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Management Practice
Pages 27-42

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From page 27...
... 85-86) describes these circumstances well: The customer was not recognized as having the determining influence on product attributes or performance; tensions existed among various units and between various levels of the enterprise; no mechanism existed for setting priorities among the many desirable corporate objectives; suppliers were treated as a necessary evil to be tolerated but not trusted; and management and labor were confrontational in attitudes and objectives.
From page 28...
... 164) , "World-class manufacturers will be recognized by the leadership they provide in attacking and resolving complex customer problems." World-class manufacturers will be in a position to offer their customers some combination or all of a set of product attributes equal to or better than those of any other manufacturer in the world at a price that is attractive to those customers.
From page 29...
... A variety of detailed metrics are possible in the following categories: . Financial metrics Product performance metrics Unit operation metrics System operation metrics Aggregated measures of performance To ensure the ability to remain competitive for the long term, it is also necessary that a manufacturer determine its ability to make use of technology and the ability of its employees to respond to a changing environment.
From page 30...
... They assess their performance by benchmarking themselves against their competition and against other world-class operational functions, even in other industries. They use this information to establish organizational goals and objectives, which they communicate to all members of the enterprise, and they continuously measure and assess the performance of the system against these objectives and regularly assess the appropriateness of the objectives to attaining world-class status.
From page 31...
... Focusing on the customer is so important that it must be treated as a foundation of good management. One cannot assume that the obvious nature of this foundation ensures that everyone in the organization understands or accepts it or that everyone shares a common focus.
From page 32...
... A manufacturing organization must react continually to changes in product requirements, product mix, product design, process design, material specifications, competitive pressures, and on and on with only brief periods of relative stabil
From page 33...
... Recognizing that the emerging paradigm for product realization is simultaneous or concurrent engineering representing full consideration of the design, engineering, manufacturing, procurement and service requirements for a new product as it evolves from initial concept to production, Cook examines alternative organizations that will support the new paradigm. He concludes that a more appropriate organization for achieving these objectives is a system/subsystem organization, in which the system unit has "the chief responsibility .
From page 34...
... They use time-based metrics as diagnostic tools throughout the company and set basic goals of operation around them.... They use time to help them design how the organ ization shou Id work.
From page 35...
... It is only by this means that they will remain capable of meeting the current challenge and prepared for the future challenge, in short, that they will have the means and the desire to renew themselves continuously in view of the changing events in the world marketplace. FOUNDATION: A world-class manufacturer integrates all elements of the manufacturing system to satisfy the needs and wants of its customers in a timely and effective manner.
From page 36...
... Thus, the concept of group creativity in a jazz performance may provoke some new ideas for organizing production work. For example, the moments of creative opportunity for a jazz musician are a small but highly motivating fraction of his total professional life.
From page 37...
... By so doing, the enterprise is making the employee an integral part of the solution process." Hanson argues that creating the integrated enterprise requires "empowerment of the individual" and that this leads to "distributed decision making [because] information freely shared with empowered people who are motivated to make decisions will naturally distribute the decision-making process throughout the entire organization." Fisher brings the perspective of the financial community to this matter of continuous improvement.
From page 38...
... THE MANAGEMENT TASK Effective management is critical if an enterprise is to compete in the world marketplace. The committee has identified five foundations that relate to management practice—establishing the goal of being world class, attending to the needs and wants of the customer, creating an effective organization, creating an environment that encourages and rewards employee involvement and fosters employee empowerment, and integrating the suppliers and vendors into the system.
From page 39...
... Fundamental to the success of the Award in improving quality in the United States is building an active partnership between the private sector and government. Companies participating in the Award process submit applications that provide sufficient information and data on their quality processes and quality improvement to demonstrate that the applicant's approaches could be replicated or adapted by other companies.
From page 40...
... which can be defined as 'dilemma management,' is a critical component of the Integrated Enterprise. The characteristics of the dilemma manager include the ability to tolerate ambiguity, to manage and, indeed, thrive on the tension that is caused by apparently conflicting demands.
From page 41...
... Japan has emerged largely because its leaders had vision, patience, and a high regard both for technological advance and for building the worth of their human resources. 1, Until boards appoint and reward top managers for being innovation oriented and interested in the company's future product and cost positions, U.S.
From page 42...
... . FOUNDATION: Management is responsible for a manufacturing organization's becoming world class and for creating a corporate culture committed to the customer, to employee involvement and empowerment, and to the objective of achieving continuous improvement.


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