Page 275 - Operations Strategy

250 CHAPTER 7 • ImPRovEmEnT sTRATEgy

Figure 7.7 The importance–performance matrix for TAg’s ‘overnight temperature-
controlled’ service

GOOD 1 2 Volume Delivery
flexibility
Drop Window
3 4 quote quote
Performance against competitors 5 6 Price/cost Documentation service
Distribution
quality

Delivery
7
Order/dispatch flexibility
8 quality Enquiry
lead-time
9
BAD 9 8 7 6 5 4 3 2 1

Importance for customers
LOW HIGH

the sandcone theory

Techniques such as the importance–performance matrix assume that the improvement
priority given to various aspects of operations performance is contingent upon the spe-
cific circumstances of an organisation’s market position. But some authorities believe
that there is also a generic ‘best’ sequence in which operations performance should
be improved. The best-known theory of this type is sometimes called the ‘sandcone
theory’. Although there are slightly different versions of this, the best known is that
originally proposed by Arnoud de Meyer and Kasra Ferdows. In fact, the sandcone
5
model incorporates two ideas. The first is that there is a best sequence in which to
improve operations performance; the second is that effort expended in improving each
aspect of performance must be cumulative. In other words, moving on to the second
priority for improvement does not mean dropping the first and so on.
According to the sandcone theory, the first priority should be quality, since this is
a precondition to all lasting improvement. Only when the operation has reached a
minimally acceptable level in quality should it then tackle the next issue – that of inter-
nal dependability. Importantly, though, moving on to include dependability in the
improvement process should not stop the operation making further improvements in
quality. Indeed, improvement in dependability will actually require further improve-
ment in quality. Once a critical level of dependability is reached, enough to provide
some stability to the operation, the next stage is to turn attention to the speed of inter-
nal throughput, but again only while continuing to improve quality and dependability
further. Soon it will become evident that the most effective way to improve speed is

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