Page 124 - Operations Strategy

lEAn oPERATionS 99
13 Institute education and self-improvement programmes (development and
organisation).
14 Create a top management structure that emphasises the above 13 points every day
(development and organisation).
The matrix in Figure 3.3 summarises Deming’s points in each decision area and illus-
trates that the Deming’s points are comprehensive, though heavily emphasising the
infrastructural aspects of operational change. However, changing behaviours and
beliefs is not easy and requires constant emphasis over an extended period of time.

lean operations
The idea of lean operations (also known as ‘just-in-time’, ‘lean synchronisation’ and
‘continuous flow operations’) spread beyond its Japanese roots and became fashionable
in the West at about the same time as TQM. And although its popularity has not declined
to the same extent as TQM, over 25 years of experience (at least in manufacturing) have
diminished the excitement once associated with the approach. But, unlike TQM, it was
seen initially as an approach to be used exclusively in manufacturing. Now, lean has
become newly fashionable as an approach that can be applied in service operations.

What is ‘lean’?

The lean approach aims to meet demand instantaneously, with perfect quality and no
waste. Put another way, it means that the flow of products and services always delivers
exactly what customers want (perfect quality), in exact quantities (neither too much

Figure 3.3 Tqm elements in the four operations strategy decision categories

Resource usage

Provide resources Continuous quality Built-in quality in Long-term plans
Quality Use quality as Purchase using Statistical process Quality culture
to support quality
processes
emphasis with
Performance objectives Dependability criterion Work on functional Enhance quality Quality performance Market competitiveness
suppliers
Continuous
improvement
control
performance
Speed
quality criterion
measurement and
capability
control
barriers
Quality as a
Training and
performance
education emphasis
criterion
Operational
supervision is
Flexibility
important
Appropriate org.
Cost Communication
structure
Development
Capacity Supply Process and
strategy network technology
organisation
Decision areas
M03 Operations Strategy 62492.indd 99 02/03/2017 13:03