Production systems and methods valid until the early 1970s have lost responsiveness to the profound changes that have occurred worldwide. First, it was the sharp rise in the price of oil that put Western economies used to low prices and moderate variations in check. This affected both consumption trends and the processes of generation of goods and services.
Subsequent war conflicts added to important political changes in the last decades, and the rapid advances in technology, science and information technology, transformed the map of the markets together with their commercial and financial flows.
Entering the Knowledge Age gave rise to a new great division of labor worldwide, but despite this the advancement of teleinformatics via the Internet enables a constant and rapid advance in scientific matters in various parts of the planet. Although everyone has access to the internet, only those who are culturally and scientifically prepared can participate in this evolution.
We have entered an era in which the countries, companies and individuals that best manage their knowledge will be the most apt to compete in current and future markets.
To survive and succeed in the twenty-first century, companies will need to put new philosophies and methods into practice. Great efforts will be required to overcome organizational inertias, and those responsible for the changes will need a strong level of leadership.
The manufacturing world is shifting from a definable culture to a new position in which what changes is precisely culture. The difficulty for entrepreneurs and professionals to make the transition will not be in understanding technology or techniques, but in the ability to define the characteristics of the new order.
New managers will need to be visionary over time, being sensitive to the needs and expectations of customers, engaging with society in a world with deep needs and serious problems to solve.
There are no quick solutions, what there is is hard work, based on a discipline and work ethic that lead to the simultaneous improvement of quality and productivity in production processes.
Making this possible involves generating a new way of managing, a new system of production of goods and services. That new system is calitivity. A qualitative system is a system of conduct, and the way business is conducted is a reflection of the philosophy of the people who own and operate the business.
Calitivity is both a vision and a philosophy that tries to break down the mental barriers of conventional managers whose vision rarely extends beyond the results of the last weekend. In contrast to the orientation in the typical result of western companies, this new orientation is opposed, concentrating on the continuous improvement of processes.
In this new vision of business management, on the one hand, the true meaning of quality is explored, as it is perceived by consumers, and on the other, the energies are concentrated on exposing and overcoming the enormous waste that afflicts conventional companies.
Calitivity is largely the adaptation of the Japanese kaizen system to Western culture, adding to the Japanese tools, instruments and methods the theory of constraints (TOC), modern advances in: operations research, knowledge management and change management, and the latest developments in psychology and organizational behavior.
Companies that want to incorporate qualitivity in their management style must have:
- A clear vision of the future and your place in it A few employees who understand the vision and your contribution to it A few employees whose attitudes are aligned with the vision A few objectives that support the vision A culture that understands and accepts change An organization that is continually learning A picture manager trained in the design of socio-technical tasks A collaborative decision making between the company,Unions and Employees Self-Employed Workgroups Human Resources Development Employee Participation Before New Technology Introduced Employee Participation in Work Method Design Multi-Skill for All Employees A Continuous Improvement Philosophy Mixed Functionality Teams Working on Improvement Projects Capacity of constant innovation Customer focus The voice of the customer as a guiding force Market leadership in the chosen field Supplier participation in the design process Integrated product development Product and service quality as a sustained competitive advantage Waste management in all forms Variation management Systems quality as a basis for continuous improvement High system speed Fast amortization ofInvestments A system of equitable distribution of the wealth generated Respect for the individual and for the community Ecological responsibility Clear ethical standards
These are some of the values that must be taken into account when visualizing the future of the company and when establishing the standards by which the progress of the organization will be measured.
The vision must be shaped in a way that makes sense to all employees. This vision can only be shared if everyone has the opportunity to contribute to it.
- The quality
In conventional companies, managers like to say that everything has a cost, but ignore the high cost of mediocre quality. Thus, 40% of the total operating cost of a company can be wasted to cover the generation of mediocre quality products and services.
Every interruption of production processes, every complaint from a customer, every inspection, every claim, every reprocessing of goods, every excess of stock and so on, implies losses for the company. Losses that constitute the "hidden factory", which generates a great deal of mediocre quality, causes the loss of customers and absorbs a very large volume of resources. Those losses are those that traditional accounting does not adequately expose or analyze, since it was designed for operations and companies resulting from the existing economy until the early 1970s.
Achieving quality management consists of achieving competitiveness, for which such management must be effective, excellent and globalized. In this way, market satisfaction is also obtained. It is not enough to offer a better product and service design than the competition, it is necessary to surpass all its human, industrial or service powers, because customers want the best. If the products of a company have the same price as the competition but also offer a plus, the company in question will have a clear competitive advantage.
The companies with the highest quality products or services, capable of selling at competitive prices, with active, dynamic, prepared human teams, and full awareness of personal responsibility, with a commercial vocation applied in all areas of the company, will be those that subsist and divide the market.
Consumers are in a better position now than ever before to compare, evaluate and choose products and services critically based on their total value: quality, price, ease of maintenance and level of service. This growth in consumer awareness of quality has put more strain on businesses. The more complex a product is from a technological point of view, the more likely something is to go wrong. Government safety regulations (especially in central countries), product evaluations and the rapidly increasing number of product liability lawsuits have changed the attitude of society, from "let the buyer worry" to "leave let the producer worry. "
Consumer demands and dynamic technological changes have opened new and highly competitive markets. The quality of goods and services can no longer be taken for granted. Even industries that previously enjoyed a monopoly on national demand must now face foreign competition.
The rapid growth of the service sector has also introduced new perspectives to quality management. The interaction between employees and customers is much more critical in this type of company, giving rise to a new vision in the administration of human resources.
Achieving Total Quality objectives requires from the leader:
- Know what your customers want Check if efforts are wasted in knowing the defects Check that the established rules are respected Anticipate failures or defects (act preventively) Measure what you know the customer demands Maintain communication with those affected by customer complaints Attack the causes Root of defects Lower defective quality costs Continuously incorporate a renewal in your plans Be at the forefront of all continuous improvement plans
2.1. The costs of quality
As Crosby put it well: “Every penny you don't spend on doing things wrong, or vice versa, instead of doing them well becomes half a penny on the bottom line of the balance sheet. In this age of "who knows what will become of our company tomorrow" we don't have much to choose from to improve profits. If you focus on quality assurance, you can probably increase your profits by 5-10% of sales. ”
Poor quality costs require knowing how it is made. So this is made up of costs attributable to prevention, valuation and failures (internal and external).
Prevention costs are made up of all those resources used to plan activities and processes aimed at preventing the occurrence of failures or errors. In traditional companies, preventive measures are rarely applied. As a result, the resources allocated to quality planning across all company functions are generally negligible or minimal.
The evaluation costs are those generated by the inspection processes and activities as well as in the testing activities to see if the product presents the proper quality levels. Hiring more inspectors on quality issues is a trivial exercise and demonstrates ignorance of what quality really means. Quality is the responsibility of each of the company's employees and cannot be delegated to the authority of an inspector.
While the cost of failures, both internal and external, are the result of non-compliance with the specifications. Internal failures are defects discovered before products are delivered to external customers. External failures are failures discovered after products have been transferred to customers.
Increasing prevention activities (and therefore the resources allocated to it) implies significantly reducing the costs attributable to both valuations and failures. That is why a higher cost of prevention results in a lower total cost.
A partial list of poor quality cost sources like the one detailed below gives us a clear connotation of the problems to be faced.
- Inspectors Product Testing Bug Fixes Leftovers & Waste Insufficient Time Redesign Time Loss Damage Complaint Handling Warranty Claims Repair Costs Repeat Work Overtime Product Return Employee Retraining Delayed Dispatch Excess Inventory Overproduction
2.2. Benefits of strategic quality planning
Product quality
- Better product design Less liability risk More uniform introduction of a new product Better reaction to the competition Better reputation Better service after sale Better advertising strategies
Production quality
- Reduced rework and other operating losses Lower labor and material costs Better administrative control of operations Greater employee morale More uniform production flow Greater reliability
Company functional performance
- Shorter delivery times Shorter order processing times Shorter cycle times for new product introductions Greater return on investment Lower inventory turnover Lower costs Greater market share Customer retention
2.3. Concentrate efforts on external customer satisfaction
To meet customer demands, you need to know exactly what needs to be done to get it. After doing what was thought necessary, the customer should be asked if they are satisfied. From this basis, processes can be adjusted to continue to satisfy customers in the future. This is how many of the conventional companies (not all) control the sales outlook and maintain a reasonable level of business. But it is worth asking what is being done to exceed customer expectations? Customer expectations, once satisfied, increase. Today's options will be tomorrow's regulations. Today's competitive appearance is no guarantee for the future. The objective is to be as close to the customer as possible in order to know not only their concept of the company,but also the changes that they can contemplate and that would be likely to seriously affect the current relationship.
The results of the customer survey will provide us with a baseline or starting point against which future improvement can be assessed. Furthermore, the results will reveal certain areas of concern that should be subject to further analysis. This step of the external customer survey is of great importance. If the basic definition of quality is to meet customer needs and reasonable expectations, an accurate understanding of what customers need and expect is necessary. From there it is necessary to consider the gap between the performance of the company and what the customer needs.
The dynamics of the market must also be recognized. Customer surveys should be conducted at least annually and supplemented throughout the year with focus groups, short self-directed surveys, touch point surveys, and the like.
2.4. The six stages in quality improvement
- Assessment and awareness
Assessment of the company's need for change, elimination of waste, achieving greater customer satisfaction, improving the attitude of employees, achieving the decision of executives for change and carrying out the communication of the need to change.
- Organization for quality improvement
Establish the organization of quality management, clearly defining the objectives, policies, principles and values by executives, establish the quality element in the business plan and its implementation.
- Education
Educate and train everyone, training them to analyze work processes, make measurements and improve processes. Attention should be focused on eliminating fear, breaking down both horizontal and vertical barriers, and achieving process-centered thinking, with a clear systemic approach and clear statistical understanding and reasoning.
- Establish stable processes
Analysis, led by the administration of the fundamental work processes. Starting from the requirements demanded by clients (both internal and external) carry out measurements and controls tending to satisfy them. Through Statistical Process Control and other management tools, put the variables under statistical control first and then proceed to their continuous improvement.
- Total participation of all employees
Introduction of measurement by all work groups, eliminate barriers to open communications and introduce work groups (Quality Control Circles, Improvement Teams, among others). Establishment of a participatory administration system. Establishment of a suggestion system.
- Continuous improvement
Analytical and statistical training, teamwork, goal setting, benchmarking, analysis of activities and ongoing awareness of discipline and work ethics for continuous improvement in processes aimed at reducing costs, improving productivity and quality levels, higher satisfaction levels, and shorter delivery times and activity cycles.
2.5. Barriers to quality in the service industries
At an international conference in 1988 Professor John Oakland highlighted three obstacles to achieving total quality in the service industries, these being:
- Generally speaking, service industry administrations are almost entirely unfamiliar with the essence and value for business of the principles of quality. Investing in quality is viewed as an unnecessary expense rather than an investment with a recovery. Quality programs are thought to have a negative effect on productivity. Customers are not honestly listened to. Often their complaints are seen as irritating rather than as an opportunity.
The strategic issue focuses on the third obstacle since the managers of service companies are divorced from their clients. It has not been so intentionally but due to its low level of contact with them. In most service companies the natural point of contact or relationship with the customer is at the lowest hierarchical level of the organization. The top management that defines the company's strategy has little natural contact with most of its clients.
It is rare for the customers of these companies to get to know the key decision makers, and likewise the key decision makers seldom know the customers. This is the natural order of events. Management needs to take steps to contact clients honestly and openly. Failure to do so in a competitive market will mean losing customers to the competition in the medium and long term.
3. Productivity. Definition
Productivity can be simply defined as the ratio of inputs to outputs. The inputs refer to the resources used in the processes necessary to generate the outputs. The greater the effort expended, the higher the inputs and, consequently, the lower the productivity. The outputs are all that is produced, while the inputs are all that is used.
| DEPARTURES | TICKETS | PRODUCTIVITY | ||
| GREATER | EQUAL | INCREASES | ||
| GREATER | MINORS | INCREASES | ||
| GREATER | GREATER | INCREASES | ||
| 20% increase | Increase 15% | |||
| GREATER | GREATER | SAME | ||
| Increase 15% | Increase 15% | |||
| GREATER | GREATER | DECREASE | ||
| Increase 15% | 20% increase | |||
| MINORS | EQUAL | DECREASE | ||
| MINORS | GREATER | DECREASE | ||
| MINORS | MINORS | DECREASE | ||
| It is reduced by 10% | It is reduced by 5% | |||
| MINORS | MINORS | SAME | ||
| It is reduced by 5% | It is reduced by 5% | |||
| MINORS | MINORS | INCREASES | ||
| It is reduced by 5% | It is reduced by 10% | |||
In essence, productivity is a measure of efficiency in the use of available resources. If a company wants to be competitive, it has no alternative but to eliminate the waste of resources.
To increase productivity by reducing wasteful entries, it is necessary to identify where such waste occurs in the company. The easiest way to do this is to differentiate between work with added value, or between useful work and work that is not. The real work with added value is that it adds directly to the value of the product during the manufacturing process. The levels immediately below true value-added activities are non-value-added support or support activities. Finally, there are those activities or processes that do not generate added value.
From companies that use 5% of their resources in value-added activities, 45% in non-value-added support activities and 50% of non-value-added activities, they should be transferred to companies where 50% of the resources are destined to the generation of added value, and the other 50% goes to support activities without added value.
3.1. Activity Matrix - Efficiency
In order to increase the efficiency of activities and processes, it is necessary to use the Activity - Efficiency Matrix.
On the Activities side we have those that are necessary (whether they add economic value for the client or for the company) and those that are unnecessary (such as inspection activities or duplicate tasks, among others).
On the Efficiency side we have high or low levels depending on the levels of productivity (rational use of resources), quality and speed of performance
| high | ||||
| Efficiency | B | TO | ||
| D | C | |||
| Low | ||||
| Unnecessary | Necessary | |||
| Activities | ||||
The optimum without a doubt is to develop necessary activities with the highest level of efficiency. It is in this quadrant A where the company's activities must be concentrated.
In quadrant B we have unnecessary activities carried out efficiently (an example would be those activities that continue to be carried out as a result of previous legal provisions that no longer exist, and that are carried out through the use of computerized systems). They must be removed.
Similarly, unnecessary activities that use high levels of resources (Quadrant C) due to low levels of efficiency should be totally and completely eliminated (the case mentioned in the previous paragraph would be a good example, but it is carried out by an important group of people; something quite classic and normal in State dependencies, activities created for a certain need and that continue despite the fact that they no longer exist). These activities may also be unnecessary due to the fact that they can be produced by others by combining, modifying, simplifying or changing the order.
And in the last quadrant, the D, we have those activities that, being necessary, are carried out inefficiently, either because there is the possibility of carrying it out using computer science or robotics, or because it is feasible to outsource it or use the telecommuting. In such cases, it is necessary to carry them out through the best coordination and use of resources so as to transfer them to quadrant A.
The creation of teams by sectors, areas or processes aimed at properly surveying and analyzing activities and sub-activities for the purpose of their elimination is a fundamental action in companies. Such surveys should also include teams or areas specially created for this purpose at a staff level, as well as the performance of an external adviser or coordinator that allows new perspectives or ways to destroy paradigms of inefficiencies.
| high | |||||||
| Efficiency |
|
|
|||||
|
C | ||||||
| Low | |||||||
| Unnecessary | Necessary | ||||||
| Activities |
Thus we have that the activities corresponding to quadrants B and D must be eliminated if or if. While those in quadrant C should move to quadrant A and those in quadrant A should try to further improve the efficiency of their management.
It should be perfectly taken into account that activities that are necessary can be carried out, as long as it is strategically feasible, by third parties (outsourcing) who are in a position to carry them out more efficiently.
The matrix is the driving force, but it must be accompanied by diagnostic, survey and measurement tools and instruments, plus a strong component of creativity and innovation. Among the tools, a fundamental one is benchmarking.
3.2. Wastage
When it comes to increasing productivity, it is necessary to analyze in depth all those activities and wasteful processes of resources. First of all we have overproduction, the practice of doing more than is required. It is one to doubt the worst of all waste. Among the causes that originate it can be cited: careless forecasting, allowing waste and repetition of the same job, quantities in economic batches, use of machines, accumulation of stocks, keeping personnel busy and poor production scheduling. Secondly and directly related to the previous one we have excess stocks. The reasons that lead to such excesses are in overproduction, poor sales forecast, long delivery time by suppliers,poor production planning, maximum and safety stocks, tolerance of remains and repeated parts, too long planning times, bottlenecks in production, late delivery of materials, poor control of stored materials, quality problems, poor control of the documentation and obsolescence of the products. Doing more than is needed or overproducing is the primary cause of overstocking. The belief that creating stocks is like putting money in the bank is totally out of place in a world with high interest rates, rapid change, and scarce resources. In terms of system speed, any job that, across the entire system,Do not immediately move forward to build customer orders - you must slow down your system and increase your potential for loss. Conventional companies tend to overproduce to simply store to maintain the process or the utilization rates of the machinery. Resources are used without any immediate purpose: stocks grow with all the risks that this implies. None of this makes sense, except perhaps to the company's accountant or production manager, who is judged on his ability to meet machinery utilization rates.stocks grow with all the risks that this implies. None of this makes sense, except perhaps to the company's accountant or production manager, who is judged on his ability to meet machinery utilization rates.stocks grow with all the risks that this implies. None of this makes sense, except perhaps to the company's accountant or production manager, who is judged on his ability to meet machinery utilization rates.
Third is the excessive handling of materials, which is the result in large part of the excess of stocks. The larger the latter, the more material handling will be required for maintenance. A bad disposition of the plant represents a significant increase in such manipulations.
Fourth, we have waiting times. The materials waiting to be used are stocks. If the staff expects instructions, it is that the management is poor. Causes of such deficiency include poor work planning, uneven workloads across processes, equipment failure, poor quality rejects, late deliveries, lost materials, and poor supervision.
If the components are not designed and made with the correction that requires easy assembly, there will be excessive waste of time. If the processes are not adequate, the personnel will waste time in the assembly of the components. Continual failure to fine-tune a machine is an indicator that the process is not under statistical control or that component tolerances are not adequate for process capacity.
A poorly designed workstation causes staff to waste energy on unnecessary movements, constituting the sixth type of waste. For example, locating the departments that provide assistance to value-added work in offices away from value-added producers increases unnecessary movements. The tools, equipment, materials, and instructions needed to perform the job should be placed in the most convenient location for the operator to save energy. In world-class companies, front-line personnel do not have to go for help, but rather demand it so that it goes to them.
The time and resources wasted in redoing faulty parts are never recovered. The defects of these parts are the cause of the main interruptions in the work progress. The cost is even higher when it is the customer who discovers these flaws.
The eighth source of waste is poorly designed or poorly maintained equipment, as this results in production defects, loss of work rhythms and accidents. The maintenance task in traditional companies is reactive, when what corresponds is to implement total productive maintenance (TPM).
The imbalance in the workload is a disability typical of conventional companies, in which there are always people or departments that have more work than others, causing the employment of more people and times than necessary. The application of the principles of synchronized production tend to overcome these wastes, achieving a more profitable use of resources.
In traditional organizations, inconsistent use of resources is one of the most common causes of waste. The company addresses blinded by technology, the use of excessive spaces, bad plant dispositions, and excess personnel fall into this defect. It is proven that on average in conventional companies four times more space is used, twice more human resources, and ten times more cycle time than is really necessary.
Poor product design results from a lack of practical wisdom in final product design, the consequences of which are serious problems for production personnel. The components are given tolerances without reference to the real capacity of the production processes available. Too many components are intended for a single assembly, and these components are not designed to take advantage of the forces generated by the process. The Value Analysis comes to the aid of companies to overcome these drawbacks that, among other things, generate products with costs higher than those necessary to cover the requirements on the part of the users.
Supervising or controlling all processes in the event that something goes wrong is a waste of time and effort. Any automatic cycle process or machine must be reliable enough so that the operator does not have to control them during the cycle. Something similar can be seen, for example, in administrative activities where staff must control the printers while printing the job to avoid paper jams. That time spent controlling the printer instead of continuing with other tasks is a waste of time or a wasteful resource. Making printing processes more reliable will significantly increase productivity in office work.
3.3. Maintenance
If there is a typical characteristic of world-class factories, it is the high level of their internal maintenance. Cleanliness, neatness and order are the hallmarks of a company that cares for its people and recognizes the productivity gains resulting from this discipline. Cleaning becomes a part of the intent of continuous improvement. Good maintenance affects the following aspects:
- Security. Accidents are significantly reduced if the work environment is clean and predictable. Quality. Properly stored components, clean and well-maintained equipment, a well-ventilated, dust-free environment that contaminates processes are just as many factors that help achieve quality products. Maintenance. Clean equipment, machines and workstations contribute significantly to maintenance since they allow detecting leaks or fatigue of the machines, thus avoiding the production of breakdowns or preventing their aggravation. Cleaning encourages staff to keep their equipment in stock. A well-maintained warehouse with well-kept storage areas on a day-to-day basis will allow for tighter control of stock value. Pride.Morale improves if the pride that comes from working for a company that takes care of safety and cleanliness increases. The practice of good maintenance is a visible indicator of the company's commitment to quality. Reduction of waste. A clean and well-planned factory or workshop allows detecting where and how waste is produced. Discipline. Tasks aimed at achieving a high level of maintenance are a good way to change previous work habits and replace them with a new form of action.Discipline. Tasks aimed at achieving a high level of maintenance are a good way to change previous work habits and replace them with a new form of action.Discipline. Tasks aimed at achieving a high level of maintenance are a good way to change previous work habits and replace them with a new form of action.
The practice of good maintenance to be effective requires a systematization. Being necessary for the operators to take responsibility for their own work areas. World-class companies monitor maintenance status as rigorously as they do with their quality systems.
Good maintenance is a good preservative of resources, cleaning being an important contribution to total productivity.
3.4. Total Productive Maintenance
It constitutes an approach aimed at preventing downtime from occurring on equipment or machines. It implies achieving a certain level of production availability under conditions of quality that can be demanded at the minimum cost and with the maximum security for the personnel who use or maintain them.
By availability of an installation, it is understood the proportion of time in which it is ready for production with respect to total time. This availability depends on two factors:
- The frequency of breakdowns The time required to repair them
The first of these factors is called reliability, it is an index of the quality of the facilities and their state of repair, and is measured by the average time between failures. For this reason, an increase in reliability corresponds to an increase in the time between failures.
The second factor, called maintenance, is representative, on the one hand, of the good design of the facilities and, on the other, of the effectiveness of the maintenance service. It is measured by the inverse of the average fault repair time.
Therefore, an adequate level of availability is the result of a low number of breakdowns and that these are repaired quickly.
Improving maintenance and the economic results of it implies:
- In terms of maintenance: eliminate the causes and anticipate Regarding the spare parts: carry out a rational management of the same and in relation to the workforce: facilitate the maintenance work, allow an optimal use of material and human resources.
The MPT approach identifies five causes of failure:
- Neglected basic equipment conditions Conditions of use not observed Parts deterioration ignored Inherently weak equipment design Insufficient operation and maintenance skills
To overcome these problems, the MPT proposes the following activities:
- Clean, tighten, and lubricate Learn how to use equipment properly Review all parts regularly Work with suppliers and engineers to improve designs Establish systematic training and coaching programs
3.5. Regulatory stocks
Regulatory or safety stocks are created to deliberately protect the system against an unplanned decline in stocks. Security stocks are held just in case something goes wrong. Even in the best drag or JIT systems, there is sometimes a need to maintain a certain stock of regulation to facilitate slight variations in the progress of each of the system's processes, so that it is not too hard for people who work at. While in traditional companies, regulatory or security stocks exist due to ignorance of the system and the inability to predict the results of planning, leading to a clear over-stock. The reasons why security stocks are incorporated into the system are:
- Be covered by an increase in demand that would exceed the sales forecast Allow the rejection of materials or components received from suppliers Be safe from delayed deliveries from suppliers Cover a possible decrease in supplies Be safe from work absenteeism Be safe of any failure of the plant or equipment Deal with justified claims or problems that may arise Be covered if a key supplier ceases its activities Anticipate the possibility that the price of inputs will increase Cover any other eventuality emanating from senior management
The management of the company in the face of a situation that it considers beyond its control creates a kind of bumper consisting of over-existence to cushion the unwanted effects. No company that wants to be internationally competitive can tolerate this situation.
3.6. Providers
Reliable suppliers who can deliver what is needed, in the exact quantity, on time, and in full compliance with specifications are highly valued for stock cost purposes. If the suppliers are not reliable, adjustments must be made to correct the effects caused by the lack of compliance in the quality, quantity and agreed deadlines. What must be evaluated when establishing relationships with suppliers is the lowest total cost, and not only the lower cost of the input.
3.7. Reduction of set-up times
The reduction of the set-up times begins by selecting those processes or operations that are the current bottlenecks in the system. The basic strategy for improvement using qualitivity is to isolate the problem and then see if it can be permanently eliminated. The problem lies in the long set-up times. The best way to reduce these times is to eliminate them entirely. The basic principles to apply to eliminate or minimize set-up times are as follows:
- Delete the operation by redesigning the part or product Delete the operation by subcontracting the part to an external manufacturer Combine operations so that several operations can be performed at the same time Differentiate between online and offline set-ups Change online-offline set-ups Apply movements with a single tooling maneuver Decentralize the tooling warehouses so that they are located within the process Prepare the operators to make the tune-ups Standardize the new tune-up procedures Involve each function in the continuous improvement of the tune-ups
By studying the set-ups we can see that they can be divided into different groups of time elements, the sum of which is the set-up time. The total set-up time contains time elements that add and do not add value, while the time spent physically setting up the machine or the process adds value. Time does not add value to the product produced. However, it is useful to consider the set-up as part of the supplied product and apply the concept of added value.
There are several activities that do not add value. Among the most common can be mentioned the following:
- Wait for instructionsGet blueprintsFind explanations in the instructions and blueprintsMake up tools and accessoriesFind lost tools and accessoriesInterruptions for mealsMachine stopsMaterial quality problemsWait for the first inspection of the exitFind customized equipmentWait for an operator
All of these points are system problems, and can only be overcome by changing the system. The improvements to the set-ups will involve all functions, from product development to human resources.
The ability to quickly change processes to manufacture one product or another is a characteristic of world-class companies. Applying this capacity to offices and abroad, the company's versatility extends to service and sales.
- Statistical processes control
It is the application of statistical methods to analyze data and to study and monitor the ability and performance of a process. Statistical process control is based on a simple concept, a historical frequency diagram, which consists of a diagram showing the frequency with which different values or measurements occur in the results of a process.
Whether you are dealing with a control chart in which all the results meet the specifications considerably, or with a chart in which some results do not meet the specifications, the goal is to reduce the variation, that is, they have to be shortened the upper and lower control limits to get closer to your target specification. Three ways of achieving this purpose are: stratification, experimentation and disaggregation. Briefly exposing each of them we have:
- Stratify: process consisting of classifying data into groups or categories, then proceeding to search for patterns by the way the data is grouped. This gives the keys to what must be changed to improve the system. Experiment: Carefully planned changes are executed, recording the results. This process continues until reaching an optimal level. Disaggregate: consists of dividing the process into the sub-processes that comprise it, proceeding to a deeper and more detailed analysis of the latter, also analyzing the systemic relationship between the various sub-processes.
It is essential when judging the variations, whether they are random or typical of the system, or are assignable or the product of special causes. The correct distinction leads to avoiding the commission of errors when making decisions regarding the realization or execution of corrections or adjustments.
There are two basic reasons for applying statistical process control. The first is that the Statistical Process Control allows determining when to take actions to adjust a process that has gone out of control. The second is that the CEP indicates when to leave only one process. Knowing when to take action in a process is an important step in defect prevention, and it eliminates inspection and classification of a product after a large batch has been manufactured. Knowing when to leave a process alone is of equal importance to keep variation to a minimum. Many production workers struggle with this concept because they do not understand the nature of the variation or the difference between the common and special causes of variation. Often they believe that whenever the products of a process are far from the goal,some adjustment must be made.
In highly competitive companies, the application and implementation of statistical process controls are essential, and the same does not occur in traditional companies. In Latin American countries and in the case of non-multinational companies, unfortunately there is no use made of this modern and powerful management tool, unfortunately not deserving the attention of academic faculties in the way it should be done. Due to its importance, it should be a subject in itself within the study plans, including business administration, economics and even accounting careers. It should be remembered that this tool was and is one of Deming's main contributions to quality and productivity with its consequences in cost reduction and management control.The application of this tool enabled, to a great extent, along with others, of course, the Japanese productive takeoff, being then the object of study and application in modern American companies.
- Human Resources
Achieving high levels of quality and productivity is impossible without the commitment and participation of employees at all levels. For this, the management must commit to ostensibly improve the levels of quality of working life.
What is the quality of working life? We can describe it as the congruence between personal and organizational goals, that is, the degree to which the members of a labor organization are able to satisfy important personal needs through their experiences with the organization.
- L. Landen describes an environment of good quality of working life as one where people are essential members of an organization that stimulates the human spirit, inspires personal growth and development, and gets things done.
The best organizations are characterized by:
- Good leadership The existence of shared goals Recognition programs Participation system Existence of teamwork They stand out for the pride of their members They have good communication And there are opportunities for growth
While the worst organizations are characterized by:
- A lack of leadership Participation does not take place Poor communication takes place A low morale of the employees / operators is not properly appreciated the qualities and efforts of the staff They present a clear lack of orientation Not only low productivity is observed, but a continuous deterioration at that level personnel are under excessive pressure
High participation systems operate on the assumption that employees are capable of making important decisions about their work and that maximum organizational performance is obtained when people exercise considerable control over their activities.
The philosophical assumptions of the new style of human resource management are very different from those corresponding to the Taylorist vision of the company, these new assumptions being the following:
Sociotechnical optimization. Entrepreneurial companies are no longer trying to optimize the technical system when designing new organizations, they now recognize the social system - the way people connect with the organization. it is also important in determining performance. The maximization of the technical system usually results in a poor social system; tasks are tedious, teamwork doesn't exist, and people have little influence on their working lives. While conscious design of social needs and relationships produces better results. Organizations are now designed to offer optimal match between technical and social systems.
People are complementary to machines and a resource to be developed. People have a lot to contribute and can increase the effectiveness of technology if tasks are designed to stimulate employees, allowing them to exercise their skills and acquire new skills.
Optimal grouping of tasks. Rather than breaking down tasks into their minimal elements, companies now expand and enrich tasks in order to give employees greater responsibilities, knowledge, and encouragement.
Multiple and broad skills. To maximize the contributions of human resources and empower people to effectively carry out greater responsibilities, training is provided to broaden and expand the skills of employees.
Self-regulation. Excessive external controls give in to self-management based on shared vision and values. Employees have more influence over their tasks and receive information and support to make judicious decisions.
Horizontal hierarchy. The increasing use of self-management allows supervisors to exercise a wider range of control, and by having fewer specific controls, the need for specialists is reduced.
Qualitative guidance. The quality of products, processes and working life are slogans of the new management style. Organizations are guided by an interest in quality, innovation, and value, rather than quantitative analysis and efficiency.
Participatory management. The new philosophy, which emphasizes the commitment and participation of human resources, requires management practices that support these ends. Autocratic management style is totally inappropriate in this new environment.
The traditional style, which worked well in an era of stability and sustained growth, is ineffective in a period of intense competitiveness and rapid change. Maximum quality, low costs, speed of response, wide flexibility and the ability to innovate are the keys to success for the new era, which is why an informed, committed and capable workforce is an essential requirement to achieve this results.
History teaches us that companies that stick to a traditional style, instead of adapting to the changing environment, do not survive.
In this regard, it is worth mentioning the consultant Andrés Senlle, who magnificently exposes us as the managers and businessmen subject to the Law of Resistance to Change, despite the difficulties, complaints, tensions and nerves to which they are affected, they refuse to make any improvement. or change in management systems thinking and saying things like:
- "Reengineering, Benchmarking …………..for what?" We do not need to develop managers "" Problems have always been and will be "" The origin of the problems is in politics, the Common Market, the Stock Market, the dollar, etc. "" Well, we are pulling, when the ISO demands us we will see "" The changes will bring problems "" Now we cannot, later… maybe "" I know very well what happens in my company "" The ISO also have their flaws "" There are many theories but this company is a different world "" Training, Total Quality, management development; it's expensive, we can't spend "" Yes, we have failures, but… in all companies there are "" Everything has already been invented, we don't believe in new theories "" If employees changed,the company would change and in that sense the Management cannot do anything "" We are like this "" The stress of the controls does not affect us "" It is very complicated and expensive to change the organization "" We have already tried "" Things always happen, but it is not serious ”“ It is not possible to become a model company ”
If the company is in the Law of Resistance to Change, its survival is at stake. In the market, only the most prepared organizations succeed, who invest in human resources and who value both technological development and human quality.
We are currently experiencing the third Industrial Revolution in which technological changes take a back seat and the value of people begins to occupy a privileged situation.
In this regard, Naisbitt (ex-adviser to the White House in the USA) affirms: “The dominant value is no longer capital to make way for ideas and multiple initiatives in new fields. It is about building agile and flexible companies, capable of varying according to the needs posed by consumers and attending to the personalized services that they demand. The human being is the key and, therefore, the source of business: it concerns the quality of life, information, ongoing training, health or self-health, and the elements of individuality. ”
Focusing the success of the company on the contributions and collaborations that the workers make through the quality circles and the work teams, among others, constitutes a fundamental change in relation to the prevailing ideas in conventional companies.
- Change management
Managing change is no longer in modern business strategies a way to react to changes in the environment or act preventively based on possible opportunities and threats, to become a purely proactive action, which implies creating future conditions, stop being followers of norms and paradigms, to move to the violation of norms and destruction of paradigms. Destroying is the foundation of the new construction. A company must devour itself, said a leading consultant. Unlearning opens the doors to new conceptions and theories. In a world in permanent boil, the most active are those that will generate the most value, but for this, not only strategic planning is necessary,but also planning knowledge management which will lead to investment in intellectual capital and the development of what has been called the rapid learning organization.
Twelve steps are necessary to keep in mind:
- Facing reality is the first of them. All those who have spent their lives trying to build a company that works, will have to face a harsh reality: company structures will become obsolete in the near future, acting only in strategic contexts. Most organizations are undergoing dramatic change; they are swept away by general competition and by innovations in incredibly fruitful technology; This trend is accelerating more and more and the opportunities for change will be endless. However, capital and energy are limited. Knowing where to make the change as an investment and where to pursue performance improvements will separate the winners from the losers. Concentrating efforts where the greatest benefits can be obtained is one of the slogans.Intelligently set the stage for change. Establishing a suitable environment for change is crucial. Concentrate efforts on appreciably improving performance in the most important sections for the organization and its key people. Write a compelling report to advocate for change. A compelling report needs to be produced to advocate for change. It is necessary to work relentlessly to achieve the necessary consensus, starting with senior management, deploying downward in the organization that urgent need for change. The changes that are contemplated to effect constitute a center of interest for some powerful individuals and groups. For this reason, it is imperative to segment, understand and prioritize the needs and motives of these pillars.Communicate continuously. For the change program to succeed, you will need to continually communicate to your supporters how changes are viewed and developed. Rework the measures. Driving change and getting staff to act under new parameters will require the organization's performance measures to be carefully re-examined. Using all the springs for change. Using the appropriate levers at the appropriate points will favor not only the realization of the change, but also the amount of resources and time necessary for its execution. Think boldly. Changes of magnitude need to be considered. Changes that allow an appreciable initial distance to be taken in relation to competitors. For this, creativity and innovation must be encouraged.It is necessary to eliminate limited thoughts to make way to work outside these limits. Capacity building. Investing in human capital is the watchword. Increasing the professional competence of your employees at all levels is essential. It is necessary to expand the technical competence for the solution of problems, the capacity to make decisions and the leadership of those who are day by day on the battlefront. Strengthen the facilitation, management, delegation, listening, communication and diversification capacities of those at the top. Capacity building needs to be made a key measure of performance for all employees. To make the change a reality, it is essential to develop a detailed and documented action plan. It is necessary to specify all important actions,This includes changes in processes, systems, personnel, organizational culture, physical environment, organizational structure and training needs. Integrate initiatives. Maintaining an integrated and consistent rationale for the entire model of change is essential. An unplanned approach to change initiatives will only produce an irrational competition for scarce resources, confuse employees and reduce the positive impact of any other initiative.An unplanned approach to change initiatives will only produce an irrational competition for scarce resources, confuse employees and reduce the positive impact of any other initiative.An unplanned approach to change initiatives will only produce an irrational competition for scarce resources, confuse employees and reduce the positive impact of any other initiative.
- What should be changed? And because?
Evaluating the current situation of the company in its various orders and comparing it with the desired objective for the future of the company, results in plans and actions that are consistent with the objects of overcoming this gap.
Thus we have as key points to evaluate in the company the following:
- Markets and customers Products and services Activity processes Personnel and reward system Structure and facilities Technologies
Properly verifying the strengths and weaknesses in each of these points and observing how they can be properly used to take advantage of opportunities and avoid or overcome threats is vital.
8. Learning from the frog's lessons
If a frog is placed in boiling water, the impact it suffers is so intense that it will immediately jump. The crisis comes over her and she acts accordingly. Now what happens if you put the frog in cold water and gradually raise the temperature, the frog will be happy at first, then accept the circumstance and will end up expiring when the water reaches the boiling point.
As unpleasant as this example is, isn't it what happens in many companies? Conditions worsen for a number of reasons that managers and even employees refuse to see or accept. Some companies have long ignored the signs that support the need for change.
9. Conclusion
Calitivity represents a methodology that, based on the teachings of Japanese Kaizen, tries by means of technical, terminological and application adaptations to be an agile and precise system with which western companies can face new challenges and greater market demands.
Two aspects are of fundamental importance. The first is linked to the optimal use of resources, which will not only generate greater benefits for companies, but also less waste of resources. And the second related to the need to concentrate efforts on creativity and innovation. Managing knowledge and change is the central focus around which the most profitable companies on the planet revolve. Not knowing how to project on time, neglecting the needs of consumers, not being proactive enough and not concentrating enough resources on intellectual capital will lead to companies to a constant deterioration reducing their organizational life cycles.
It is necessary to adopt a new way of managing, organizing and directing companies on the basis of participation and constant innovation.
10. Annex I - Questionnaire on sensitivity to customer needs
- Does all the text in our advertisements, brochures, technical summaries and packaging accurately and truthfully represent the service we are trying to offer our customers? Our contracts,Service delivery documents or agreements contain waivers or exclusionary clauses that deny implicit or explicit promises made prior to purchase? What percentage of our workforce in field service or post-sales service is engaged in services or unplanned maintenance? What percentage of our global income depends on post-sales service? What standards have been established in the organization to address questions asked by phone or in writing by customers? To what extent has our participation changed? of the market during the last three years? How do we compare with our main competitors (both domestic and foreign) in terms of market share, growth,quality of the product and quality of the global services related to the product? Who has the specific responsibility in the organization to define who our clients are and to communicate to the administration their current and future needs? What is the level of our accounts receivable expired? (It is likely that 90% of past due accounts receivable are the fault of the company itself due to poor communication with its clients.) How many of the organization's clients have you personally spoken to in the past month?How many of the organization's clients have you personally spoken to in the past month?How many of the organization's clients have you personally spoken to in the past month?
11. Annex II - Questionnaire to evaluate productivity management
- What is the level of organizational awareness of productivity? What are the main concerns of employees around productivity? How committed are supervisors and executives to improving productivity? How explicit are the responsibilities for productivity improvement? How effective are the remuneration and recognition systems in enhancing productivity? Do organizational goals for productivity improvement exist at various levels of the organization? How widespread are productivity measurements? How widely Are measurements effectively used to reinforce improvement? Are employees receiving feedback on productivity and performance levels? Are communications effective in all directions? How effective have past projects to improveProductivity? How involved are employees in performance improvement activities? How does the organization perceive employee participation? Do supervisors and managers have the skills to effectively direct people? What does the union think about productivity? What is the quality situation and how is it perceived to be related to productivity? What is the predominant management style and what impact does it have on productivity? What are the main opportunities to improve productivity? What are the main obstacles to employee participation and improved productivity?to effectively direct people? What does the union think about productivity? What is the quality situation and how is it perceived to be related to productivity? What is the prevailing management style and what impact does it have on productivity? What are the main opportunities to improve productivity? What are the main obstacles to employee participation and productivity improvement?to effectively direct people? What does the union think about productivity? What is the quality situation and how is it perceived to be related to productivity? What is the prevailing management style and what impact does it have on productivity? What are the main opportunities to improve productivity? What are the main obstacles to employee participation and productivity improvement?productivity improvement?productivity improvement?
12. Bibliography
- Senlle, Andrés - Human Reengineering - Management Editions 2000 - 1996Belcher, John G. - Total Productivity - Basic - 1991Macdonald, John - Piggott, John - Global Quality - Overview - 1993Berry, Thomas H. - How to manage the transformation towards total quality - 1992 Schonberger, Richard - World Class Manufacturing - Prentice Hall - 1994 Arata Andreani and Furlanetto - Light Organization - McGraw Hill - 2001
