient workforce since attention is not given to unnecessary activities . Benefits of lean management

22. Reducing Waste in Manufacturing: A car manufacturing company implements lean practices by using just-in-time (JIT) production, ensuring materials and parts are delivered only when needed. This reduces excess inventory and storage costs, leading to more efficient resource use. Improving Healthcare Efficiency: A hospital applies lean management by streamlining its patient admission process , eliminating unnecessary paperwork, and reducing redundant steps. This results in faster admissions, reducing patient wait times and improving overall service. Optimizing Supply Chain: A retailer adopts lean management by analyzing its supply chain and removing inefficiencies, such as consolidating shipments and reducing lead times. This lowers costs and ensures a steady, responsive supply based on actual customer demand. Minimizing Defects in Production: A smartphone company uses lean techniques to introduce quality control checks at every stage of production, reducing the number of defective products reaching the market and saving time on rework. Reducing Overproduction in Food Service: A restaurant implements lean management by preparing meals based on customer orders rather than pre-cooking large batches, reducing food waste and improving freshness. Examples of Lean Management

23. Kaizen and Lean Management both originated in Japan (Toyota) and are closely tied to continuous improvement and waste elimination . TQM has roots in both the U.S. and Japan , focusing on total organizational quality improvement and customer satisfaction. Origin

24. 1. What is Tqm? 2. What is Kaizen? 3. What is Lean Management ? Answer the questions briefly ang give atleast one company of each. Upload your answers in gclassroom. Questions

25. ETHICS AND SOCIAL RESPONSIBILITY Chapter 4

26. Ethics is not a recent phenomenon; it has evolved alongside human civilization . Ethical codes were developed as people distinguished between right and wrong actions . The distinction between right and wrong led to the creation of ethical and unethical codes . ETHICS AND SOCIAL RESPONSIBILITY

27. The word ethics is derived from the Greek word ‘Ethikos ’ and Latin word ‘Ethicus ’ mean custom or character. The concept of ethics deals with human beings. So it is a social science. Ethics is a branch of philosophy and is considered as normative science because it is concerned with norms of human beings ETHICS AND SOCIAL RESPONSIBILITY