management
Answer questions 1-4 of chapter 13, page 428 case 13.1.
1. What additional information should Anna attempt to obtain regarding the absenteeism problem?
2. Advise Anna on the steps she should take to control absenteeism. Include in your answer the types of standards and strategies she should use.
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CHAPTER 13
EXERCISING CONTROL
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Define control and explain how it relates to planning
Discuss the characteristics of effective control systems
Discuss the three types of control systems
Discuss the four steps in the control process
LEARNING OBJECTIVES
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Identify the different types of standards
Explain the importance of strategic control points
Discuss management by exception
Discuss the impact of technology on control
LEARNING OBJECTIVES
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Compares actual performance with planned performance and takes corrective action to ensure objectives are achieved
Phases
Anticipating things that could go wrong and taking preventive measures to see that they dont
Monitoring performance to compare what is happening with what is supposed to be happening
Correcting performance problems that occur
Linked to planning – Controlling is the process supervisors use to help carry out their plans
CONTROL
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EXHIBIT 13.1 – MURPHYS LAWS
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CHARACTERISTICS OF EFFECTIVE CONTROL SYSTEMS
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TYPES OF CONTROL SYSTEMS
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EXHIBIT 13.3 – TIPS FOR ESTABLISHING PREVENTIVE CONTROLS
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EXHIBIT 13.4 – THE PROCESS OF CONTROL
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Standard: Unit of measurement that serves as a reference point for evaluating results
Types
Tangible standards: Clear, concrete, specific, and measurable
Numerical standards
Physical standards
Monetary standards
Intangible standards: Relate to human characteristics and so are difficult to measure
ESTABLISHING PERFORMANCE STANDARDS
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Standards are set by:
Supervisors based on the time required to perform tasks, the quality necessary, and the expected employee behavior
The various staff departments on specific areas
ESTABLISHING PERFORMANCE STANDARDS
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How often to measure
Establish strategic control points to facilitate any adjustments that need to be made
Consider the importance of the job and the level of measurement of progress it warrants
How to measure
Personal observation
Written or oral reports by or about employees
Automatic methods
Inspections, tests, or samples
MEASURING PERFORMANCE
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EXHIBIT 13.6 – SETTING STRATEGIC CONTROL POINTS IN THE CONTROL PROCESS
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To understand the reason for the difference between planned and actual performance, supervisor must:
Determine the reasons for below-average performance
Compare results that are substantially above standard to determine why they varied from standard
Find out the opinions of those close to a problem to determine why standards are not being met
COMPARING PERFORMANCE WITH STANDARDS AND ANALYZING DEVIATIONS
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Involves modifying, adjusting, and fine-tuning in response to problems encountered
Essential to pull off important tasks or maintain standards
TAKING CORRECTIVE ACTION IF NECESSARY
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MANAGEMENT BY EXCEPTION
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EXHIBIT 13.8 – MANAGEMENT BY EXCEPTION
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Decision making and control have shifted downward to lower levels of management
Digital monitoring – Enables supervisors to give instructions and control operations from a distance away from those activities
IMPACT OF TECHNOLOGY ON CONTROL
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Concurrent controls
Feedback controls
Feedforward controls
Intangible standards
Management by exception
Monetary standards
IMPORTANT TERMS
Numerical standards
Physical standards
Standard
Strategic control point
Tangible standards
Time standards 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
CHAPTER 14
CONTROLLING PRODUCTIVITY, QUALITY, AND SAFETY
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Explain the concept of productivity
Identify and explain the ways in which management, government, unions, and employees affect productivity
Describe some steps supervisors can take to increase productivity
Differentiate between total quality and quality control
Describe the role of variance in controlling quality
LEARNING OBJECTIVES
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Identify some important tools for controlling quality
Describe the supervisors role in supporting lean organizations
Explain what the Occupational Safety and Health Administration (OSHA) does
Describe the supervisors role in promoting safety
LEARNING OBJECTIVES
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Measure of efficiency that compares outputs to inputs
Basic productivity ratio
Total output of goods/services
Total costs
Can be increased by:
Increasing total output without changing total costs
Decreasing total inputs costs without changing total output
Increasing output and decreasing input costs
PRODUCTIVITY
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EXHIBIT 14.3 – EXAMPLES OF PRODUCTIVITY MEASUREMENTS
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IMPORTANCE OF PRODUCTIVITY
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GROUPS INFLUENCING PRODUCTIVITY
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HOW SUPERVISORS CAN IMPROVE EMPLOYEE PRODUCTIVITY
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HOW SUPERVISORS CAN IMPROVE EMPLOYEE PRODUCTIVITY
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Make use of budgets to:
Help control costs
Evaluate a departments actual performance
Identify areas that need attention
Look to generate favorable variances to offset unfavorable variances
Technology provides up-to-the-minute cost data that supervisors can share with their teams
And challenge the team to look for ways to cut costs
SUPERVISORS ROLE IN COST CONTROL
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Robot: Machine controlled by a computer that can be programmed to perform a number of repetitive manipulations of tools or materials
RFID: Radio frequency identification technology uses radio waves to identify inventory
Computer-assisted manufacturing (CAM): Special computers assist equipment in performing processes
PRODUCTIVITY IMPROVEMENT METHODS FOR CONTROLLING QUALITY
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DEMINGS FOURTEEN POINTS FOR QUALITY
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DEMINGS FOURTEEN POINTS FOR QUALITY
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Establish a plan to seek improvement continuously in all phases of operations
Put in place a system that accurately tracks and measures performance in those areas
Establish a long-term strategic plan based on performance targets that compare with the worlds best in that particular industry
Link with suppliers and customers in a way that provides feedback for continuous improvement
REQUIREMENTS TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD
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Demonstrate a deep understanding of customers to convert their wants into products
Establish and maintain long-lasting customer relationships
Focus on preventing mistakes
Make a commitment to quality improvement throughout all levels of the organization
REQUIREMENTS TO WIN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD
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Quality directly affects the bottom line
In terms of cost of scrapped materials, wasted time, costs of rework, and customers exercise of warranties
Vigorous global competition
Firms are required to achieve ISO 9000 certification
Increased information available to the public regarding product and service quality
REASONS FOR GREATER QUALITY EMPHASIS
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Total quality: Organizations overall effort to achieve customer satisfaction through continuous improvement of products or services
Quality control: Defined measurements designed to check whether the desired quality standards are being met
TOTAL QUALITY AND QUALITY CONTROL
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EXHIBIT 14.14 – THE TOTAL QUALITY CHAIN
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Nature of processes is to exhibit variation
Measurable dimensions will vary in items produced in a manufacturing process
Types of variation
Common cause variation – General, routine variation built into the system
Special cause variation – Occurs intermittently and is associated with a specific event
UNDERSTANDING VARIANCE IN CONTROLLING QUALITY
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Reducing variation
Common cause variation can be corrected only through management action to improve the process
Special cause variation can be reduced by identifying the problem, isolating it, examining the cause, and remedying it
Six Sigma
Quality control technique
Helps reduce the number of defects in a companys end-to-end process
UNDERSTANDING VARIANCE IN CONTROLLING QUALITY
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TOOLS FOR CONTROLLING QUALITY
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EXHIBIT 14.15 – TYPE OF POWER FAILURES
Source: From Martin K. Starr Production and Operations Management, 2nd ed. Copyright 2008, Atomic Dog, a part of Cengage Leaning, Inc. Reproduced by permission. www.cengage.com/permission
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EXHIBIT 14.16 – FLOWCHART OF A FAST-FOOD DRIVE-THROUGH PROCESS
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EXHIBIT 14.17 – HISTOGRAM SHOWING FREQUENCY AND LENGTH OF TIME TAKEN BY HOME OFFICE TO PROCESS LOAN REQUEST
Source: From James W. Dean and James R. Evans. Total Quality, Management, Organization, and Strategy, 4e.
Copyright 2005 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions.
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EXHIBIT 14.18 – RUN CHART OF PERCENTAGE OF RESTAURANT CUSTOMERS WAITING IN EXCESS OF 1 MINUTE TO BE SEATED
Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146.0030078660. Copyright 1995 by Joseph Van Matre. Reprinted with permission of the author.
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TOOLS FOR CONTROLLING QUALITY
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EXHIBIT 14.19 – PARETO CHART OF CUSTOMERS COMPLAINTS ABOUT RESTAURANTS
Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146. 0030078660. Copyright 1995 by Joseph Van Matre. Reprinted with permission of the author.
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EXHIBIT 14.20 – CAUSE-AND-EFFECT DIAGRAM FOR WHY TABLES ARE NOT CLEARED QUICKLY
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Source: From Foundations of Total Quality Management: A Readings Book, 1st ed., by Van Matre, 146. 0030078660. Copyright 1995 by Joseph Van Matre. Reprinted with permission of the author.
2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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EXHIBIT 14.21 – EXAMPLE OF A CONTROL CHART
Source: From James W. Dean and James R. Evans. Total Quality, Management, Organization, and Strategy, 4th ed. Copyright 2005 South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/ permissions.
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Emphasize the importance of high quality
Provide information, support, and feedback to help employees achieve quality
Let employees know quality performance is expected
Involve workers in achieving and controlling quality
SUPERVISORS ROLE IN ACHIEVING QUALITY
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EXHIBIT 14.22 – CHARACTERISTICS OF EFFECTIVE EMPLOYEE INVOLVEMENT TEAMS
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Increasing value for the customer while using fewer resources
Strategies
Eliminating waste
Seven types of waste: Overproduction, movement, transportation, waiting, extra processing, defects and inventory
LEAN APPROACH
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Just-in-time inventory control (JIT): Materials arrive as close as feasible to the time they are needed in the production or service process
5s practices: Sort, straighten, shine, standardize, and sustain to promote good housekeeping
LEAN APPROACH
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Federal Occupational Safety and Health Administration, created to ensure safe working conditions for employees
Functions
Requires organizations to keep safety logs and records of injuries incurred on the job
Develops standards, conducts inspections, and enforces compliance by issuing citations and penalties
Performs pre-investigations upon invitation from the organization
OSHA
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FACTORS INFLUENCING SAFETY
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Human factors
Account for most work-related injuries
Technical factors
Unsafe mechanical, chemical, and physical conditions
Environmental factors
Agents that surround the job
CAUSES OF ACCIDENTS
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Push for upgraded safety equipment and safer work methods
Establish safety goals for the department
Communicate safety requirements to employees
Listen to complaints about safety-related matters
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
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Ensure new employees understand safety rules
Make sure safety rules are kept up to date
Prohibit use of unsafe or damaged equipment
Encourage safety suggestions from workers
Post posters to reinforce the need for safety
Refuse to tolerate relaxed safety standards
Set a proper example
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
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Conduct regular safety meetings, with demonstrations by safety specialists
Refuse to tolerate horseplay
Compete with other departments in safety contests
Report to employees any accidents that occur elsewhere in the company
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
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Review past accident records for insights
Encourage reporting of unsafe conditions
Make regular safety inspections of all equipment
Include employees in periodic safety tours
Enforce the rules when they are broken
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
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Look for and ensure relief from fatigue for employees
Investigate all accidents and remedy the causes
Have a system to reward excellent safety conduct
WHAT SUPERVISORS CAN DO TO IMPROVE SAFETY
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Cause-and-effect diagram
Check sheets
Computer-assisted manufacturing (CAM)
Control chart
Demings 8515 rule
Flowchart
Histogram
IMPORTANT TERMS
Just-in-time (JIT) inventory
Lean approach
Occupational safety and health administration (OSHA)
Pareto charts
Productivity
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Quality control
Radio frequency identification (RFID)
Robot
Run chart
Total quality
IMPORTANT TERMS
Toyota production system
5S practices
7 types of waste
