Introduction to Industrial Engineering
By Jane M. Fraser
Chapter 5
The IE Approach
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Since the mid 1980s, the phrase Total Quality Management (TQM) has been used to describe the application of Deming's ideas for improving quality, especially including managerial commitment to quality, empowered teams, and statistical methods. The phrase Continuous Quality Improvement (CQI) describes the same concepts but the term allows the application of the ideas where the word "management" might meet resistance, for example, in education. The term CQI is also widely used in healthcare.
A flexible manufacturing system can easily change from making one mix of products to a different mix of products. An FMS allows quick response to changes in the market. Such systems usually involve small batch sizes, extensive use of automation, a centralized computer controlling all work flow, and ease in reconfiguring and adding machines. The concept was popular from the mid 1980s through the mid 1990s.
Agile manufacturing stresses that manufacturers cannot control the market place and must be able to move quickly to respond to changes. Companies must be able to develop and produce products quickly and each product may have a very short life cycle. The concepts were first developed in the early 1990s at the Iacocca Institute and Lehigh University. Key concepts include rapid prototyping, a loose conglomeration of many small companies that reform into new alliances for new products, and the use of information technology to share information.
The 1993 book Reengineering the Corporation by Michael Hammer and James Champy describes methods for
“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.” (page 32).
The approach, called Business Process Improvement, involves the use of teams to improve processes, a focus on the customer’s perception of the process, empowering workers to make decisions that keep customers happy, and placing the steps in a process in a natural order.