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Part Four
Improvement
Figure 18.4 BPR advocates reorganizing (re-engineering) micro-operations to reflect the natural customer-focused
business processes
use quantitative methods (some of the TQM gurus promoted statistical process control for
example) although it has done a lot to emphasize the use of quantitative evidence. In fact,
much of the considerable training required by Six Sigma consultants is devoted to mastering
quantitative analytical techniques. However, the statistical methods used in improvement
activities do not always reflect conventional academic statistical knowledge as such. They
emphasize observational methods of collecting data and the use of experimentation to
examine hypotheses. Techniques include graphical methods, analysis of variance, and two-level
factorial experiment design. Underlying the use of these techniques is an emphasis on the
scientific method, responding only to hard evidence, and using statistical software to facilitate
analysis.
Customer-centricity
There is little point in improvement unless it meets the requirements of the customers.
However, in most improvement approaches, meeting the expectations of customers means
more than this. It involves the whole organization in understanding the central importance
of customers to its success and even to its survival. Customers are seen not as being external
to the organization but as the most important part of it. However, the idea of being customercentric
does not mean that customers must be provided with everything that they want.
Although ‘What’s good for customers’ may frequently be the same as ‘What’s good for the
business’, it is not always. Operations managers are always having to strike a balance between
what customers would like and what the operation can afford (or wants) to do.
Systems and procedures
Improvement is not something that happens simply by getting everyone to ‘think improvement’.
Some type of system that supports the improvement effort may be needed. An
improvement system (sometimes called a ‘quality system’) is defined as:
‘the organizational structure, responsibilities, procedures, processes and resources for implementing
quality management’. 4
It should
‘define and cover all facets of an organization’s operation, from identifying and meeting the
needs and requirements of customers, design, planning, purchasing, manufacturing, packaging,