QUALITY MANAGEMENT

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SMT.KAMALA MEHTA COLLEGE OF
COMMERCE AND MANAGEMENT.


A PROJECT ON
PRODUCTIVITY


BY
RUBINA.S (04)
CHETAN .S (05)
VINESH.V.S (06)
SHAILANDRA.N (07)


FROM
S.Y.B.M.S


SUBMITTED TO
PROF. MITESH.GALA




DECLARATION

WE THE STUDENTS OF SMT. KAMALA MEHTA COLLEGE OF COMMERCE OF S.Y.B.M.S. (SEMESTER IV) HEREBY DECLARE THAT WE HAVE COMPLETED THIS PROJECT ON PRODUCTIVITY IN THE ACADEMIC YEAR 2006 – 2007. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO THE BEST OF OUR KNOWLEDGE





DATE:
PLACE: (SIGNATURE OF THE STUDENTS)






CERTIFICATE







I Prof. MR. MITESH GALA HERBY CERTIFY THAT STUDENTS OF SMT. KAMALA MEHTA COLLEGE OF COMMERCE AND MANAGEMENT OF S.Y.B.M.S. (SEMESTER IV) HAS COMPLETED THE PROJECT ON PRODUCTIVITY IN THE ACADEMIC YEAR 2006 – 2007. THE INFORMATION SUBMITTED IS TRUE, ORIGINAL AND AUTHENTIC TO THE BEST OF MY KNOWLEDGE.




SIGNATURE OF PRINCIPAL SIGNATURE OF PROJECT GUIDE







ACKNOWLEDGEMENT


IT IS THE MATTER OF GREAT PLEASURE AND PRIVILEGE TO BE ABLE TO PRESENT THIS PROJECT REPORT ON PRODUCTIVITY
THE COMPILATION OF THE PROJECT IS A MILESTONE IN THE LIFE OF THE MANAGEMENT STUDENT AND ITS EXECUTION IS INEVITABLE WITH THE CO-OPERATION OF THE PROJECT GUIDE. I WISH TO RECORD A DEEP SENSE OF RESPECT AND GRATITUDE TO MY PROJECT GUIDE, MR. R.C.KAPOOR FOR HIS ENCOURAGEMENT TO COURSE OF MY WORK. IT IS DUE TO THE ENDURING EFFORT AND GUIDANCE OF MY GUIDE THAT ULTIMATELY MADE IT SUCCESS.
I ALSO TAKE THIS OPPORTUNITY TO EXPRESS MY DEEP REGARDS AND GRATITUDE TO THE PRINCIPAL ANAND NAIR AND WOULD LIKE TO THANK THE HEAD OF B.M.S. DEPARTMENT MRS.KAVITA SHAH WHO GAVE US GUIDANCE TO TAKE UP AND PURSUE THE PROJECT
I CANNOT JUST CONDONE THE VALUABLE OPPORTUNITY GIVE TO ME BY THE UNIVERSITY OF MUMBAI FOR COMPILING AND SUBMITTING THE PROJECT, WHICH I FEEL IS AN OPPORTUNITY TO EXPRESS MY VIEWS ABOUT EXPORT PROCEDURE AND DOCUMENTATION.
I ACKNOWLEDGE MY INDEBTNESS TO VARIOUS AUTHORS FOR MAKING USE OF VALUABLE INFORMATION LIBERALLY.
IT IS MY PROUD PRIVILEGE TO EXPRESS MY DEEP SENSE OF APPRECIATION AND GRATITUDE TO MY PARENTS AND FRIENDS FOR THEIR SUPPORT AND CO-OPERATION IN THE COURSE OF THE PROJECT EITHER DIRECTLY OR INDIRECTLY INVOLVED IN TIME WITH THEIR VALUABLE CONTRIBUTION.
INDEX
SERIAL
NUMBER CONTENT
1 INTRODUCTION
2 MEANING AND DEFINATION.
3 PRODUCTIVITY PERFORMANCE MEASURES

4 SYSTEM AND SUBSYSTEM PRODUCTIVITY

5 PRODUCTIVITY MEASURES FOR INDIVIDUALS AND TEAMS

6 MOTIVATION

7 PRODUCTIVITY GAP

8 RETURN ON INVESTMENT

9 MUTUAL REWARD THEORY

10 PRODUCTIVITY BENCHMARKS

11 PRODUCTIVITY GROWTH AND ECONOMICS

12 ERGONOMICS – ALSO KNOWN AS HUMAN FACTOR ENGINEERING

13 MEASURES OF FACTOR PRODUCTIVITY

14 PRODUCTIVITY STUDIES

15 INCREASES IN PRODUCTIVITY

16 LABOUR PRODUCTIVITY

17 MARX ON PRODUCTIVITY

18 CASE STUDY ON EASTMAN CHEMICALS CO.

13 CASE STUDY
14
BIBLOGRAPHY









INTRODUCTION

In a business or industrial context, the ratio of output production to input effort. The productivity ratio is an indicator of the efficiency with which an enterprise converts its resources (inputs) into finished goods or services (outputs). If the goal is to increase productivity, this can be done by producing more output with the same level of input. Productivity can also be increased by producing the same output with fewer inputs. One problem with trying to measure productivity is that a decision must be made in terms of identifying the inputs and outputs and how they will be measured. This is relatively easy when productivity of an individual is considered, but it becomes difficult when productivity involves a whole company or a nation.
Industry and government officials have adopted three common types of productivity measures. Partial productivity is the simplest type of productivity measure; a single type of input is selected for the productivity ratio. The company or organization selects an input factor that it monitors in daily activity. Direct labor hours is a factor that most companies monitor because they pay their employees based on hours worked.
Total factor productivity is a productivity measure combines that labor and capital, two of the most common input factors used in the partial productivity measure. This measure is often used at the national level, because many governments collect statistics on both labor and capital. In calculating at the national level, the gross national product (GNP) is used as the output.
Total productivity is a productivity measure that incorporates all the inputs required to make a product or provide a service. The inputs could be grouped in various categories as long as they determine the total inputs required to produce an output.
Many factors affect productivity. Some general categories for these factors are product, process, labor force, capacity, external influences, and quality.
There are many different plans that companies develop in an attempt to improve productivity. Wage incentive plans and changes in management structure are two ways that companies focus on the labor force. Investment in research and development allows companies to develop new products and processes that are more productive. Quality improvement programs can reduce waste and provide more competitive products at a lower cost.
________________________________________



MEANING
Productivity is the result or the sum of all effort that it takes to deliver a product or service. Productivity is frequently referred to as output and, to some degree, can be measured. The output generated by a person, organization, or other entity is measured in terms of (the number of) units or items produced and services performed within a specified time frame. Thus, productivity is the economic value of goods and services. It becomes the value or result of the "price" of a product or service minus all "costs" (supplies, materials, human labor, etc., which frequently are monetary) that go into the effort.



DEFINATION
Productivity is the ratio of output and input in any organization.
Productivity = output
input
Output is in the form of product quality and input is in the form of resources.
The resources in the form of
 Land acquired,
 Salaries paid to the employees,
 Amount paid to the purchase materiel,
 Amount spend in infrastructure.



PRODUCTIVITY PERFORMANCE MEASURES

Productivity is a performance measure that indicates how effectively an organization converts its resources into its desired products or services. It is a relative measure in that it is used to compare the effectiveness of a country, organization, department, workstation, or individual to itself over time for the same operation, or to other countries, organizations, departments, workstations, or individuals. From a systems perspective, productivity indicates how well an organization transforms its inputs into outputs. In manufacturing, productivity is generally stated as a ratio of output to input. Productivity may be expressed as partial measures, multifactor measures, and total measures. Partial productivity measures are used to analyze activities in terms of a single input (e.g., units produced per worker, units produced per plant, units produced per hour, or units produced per quantity of material). Multifactor productivity measures take into account the utilization of multiple inputs (e.g., units of output per the sum of labor, capital, and energy or units of output per the sum of labor and materials). A total measure of productivity expresses the ratio of all outputs produced to all resources used.


SYSTEM AND SUBSYSTEM PRODUCTIVITY

An important point in seeking productivity improvements in a subsystem of an organization is to link the subsystem improvements to the total system productivity. Optimization of a subsystem operation that does not affect the overall productivity of the organization is a waste of resources. For example, a manufacturer might improve the productivity of its machining operations, as measured by number of units produced per dollar. But if these units cannot be sold and are warehoused, the productivity of the organization has not increased, since the goal of the manufacturer is to generate revenue through the sale of its products. Activities intended to improve productivity must be carefully selected, and the appropriate measures must be developed to ensure that the organization's efforts result in the improvement of its overall productivity.
Numerous specific components are involved in contributing to and measuring productivity. The most important of these are discussed below.
PRODUCTIVITY MEASURES FOR INDIVIDUALS AND TEAMS

An individual's productivity is measured by that person's potential to reach the highest level of productivity possible. That is, a person has certain skills that determine his or her level of capability (an engineer's skills, banker's knowledge, etc.). An individual's experiences and education usually determine his or her skill level regarding a particular job. Other factors, such as a positive environment (working with a good team, having a good boss, liking the physical surroundings in the workplace, being appreciated, etc.) and how motivated one is to do a job, also contribute to productivity. When several individuals come together to work as a team, the team's productivity or the effectiveness of the team is the sum of individual efforts toward achieving a desired goal. Several factors (motivation, expertise, working conditions, team compatibility, potential, etc.) influence the level of productivity achieved.


MOTIVATION

Productivity is directly related to how motivated a person is to perform a task or activity. Many businesses devote much time and effort to finding ways to motivate employees. Worker enhancement programs (for an individual, team, company, etc.) that are built on ways to motivate workers (toward self-motivation and long-term motivation) can optimize productivity. Organizations that are most successful in motivating workers provide a variety of programs (formal and informal avenues within and outside the organization) to meet the needs of their employees. Some organizations offer employees sports and recreational activities, fitness and leisure activities, and family-oriented programs (work-/job-augmented incentives). Incentive programs may be totally separate from or incorporated into work-team meetings, seminars, and education/training programs. Such a comprehensive approach toward enhancing worker performance may capitalize on quality measures (such as value, total quality management [TQM], quality circles, innovation, etc.) and performance standards (such as profitability, efficiency, customer satisfaction, on-time delivery, etc.) and include a wide range of personal and team rewards and incentives.

PRODUCTIVITY GAP

A productivity gap (or capacity gap) is the difference between what a person can do and what that person actually does. That is, every person has the ability to achieve at a certain level. If a person is not motivated and is not working up to potential, that person's productivity gap is usually quite large. The same principle applies to a work team, organization, and so on. It is desirable to estimate potential (of a person, work unit, company, etc.) to determine where productivity gaps exist (and how large they are) and find ways to close them. By looking at a person's ability in conjunction with other motivational factors, it is possible to estimate a person's (or a group's) potential to achieve desired results. When all factors operate at optimum, the productivity is said to be at its highest level—the productivity gap has been filled or is minimized.

RETURN ON INVESTMENT

Productivity is closely related to, but not dependent on, profit. It can be measured by return on investment (ROI). ROI is determined after the sale of a product or service minus the deductions for the total amount of effort (resources, etc.) put into its design, development, implementation, evaluation, and marketing. The formula for determining ROI is: "Price" minus "Cost" divided by "Sales."


MUTUAL REWARD THEORY

Mutual reward theory (MRT) is based on finding ways for all to benefit. That is, if an organization can assist an employee in reaching some of his or her goals while still meeting the company's production goals, a mutual reward has occurred. When the benefits are at an optimum for all persons involved, the greatest rewards are realized. Productivity is usually directly proportional to the degree of MRT success.

PRODUCTIVITY BENCHMARKS

Factors that enter into productivity benchmarking for an organization include overall operations, worker training, technology, continuous quality improvement, and management philosophy and strategy. Management strategy includes how and at what level decision making takes place—usually greater productivity gains are realized when decision making is pushed to its lowest level possible and is still effective. Also, an organization's efficiency may depend just as much on borrowing and lending strategies (e.g., requiring immediate payment on goods sold while practicing delayed payments to creditors) to maximize resource availability as it does on efficient operations and a safe environment. Thus, there are many important factors included in maximizing ROI—most factors depend on making the right decisions at the right time. What is a good decision for one company may be bad or devastating for another.


PRODUCTIVITY GROWTH AND ECONOMICS

Productivity growth is defined as a measure of the amount of goods and services that are produced during a specified period of time. Once a standard has been determined, the standard (benchmark or identified level of production) becomes the measure against which all future production can be compared. Since 1950, the U.S. ten-year annual growth rates have been as follows: 1950s: 2.17 percent; 1960s: 2.85 percent; 1970s: 1.71 percent; 1980s, 2.17 percent; 1990s: (estimate) 1.31 percent. The annual growth rate is of particular interest to individuals, since the productivity growth rate is directly proportional to a person's wealth. That is, as productivity levels go up, so does an individual's buying power. In turn, the total economy benefits from the boost.



ERGONOMICS – ALSO KNOWN AS HUMAN FACTOR ENGINEERING

Ergonomics is a scientific study of human being and his environment. Incompatibility between this is a major cause for low productivity
Incompatibility can arise on account of following factors
1. Physical factors : physical fitness required for performing the job is lacking – problem with vision due to size of display, distance, lighting, weak eyesight. Sharp edged controls, shape of the control is not suitable for handhold, poor access to controls, tools or material. Physical factors in the environment like heat, humidity, dust and ventilation also play significant role in making man and his environment compatible with each other
2. Physiological factors: jet lag due to incompatibility between body clock and clock on the wall – sleepy and hungry at wrong time.
3. Anatomical factors – BMS students writing their exam paper in a high school, a young boy wearing his father’s shoes. A person’s height and weight [physical stature] can make him incompatible with his environment
4. Intellectual factors - a pilot sometimes being given the altitude instructions in FPS system and some times in MKS system. If a person’s ability to process the information for decision-making is impeded, productivity suffers.
Such incompatibilities cause
a. Great physical and mental discomfort, and as a result stress on worker
b. Delay in responding to situations
c. Great fatigue and irritability
d. Wrong decisions
e. Physical and mental fatigue
And adversely affect the output. Study of ergonomics is study of all these factors in order to make improvements to create a conducive interface between workman and his environment i.e. his machine

MEASURES OF FACTOR PRODUCTIVITY

Some economists write of "capital productivity" (output per unit of capital goods employed), the inverse of the capital/output ratio. "Total factor productivity," sometimes called multifactor productivity, also includes both labor and capital goods in the denominator (weighted by their incomes).
Unlike labor productivity, the calculation of both capital productivity and total factor productivity is dependent on a number of doubtful assumptions and is subject to the Cambridge critique. Even measures of land and labor productivity should be used only when conscious of the role of the heterogeneity of these inputs to the production process.


PRODUCTIVITY STUDIES

Productivity studies analyze technical processes and engineering relationships such as how much of an output can be produced in a specified period of time.
It is related to the concept of efficiency, which is the amount of output produced relative to the amount of resources (time and money) that go into the production.
All else constant, it benefits a business to improve productivity, which over time lowers cost and (hopefully) improves ability to compete and make profit. Increases in productivity also influence society more broadly, by improving living standards, creating income, and generating economic growth.


INCREASES IN PRODUCTIVITY

Companies can increase productivity in a variety of ways. The most obvious methods involve automation and computerization which minimize the tasks that must be performed by employees. Recently, less obvious techniques are being employed that involve ergonomic design and worker comfort. A comfortable employee, the theory maintains, can produce more than a counterpart who struggles through the day. In fact, some studies claim that measures such as raising workplace temperature can have a drastic effect on office productivity. Experiments done by the Japanese Shiseido corporation also suggested that productivity could be increased by means of perfuming or deodorising the air conditioning system of workplaces.
Increases in productivity also can influence society more broadly, by improving living standards, and creating income. They are central to the process generating economic growth and capital accumulation.
A new theory suggests that the increased contribution that productivity has on economic growth is largely due to the relatively high price of technology and its exportation via trade, as well as domestic use due to high demand, rather than attributing it to micro economic efficiency theories which tend to downsize economic growth and reduce labor productivity for the most part.
Many economists see the economic expansion of the later 1990s in the United States as being allowed by the massive increase in worker productivity that occurred during that period. The growth in aggregate supply allowed increases in aggregate demand and decreases in unemployment at the same time that inflation remained stable. Others emphasize drastic changes in patterns of social behaviour resulting from new communication technologies and changed male-female relationships.


LABOUR PRODUCTIVITY


Labour productivity is generally speaking held to be the same as the "average product of labour" (average output per worker or per worker-hour, an output which could be measured in physical terms or in price terms).
It is not the same as the marginal product of labour, which refers to the increase in output that results from a corresponding increase in labour input.
However, some aspects of labour productivity may be very difficult to measure exactly, or in an unbiased way, such as:
• the intensity of labour-effort, and the quality of labour effort generally.
• the creative activity involved in producing technical innovations.
• the relative efficiency gains resulting from different systems of management, organisation, co-ordination or engineering.
• the productive effects of some forms of labour on other forms of labour.
One important reason is that these aspects of productivity refer mainly to its qualitative, rather than quantitative, dimensions. We might be able to observe definite increases in output, even though we do not know what those increases should be attributed to.
This insight becomes particularly important when a large part of what is produced in an economy consists of services. Management may be very preoccupied with the productivity of employees, but the productivity gains of management itself might be very difficult to prove.
This may mean that a lot of what is said about productivity is based on opinion, rather than empirical evidence. Modern management literature emphasizes the important effect of the overall work culture or organisational culture that an enterprise has. But again the specific effects of any particular culture on productivity may be unprovable.


MARX ON PRODUCTIVITY

In Karl Marx's labour theory of value, the concept of capital productivity is rejected as an instance of reification, and replaced with the concepts of the organic composition of capital and the value product of labor.
A sharp distinction is drawn by Marx for the productivity of labor in terms of physical outputs produced, and the value or price of those outputs. A small physical output might create a large value, while a large physical output might create only a small value - with obvious consequences for the way the labor producing it would be rewarded in the marketplace.
Moreover if a large output value was created by people, this did not necessarily have anything to do with their physical productivity; it could be just due to the favorable valuation of that output when traded in markets. Therefore, merely focusing on an output value realised, to assess productivity, might lead to mistaken conclusions.
In general, Marx rejected the possibility of a concept of productivity that would be completely neutral and unbiased by the interests or norms of different social classes. At best, one could say that objectively, some practices in a society were generally regarded as more or less productive, or as improving productivity - irrespective of whether this was really true. In other words, productivity was always interpreted from some definite point of view.
Typically, Marx suggested in his critique of political economy, only the benefits of raising productivity were focused on, rather than the human (or environmental) costs involved. Thus, Marx could even find some sympathy for the Luddites, and he introduced the critical concept of the rate of exploitation of human labour power to balance the obvious economic progress resulting from an increase in the productive forces of labor.


CASE STUDY ON EASTMAN CHEMICALS CO.


• A brief introduction to the Eastman Chemical Co.
The history of Eastman Chemical really started when George Eastman created the Eastman Kodak Company. Later, in 1920, Kingsport, Tenn. was chosen as the site of its chemical plant.
`` In the late 1970s, Eastman was challenged to intensify its emphasis on quality because it lost market share in a major product line. A focused quality improvement effort was undertaken, which resulted in dramatic quality improvements.
`` Complaints decreased to less than one-tenth of their original level. Internal manufacturing costs were substantually reduced and productivity and market share were increased.''
Furthermore, in 1982, they introduced a Customer Emphasis Program, in which employees identified their customer needs ``and developed plans to serve them better.''
The Eastman Chemical Co. has been independent of Kodak since January 1, 1994. It is now separately traded on the NY Stock Exchange and has 18,000 employees worldwide, with a total annual sales of about $4 Billion. This makes Eastman Chemicals the 10th largest chemical company in sales in the USA and the 34th in the world. It markets in over 80 countries and supplies more than 400 chemicals, including plastics and fibers. Kodak is still its largest single customer, but these sales represent less that 10% of the total.
• Striving for Quality
Quality has been a major goal for the past ten years. When Eastman was looking for a model to adopt in pursuing this goal, they carefully considered alternatives and finally decided that the Baldridge criteria was good for them; therefore they adopted the criteria as an agenda for change.
Thus they utilized the Baldridge criteria as a way to improve their company and felt that they were rapidly making substantial inroads into problems by using it. In 1992, Eastman therefore decided to apply for the award; they had learned a lot and could benefit from the review of experts assessing their fitness for an award. As a result, after losing, Eastman continued to use the criteria, feeling that the original effort had improved their operations significantly and the award review had shown them where they had to take corrective action. In 1993, Eastman applied again for the award and this time won, much to their surprise and pleasure. They were still, at that time, a division of Kodak.
Thus Eastman considers the Malcolm Baldridge Award the icing on the cake. Their business improvement from considering ways to use the Award criteria and applying these rigorously to the company was the most important measure of their present success.

• Continuous Process Improvement and Team Structure
From the late 1970's, competition had increased and Eastman saw an added need to organize and plan for a quality in all their endeavors. Continuous process improvement was used at Eastman in the early 1980s to generate high quality systems. Eastman felt the need to improve the management and performance of production control, and started using the STAT system to organize and plan. Manufacturing therefore used its manufacturing quality management process model and centered the effort around operations teams; i.e., groupings of first line operations supervisors and general supervisors acting as a team, rather than as a traditional shop with foreman and workers. There are therefore now many strings of interconnected teams, going bottom-up and top-down, with the entire group working together.
Since that time, Eastman has experimented with teams in many ways, from the at high management to operational levels, including considerable experimentation with self-managed teams. Indeed, when the Senior Vice President of Operations retired, he was not replaced, as the VP team took over the responsibilities of coordination. Now, operators manage the work that used traditionally to be that of a foreman; i.e. they administer themselves. In fact, this sometimes causes slight problems: Mr. Savell stated, ``In the operations area, the biggest problem in managing teams is getting someone to accept administrative responsibilities when they don't want to.'' Thus some first level management cannot be eliminated but it is given a wider span of control.
• Planning at Eastman
The process of resource allocation starts in August with approval of the business strategy. Through negotiation, this leads to the functional strategy (by September). Next the annual budget is available for approval in October. Thus Eastman is planning today on an annual basis, but the intent is to go to multiple years in future.
Business strategies that have been organized by the business organizations (such as grow, reduce cost, productions) are given to the functional areas. The functional areas then articulate these into Functional strategies (that are considered as goals in the 3 to 5 year time frame). The teams within the organizations help to identify the linkages between possible projects and the functional strategy. Projects are then proposed, and if they do not support the business strategies, they are rejected. Some teams can initiate projects without higher level approval; i.e., they are empowered to do so - this allows some linkage with little or no red tape. Capital and operational budgets are linked tightly to the business strategies. Additional resources are, however, allocated to teams; their time is intentionally greater than that needed to run the operation.
Project termination occurs if the marketplace business strategies change radically or if the resources become unavailable. Thus, the typical link back to business conditions will sometimes result in a decision to kill the project. Moreover, FPI is required to link back to one or more of the key stakeholders, who are: the suppliers, responsibility to the public (e.g., high risk operations, such as sulfuric acid in a tank), investors, customers, and employees (S.P.I.C.E.). It is important to realize that in the Chemical Industry, the material cost is a high percentage of the product cost; therefore suppliers are a very important part of the chain.
Eastman is tightly linked to its customers and suppliers. Mr. Savell used 3M as an example of this type of partnership (for both the tape and sticky substance). The partners' inputs feed directly into the Business Strategy. The joint partnership teams may almost be likened to the Japanese kieretsu in its operation, but it makes business sense, because it can integrate and cross-link the company with the customers and suppliers, as the situation arises. This is particularly valuable if it can be linked to JIT and inventory reduction. However, Eastman is probably very similar to the average industry in this respect.
• Implementing the Team Approach
Once a decision had been made to change the culture of the company to a team-work approach, Eastman had to develop and give internal courses. These include team coaching and management and are intended for all employees. Because this is relatively new, only one division has been fully trained so far, but feedback suggests that the program is very well received; the benefits are perceived to be high. The education is now geared up to processing one to two divisions at a time in selective divisions throughout the company.
First, second, and third line management receives a 14 week full-time assignment. All are entirely relieved of any responsibilities during this time. This course was developed internally; the work involves reading sets of books, and is considered intensive. The course meets for 4 hours per day with a further 4 hours per day expected to be spent in reading and preparation, etc.
Following a 1987/88 visit by Demming, the President decided that Eastman would stop making annual employee appraisals. The new system is one where the employee and the manager work together to try to identify improvement areas. It results in employee development or education as ways to self-improve. There is now no individual suggestion system. Previously, it was possible to earn up to $25, 000 for a good idea, but this was considered incompatible with a team approach.
• Top Management Commitment
The Chairman and CEO of Eastman Chemical Company (Ernest W. Deavenport, Jr.) was extremely committed to driving change in the company. Fortunately, his predecessor had already got things rolling. Ernie provides tremendous leadership. In fact, Bob believes that Ernie Deavenport is the all-inclusive empowerment champion, requiring ``sign up'' to the concept from all direct reports. Over the past twelve years, the uncommitted managers have left Eastman. Some have retired and most were at points in their careers when they were not willing to change. It is Bob's opinion that now:
Eastman has formed the strongest management team in the world.
The company was reorganized in 1991 by Ernie Deavenport (following recommendations of C.K. Prahalad of the University of Michigan) from a Product Focused to a Business Market Company with eleven business organizations having 51 strategic businesses. There is now therefore an Executive Team consisting of the top eleven business managers. Mondays are set aside for bi-weekly meetings of the Executive Team.
• Core Competencies and the Business
The resulting reorganization into a Business Market Company also looked at the major products, functions, geographic factors, and timing. The Chemical Industry has a typically cyclical business cycle; the latest high point was in 1989-1990. The present economical situation in the world is down cycle but probably coming back up. The Chemical Industry's business generally follows the economic cycle, though some parts will go counter-cycle.
Reorganization was felt to be a sensible move during the downcycle, as it allowed employees time to concentrate on education and absorb new ideas without having to stop to put out fires.
Eastman performs a relative ROI, with an attempt to see the effect on the bottom line. Eastman is growing but not too fast; i.e., the intent is to grow but not to the detriment of quality. The company is not downsizing; they have managed to survive without layoff: Eastman was not previously ``fat.'' Hiring, though still occurring, has been cut back.
• The role of IS
Information Systems (IS) enable the change process, as Mr. Savell stated: ``They play a significant role. IS strategy is managed at the corporate level. We have implemented a totally integrated IS world-wide.'' The intention is to use SAP for all practices, this is easier for them than most businesses because of their integration (while others have autonomous units that refuse or find it difficult to bring the systems together). Although Eastman is integrating databases across the company, they do not feel they are as far forward as other industries that are really on the ``cutting edge''.
There is a drive to integrate the IS with suppliers and customers, but standardization is a major issue. Data, Languages, Data models must all be specified and used together. Today, there is a relatively clumsy interface through cross indexing - this allows communication but there is not yet a common architecture.
Security is imposed through a coordinator; they also have regular audits. Because the key customers are generally represented by people who have been known and trusted for years, there is not felt to be a need for risk/benefit analysis.
• Quality and Other Performance Measures
Quality is computed using the Baldridge criteria, which contains measures of three different types of processes:
• Operational,
• manufacturing,
• administration (including invoices, etc.).
• Management
• Degree of vertical integration,
• Plans for deployment at all levels.
• Cross functional
• BPR,
• Product development, etc.
Eastman sees the need for Continuous Quality Improvement as a way to achieve Business Process Reengineering (BPR) or Continuous Process Improvement (CPI). There is the need to institutionalize the idea and to maintain all the improvements day to day and integrate all portions together. Reengineering is the application of CPI in breaking through cross-functional barriers and these allow them all to ``touch the customer.''
Eastman's performance measures are vertically linked throughout the organization - all the way to the top. There are quarterly reviews: two of these deal with performance measures and the others with strategy. The focus is on:
1. Class 1 yield achievement; i.e., a large percentage of high quality product each and every time, with little or no scrap;
2. Safety achieved, and
3. Emission control reduction achieved.
There is a President's Award for outstanding achievements.
The use of face to face surveys is paying off. There is also an active complaint system in place, and the internal system will link to and use it for understanding need for performance improvement. This will allow a link to the planning cycle.
Eastman does stress people by expecting them to change; management has high expectations, and this is tough on some people. Many managers try to be understanding but some are engineers who like and require data. Thus there is still room for improvement.
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Managed File Transfer: Experian Case Study - The Evolution from Application to Infrastructure by Tumbleweed Communications
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February 2006 - (Free Research) This paper outlines the business & technology drivers that are behind this trend & the current state of MFT technologies & best practices, including the key criteria you should consider when choosing an MFT suite. In addition, a case study illustrates how Experian is implementing an MFT infrastructure based on Tumbleweed SecureTransport.


Gartner Case Study: Migration From Domino to Exchange Is Easy for E-Mail, but Applications Prove More Challenging by Binary Tree, Inc ________________________________________
February 2006 - (Free Research) Changing dynamics in the enterprise e-mail market has led many organizations to reconsider long-term commitments to incumbent vendors. There is considerable interest in the experience of organizations that have made this migration. Read to find out why RSM McGladrey decided to move from IBM's Lotus Notes/Domino to Microsoft's Exchange Server 2003.


Replicating Data Without Breaking the Bank - A CitiStreet Case Study by F5 Networks.
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August 2006 - (Free Research) CitiStreet needed to maximize the performance of its network in order to backup nine million employees' data over the WAN on a daily basis. CitiStreet deployed F5's enterprise application delivery product, WANJet, because it combined the best aspects of WAN optimization, application acceleration and encryption in one platform.


Case Study: Chadwick Lawrence Solicitors - Improving Information Visibility and Access with ADERANT Expert Back Office and Front Office by Aderant (E-mail this company)
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January 2006 - (Free Research) Chadwick Lawrence Solicitors has delivered professional legal advice to both personal & business clients for more than 150 years. Read why Chadwick Lawrence selected an integrated set of solutions from ADERANT to help its partners & attorneys improve information visibility--ADERANT Expert Back Office & ADERANT Expert Front Office Matter Center.


Reducing Cost and Risk in Aerospace Design via Commercial Modeling and Simulation Software: Three Case Studies by AEgis Technologies Group, Inc. (E-mail this company)
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January 2006 - (Free Research) The aerospace community provides numerous examples of the application of modeling and simulation to complex analytical problems. In this paper, learn how continuous simulation reduced costs and technical risks for projects involving space exploration, missile modeling and high performance aircraft design.


GE Fanuc Automation: A Case Study on Printing, Scanning and Faxing by Castelle (E-mail this company)
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January 2005 - (Free Research) Castelle network fax servers are tailored to meet the needs of any organisation that sends and receives faxes, including financial, healthcare, legal, manufacturing, government and insurance. Castelle FaxPress solved the challenge faced by the British company.


Firm Maximizes Consultant Productivity and Client Satisfaction through Remote Support and Services by Citrix Online - GotoAssist ________________________________________
August 2005 - (Free Research) Read the case study to learn how a remote support and services solution enabled RSM McGladrey to provide IT services remotely from home and the office, save customers from unnecessary travel costs and achieve higher employee retention and satisfaction.
DLT-S4 Buffer Management Speedmatching by Quantum Corporation
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May 2006 - (Free Research) This paper discusses 'speedmatching' and Quantum's buffer management approach used for optimizing performance of its new DLT-S4 drive. The minimal effects of repositioning on reliability are also discussed.


Sentillion Software Case Study: Product Launch Breakthroughs that Improve Sales Ramp Up -- Preparing Sales for the Fray by Avitage ________________________________________
April 2006 - (Free Research) Interview with Rob Scanlon, Chief Sales Scientist at Sentillion Software (audio and slides). Discussion centers on preparing new sales people for complex, competitive selling environment, and Sentillion's 45 day ramp up program. Sales guides, message development, audio and PowerPoint are sub topics.


Case Study: Deacons - Dashboards Provide Real-time Metrics for Improved Performance and Client Service by Aderant (E-mail this company)
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January 2006 - (Free Research) Keeping partners, lawyers & other firm executives on the same page is a significant issue facing many legal practices. Read how one law firm, Deacons, found a way to meet these issues using ADERANT's integrated practice management system, ADERANT Expert, & Microsoft's performance management solution, Microsoft Office Business Scorecard Manager 2005


Case Study: Webcast globalization services by Globalization Partners International)
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November 2006 - (Free Research) GPI's globalization services allowed best-selling author Mike Bosworth to deliver his CustomerCentric Selling webcast in both Simplified Chinese and Brazilian Portuguese.


Case Study: Globalization of a Web-Delivered Survey Application by Globalization Partners International.
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November 2006 - (Free Research) Globalization Partners International (GPI) provided internationalization and localization consultation and services in order to fully globalize WorldInquiry.com's survey application.


SSL VPN Purchase Checklist by Aventail Corporation
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January 2005 - (Free Research) This checklist includes important capabilities to consider when evaluating and comparing SSL VPN vendors and their technology solutions. Enterprise requirements are organized into six broad categories.


Driving Efficiency in the Life Insurance Office by TIBCO Software Inc.
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March 2005 - (Free Research) Improvements in operational effectiveness and efficiency remain essential goals for life insurance companies. Many insurers expect business change projects to deliver up to 50% improvement in costs. Business Process Management (BPM) technology can provide these results in policy acquisition, policy administration and claims operations.





Bibliography

Goodstein, Leonard, Nolan, Timothy, and Pfeiffer, J. William. (1993). Applied Strategic Planning: How to Develop a Plan That Really Works. New York: McGraw-Hill.
Hammer, Michael. (1996). Beyond Reengineering. New York: Harper Business.
Jonash, Ronald S., and Sommerlatte, Tom. (1999). The Innovation Premium. Reading, MA: Arthur D. Little.
Tesoro, Ferdinand, and Tootson, Jack. (2000). Implementing Global Performance Measurement Systems: A Cookbook Approach. San Francisco: Jossey-Bass/Pfeiffer.

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sbyogi

New member
Good project, very informative...details given about ergonomics is good.
ERGONOMICS – ALSO KNOWN AS HUMAN FACTOR ENGINEERING

Ergonomics is a scientific study of human being and his environment. Incompatibility between this is a major cause for low productivity
Incompatibility can arise on account of following factors
1. Physical factors : physical fitness required for performing the job is lacking – problem with vision due to size of display, distance, lighting, weak eyesight. Sharp edged controls, shape of the control is not suitable for handhold, poor access to controls, tools or material. Physical factors in the environment like heat, humidity, dust and ventilation also play significant role in making man and his environment compatible with each other
2. Physiological factors: jet lag due to incompatibility between body clock and clock on the wall – sleepy and hungry at wrong time.
3. Anatomical factors – BMS students writing their exam paper in a high school, a young boy wearing his father’s shoes. A person’s height and weight [physical stature] can make him incompatible with his environment
4. Intellectual factors - a pilot sometimes being given the altitude instructions in FPS system and some times in MKS system. If a person’s ability to process the information for decision-making is impeded, productivity suffers.
Such incompatibilities cause
a. Great physical and mental discomfort, and as a result stress on worker
b. Delay in responding to situations
c. Great fatigue and irritability
d. Wrong decisions
e. Physical and mental fatigue
And adversely affect the output. Study of ergonomics is study of all these factors in order to make improvements to create a conducive interface between workman and his environment i.e. his machine
 
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