This website uses cookies to ensure you have the best experience. Learn more

Literature Review Of Operations Improvement

3776 words - 16 pages

Portsmouth Business School

Principles Of Operations & Marketing Management

Student number 671740

Table of Contents
Part One: Literature Review 3
Performance Measurement 3
Performance Objectives 3
Performance Standards 4
Benchmarking 4
Four Pitfalls In Performance Measurement 5
Approaches to improvement 6
PDCA Cycle 6
DMAIC cycle 8
Part Two: Case Study --- Toyota 12
Continuous Improvement 12
TPS --- Toyota Production System 13
Kaizen 14
Kaizen And PDCA Cycle 15
Failure Of TPS 17
Appendix 17
Lean Operations And Just-In-Time 17
What is just-in-time? 18
The impact of JIT 18
JIT in services 19
Reference 19

Part One: Literature ...view middle of the document...

As time goes by, the situation will vary. Any company must understand how its different products and services require different objectives and how to react in different situations. (Dutta, s. & Manzoni, J., 1999)

Performance Standards

After an operation has measured its performance, it needs to make a judgement as to whether its performance is good, bad or indifferent.
There are four ways of comparing current performance to some kind of performance standard: Historical Standard, Target performance standard, Competitor performance standards and Absolute performance standards. These lead to the four pitfalls in performance measurement. (Brown, S., 2001)


At its simplest benchmarking merely means finding out how someone else does something similar to what you are doing and how good they are at doing it. An operation can then compare its own methods and performance against this benchmark.

Performance measurement plays a pivotal role. When used properly, it can greatly improve organizational performance. While one the other hand, improper use will become the stumbling block of organizational change and performance improvement.

Effective use of performance measurement will give a timely feedback on the state of the business operations. Based on such feedback, one can determine whether the enterprises are moving forward to their own organizational goals and how to optimize and reorganize training of employees. As a reflection of the results of business operations, performance measurement provides the enterprise with the direction of improvement in a practical basis. (Brown, S., 2001)

At the same time, the performance measured used improperly may cause a blow to the morale of the organization, reduce team efficiency, and lead to preventing the improvement such as quality improvement. The four most common pitfalls presented in performance measurement are listed below. ( Thomas, M. 1994)

Four Pitfalls In Performance Measurement

I. Empiricism: focus on history, and ignore the presence

It results in analysing management based on historical information. This means that results achieved today are based on management decisions from yesterday. However, one the other hand, today's decisions do not affect future results very much and often do not have the value of reference and prediction.

II. Range dislocation: focus on the internal, and ignore external

Performance indicators designed by many companies focus on meeting the needs of the internal. This performance measurement approach ignores the needs of customers. This requires first clearly understanding what is most important to customers, and then considering how to provide customers with products and services. Measurement of the performance of managers and departments should be designed from the "customers - service - producer" chain.

III. Improper object to improve: focus on individual, and ignore structure

A lot of evidence shows that 85% to 90%...

Other Essays Like Literature Review of Operations Improvement

Critical Thinking Review of the Goal: a Process of Ongoing Improvement

1619 words - 7 pages A Critical Thinking Review of The Goal: A Process of Ongoing Improvement Introduction: The Goal is a well-written novel that illustrates a model for systems and operation management. Reading through this book gave me an insight to the amount of effort that goes into managing a plant with all employees as well as keeping your home together. The main character, Alex Rogo who is the plant manager, is found in a dire situation with his

Effects of Deployment on Military Families: a Literature Review

2493 words - 10 pages Effects of Deployment on Military Families: A Literature Review Rhonda Steffek Columbia College of Missouri Abstract This review examines the many issues and effects that military deployments have on families. The continuation of Middle Eastern conflicts require a constant flow of military operations in this region. Deployments cause military service members, which can also be spouses and parents, to leave their homes. This is usually

The Corporate Social Responsibility: a Review of Literature

1700 words - 7 pages The Corporate Social Responsibility: A Review of Literature Yassin H. Yassin UNDP, Riyadh, Saudi Arabia November 2005 Introduction Business organisations strive to survive by the efficient use of the factors of production and other facilities of the society. This process puts organizations in an interdependent relation with the government, the community at large and the environment. Such interdependence gives rise to a series of

Literature Review of Job Satisfaction and Organizational Commitment in Organisations

2046 words - 9 pages Literature review of Job satisfaction and organizational commitment in organisations Job Satisfaction and Organizational Commitment are two of the most prominent work attitudes examined in the work and organizational literature. These constructs also receive much attention within the more specific work-family literature. Researchers have often included both constructs in their examination of the relationships between work-family issues and

Theory of Constraints - Paper

944 words - 4 pages   literature,  steven  j.  Balderstone  and  victoria  j.  Mabin  school  of  business  and   public  management  victoria  university  of  wellington  new  zealand  -­‐   http://www.pinnacle-­‐   − Applying  the  theory  of  constraints  in  the  course  of  process  improvement  michal   marton,  iveta

Logistics, Transports and Territory

630 words - 3 pages and more considered in urban planning (as it contributes to “economies of urbanization”), even generating some environmental and traffic impacts above all concerning the immobile phase related to loading and unloading operations performed on the street. In literature there is not a unique definition of city logistics, a relatively new concept regarding transportation and distribution of goods within metropolitan areas (Ruske, 1994; Kohler

Operations Management

1022 words - 5 pages current concepts of the Manufacturing strategy and operations strategy. Japan and china has been the two best examples for this. This has been shown in manufacturing strategy research, together with service operations and strategy research. Operations management issues such as Quality, technology, productivity come under heavy review; because manufacturing and services firms tend to share the desire for globalization ofthe distribution of goods and

The Role of Information Technology in Business Process Reengineering in the Contemporary Business Firm:

2527 words - 11 pages personnel in the bank’s operations division 4. review of literature on the subject by various authors 5. use of questionnaires for staff/personnel outside Nairobi 6. sampling (in the choice of the interviewees especially in the branch network countrywide and Head Office Operations & Information Technology as well) The choice of these methods of data collection recognizes that the bank has a wide branch network, and it would be impractical to

Critique for Fixing Healthcare from the Inside, Today

718 words - 3 pages in an environment where health care professionals consider themselves as experts in their field and have been trained to see things in a strictly scientific way. Some of the literature suggests that the main reason why the TPS approach fails is because of lack of management commitment. Senior leadership fail to embrace it and it’s not properly integrated into the organization’s philosophy and operations strategy. Leaders need to stay closely


1270 words - 6 pages exercise control over all the Project Offices as well as all the Vessels. Project Offices are headed by Project-in-charge (PIC) and Vessels are headed by Masters. Masters of all DCI vessels, report to PICs who in turn report to HOD (Ops). Operations department strives for improvement of performance/ production, provides safe practices in dredging operations, complying with all Statutory Rules & Regulations of the Government, Ports and by

Lifelong Learning

631 words - 3 pages strength in independence. I need improvement for my independence when it comes to something I have lack of interest in. For instance, I’ll continue doing more research for probiotics because that has struck my interest and is something I enjoy. I might even start getting the probiotics. One thing that doesn’t strike my interest is different methods to lose weight by going to the doctor or having operations for it. I won’t really do any research into

Related Papers

Review Of Literature

1305 words - 6 pages continue to be implemented over time (Richard, et al., 2010). To continue to improve the overall health of society, nurses must continue to identify health improvement Review of Literature: Health Promotion 4 priorities; improve public understanding of factors of health, disease, and disability; provide objectives and goals for the public at local, state, and national levels; engage in health policy improvement; and identify the needs

Literature Review Of Xbrl

5528 words - 23 pages | Literature Review of XBRL | | | | | Group 14: | | | Literature Review of XBRL ------------------------------------------------- Z Abstract XBRL (eXtensible Business Reporting Language) is a standard XML reporting language to enhance the efficiency, reliability and accuracy of financial reporting. Since its foundation in 1998, XBRL has been developing rapidly in the world. This paper teases out and discusses the literature

Desulfurization Of Kerosene Literature Review

1732 words - 7 pages ABU GODWIN ITAKPE PSC0904473 TOPIC: DESULPHURIZATION OF KEROSENE LITERATURE REVIEW INTRODUCTION Refining of crude oil to final products requires desulphurization of the oil. Fuel specifications that govern transportation fuels have over the years become increasingly stringent with respect to sulphur content. Many petrochemical products are likewise produced to be almost sulphur-free. The removal of sulphur from oil is consequently one of the

Review Of Related Literature Food Industry

1158 words - 5 pages REVIEW OF LITERATURE OF FAST FOOD INDUSTRY Previous Research on fast food Industry has shown us a light in this project: The Research done by UCLA Anderson assistant professor Raphael Thomadsen. He presented the result in the paper entitled, ³Seeking an Aggressive Competitor: How Product Line Expansion Can Increase All Firms¶ Profits.´ According to him, if a McDonald¶s and a Burger King compete in the center of a small town, and a Burger King