Customer satisfaction

Deming Wheel
Act

Plan

Do

Check

A sample statistic that falls between the UCL and the LCL indicates that the process is exhibiting common causes of variation; a statistic that falls outside the control limits indicates that the process is exhibiting assignable causes of variation.

 Type I error occurs when the employee concludes that the process is out of control based on a sample result that falls outside the control limits, when in fact it was due to pure randomness.  Type II error occurs when the employee concludes that the process is in control and only randomness is present, when actually the process is out of statistical control.

1. Define: Determine the current process characteristics critical to customer satisfaction and identify any gaps. 2. Measure: Quantify the work the process does that affects the gap. 3. Analyze: Use data on measures to perform process analysis. 4. Improve :Modify or redesign existing methods to meet the new performance objectives. 5. Control: Monitor the process to make sure high performance levels are maintained.

 Top Down Commitment from corporate leaders.  Measurement Systems to Track Progress  Tough Goal Setting through benchmarking best-in-class companies.  Education: Employees must be trained in the whys and how-tos of quality.  Communication: Successes are as important to understanding as failures.  Customer Priorities: Never lose sight of the customers priorities.

International Quality Documentation Standards

ISO 9000 ISO 14000

A set of standards governing documentation of a quality program.

Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes.

Criteria for Performance Excellence

y
Category 1Leadership

y Category 2Strategic Planning 2 y Category 3Customer and Market Focus 3 y Category 4Information and Analysis 4 y Category 5Human Resource Focus 5 y Category 6Process Management 6 y Category 7Business Results 7

120 points 85 points 85 points 90 points 85 points 85 points 450 points

Cont .
y y y y
LeadershipLeadership system, values, expectations, and public responsibilities Strategic PlanningThe effectiveness of strategic and business planning and deployment of plans, focusing on performance requirements Customer and Market FocusHow the company determines customer and market requirements and achieves customers satisfaction Information and AnalysisThe effectiveness of information systems to support customer driven performance excellence and marketplace success

y y

Human Resource FocusThe success of efforts to realize Focus the full potential of the work force to create a highhighperformance organization Process ManagementThe effectiveness of systems and Management processes for assuring the quality of products and services Business ResultsPerformance results and competitive Results benchmarking in customer satisfaction, financials, human resources, suppliers, and operations

Process Layout
Revising layouts is another way of improving process. Layout put other decisions on process in tangible physical form converting process structures, flowcharts, and capacity plan into brick and mortar. Layout planning involves decision about the physical arrangements of economic activity centers needed by a facilitys various process.

Cont. .
The goal of the layout planning is to allow customers, workers, and equipment

to operate most effectively. Layout affect just not the flow of work between processes at a facility, they also effect process elsewhere in a value chain consider a manufacturer enjoying higher volumes which modified its layout to allow more line flows. With a new layout suppliers can deliver their items right to the production line rather to a central receiving area for storage. The new layout also enables more consistent production flows which result in more predictable capacity needs for the delivery process.

Economic Activity Center

Anything that consumes space: for example, a person or a group of people, a customer reception area, a teller window, a machine work station, a department, an aisle, or a storage room.

MANAGING PROCESS LAYOUT ACROSS THE ORGANIZATION

Layout are found in every area of a business because every facility has a layout. Good layout can improve coordination across departmental lines and functional area boundaries. Redesigning layouts can require significant capital investments, which needs to be analyzed from an accounting and financial perspective. Layouts also effect employee attitudes, whether on a production line or in an office.

LAYOUT PLANING
Layout plans translate the border decisions about the competitive priorities, process strategy, quality, and capacity of its process into actual physical arrangements of people, equipment and space.

1.Centers should reflect process decisions and maximize productivity. For example a customer information desk near the entrance of the bank or hotel can better guide customer to the desired services. 2.Inadequate space can reduce productivity, deprive employees of privacy, and even create safety hazards . However expensive space is wasteful, can reduce productivity.

3.The amount of space its shape and the elements in a center are interrelated. For example placement of a desk and chair relative to the other furniture is determined by the size and shape of the office as well as the activity performed there. 4.Location can significantly affect productivity , for example employees who must frequently interact with one another face to face should be placed in a central location rather than in separate, remote locations to reduce time lost traveling back and forth

STRATEGIC ISSUES
Layout choices can help immensely communicating an organizations product plans and completive priorities. Layout as many practical and strategic implications. Altering layout can affect an organization and how well its meets its competitive priorities in the following ways.

Increasing customers satisfaction and sales at a retail store Facilitating the flow of materials and information Increasing the efficient utilization of labor and equipment Reducing hazards to workers Improving employee morale Improving communication

FLEXIBLE- FLOW LAYOUTS

Front-office and job process with highly divergent work flow have low volume and high customization. For such process, the manager should choose a flexible-flow layout, which organizes ( resources employees and equipment ) by function other than by service or product.

LINE FLOW LAYOUTS

Back offices and lines process typically have linear work flows and repetitive task. A layout in which workstations or departments are arranged in a linear path. The Japanese refer to a line process as Over Lapped Operations

HYBRID LAYOUTS
The layouts combine elements of both divergent and line-flow process. This intermediate strategy calls for a Hybrid Layout, in which some proportions of the facility are arranged in flexible flows and others are arranged in a line flow layout. Hybrid layouts are used in facilities that have both fabrication and assembly operations.

FIXED POSITION LAYOUT

The service or manufacturing site is fixed in place employees along with their equipment come to the site to do their work. A fixed position layout minimize the number of times that the product must be moved and often is the only feasible solution.

LINE BALANCING: Is the assignment of work to stations in a line so as to achieve the desire output rate with the smallest number of workstations. WORK ELEMENT: are the smallest unit of work that can be performed independently IMMEDIATE PREDECESSORES: are work elements that must be done before the next element cab begin. PRECENDENSE DIAGRAM: allow one to visualize immediate predecessors better; work elements are denoted by circles, with the time required to perform the work shown below each circle.

People problem dominate office layouts. Most formal procedures for designing office layouts try to maximize the proximity of workers whose jobs require frequent interaction. PRIVACY is another key factor in office design. Types of office layout:

TRADITIONAL: (private offices such as in the school of business or in a law firm) OFFICE LANDSCAPPING:(cubicles) ACTIVITY SETTING: (gym, library)