OPERATIONS AND QUALITY IMPROVEMENT STRATEGIES

Operations and Quality Improvement Strategies

Table of Contents

Introduction3

Overview3

Background4

Central Idea7

Scope & limitations8

Discussion/body8

Conclusion18

Operations and Quality Improvement Strategies

Introduction

Much has been written and published about lean manufacturing programmes. The focus of which would appear to be on the technical elements of such programmes i.e. specific tools and techniques, human resources and the cultural implications and requirements. However during the author's period of research, the findings of which indicate that very little headway would appear to have been made regarding the strategic and competitive framework within which the lean manufacturing concepts should operate. It is true to say however that a great number of works on competitive strategies and strategic development processes have been written. Given the scope and constraints of this paper (focus and length) the author provides a number of strategic theories, which offer some synergy and context to lean manufacturing systems.

Overview

In Kenichi Ohmae's 1983 book, "The Mind of the Strategist" McGraw-Hill. Ohmae states, "What business strategy is all about, what distinguishes it from all other kinds of business planning, is competitive advantage". Corporate strategy he argues implies an attempt to "alter a company's strength relative to that of its competitors in the most efficient way". Responsiveness to changing customer objectives lies at the root of Ohmae's system for constructing a business strategy. He further identifies three points of the "strategic triangle" the organisation (its strengths, weaknesses and resources), the customer and the competition. "Customer-based strategies are the basis of all strategy," asserts Ohmae. He is convinced that an organisation's foremost concern should be the interest of its customers as opposed to that of its shareholders. Ohmae's theories do offer a degree of synergy to one of the key elements of any lean manufacturing system that of customer focus.

Background

According to Joseph Defeo of the Juran Institute (www.juran-institute.com) (2002).

"Successful implementation of an organisation's strategy will reduce operating costs; increase customer satisfaction and shareholder value; create responsive, flexible and disciplined business systems".

In terms of the competitive environment, which would appear to be the driving force behind many organisations' strategic development processes. M.E.Porter (1985) "Competitive Advantage" Free Press, offers the theory that in order for an organisation to gain competitive advantage it must create value for the buyers of its products. He goes on to say that this can only be done if they understand the value chain (see figure 2.0), those strategically important activities that provide the difference between them and their competitors. Porter's theory is centered on what he calls "primary activities" which are directly concerned with the creation or delivery of a product or service and can be grouped into five main areas: inbound logistics, operations, outbound logistics, marketing and sales, and service.

Inbound Logistics are the activities concerned with receiving, storing and distributing the inputs to the product or service. They include materials handling, stock control, transport, etc.

Operations transform these various inputs into the final product or service: machining, packaging, assembly, testing, etc.

Outbound Logistics collect, store and distribute the products to the ...