1. Chapter 10
Productivity, Quality, and
Reengineering
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM 1

2. productivity and Quality
The misconception exist that productivity
and cost must be sacrificed if quality is to
be improved, but it seems to be the view of
those who rank production ahead of quality
as the top priority.
2
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

3. The Leverage of Productivity and
Quality
the leverage is even more dramatic if a
smaller and more realistic return on sale is
used. There are also potential additional
companion benefits that can be achieved in
quality.
Management System VS. Technology
3
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

4. Measuring Productivity
Carl G. Thor principle of measurement for
productivity and Quality:
• Meet the customer need
• Feedback
• Measure what is important
• Measure should be controllable and
understandable
• Base measures on available data.
4
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

5. Basic Measure Of Productivity
Ratio Of Output To Input
• Total Factor: Total Output
Labor+Material+Energy+Capital
• Partial Factor: Total Output
Labor Input
• Functional Department Measure
• Individual Measure
• Industry and competitive Measure
5
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

6. White-Collar Productivity
Causes of wasted time include:
• Poor Scheduling
• Slack start and quit times
• Lack of communication
• Between function
• Information overload
• Poor staffing
• Inadequate communication of assignments
• Unproductive meetings and telephone conversations
6
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

7. Five ways to increase
Productivity
• Reduce cost
• Manage growth
• Work smarter
• Pare down
• Work effectively
7
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

8. Reengineering
• It has been suggested that in order to
reinvent their companies, manager need to
abandon the organizatioanl and operational
principles and procedures they are now
using and create entirely new ones. These
new ones can be combined into an
emerging idea called business
reengineering.
8
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM

9. Principle of Reengineering
• Organize around outcomes not tasks.
• Have those who use the output of the process
perform the process.
• Subsume information processing work into the real
work that produces the information.
• Treat geographical dispersed resources as though
they were centralized.
• Link parallel activities instead of integrating their
result
• Put the decision point where the work is performed
• Capture information once and at the source.
9
THE MANAGEMENT AND CONTROL OF QUALITY, 5e, © 2002 South-Western/Thomson LearningTM