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monitoring, control and improvement
These are very important concepts, and will return in the strategies for operations in terms of quality control strategies and again in each KBF.
Monitor
Monitor
Record data about processes or outcomes during the production process
Control
Control
Compare the recorded data against the target for that variable
Improvement
Improvement
identify and make changes
Let's use a medical example...
Monitoring is putting on a blood pressure monitor to get data on current blood pressure of the patient
Controlling is comparing that reading for blood pressure to the normal range for a person that age an gender
Improvement is then changing medication, or other changes to get the blood pressure to a better target than the previous target
Monitoring
Monitoring
Monitoring is based on comparison to KPIs including:
lead times/wait times/idle times
inventory turnover rates/stock-out rates (out of stock)
defect rates, repair rates and warranty claims
process flow rates (the rate of production)
capacity and volume rates/capacity utilisation rates
IT and maintenance costs
direct and indirect cost analysis.
Example- A process to weigh LEGO bricks on the production line
QUESTION: Identify a business that has had a problem with one of these performance indicators
Controlling
Controlling
Performance reviews are crucial because they indicate issues and where/what intervention or corrective action may need to be taken.
The operations manager will make changes to the transformation process such as redesigning the facilities layout or adjusting the level of technology in order to correct the problem. (This is corrective action in practice)
Example- A process which compares the weight of the current brick to the appropriate weight for the LEGO brick
Improvement
Improvement
A process to improve the target performance.
This may require a change to transformed resources (i.e. a change to a higher quality supplier to achieve a higher standard) or it may require a change to a transforming resource (i.e. the equipment may need modification or change).
For example- to reduce target defect rate at LEGO may require the injection moulding machine to be replaced or modified
SIX SIGMA
Six Sigma is an improvement process that was invented by the electronics firm Motorola. Six Sigma follows five steps called DMAIC, these being:
• Define: the process that is to be improved
• Measure: the variables and set improvement goals
• Analyse: the causes of defects or process problems, as well as the alternatives that may create process improvements
• Improve: implement changes that will create process improvements
• Control: the improvement process
Complete Exercise 4.6 Exam Questions
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