MADM 428 quiz 5
14 points of management Website: Dr. Deming's 14 Points for Management https://deming.org/explore/fourteen-points/
1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change. 3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust. 5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 6. Institute training on the job. 7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers. 8. Drive out fear, so that everyone may work effectively for the company. 9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11a. Eliminate work standards (quotas) on the factory floor. Substitute leadership. 11b. Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 12a. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 12b. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job
Procedures Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
A procedure describes the sequence of activities, or set of actions, which is the official, or accepted, way of doing something. Essentially, a procedure is how a process needs to be done. It ensures you get a consistent outcome. An effective procedure will contain elements such as: Purpose - why the procedure is required Scope - what needs to be accomplished People - who will perform the action Location - where an activity is performed Resources - what inputs are needed Customer - who gets the outputs Measurement - how do you know it is effective Terms - key definitions and terminology An added benefit of procedures is their use as training tools. Experienced employees become better through the deeper thinking required to write a procedure. New employees learn quicker when a logical and well written procedure is used for the onboarding process.
Instructions Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
A work instruction is the detailed description of how to perform a task. It is step-by-step and much more detailed than a procedure. Work instructions should be very detailed and explain how to accomplish a specific task. They may also be supplemented with additional documentation, such as technical manuals, support notes, and specifications. Many software tools now have the instructions built into the help menu. A typical work instruction: Contains fewer than 10 separate actions Outlines a task to be performed by 1 person from start to finish Requires a relatively short time period to complete Leverages visual aids to show the work rather than words which describe the work Many organizations create work instructions to match the specific tasks referenced in a procedure. This can also clarify who is responsible for doing each task.
Illustrative Example: Onboarding a Client at an E-Commerce Professional Services Agency Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
An e-commerce creative agency executive recently outlined the details of his firms "client onboarding" procedure. He asserted that, if he were starting all over again, this would be the first business procedure he would put in place. The reasoning is how his firm's first interactions with clients sets the tone for the rest of the relationship. He outlined his firm's business onboarding process: As soon as the prospect becomes a client, we send them a welcome email with what's next and what to expect during our engagement. This email sets the tone, and even includes a personalized thank you video, and a link to schedule the kickoff call. Internally, we create all the project documents and folders needed, send the invoice, and finalize the project timeline and who's going to be involved. Once the kickoff call is scheduled, we send another email with all the systems and data we need access to in order to perform our work and achieve the desired outcomes. During the kickoff call, we determine key measures of success and establish timelines. We also schedule a fixed time for weekly check-in calls. We send them a company questionnaire to understand how they see their business, their strengths, challenges, and their customers. The above is only a summary, as the full process is many pages long and highly contextual to the company. It is also important to realize this process is always being updated and improved. With this process, the agency ensures every new project is organized and gets kicked off in a manner which provides a great start for new client relationships. Additional Examples: Disposal of hazardous materials Predictive maintenance of equipment Managing supplier scorecards Responding to a request for proposal Annual strategic planning Changing over an operating room Creating and processing expense reports
Additional Examples Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
Approval required for granting large price discounts in order to win new business Authorization required for issuing large value purchase orders Acceptable and unacceptable internet, email, and social media usage for personal purposes at work Customer meals and entertainment over $300 must be approved in advance Quarterly financial results will be reported within 14 days from the end of the quarter The organization's carbon footprint will be reported to the Carbon Disclosure Project once a year Approval is required before any air freight shipment of an order to a customer or from a supplier
Set the Objectives Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
As an effective coach, managers need to clearly state the expectations of the employee from the beginning. Start small and focus on two to three objectives that each employee should focus on for the duration of your performance meetings. For example, if an employee has trouble staying on task with responsibilities, you may begin by saying, "I understand that it may be difficult for you to manage your time, however, the fact remains that you are expected to complete your responsibilities on time and you haven't been doing so lately." But don't just stop there. Continue to provide feedback that can assist employees toward better improvement. About two-thirds of employees want to hear timely constructive feedback. For example, if your employee is struggling managing tasks, suggest keeping a to-do list of daily tasks. To-do lists help prioritize important responsibilities, while also ensuring that nothing important is forgotten. The better the feedback, the more likely the employee is to reach their goals
Illustrative Policy Example: Herman Miller Supplier Code of Conduct Policy Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
As industry leader in high end commercial furniture, Herman Miller, holds itself and its suppliers to a high standard in relation to conducting business in an ethical and socially responsible manner. The following policy documents the company objective of maintaining the leading position in the commercial furniture industry. This clear and comprehensive policy communicates the company's vision to customers, investors, employees, suppliers, and other stakeholders. Herman Miller, Inc., and its subsidiaries ("HMI") are committed to conducting business in an ethical, legal, environmentally sustainable, and socially responsible manner. HMI expects its suppliers to share its commitment to creating a Better World with the goals of reducing waste, using resources responsibly, supporting workers' rights, and advancing the welfare of its workers and the community. HMI expects its suppliers to adopt sound labor practices and treat their workers fairly in accordance with local laws and regulations. In addition, suppliers must comply with the following standards: Freely Chosen Employment No Child Labor Minimum Wages Working Hours No Harsh, Inhumane Treatment or Abuse No Discrimination Freedom of Association
Back to Reality Website: Quality Disaster at Pet Store https://transformance.biz/portfolio/quality-disaster-at-pet-store
As my daydream wound down, I realized the store manager was talking to me. Something about "let's go look at the retractable leashes and find a replacement". Jim was about to break the rules. He walked me over to the leash isle and explained that my "premium" brand had a reputation for failure. Jim told me I could exchange my broken leash - only if I would take a different brand that was higher quality. I compared my broken leash with the other brand and could see the difference in quality. For some bizarre reason, the two products were priced exactly the same. I went back to my dream and thought about some lazy pricing manager back at HQ; why would you stock two similar items with a huge quality variance and price them the same?
Gather, Analyze, and Interpret Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
Before HR managers can make headway on developing a strategic plan to improve individual employee performance, it'll be important for managers first to gather, analyze, and interpret the performance data of each employee. Each insight allows managers to uncover underlying performance gaps and hone in on individuals' key strengths and weaknesses. Many performance issues include but aren't limited to: Poor prioritizing or scheduling of work priorities Misunderstanding of the job role outcomes/expectations Lost time (absenteeism) Lack of employee engagement Once issues are addressed with the employee, highlight proactive opportunities for future improvement through a step-by-step process. Utilizing metrics such as KPIs, allow managers to focus on aligning employee behaviors with measurable factors that are linked to the drivers of business success
Why Development Conversations Matter Website: How to Have Successful Employee Development Conversations https://lattice.com/library/how-to-have-successful-employee-development-conversations
Before we dive into how to have effective employee development conversations, let's explore why these conversations are so important in the first place. From your employees' perspective, development conversations show your team that you're invested in them beyond just their daily to-do lists." Employee development conversations...show the employee that their manager and leadership care about their development at the company beyond just the day-to-day work," said Christopher Connors, executive coach and author of Emotional Intelligence for the Modern Leader. Career development conversations also shed light on what your employees need to feel fulfilled and engaged at work "If you don't develop employees to understand their full potential and help them grow...employees will leave organizations due to boredom, become subpar performers, or merely 'show up' to collect a paycheck," said LaShawn Davis, MSHRM, SHRM-SCP, founder of The HR Plug, a company that provides a variety of HR services to both employers and employees. "[As a result], companies will lack competitiveness, innovative solutions, profitability, and the ability to thrive." Taking the time to have employee development conversations can help you structure your employee's role to support their goals, which in turn will enable you to improve retention and keep top talent on your team. This is a win-win: It will not only foster your employee's growth, but your company's growth, and ultimately success, as well.
Open the Floor Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
Being an effective leader for your employees requires both encouragement and empowerment. During one-on-one meetings, employees are likely to have a lot of input, questions, and feedback. During this time, it's important as an HR manager that you care enough to listen to what they have to say and encourage them to ask questions and to share their opinions. Remember, coaching is a two-way street. In the end, it takes both the manager and the employee to be fully dedicated to improving efficiency.
Coaching Strategies for Performance Improvement Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
By combining the two main aspects of coaching, feedback and goal setting, employees are presented a concrete roadmap of performance initiatives that they want to achieve, along with developmental training on how they can succeed throughout their role. Professional coaching isn't about dictating to employees what you want to see; instead, it's about working together to construct a performance improvement plan. Anyone can be a coach, especially HR leaders. By applying a step-by-step process, HR managers can improve the performance of individual team members to get the results your organization needs. Not sure if your HR managers have the right skills to manage your teams? Fear not! Learn how performance #data and the power of #coaching are transforming the way your organization can succeed in @ClearCompany's latest post:
Monitor and Follow-up Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
Coaching is not one time-evaluation, but an ongoing process. Set a date and time for the next follow-up meeting with your employee. By continually assessing employees' performance, determine if additional critical feedback is needed for further improvement. Businesses with a strong learning culture have employee engagement and retention rates around 30-50% higher than those who don't. As employees' continue on their path for enhanced development, offer positive reinforcement along the way to show that you are supportive of their progress and committed to helping them reach their goal. When providing critical feedback, propose an objective. For example, if your employee has trouble managing their tasks, ask them to list six top priority tasks to complete each day. As you continue to monitor your employee's progress, provide positive feedback throughout the process. For example, "I can see by organizing your top priority tasks for the day, your productivity has increased by 20%. Keep up the great work!" Ultimately, this will inspire and motivate employees to perform better. Let them know that he or she is being graded for his performance. Make sure they understand every aspect of what you require and desire, and that you are there to guide and help them towards their path of success
Website: Dr. Deming's 14 Points for Management https://deming.org/explore/fourteen-points/
Dr. W. Edwards Deming offered 14 key principles for management to follow to significantly improve the effectiveness of a business or organization. Many of the principles are philosophical. Others are more programmatic. All are transformative in nature. The principles (points) were first presented in his book Out of the Crisis. As noted by Dr. Deming in The New Economics, "My 14 Points for Management follow naturally as application of the System of Profound Knowledge for transformation from the present style of management to one of optimization." Below is the condensation of the 14 Points for Management as they appeared in the book, with hyperlinks to related blogs, podcasts, videos, and articles featured elsewhere on our website as well as YouTube channel. As you review the 14 Points, for the first time or tenth time, we invite you to explore the links to enhance your appreciation of Dr. Deming's theory of management. As noted in John Hunter's blog post: "The 14 points are practices that should be followed. Dr. Deming continued to edit and clarify the 14 points in his seminars and writing. However, the list format didn't emphasize the importance of a management system. The book actually has quite a bit of detail that helps expand upon the meaning of the 14 Points; but so often people are presented with the 14 points without any of the context Deming provided. Without the additional information, the 14 Points are not nearly as useful as when the context he put them in is studied."
The Benefits of Development Conversations Website: How to Have Successful Employee Development Conversations https://lattice.com/library/how-to-have-successful-employee-development-conversations
Employee development conversations help you, as a manager, support your employees in achieving their career goals. But these conversations really empower your team members to be their best at work, and build careers that feel fulfilling and authentic. "Development is not just about a promotion or the next position," said Davis. "It's about stretching the abilities and talents employees have. It's about challenging them to think differently, take bold risks, and develop themselves, which by default will bring value to the organization. It's about reminding them who they are, what they bring, and what they can accomplish, and coaching them to produce and strengthen and develop those skills."— When you hire a new employee, you're bringing them on to do a specific job. But as a manager, it's your responsibility to help them reach their full potential. Employee development conversations are essential if you want to help your employees identify their goals, realize their potential, and grow as professionals. Now that you know how to have effective, productive employee development conversations, you're armed with the information you need to engage in the kinds of discussions that will inspire the best in your team — while bringing out the best in you as a manager.
How to Have These Conversations Successfully Website: How to Have Successful Employee Development Conversations https://lattice.com/library/how-to-have-successful-employee-development-conversations
Having career development conversations with your employees is a must. But just haphazardly doing them isn't enough. If you want these conversations to provide the information you need to truly support your employees' growth and career goals, you need to do them right. Here are a few expert tips for conducting effective and productive employee development conversations. 1. Connect with employees about their development.: An employee's goals, ambitions, and career trajectory will change over time. So as a manager, if you truly want to develop their career, you need to be having development conversations on a regular basis."Every manager should have a [development] conversation — even if for 15 minutes — once per week with the people they lead," said Connors. "Don't just reserve these conversations for once a quarter or, worse, twice per year."In addition to regularly scheduling employee development conversations, during these discussions, it's important to stay focused on your employee's development — and not let other work-related issues bleed into your meeting."Make [employee development conversations] a meeting where it's the sole item on the agenda, not piggybacked onto a larger check-in meeting," said Randi Braun, executive coach and founder of Something Major, a company that provides support to organizations in the form of executive leadership, professional development, and business development advisory services.Having regular, focused employee development conversations will enable you to stay informed about where your employee is and what they're working toward, and provide the support and development they need to get there. 2. Let your employees take the lead: When you see potential in your employee, you might be tempted to use an employee development conversation as an opportunity to share what career path you think they should follow, or where you think they would excel. But if you want these conversations to be successful, it's necessary to resist that urge."The biggest mistake managers make is leading with their own aspirations for the individual," said Braun.When you tell your employee what you think they should do, it can make it harder for them to share what it is they truly want to do."However well-intentioned, high-potential performers can sometimes be 'pleasers,' making it uncomfortable, awkward, or difficult to share their own aspirations for themselves if they're different from what the manager envisioned," said Braun.This can make it challenging to get the information you need to optimally support your employee's growth and development. If you want your employee development conversations to be productive (and actually lead to career development), let your employees take the lead. Allow them to tell you how they want to grow, and then dig in to figure out how you can best support their goals and efforts."Managers should provide structure and expectations, but allow employees to define success for themselves," said Connors. "Serve as a partner and coach in guiding the employee, but [don't take] ownership of defining all goals for them." 3. Know your audience — and adjust accordingly. In order for your employee development conversations to be effective, you need to tailor the conversation to the employee you're speaking with."Don't take a one-size-fits-all approach," advised Connors. "What works for one employee won't necessarily work for [another]."For example, some employees might want direct, constructive feedback on the areas in which they need improvement, while others might take that same feedback as criticism and get discouraged. Some employees might know exactly where they want to go with their career and will want your support in getting there, while others might feel stuck and need help figuring out their next step.As a manager, you want to use your employee development conversations as an opportunity to better understand who your employee is, what they're working toward, and how you can support them in getting there, and then tailor the conversation accordingly. 4. Create an employee development plan. Talking to your employees about their career aspirations is great. But if you really want to support them, then these conversations need to be followed by action — or, more specifically, an action plan."Conversations should end with more clarity on what the individual is aspiring toward, concrete next steps, and to-do's for both parties involved," said Braun.Think of an employee development plan as a road map: It helps your employee figure out how to get from where they are to where they want to go, and helps you, as their manager, discern what steps you can take to help them get there."While the individual should lead this [process], an invested manager should also walk away with to-do's to support that growth, like making introductions within the company or helping the individual identify and get involved with new stretch projects," Braun said.The key to creating an effective employee development plan is to make it actionable; it should break down your employee's larger goals and career path into small, manageable steps."Keep the big picture goals in mind, but coach them on how they can successfully navigate the shorter-term and help them eliminate [or] remove roadblocks," said Connors.Once you and your employee have created a plan that outlines their big-picture goal, the steps they have to take to achieve that goal, and the actions you need to do to support them in achieving it, make sure to schedule regular check-ins to follow up on their progress — and adjust the plan as needed.
A Quality Nightmare Website: Quality Disaster at Pet Store https://transformance.biz/portfolio/quality-disaster-at-pet-store
I found myself headed to the local brick and mortar of a big national chain of pet stores. My mission was to get a replacement for a "premium" dog leash that had malfunctioned after several short weeks. You know the kind - it's got a big handle where a cord rolls in and out giving your dog freedom to roam up to 16 feet. They call it a flexible leash. My leash had lost all flexibility when some internal plastic part broke and the leash stuck at 16 feet. I now had a tangled mess of cord wrapped around the handle - totally worthless! I approached the counter with my mess and could see a look of "here we go again" on the face of Wes, the clerk.
Can't Believe My Ears Website: Quality Disaster at Pet Store https://transformance.biz/portfolio/quality-disaster-at-pet-store
I rarely return things to any store. It is almost always a fast and simple procedure. This time, it was looking like a disaster that would not go well. I imagined the following: A purchasing clerk saved money on a 2 cent plastic part. They hit their performance measurement and might have gotten a bonus. The low priced parts came in and defects increased. The quality manager saw their precious six sigma charts go wacko. Customers must be stopped from returning these things. Some financial number cruncher came down hard on the product manager for increased costs. The numbers say you cannot accept customer returns. A low IQ VP at HQ saw bad reports and issued an order to fix the problem and fix it now. Don't waste time on root cause; just fix the problem. Feeling the heat, the retail operations manager identified 8 products that had bad looking six sigma charts. An email to 100s of retail stores ordering a change to the return policy. Store Managers got the list and the order to change the return policy for the 8 items. 100s of store managers posted the list to their cash registers. Thousands of retail clerks found themselves in a no-win situation. Customers bringing back broken products and "management" has repealed the "customer first" core value.
Product Exchange Complete Website: Quality Disaster at Pet Store https://transformance.biz/portfolio/quality-disaster-at-pet-store
I selected a blue handled leash and waved goodbye to Wes as I left the store. For me, Jim is the hero in the story. He is clearly stuck in a very broken process. Numerous process failures at HQ have led to unacceptable policy constraints at every retail store. Store employees are ordered to blame the customer for low quality products. The VP at HQ thinks they will soon see better looking charts and big bonus checks. For Saboo, my dog, life is great. The new leash works like a charm. Let's go for a walk. I end with a final thought. Will Jim, the hero, remain working at this company? I would place my bet on Jim leaving for a better organization that understands what "customer first" means. You can add employee turnover to the long list of costs associated with poor quality.
Sustaining Change Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
Implementing change in any organization, to achieve a desired future state, will always be a challenge. One of the challenges is to summarize and then put into writing exactly what the organization seeks, both strategically and operationally. This documentation is most effective when stratified in terms of policies, procedures and instructions. Policies can address a wide range of topics. Examples include rules for offering price discounts to gain new business or prohibitions against working with suppliers who have unacceptable labor practices. Procedures serve to guide how an organization will go about doing a particular process. Examples include purchasing raw materials or conducting marketing research. Procedures are commonly called Standard Operating Procedures. Instructions provide the step-by-step details of precisely how to perform a task. They are commonly called work instructions and include focused instructions relating to a specific task which needs to be done in an exact order. As an example, consider how Domino's Pizza produces a pepperoni pizza in a few minutes. There are specific instructions for putting together each ingredient in a certain order as the pie moves along the counter. Then, the pizza is baked at a specific temperature for a prescribed period of time. Increasing in detail and specificity, documentation moves from broad policy to specific instructions. A successful improvement project will often require updates, or brand new, policies, procedures, and instructions. Let's take a closer look at the three types of documentation required to sustain the changes you make from an improvement project.
The Bottom Line Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
Of course, coaching is more than just following a performance improvement plan. It means being able to identify talent strengths in others, and nurturing those factors to develop the future leaders of tomorrow. At ClearCompany, we are committed to ensuring that your managers have the tools they need to achieve top productivity and engagement on their teams. With our modern Performance Management System, managers can gain insight into their employees' work to identify strengths and weaknesses, and provide real-time feedback. Ready to learn more?
Document Progress Website: 5 Steps for Creating an Effective Performance Improvement Plan https://blog.clearcompany.com/steps-creating-effective-performance-improvement-plan
Once objectives have been set, sit down with your employee to document an action plan. HR managers need to ensure that specific, measurable goals have been incorporated to aid and hold employees accountable throughout their improvement process. As time goes on, managers can view and follow the employee's progress to determine if goals are being met accordingly. While there are many important leadership skills, #coaching is key to improving the performance of an entire team. @ClearCompany
Website: How to Have Successful Employee Development Conversations https://lattice.com/library/how-to-have-successful-employee-development-conversations
Part of managing an employee is making sure that they're effective and productive and getting their work done. But there's so much more to successful management. If you want to bring out the best in your staff, you have to continually support their growth as employees — and as people. One of the best ways to do this is by having employee development conversations. Employee development conversations are crucial for identifying your employee's goals, supporting their growth, and helping them reach their full career potential. But if you're new to management, it can be difficult to know how to navigate these discussions. Let's take a closer look at how to have the kind of productive employee development conversations that will set your employees up for success and enable them to achieve their career goals — while making you a better, more effective manager in the process.
Policies Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
Policies are principles, rules, and guidelines formulated to influence decisions and ensure actions align with organizational goals. They enable people to address problems and issues without having to consult executives or specialists for each decision. Policies also address the roles and responsibilities of executive management. Consequently, key policy statements will serve to shape an organization over the long term. An effective policy should be: Appropriate - A policy should align with the organization's core values and stated objectives; conflicts will lead to poor implementation Clear - A policy should be simple and easily understood by all in the organization; avoid jargon and ambiguous language, to avoid misunderstandings Comprehensive - A policy should have a wide scope and handle a wide range of routine scenarios; do not allow a long list of exceptions or loopholes Stable - A policy should be stable, providing certainty to those who look to the policy for guidance Note that policies are not steps or actions. They are statements which will guide decisions and actions.
Illustrative Example: IKEA Work Instructions Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
The assembly of an IKEA "Billy" bookshelf is a project, even those with limited skills can undertake, without fear. Clearly, IKEA has put a lot of thought to develop the work instructions for assembling this bookshelf. Each tool and part is enumerated Each step is isolated and requires a kind of mindfulness to do one thing at a time Right and wrong are clearly illustrated with line-drawn figures Graphic presentation, without a single letter of type Using this simple universal graphic work instruction, almost anyone can assemble the Billy bookshelf. These work instructions represent a perhaps under-appreciated factor in IKEA's ongoing growth and worldwide success. Marketing research has shown that once someone builds an IKEA piece, they are less likely to part with it, a phenomenon now known as the "IKEA effect". Work Instructions as "Sustainable Competitive Advantage"? IKEA's thoughtfully developed work instructions provide it with a competitive advantage, strengthening the connection between company and the customer, who takes pride in self-assembling a product. Creating an emotional connection between a company's products and the customer is highly desired by companies. Certainly, few would have anticipated that well-developed, thoughtfully designed work instructions would support such an emotional connection and result in a competitive advantage. Additional Examples Making the bed Making pizza dough Cleaning an operating room table Entering a customer order Packing an order for shipment Testing a printed circuit board Installing a dishwasher
Bringing It All Together Website: Policies, Procedures, and Instructions https://transformanceadvisors.com/portfolio/policies-procedures-instructions/
The challenge for improvement project teams is to ensure the proper documentation is in place when changes are made. It is important to fully understand the distinctions between the types of documentation. Each type solves different needs. The focus and details increase as this documentation moves from policy to procedure to work instruction. Don't create confusion. Many organizations struggle with policies which are vague or completely missing, procedures which contain too much detail, and work instructions which fail to contain all the steps. The following examples summarize how the three types of documentation could align to form an integrated package. Hotel Housekeeping: Policy - All guest rooms will be cleaned by 11:00 AM Procedure - Cleaning guest rooms Instructions - How to make the bed Business Development: Policy - Discounts over 10% require approval from VP of Sales Procedure - Responding to a request for proposal Instructions - Calculating the expected gross margin
Quality video transcript
Welcome to a discussion on quality many organizations talk a good game when it comes to quality unfortunately for too many it is much more talk than it is action our agenda covers these four areas we will look at various definitions of quality then we will explore the concept called cost of quality Next we will examine a principle known as quality at the source at the end we will look at the types of inspection that are used to find and fix quality problems from the English Oxford living dictionary we have the standard of something as measured against other things of a similar kind the degree of excellence of something. I find it interesting to see measured against other things of similar kind. You can't define the quality of a candy bar by comparing it to a washing machine. At first I found the word degree might imply too much precision such as it is sixty two degrees outside but then I realize that people seeking a master's degree are not all doing precisely the same thing. So the important point is how quality needs to be qualified by the degree such as low quality medium quality or high quality. Here's another definition from I.S.O. also known as the International Organization of standards in one nine hundred eighty six their definition was the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs. It's nice to see the focus on all features and characteristics this will become more relevant when we get to discussions on Six Sigma. The part about satisfy stated or implied needs gets me thinking. A cheap clock will satisfy my need to know the time but I would not claim that a cheap clock is high quality. Perhaps back in one nine hundred eighty six the thinking around quality was different it was a period when everyone was talking about the need for improving quality and that might have influenced the definition. I still like the English Oxford version with an emphasis on degree of excellence. Here's an updated I.S.O. definition from two thousand and fifteen. The degree to which a set of inherent characteristics of an object fulfills requirements. Looks like an improvement to the one nine hundred eighty six version we now have an emphasis on degree we also have inherent characteristics versus totality of features and characteristics I'm not exactly sure what the difference is let's say that for another day. We also have fulfills requirements. This is still or struck this is still a struggle for me to achieve diner fulfills my need for lunch but it is still not what it but it is still a cheap diner and not a five star restaurant one word in the definition does cause me trouble the word object is way too narrow for a definition of quality. People don't think of services as objects a haircut is not an object open heart surgery is also not an object. The same applies to information a demand forecast is just information and it can clearly have a degree of quality and finally what about the what about the quality of your thoughts I like to go hiking in the mountains west of Boulder Sometimes I have great thoughts and other times I waste my time worrying about things I can't change well you know I can't change the I A So definitely of quality so let's move on. For me I can summarize the various definitions of quality with two important aspects. Quality is about the degree of meeting requirements or expectations. Similar to customer feedback you can rate from Puerto excellent. Don't think the word quality always means high quality It needs a qualifier. And my second important aspect is how quality is relative back to my cheap diner I suppose you can claim to be a high quality cheap diner in comparison to other cheap diners in addition to numerous definitions of quality there are also many different measurements the National Quality forum found one thousand three hundred sixty seven quality measures. At just forty eight health care systems it's astonishing to think about how many measurements must exist across the globe. We will say that discussion on measurements for later in this course. That wraps up our look at definitions of quality for our next topic let's explore the concept called cost of quality to start think about the Samsung mobile phone disaster they estimate the cost of that disaster will be two point three billion dollars in profits. But it could be more for example I was shopping for a dishwasher at an appliance store I asked the sales person about Samsung and he responded that they have lost sales of Samsung clothes washers and driers because of damage to the brand. The loss at other business units is not in the two point three billion dollars for the mobile phone unit these other units had nothing to do with the problem but could be impacted when it comes to the cost of quality there are four categories internal failure external failure appraisal and Prevention Let's discuss each in detail internal failure costs are all the cost to correct a defect before a product or service is received by the customer. These costs include all the material labor and overhead required to rework scrap replace and retest the defective product or service here are just a few examples of internal failure Sales Order has the wrong part numbers on it a pizza is tossed out after it was burnt. Job descriptions have the wrong requirements forklifts break down we retest the failed device somebody is fixing a bug in a software program or we're missing information on a loan application. It doesn't take a genius to see how these failures will cost money. An external failure includes all the cost to correct a defect after a product or service is received by the customer the cost associated with X. total failures include repairs replacements product recalls warranties legal liability loss of sales and loss of customers. A larger and more damaging cost is the impact on the company's image and reputation. Here are examples of X. turn a failure newspapers not deliver. Over cooked food is served. And incorrect invoices issued. Computer battery starts a fire a new appliance gets installed and doesn't work missing parts. From an assemble it yourself kit. And running out of anything. For these types of failures you begin to incur a large cost to correct the problem plus there's always the potential cost of losing all future sales to a customer. If you are like me you can probably name a company that you will never do business with for the rest of your life. A bad experience at a restaurant can easily lead to someone never going back appraisal includes all the cost to inspect judge identify and sort out the facts with a product or service. These costs include the labor material and overhead to gather and analyze data appraisal costs or some sometimes called inspection costs here are examples of appraisal Conan parts from the storeroom checking the forecast to see if it's reasonable inspect you know hotel room after the cleaning crew is done with it measuring lumber at a job site after it was delivered. For most organizations appraisal is everywhere Don't be fooled into thinking that appraisal costs are only incurred by quality inspectors many supervisors will appraise the work of their team members and most administrative people have to appraise the quality of any incoming information from another person. Fourth the fourth cost of quality is prevention which includes all the costs incurred to reduce the defects created by a service or process. These costs include those to implement and maintain quality programs or make investments in technology here are examples of prevention investing in a six sigma program installing new test equipment training courses for employees the preflight check checklist that an airline pilot goes through an I.S.O. program and supplier certification programs. The key is an investment designed to reduce defects from happening and not about finding or fixing them after the fact here's one way to think about the cost of quality over time. In this example. The red line sloping upward is for prevention cos over time we are increasing our investments in things like in things like a Six Sigma program and training. The green line sloping downward is for appraisal cos over time we will need to spend less on appraisal activities like inspectors checking everything. The blue dash line shows that our total costs are increasing if we add up appraisal and prevention but we are not done yet let's take a look at the rest of the situation here the blue dash line is the same cost of appraisal and prevention from the prior chart the red dash line is the sum of internal and external failure costs it shows that over time our cost for failure is dropping the investments in prevention is improving our quality and eliminating the internal and external failures. And finally the purple line is the total cost of quality it is the sum of the four costs of quality as you can see the total cost of quality is dropping the message is that investments in prevention will cause the other three costs to drop and result in a lower total cost of quality. That concludes our look at the cost of quality for our next topic. Let's examine a principle known as quality at the source everyone has customers. And customers specify value so as we work our way back through the supply chain the value is the quality requirements or expectations we discussed during We during our look at the definitions of quality these quality requirements and expectations flow all the way up the supply chain so that every supplier knows what their customers value and when and when it comes to quality at the source the supplier of products services or information needs to meet those expectations that are specified by the customer and this means that the customer can eliminate the need to inspect the incoming products services or information. This applies to both internal and external customers I imagine you can see how quality at the source requires high quality and provides the means to reap the means to dramatically reduce the total cost of quality. Quality at the source requires the supplier to meet expectations that brings up the concept of exceeding expectations and how many suppliers will over engineer a product or service to exceed expectations. You have probably seen a slogan whereby some organization claims to exceed customer expectations it's written on their trucks running around to running around town to repair their defects. While I know it sounds crazy but if a customer has not specified the higher quality and will not pay or Appreciate it. Then why should a supplier spend money exceeding expectations. I know this sounds contrary to what should be said during any discussion on quality but think about. Should a cheap diner have high quality white tablecloths on their tables it cost money customers are not expecting it and they will not pay more for it. I do not have the answer for this question if exceeding expectations will be a competitive advantage then it makes sense if it just means wasting money then someone should raise the question for consideration that wraps up quality at the source for our next topic let's look at the three types of inspection. The first type is called Judgement inspection. This is the old fashioned task of sorting out the defects from the good ones this is sometimes called inspecting in quality for most of the task of it of inspecting in quality is not effective defects will get through and reach the customer alternatively good things can be rejected raising costs the second type is informative inspection there are two versions. Successive checks have a downstream step check the output of the prior step and self checks involved workers assessing the quality of their own work the difference from judgement inspection is how informative inspection uses data to provide feedback and reduce the facts. It's not just about sorting out the bad ones however it still involves doing something after the fact or after defects have been created. Think about providing feedback to your barber after he or she cuts off your ear that would be feedback after the fact the third type is source inspection this approach to terms before the fact weather conditions exist for creating high quality products and services. This type is a significant improvement over the first two here our goal is to improve the process. We are not sorting out that the facts we are inspecting the process before the fact and making corrections so that defects are not created That's a quick look at the three types of inspection while source inspection is the best there is probably a need for all three types in many processes. We have covered these four topics in our exploration of quality definitions of quality the for cost of quality the principle of quality at the source and the three types of inspection. Thank you.
A Call For Help Website: Quality Disaster at Pet Store https://transformance.biz/portfolio/quality-disaster-at-pet-store
Wes promptly called Jim, the store manager, to come to his rescue. Jim looked over my jumble of cord wrapped around non-functioning handle. He pointed to a piece of paper taped to the cash register that listed 8 products - including "retractable dog leashes". Jim asked "don't you know retractable dog leashes are no longer part of our normal return process?" Seems there had been too many returns of broken products. Jim explained how the quality folks at HQ had determined that customers or dogs were abusing the handles and claiming the product was defective when it broke. Jim explained how he had been ordered not to accept returns.
