HUMAN RESOURCES – YEAR 2
TQM – YEAR 4
Production Staffing
Schedule
Able
Amos
Unit Sales Forecast
1,600
Inventory On Hand
-
Production Schedule
1,600
Production After Adj.
1,584
NA
NA
NA
TOTAL
675
-
-
-
-
-
-
-
675
569
0
-
0
-
2,275
0
-
STAFFING
Needed Complement
Complement
2,153
2nd Shift Complement
86
203
100.0%
0.0%
0.0%
0.0%
Turnover Rate
Labor Cost/Unit
$10.65
$15.07
$0.00
$0.00
$0.00
New Employees
Material Cost/Unit
$14.85
$13.14
$0.00
$0.00
$0.00
Separated Employees
Total Unit Cost
$25.51
$28.21
$0.00
$0.00
$0.00
Recruiting Spend
Contribution Margin
26.1%
29.5%
0.0%
0.0%
0.0%
Training Hours
TOTAL
Buy/Sell Capacity
150
Automation Rating
4.0
New Autom. Rating
5.0
2.7
0.0
0.0
0.0
$7,100
$3,220
$0
$0
$0
Investment ($000)
A/P Lag (days)
30
-
50
1.0
0
-
0
-
Productivity Index
0.2%
0.0%
10.0%
10.0%
24
207
8
0
$0
$0
0
0
100.0%
100.0%
1,150
0
200
-
Max
Invest.
100%
203
100.0%
350
100%
406
154
2nd shift/Overtime%
800
240
1st Shift Complement
Overtime%
1st Shift Capacity
This Year
2,275
Margins
Physical Plant
Last Year
$10,320
$10,697
Recruiting Cost
$207
Separation Cost
$0
Training Cost
$0
Total HR Admin Costs
$207
Total Quality Management
 Yearly investments of
<
$250,000 will create little
improvement
 Yearly investments above
$750,000 pushes into
diminishing returns
Investments of > $1,000,000 in
a year produces no absolutely
additional benefits
 Investing more than
$2,000,000 in the same initiative
over 2- 3 year period creates
little or no additional
improvement
Process Management Initiatives

These initiatives improve business procedures, resulting in
improved efficiencies and cost structures





CPI (Continuous Process Improvement) Systems -Reduces Material
cost and to a lesser degree Labor costs
Vendor/JIT (Just in Time [Inventory]) - Reduces Material costs and
Administrative overhead
QIT (Quality Initiative Training) - Reduces Labor costs
Channel Support Systems Increases the effectiveness of the Sales
Budget, and therefore demand
Concurrent Engineering - Reduces R&D cycle time, the time needed
to move products on the Perceptual Map and to change MTBF
specifications.
Continuous Process Improvement


A process is a series of progressive and interdependent
steps by which an end is attained.
Continuous Process Improvement (CPI) is a strategic
approach for developing a culture of continuous
improvement in the areas of:





reliability
process cycle times
costs in terms of less total resource consumption
quality, and productivity.
Deployed effectively, it increases quality and productivity,
while reducing waste and cycle time.
Just in Time Inventory


Just-in-Time inventory system is designed to ensure that
materials or supplies arrive at a facility just when they
are needed so that storage and holding costs are
minimized.
The Just-in-Time system requires considerable cooperation
between the supplier and the customer.


The customer must specify what will be needed, when, and in
what amounts.
The supplier must be sure that the right supplies arrive at the
agreed-on time and location.
Quality Initiative Training


Leaders of quality initiatives (project managers, managers,
and senior leaders) develop useful and relevant knowledge
and skills to ensure that company resources and efforts are
utilized in the most effective manner.
Leaders gain useful and skill based learning in these core
quality leadership areas:





Leading Teams Through Quality Initiatives
Quality Philosophies and Approaches and Lessons Learned at Other
Firms
Customer Needs and Expectations
Quality Improvement Management Systems
Ethical Decision Making
Channel Support Systems

Support system to facilitate information sharing that
increases productivity and profitability, untangling the web
that once blocked the transfer of information.





Predictive modeling. Determine how to market the right product to
the right person at the right price and the right time.
Customer, product and business line profitability. Identify the
customer, product, organization and business line profitability bottom
line.
Product development and creation. Determine what products will
sell; define the distinctive product characteristics and pricing.
Target marketing. Sell the right product to the right person at the
right time at the appropriate return.
Sales execution and tracking. Collect information pertaining to who
sells what product to whom, when and where.
Concurrent Engineering

Concurrent engineering is a business strategy




replaces the traditional product development process with one in which tasks
are done in parallel
there is an early consideration for every aspect of a product's development
process.
Concurrent engineering provides a collaborative, cooperative, collective and simultaneous engineering working
environment.
The concurrent engineering approach is based on five key
elements:





a process
a multidisciplinary team
an integrated design model
a facility
a software infrastructure
TQM Initiatives

These initiatives improve product quality while reducing
the time and resources required to design, manufacture,
warehouse and ship products.

Benchmarking - Reduces Administrative overhead

Quality Function Deployment Effort - Reduces R&D cycle time
and enhances the effectiveness of the Promo and Sales Budgets

CCE (Concurrent Engineering)/6 Sigma Training - Reduces
Material costs and Labor costs.

GEMI TQEM Sustainability Initiatives - Reduces Material costs
and Labor costs.
Benchmarking



A process in which organizations evaluate various aspects of
their processes in relation to best practice, usually within their
own sector.
This allows organizations to develop plans on how to adopt
such best practice, usually with the aim of increasing some
aspect of performance.
Benchmarking may be a one-off event, but is often treated as
a continuous process in which organizations continually seek to
challenge their practices.
Benchmarking Procedure

Identify your problem areas

Identify other industries that have similar

Identify organizations that are leaders in these areas

Survey companies for measures and

Visit the "best practice" companies to identify leading edge
practices

Implement new and improved business practices
Quality Function Deployment Effort

Flexible and comprehensive group decision making technique
used in product or service development, brand marketing,
and product management.

QFD transforms customer needs into engineering characteristics of a
product or service, prioritizing each product/service characteristic
while simultaneously setting development targets for product or service
development.

QFD can strongly help an organization focus on the critical
characteristics of a new or existing product or service from the
separate viewpoints of the customer market segments, company, or
technology-development needs.
Six Sigma Training




Six Sigma is a management technique that aims to develop
and deliver near perfect products and services.
"Six Sigma" refers to statistical constructs that measure how far
a given process deviates from perfection.
Processes are designed from the perspective of the customer
and are enabled by a commitment to thinking in terms of
processes across the organization.
Metrics such as performance, reliability, price, on-time delivery,
service and accuracy provide the targets.