Mar 20, 2009 Operations Management Eliminate Numerical Quotas: Deming advocates the removal of quotas, ecause the!

end up encouraging people to focus on quantit! often at the e"pense of qualit!# $ompanies should focus on qualit! issues instead of lindl! pursuing num ers# Du ed %irline of the &ear ! %ir transport 'orld in (e ruar! )99) and ran*ed num er one in all $onsumer +eports airline categories, %las*a %irlines relies on high service qualit! to gro, profits# %lthough the airline industr! as a ,hole lost more than -. illion in )990, %ir %las*a posted profits of -)/ million# Once referred to as 0Elastic %irlines1 for frequentl! running late and often changing flight schedules, %las*a %irlines no, stresses punctual performance and customer service# (ocusing on qualit!, not quantit! ena les the compan! to attract profita le, full fare usiness fliers# (or more than ten !ears, revenues of the %las*a %ir 2roup have gro,n at a rate of more than 23 percent a !ear, to - )#0. million in )990# +emove 4arriers to pride of 'or*manship: Deming maintains that annual rating or merit s!stems should e eliminated# 5f people inherentl! ,ant to perform ,ell, as Deming assumes, then the! do not need such incentive s!stems# 'hat the! need is assistance in over coming o stacles imposed ! inadequacies in Materials, equipment, and training# 6!stems that endeavor to remove such o stacles should replace s!stems that attempt to coerce performance ! ma*ing ,or*ers feel that the! are al,a!s eing 7udged, ran*ed, and rated# % lean ,or*force of ).0 full! empo,ered emplo!ees produces air conditioner compressors in $arrier $orporation8s %r*adelphia, %r*ansas, plant# Empo,ered plant emplo!ees do not punch a time cloc* or have to prove illness of a sent# 9he empo,ered, team ased ,or*force in $arrier8s highl! automated plant is e"tremel! fle"i le# 'or*ers are trained in several 7o assignments and can fill in at numerous points on the assem l! line# Often, emplo!ees intervie, their prospective managers# 9he manager ,ill not e hired if emplo!ees decide the compati ilit! et,een the manager and ,or*ers is not 7ust right# 5nstitute a vigorous :rogram of Education and training: Deming emphasi;es training# 9his includes a thorough foundation in the tools and techniques of qualit! control, as ,ell as additional instruction in team,or* and the philosoph! of 9QM culture# 5nfiniti, the lu"ur! car division of Nissan Motor $ompan!, runs a si" da! camp for dealer personnel# 9he goal of the innovative training program is to ma*e 5nfiniti dealership

unequalled in the treatment of customers# 9he car ma*er requires that all dealer emplo!ees, even cler*s and receptionists, attend the training programs conducted ever! other !ear in :hoeni" %ri;ona# %ttendees are taught to change their attitudes and no longer thin* of dealership visitors as 0tire *ic*ers1 or mere customers# 5nstead, potential car u!ers are to e treated as honored guests# 5n <apan, honored guest and customer are defined ! a single ,ord, o*!a*usama# 5n )99), 5nfiniti tied 9o!ota8s =e"us for first place in < D :o,ers and %ssociates annual customer satisfaction surve!# 'hile =e"us ,as rated first in car qualit!, 5nfiniti ,on the overall title for its treatment of customers# 9a*e %ction to accomplish the transformation: %ccording to Deming, the entire organi;ation must ,or* together to ena le a qualit! culture to succeed# 9op managers Must design and implement the strateg! so that ,or*ers can then cooperate in the pursuit of a 9QM culture# >!tec, a )99) 4aldrige ,inner has revamped its entire strategic planning process in order to achieve the highest level of qualit! possi le# 9he compan! uses formal and informal means to collect data from customers for mar*et research and to help it improve its o,n operations# % five !ear strategic plan is developed ! si" cross functional teams, and then revie,ed and critiqued ! a out 20 percent of the compan! ?).0 emplo!ees@ A from all shifts, departments and e"pertise# (eed ac* on the plan is also solicited from a handful of customers and suppliers efore it is finali;ed ! >!tee e"ecutives#