Productivity and Quality Management
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 and Mr. A.K.L Jayawardana
July, 2003
POSTGRADUATE INSTITUTE OF MANAGEMENT
University of Sri Jayewardenepura
TABLE OF CONTENTS PAGE NO. EXECUTIVE SUMMERY 4
1.0 INTRODUCTION 5 1.1 MEASURING PRODUCTIVITY IN THE MANUFACTURING AND SERVICE SECTORS 1.1.1 Productivity Defined and Explained 5 1.1.1.1 Why Productivity 7 1.1.2 Manufacturing Sector Productivity 8 1.1.3 Service Sector Productivity 14 1.1.4 Nestle Lanka Performance Measures 15 1.2 TOTAL QUALITY CONCEPTS 1.2.1 Total Quality Management Models 26 1.2.1.1 The origin of TQM 26 1.2.1.2 Total quality defined 26 1.2.1.3 Why TQM 27 1.2.1.4 TQM models 28 1.2.2 Issues in Application of TQM 33 1.3 HIGH PERFORMANCE ORGANIZATION 1.3.1 Characteristics of a high Performance Organization and Benefits 35 1.3.1.1 What is a high Performance Work System 35 1.3.1.2 Benefits of a High Performance Work System 36 1.3.2 Job Design Defined 37 1.3.3 Job Design in an Performance Organization 37
2.0 ORGANIZATION OVERVIEW 2.1 Nestle Mission and Vision 37 2.2 Nestle Quality Objectives 38 2.3 Nestle Key Products 40 2.4 Current Customer Expectations and Perceptions 41 2.5 The Products Which does not meet the Expectations of Customer 41 2.6 The departmental Process 42 2.6.1 The core customer requirements 42 2.6.2 The inputs 43 2.6.3 The output 43
3.0 IMPROVING THE DEPARTMENT 45 3.1 Achieving of key parameters in the operational plan and the revised plan in relation to Management accounting Department 46 3.2 Utilization of software systems to the betterment of the department and internal customers. 47 3.3 Measurement of internal customer satisfaction and identification of errors made 48 3.4 Cost per Ton Delivered 49
EXECUTIVE SUMMERY
Executive Report
Prepared by
G.Y. Attanayake
MBA/2003/1448
Course : MBA 501 Managing Business Operations
Dr. Travis Perera and Mr. A.K.L Jayawardana
July, 2003
POSTGRADUATE INSTITUTE OF MANAGEMENT
University of Sri Jayewardenepura
TABLE OF CONTENTS PAGE NO. EXECUTIVE SUMMERY 4
1.0 INTRODUCTION 5 1.1 MEASURING PRODUCTIVITY IN THE MANUFACTURING AND SERVICE SECTORS 1.1.1 Productivity Defined and Explained 5 1.1.1.1 Why Productivity 7 1.1.2 Manufacturing Sector Productivity 8 1.1.3 Service Sector Productivity 14 1.1.4 Nestle Lanka Performance Measures 15 1.2 TOTAL QUALITY CONCEPTS 1.2.1 Total Quality Management Models 26 1.2.1.1 The origin of TQM 26 1.2.1.2 Total quality defined 26 1.2.1.3 Why TQM 27 1.2.1.4 TQM models 28 1.2.2 Issues in Application of TQM 33 1.3 HIGH PERFORMANCE ORGANIZATION 1.3.1 Characteristics of a high Performance Organization and Benefits 35 1.3.1.1 What is a high Performance Work System 35 1.3.1.2 Benefits of a High Performance Work System 36 1.3.2 Job Design Defined 37 1.3.3 Job Design in an Performance Organization 37
2.0 ORGANIZATION OVERVIEW 2.1 Nestle Mission and Vision 37 2.2 Nestle Quality Objectives 38 2.3 Nestle Key Products 40 2.4 Current Customer Expectations and Perceptions 41 2.5 The Products Which does not meet the Expectations of Customer 41 2.6 The departmental Process 42 2.6.1 The core customer requirements 42 2.6.2 The inputs 43 2.6.3 The output 43
3.0 IMPROVING THE DEPARTMENT 45 3.1 Achieving of key parameters in the operational plan and the revised plan in relation to Management accounting Department 46 3.2 Utilization of software systems to the betterment of the department and internal customers. 47 3.3 Measurement of internal customer satisfaction and identification of errors made 48 3.4 Cost per Ton Delivered 49
EXECUTIVE SUMMERY
References: 1. Accel team, Productivity defined, From web WWW.accel-team.com---the . 2. Fitzgerrald Lin, Johnston Robert, Bribnali Stan, R S. ,Cv., Performance measurement in service sector , CIMA Publishing 1991, PP. 8. 3. Joseph R. Jablionski, Implementing TQM,( Pfeirrer and company 1992 second edition ),pp.9,pp. 39-51,pp. 53-55 5. American Society Of Quality, Baldrige National Quality Program, From Web WWW.asq.org. 6. The European Foundation for Quality Management, ‘Eight Essentials of *Excellence-The EFOM 's Fundamental Concepts and Their Significant benefits ,