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Article
Publication date: 20 June 2022

Luis Alejandro Gólcher-Barguil, Simon Peter Nadeem, Jose Arturo Garza-Reyes, Ashutosh Samadhiya and Anil Kumar

Equipment performance helps the manufacturing sector achieve operational and financial improvements despite process variations. However, the literature lacks a clear index…

Abstract

Purpose

Equipment performance helps the manufacturing sector achieve operational and financial improvements despite process variations. However, the literature lacks a clear index or metric to quantify the monetary advantages of enhanced equipment performance. Thus, the paper presents two innovative monetary performance measures to estimate the financial advantages of enhancing equipment performance by isolating the effect of manufacturing fluctuations such as product mix price, direct and indirect characteristics, and cost changes.

Design/methodology/approach

The research provides two measures, ISB (Improvement Saving Benefits) and IEB (Improvement Earning Benefits), to assess equipment performance improvements. The effectiveness of the metrics is validated through a three stages approach, namely (1) experts' binary opinion, (2) sample, and (3) actual cases. The relevant data may be collected through accounting systems, purpose-built software, or electronic spreadsheets.

Findings

The findings suggest that both measures provide an effective cost–benefit analysis of equipment performance enhancement. The measure ISB indicates savings from performance increases when equipment capacity is greater than product demand. IEB is utilised when equipment capacity is less than product demand. Both measurements may replace the unitary cost variation, which is subject to manufacturing changes.

Practical implications

Manufacturing businesses may utilise the ISB and IEB metrics to conduct a systematic analysis of equipment performance and to appreciate the financial savings perspective in order to emphasise profitability in the short and long term.

Originality/value

The study introduces two novel financial equipment performance improvement indicators that distinguish the effects of manufacturing variations. Manufacturing variations cause cost advantages from operational improvements to be misrepresented. There is currently no approach for manufacturing organisations to calculate the financial advantages of enhancing equipment performance while isolating production irregularities.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 1 December 2002

Bart A.G. Bossink and Jan‐Nico Blauw

Strategic ambitions can function as drivers of improvement in organizations. Continuous improvement is driven by strategic ambitions to: design quality into the structure…

1778

Abstract

Strategic ambitions can function as drivers of improvement in organizations. Continuous improvement is driven by strategic ambitions to: design quality into the structure of the organization; plan and control improvements; assure improvements; set and realize improvement goals; position the organization in the market as a “high quality” organization; and create value in interaction with stakeholders. An analytical framework based on these drivers is described. A research project is carried out in the organization of DaimlerChrysler Netherlands. The improvement processes in this organization are analyzed with the framework. The research project indicates that the improvement processes are driven by the strategic ambitions of the organization.

Details

Measuring Business Excellence, vol. 6 no. 4
Type: Research Article
ISSN: 1368-3047

Keywords

Book part
Publication date: 24 October 2019

Catherine C. Quatman-Yates, Mark V. Paterno, Mariann L. Strenk, Michelle A. Kiger, Tory H. Hogan, Brian Cunningham and Rebecca Reder

The importance of culture is often emphasized for continuous learning and quality improvement within health care organizations. Limited empirical evidence for cultivating…

Abstract

The importance of culture is often emphasized for continuous learning and quality improvement within health care organizations. Limited empirical evidence for cultivating a culture that supports continuous learning and quality improvement in health care settings is currently available.

The purpose of this report is to characterize the evolution of a large division of physical therapists and occupational therapists in a pediatric hospital setting from 2005 to 2018 to identify key facilitators and barriers for cultivating a culture empowered to engage in continuous learning and improvement.

An ethnographic methodology was used including participant observation, document review, and stakeholder interviews to acquire a deep understanding and develop a theoretical model to depict insights gained from the investigation.

A variety of individual, social, and structural enablers and motivators emerged as key influences toward a culture empowered to support continuous learning and improvement. Features of the system that helped create sustainable, positive momentum (e.g., systems thinking, leaders with grit, and mindful design) and factors that hindered momentum (e.g., system uncertainty, staff turnover, slow barrier resolution, and competing priorities) were also identified.

Individual-level, social-level, and structural-level elements all influenced the culture that emerged over a 12-year period. Several cultural catalysts and deterrents emerged as factors that supported and hindered progress and sustainability of the emergent culture.

Cultivating a culture of continuous learning and improvement is possible. Purposeful consideration of the proposed model and identified factors from this report may yield important insights to advance understanding of how to cultivate a culture that facilitates continuous learning and improvement within a health care setting.

Details

Structural Approaches to Address Issues in Patient Safety
Type: Book
ISBN: 978-1-83867-085-6

Keywords

Article
Publication date: 1 May 2002

Nicola Bateman and Arthur David

This paper outlines a model for assessing the sustainability of shop floor based process improvement programmes. The model was developed as part of a larger research…

4801

Abstract

This paper outlines a model for assessing the sustainability of shop floor based process improvement programmes. The model was developed as part of a larger research programme, investigating the inhibitors and enablers for process improvement. The model is based on the SMMT (Society of Motor Manufacturers and Traders) Industry Forum MasterClass Process Improvement activity, but can be applied to any intensive shop floor based process improvement programme. The model’s purpose is to identify the level of sustainability achieved by process improvement programmes and consists of two elements. The first element identifies five different levels of sustainability at cell level. The second element operates at factory level and examines the degree to which the tools and techniques have been spread between cells.

Details

International Journal of Operations & Production Management, vol. 22 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 28 May 2010

Forrest W. Breyfogle

The purpose of this paper is to describe a business management system that addresses the following issue: Lean Six Sigma, total quality management, and other process…

1818

Abstract

Purpose

The purpose of this paper is to describe a business management system that addresses the following issue: Lean Six Sigma, total quality management, and other process improvement efforts center on the execution of process improvement projects; however, often these projects (e.g. Lean Six Sigma Black Belt projects) are identified in silos and do not benefit the business as a whole, e.g. $125 million is reported saved, but nobody can find the money.

Design/methodology/approach

The paper “Where process‐improvement projects go wrong,” Wall Street Journal, January 25, 2010 (www.smartersolutions.com/blog/forrestbreyfogle/?p=2726) elaborates on the shortcomings of typical process improvement efforts by building an analog between process improvement programs and a spring's stress‐strain curve – stretching, yielding, and failing. To address the described issues, process improvement efforts need to be part of an overall enhanced business management system in order to have long‐lasting success. This structured organizational framework should integrate predictive scorecards with targeted strategies creation that blends analytics with innovation, which lead to the establishment of functional performance goals that pull for the creation of enterprise‐as‐a‐whole‐beneficial improvement projects, which positively impacts these target objectives.

Findings

The described nine‐step Integrated Enterprise Excellence (IEE) business management system provides the framework for achievement of these above‐described needs. The IEE system, for example, blends analytics with theory of constraints, competitive assessments, and economic environment so that created project work efforts have a whole‐system‐performance measurement benefit.

Research limitations/implications

In Lean Six Sigma and Lean kaizen event programs, improvement projects are often selected from a brainstorming‐list of potential opportunities. Initial gains when starting such a deployment can be achieved; however, this effort typically stalls out and the process improvement teams are laid‐off when times get tough. The reason for this rough‐time downsizing is that the previous team process improvement project efforts were not, in the eyes of executives, expended in areas so that a significant overall enterprise benefit was achieved. IEE provides a business management system for addresses these issues so that business improvement efforts have a whole‐organization benefit.

Practical implications

The IEE system can be used by management to address the business management problems of the day, e.g. management issues that led to the financial crisis and the problems that Toyota is now experiencing.

Originality/value

Many who have studied the IEE system have said that this system provides a framework for how business should be run and should be taught in business schools.

Details

International Journal of Lean Six Sigma, vol. 1 no. 2
Type: Research Article
ISSN: 2040-4166

Keywords

Abstract

Details

Advances in Librarianship
Type: Book
ISBN: 978-1-84950-881-0

Article
Publication date: 17 April 2007

Djoko Setijono and Jens J. Dahlgaard

This paper presents a methodology to nominate and select improvement projects that are perceived as adding value to customers (both internal and external). The structure…

Abstract

This paper presents a methodology to nominate and select improvement projects that are perceived as adding value to customers (both internal and external). The structure of the methodology can be explained in three “stages”. First, the methodology suggests a new way of categorizing improvement opportunities, i.e. reactive‐proactive, to “upgrade” the little Q ‐ big Q categorisation. Then, it develops a roadmap that links performance indicators and improvement projects for both reactive and proactive improvements. Finally, it suggests an algorithm to select the improvement project, where the assessment of to what extent the nominated improvement projects add value to customers relies on the comparison between Overall Perceived Benefits (OPB) and Overall Perceived Efforts (OPE). The improvement project perceived as having the largest impact on adding value to customers receives the highest priority.

Details

Asian Journal on Quality, vol. 8 no. 1
Type: Research Article
ISSN: 1598-2688

Keywords

Book part
Publication date: 8 June 2007

Adam S. Maiga and Fred A. Jacobs

This study uses structural equation modeling to investigate the impact of ABC implementation factors (management support, clarity and consensus of ABC objectives…

Abstract

This study uses structural equation modeling to investigate the impact of ABC implementation factors (management support, clarity and consensus of ABC objectives, non-accounting ownership, and training) on quality, cost, and cycle time improvements, the relations among quality, cost, and cycle time improvements and, the influence of quality, cost, and cycle time improvement on financial performance at the business unit level. Overall, the results of the structural analyses support the theoretical model indicating that ABC implementation factors influence quality, cost, and cycle time, and partial support for the relations among quality, cost, and cycle time improvement and their effect on financial performance. When these relationships are further analyzed within the context of ABC implementation stage, adoption of advanced manufacturing practices, industry characteristics and plant size to determine if these contextual factors impact the model constructs and the relationships between the variables in the theoretical model, the results show that these contextual factors do not affect the model constructs, however, they affect the model relations.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-0-7623-1387-7

Article
Publication date: 10 June 2014

Kristian Siverbo, Henrik Eriksson, Hendry Raharjo and Michaela Moonen

The purpose of this article is to describe how the training of healthcare professionals in improvement work can be performed, and evaluate potential changes in attitude as…

1041

Abstract

Purpose

The purpose of this article is to describe how the training of healthcare professionals in improvement work can be performed, and evaluate potential changes in attitude as a result of the initiative.

Design/methodology/approach

The study was carried out at a University Hospital in Sweden. There were 443 participants in the study. The response rate before the intervention was 55 per cent (242 respondents) and six months later, it was 43 per cent (190 respondents). A two-day training program about quality improvement was performed on seven different occasions and after the training had been concluded, participants were encouraged to translate their newly acquired knowledge into improvement projects. Surveys on attitudes toward improvement work were completed by the participants right before the training and six months afterwards. The results were analyzed using a Mann-Whitney test.

Findings

The analysis showed some statistically significant changes in attitude among the participants. There were also differences between groups of participants based on their profession and the number of years in their current position.

Research limitations/implications

A limitation of the study is that it was solely based on attitudes expressed during the survey and did not include any observed changes in behavior. Another limitation is that attitudes after the intervention were only measured once.

Originality/value

It is possible to use training to change attitudes toward improvement work. The result differs among groups of participants, which raises the question as to whether training should be tailored to better suit the needs of different groups to create positive change. Further research is needed regarding how to reach and fully implement a quality improvement mindset.

Details

International Journal of Quality and Service Sciences, vol. 6 no. 2/3
Type: Research Article
ISSN: 1756-669X

Keywords

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