Productivity And Quality Management
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Issue paper one: Productivity and Quality Management
Executive Report
Prepared by
G.Y. Attanayake
MBA/2003/1448
Course : MBA 501 Managing Business Operations
Dr. Travis Perera
Mr. A.K.L Jayawardana
July, 2003
POSTGRADUATE INSTITUTE OF MANAGEMENT
University of Sri Jayewardenepura
TABLE OF CONTENTS
PAGE NO.
EXECUTIVE SUMMERY
INTRODUCTION
MEASURING PRODUCTIVITY IN THE MANUFACTURING AND SERVICE SECTORS
1.1.1
Productivity Defined and Explained
1.1.1.1
Why Productivity
1.1.2
Manufacturing Sector Productivity
1.1.3
Service Sector Productivity
1.1.4
Nestle Lanka Performance Measures
TOTAL QUALITY CONCEPTS
1.2.1
Total Quality Management Models
1.2.1.1
The origin of TQM
1.2.1.2
Total quality defined
1.2.1.3
Why TQM
1.2.1.4
TQM models
1.2.2
Issues in Application of TQM
HIGH PERFORMANCE ORGANIZATION
1.3.1
Characteristics of a high Performance Organization and Benefits
1.3.1.1
What is a high Performance Work System
1.3.1.2
Benefits of a High Performance Work System
1.3.2
Job Design Defined
1.3.3
Job Design in an Performance Organization
ORGANIZATION OVERVIEW
Nestle Mission and Vision
Nestle Quality Objectives
Nestle Key Products
Current Customer Expectations and Perceptions
The Products Which does not meet the Expectations of Customer
The departmental Process
2.6.1
The core customer requirements
2.6.2
The inputs
2.6.3
The output
IMPROVING THE DEPARTMENT
Achieving of key parameters in the operational plan and the revised plan in relation to Management accounting Department
Utilization of software systems to the betterment of the department and internal customers.
Measurement of internal customer satisfaction and identification of errors made
Cost per Ton Delivered
EXECUTIVE SUMMERY
Productivity measures in the manufacturing and the service sectors are varied and Complex ,the benefit from these, is to maintain a check on the efficiency and the effectiveness of organization processes.
In looking at the productivity concepts applied in Nestles, it seems that, almost all the aspects of productivity measures in large processes are covered to achieve excellence.
Total quality management can be defined as a change agent which will assist organizations to survive in this tough, unforgiving & changing environment. Implementing and sustaining total quality management is not a smooth sailing for any organization and many issues will have to be addressed.
To survive in this turbulent environment, companies further needs to improve their performance, and the beast way forward is to become a high performance organisation. A high performance organization would have several traits, which would support it, and one of the important ones is Job design.
Any organization would have a defined mission and set objectives to achieve it, the said variables would depend on the customer base and the internal strengths possessed.
Nestles being a company with a rich history and being renowned for being the largest food manufacturing company in the world incorporates all the things defined and practiced.
The department management accounting is service oriented, and it has no direct linkage to performance measures currently in use and by implementing a said few, we expect to improve the efficiency and to achieve the set goals. By looking at these measures, the concepts and the current position of the organization, we continuously strive to improve the organizations performance.
1.0 INTRODUCTION
In this dynamic environment of ours, it is crucial that the companies stay ahead of the competition and embrace change for survival. The way forward is by implementing various change agents like Total quality management techniques, High performance work systems & Productivity initiatives. The sections to follow will look at the said agents in brief & application to various scenarios.
1.1 Measuring productivity in the Manufacturing and service sector
1.1.1 Productivity Defined