Product Management Issues
Quality of Design, Performance, and TQM -- As manufacturing design and implementation became even more complex, an integrative approach to the end product became necessary. There are many theoretical rubrics for this, but one of the more stable and robust is that of TQM, or Total Quality Management. TQM, like other theories such as Six Sigma, is based on the idea that the quality of the end product is the responsibility of everyone who touches the process -- from the creation to the manufacturing to the distribution. TQM, as noted, is an evolving process, and one that includes design, process management, stakeholder involvement and integration, leadership and management, strategic planning, cross-functional training opportunities, and the ongoing involvement of all employees. It becomes, in fact, the culture of the company. (Peratec, 1995). There are different aspects of TQM that impact the organization in slightly different ways, although the end result is quite similar:
Quality of Design -- In this aspect, quality can be planned, and if the planning is correct, then most of the quality issues that may occur will either be diminished or never occur. This has become even more sophisticated with new computer modeling -- for example pharmaceuticals or aircraft/automobile parts that can be tested virtually prior to manufacture.
Quality of Conformance -- Because quality is perceptual and somewhat subjective depending on the stakeholder, there is a difference between specification quality (how it compares to other similar products) and quality of conformance. Quality of conformance is the degree that the product or service was produced correctly from design through manufacturing.
Quality of Performance -- This is an indication that ensures that the service or product performs as expected, advertised, and/or designed. This measure is high on the stakeholder and competitive index and has the ability to increase or decrease the competitive nature of the product (QHy Quality in Service, 2012; Juran, 2010).
This does assume, however, that there is a new approach to the management / employee paradigm. This approach is best exemplified in the idea of psychological ownership in the product or service, and is done through a managerial emphasis on empowerment (Daft, 2008, 262-5.) This empowerment mentality would require not only strategic vision but shared vision to meet the new needs and expectations of hiring and retaining employees. Employees are no longer content to work in an environment of adversity and autocracy. Modern stakeholders know that empowerment, change, respect, and actualization are powerful tools that will not only benefit employees, but increase productivity and profits for owners and managers. Empowerment theory is tied up in Total Quality Management and the new models of Strategic Human Resource Management. Both TQM and SHRM move from simply the tactical to the strategic, looking at long-term results, development of employees, retention as a strategy, and utilizing the human element as part of the overall business planning cycle (Wilkinson 1998). Empowerment theory allows the organization as a whole to participate in the planning and execution process of the company. It allows non-managerial staff members to take ownership, feel part of a larger whole, and increase their own performance as well as that of their departments and co-workers. Using empowerment theory, absences decrease, job satisfaction increases, and almost all stakeholders report a more positive working experience and environment (Buzzle.com 2011).
Part 2 -- Flowchart -- In the example of Ford, the TQM approach changes fundamentally both the responsibility and the task of ensuring that all the products that are available for the assembly line have been tested and meet a minimum level of standardization. The workers assembling the vehicles would rightly then assume that all the parts they use had passed inspection at an earlier stage of manufacturing, and that any rejects or inoperative parts or materials would be pulled prior to allowing them on the assembly line. In the modern organizational environment, sometimes issues are so complex that a small change in design, manufacturing, or control can impact the organization dramatically:
Flowchart example:
Note that while each phase may seem independent, the power of the process is the logical flow and relationship that one part has to the others; then finally making the full product.
Part 3 -- A process is a combination of tools, materials, methods, and human resources that product something as a measurable output. Process capability is the capacity of a process and the way it meets its specific purpose as defined by the organization. There are at least two statistical ways that process capability may be managed:
Process capability index -- a ratio or statistical measure of the capability of a process to produce output and have several statistical elements that account for upper, lower, or near...
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