Unit-IV

Unit-IV
BUSINESS IMPROVEMENT: Integrating
Quality, Innovation and Knowledge
Management-Bhalla/Ramu-401-443

BUSINESS IMPROVEMENT:
Unit-IV
Integrating Quality,

Overall intention and direction within

an organization related to quality.
OPERATION MANAGEMENT - concerned with the delivery of
the quality product to the customer at appropriate volume ant at
the specified date.
OBJECTIVES:
A good OPERATION MANAGEMENT
ensures-high product quality standard
-flexibility of volume and product mix
-speedy and reliable deliver

system

is

which

How to achieve OBJECTIVES

VENDOR
MANAGEMEN
T

PRODUCTION
MANAGEMEN
T

DISTRIBUTIO
N
MANAGEMEN
T

PRODUCT
DELIVERY
MANAGEMEN
T

Task of Operation
Manager
Muhlemann-5Ps
1. Prodsuct 2. Programmes
3. Process 4. People 5. Plant
The quality, delivery and cost features of the product very often determine the choice of
and sequence of process used in its manufacturing and delivery.
These process need to be carried out in a tangible fashion using particular machinery and
equipment housed and maintained in a plant, which may be a factory, office or restaurant.
The flow of work or customers through the plant must be in accordance with particular
programmes(timetable or schedule) to ensure timely completion according to delivery
deadlines, consistent with adequate utilization or loading of the plant.
The operation of the plant and development of programmes all require the participation of
people either as plant operators, clerical and services personnel, maintenance personnel,
process technologists or managers.
SENIOR MANAGERS are responsible for QUALITY AND COST reduction by EFFECTIVE
utilization of resources and delivering VALUE to stakeholders.

SENIOR MANAGERS are responsible for QUALITY and cost

reduction by EFFECTIVE utilization of resources and delivering
VALUE to stakeholders.

Unit-IV

What do we mean by EFFICIENCY, QUALITY and VALUE

to stakeholders?

CY is about quality as well as savings: ensuring quality is not diminishe

savings, re-investing those savings to improve services for current and
and claiming increases in service quality as efficiency gains.

What do we mean by EFFICIENCYEfficiency can be defined as making the best use of the
resources available for the provision of public services. It
is all about giving emphasis on releasing resources
achieved through productivity gains, rationalisation of
back office functions and improved procurement and reinvesting these resources in frontline services.

Four ways of achieving efficiency

REDUCING INPUTS (Cashable
Gains)

INCREASING OUTPUTS (NonCashable Gains)

E1: Reduce inputs

E3: Achieve more outputs or
(money, people,
improved quality (extra service,
assets, etc) for the productivity) for the same
inputs (e.g. carrying out capital
same outputs (i.e.
fewer staff maintaining works to a higher standard with
the same budget)
the same level of
service provision)
E4:
Achieve
proportionately
E2: Reduce prices more outputs or improved
quality
in
return
for
a
(procurement, labour proportionally smaller increase
costs etc) for the same in resources than the increase in
outputs (e.g. less
outputs
(e.g.
if
increased
on
partnership
public subsidy needed expenditure
working
leads
to
better

What do we mean by QUALITY to

stakeholders?
Quality can be defined from a number of perspectives (whose
definitions are not mutually exclusive):

TECHNICAL: where quality is measured in terms of service

outputs assessed against a defined standard, specification or
level of technical performance.

CUSTOMER: where service quality is evaluated in terms of

outcomes that meet customer aspirations, which may include
accessibility,
effectiveness,
acceptability,
equity,
responsiveness, timeliness, reliability and openness

VALUE FOR MONEY: where quality and cost combine to

produce a service which meets technical and customer
requirements at an acceptable level of expenditure.

Managers should focus on:

QUALITY CROSS-CHECKS to demonstrate that service quality
has not diminished in those areas where cashable efficiency gains
are claimed.
QUALITY AS A MEASURABLE ELEMENT OF NON-CASHABLE
EFFICIENCY GAINS improvements in service quality or outputs
count as non-cashable efficiency gains.
RE-INVESTING CASHABLE EFFICIENCY SAVINGS IN
IMPROVED SERVICES TO CURRENT AND FUTURE RESIDENTS
the objective of the Governments efficiency review.
Technical issues regarding the measurement of quality for AES
purposes are explored further in section 5 of this briefing; the rest
of the briefing describes how associations can demonstrate that
quality is fully integrated into their efficiency strategies.

What do we mean by value for money?

The

Audit Commissions value for money Key Line of Enquiry (KLOE)

(with recently-published supplementary guidance) defines valu as:

one that delivers well above the minimum requirements for users, is highly
cost-effective and fully contributes to the achievement of wider outcomes
for the community.
In

essence, the Audit Commission concept of value for money is the

same as that of efficiency. The VFM KLOE sets a standard in the
rigour of its requirements, and its balance of cost and quality
based on the costs and benefits to residents. It requires residents
(stakeholders) to be involved in:

- setting service standards

- making choices about service delivery
- developing a procurement strategy
-monitoring performance against agreed service standards
- testing the value for money of existing service delivery or
procurement mechanisms.

Integrating quality into efficiency strategies

To achieve long-term efficiency gains, without compromising
product quality, the organisation need to integrate quality into a
comprehensive, cross-organisation efficiency strategy, linked
into its business planning and operational delivery.
In the longer term, the efficiency agenda will become increasingly
challenging:
-the Government targets for the sector increase year-on-year
-the quick wins from procurement may not be sufficient in future years
-there is a risk that a continued focus on savings will undermine service
quality.
There are three quality aspects:
A cross-checks to ensure that service quality is not diminished as a result
of cashable savings
B improvements in service quality qualifying as non-cashable efficiency
gains
C re-investing cashable efficiency gains i.e. financial savings into
improved services for current and future residents.

Integrating quality into an efficiency strategy

The organisation making most progress on efficiency
have established efficiency or value for money
strategies which are linked into their business planning,
corporate planning, budgeting and operational service
plans, procurement strategy, performance management
frameworks and frontline service delivery. These
strategies need to incorporate existing continuous
improvement processes, e.g. Best Value reviews,
process improvement projects, and existing quality
initiatives or programmes, such as
-the European Foundation for Quality Management,
-the Business Excellence Model,
-Peer Review and Quality Housing Services.

INTERNATIONALISATION OF
TECHNOLOGICAL INNOVATION

INNOVATION MATTERS FOR ALL COUNTRIESResearch & Development

DIFFERENT WAYS OF INTERNATIONALISING

INNOVATION

TRANSFER OF TECHNOLOGY-The need to

promote technology transfer

INNOVATION MATTERS FOR ALL

COUNTRIES-Research & Development

TECHNOLOGICAL INNOVATION- Introduction of new products,

process or services into the market.
# Innovations can be new to the users but not necessarily
new to the world.
# The nature of innovations varies greatly between activities
according to their technological complexities, the creation
of new technology being at one extreme and the use of
existing technologies at other.

DIFFERENT WAYS OF INTERNATIONALISING INNOVATION

FRONTIER
INNOVATION
Create new
Technologies
As leader or
follower
TECHNOLOGY
IMPROVEMENT &
MONITORING
SIGNIFICANT ADAPTATION:
change products and process, plant layout,
productivity management and quality systems,
procurement methods and logistics to adopt
technology to local or export market needs. This
is in-house experimentation and R&D.
BASIC PRODUCTION
Train workers in essential production and technical skills: reach
plant design capacity and performance levels ; configure products
and process; set up essential quality management systems;
supervision; procurement and inventory management system;
establish in-bound and out-bound logistics

INNOVATION MATTERS FOR ALL COUNTRIES-

Research & Development

one of the components of Innovation
Necessity is the mother of all inventions- If it was not
for innovative streak in our kind, civilization wouldnt
have come this far
R&D-creative work undertaken on a systematic
basis in order to increase the stock of
knowledge, including knowledge of man,
culture and society and the use of this stock of
knowledge to devise new application.
World Creativity and Innovation Week begins on
Leonardo da Vinci's birthday, April 15, every year and
runs through to World Creativity and Innovation Day
April 21.

INNOVATION MATTERS FOR ALL COUNTRIESResearch & Development

Recent and Exciting Innovations by Indian Students

Vardaan:
Stair
climbing
wheelchair (Innovated by: Shanu
Sharma,
IIT
Kanpur)
Traditional wheelchairs cannot be
used on architectural barriers,
such as stairs, thereby restricting
the movements of specially-abled
people.
Vardaan
facilitates
climbing up and down the stairs by
using an innovative Y-shaped
wheel that provides better grip
and optimum braking along with a
ratchet and a braking system.

INNOVATION MATTERS FOR ALL COUNTRIESResearch & Development

Recent and Exciting Innovations by Indian

Mr.
Manshuk
Lal
Raghavjibhai
Prajapati born 19-10-1965 village
wankaner (gujarat) dist. rajkot.
Started journey as a supervisor in
roof tiles manufacturer company of
gujarat. At the year of 1989, he
started making tavdi (tawa) from the
taraquta mud. He got unbelievable
response from market then he
started to develop at 1997 launched
Mitti cool water filter successfully
then after at 2002 he launched Mitti
cool refrigerator . In 2004 Mitti cool
Mitti Cool Refrigerator
(non stick tawa) 2005 he got award
from
national
and
state
rural
development.
My aim is to provide all luxurious things to country wide peoples who
cant imagine to afford electronic goods . my success key is my parents
blessings and my family support. Prajapati

INNOVATION MATTERS FOR ALL COUNTRIESResearch & Development

Recent and Exciting Innovations by Indian

Low-cost, Ultra Sensitive Handheld Explosive Detector System
(Innovated by: Neena Gilda, Sandeep
S, Seena V and Sheetal Patil, IIT
Bombay)
This team has developed an ultra
sensitive, low cost device that can
detect explosive materials like TNT
and RDX using the mechanism that
sniffer dogs are naturally endowed
with. TNT & RDX-based materials
generate vapours, which are usually
present in the adjoining atmosphere.
The hand-held device can selectively
detect these vapours using microcantilever based sensors and ultra
sensitive instrumentation.

INNOVATION MATTERS FOR ALL COUNTRIESResearch & Development

INNOVATION THAT CHANGED HUMAN LIFE

The electric light was a failure.

Invented by the British chemist Humphry Davy in the early
1800s, it spent nearly 80 years being passed from one
initially hopeful researcher to another, like some not-quitehousebroken puppy. In 1879, Thomas Edison finally figured
out how to make an incandescent light bulb that people
would buy. But that didnt mean the technology immediately
became successful. It took another 40 years, into the 1920s,
for electric utilities to become stable, profitable businesses.
And even then, success happened only because the utilities
created other reasons to consume electricity.

Top 30 Innovations Of The Last 30 Years

1. Internet, broadband, www
2. PC/laptop computers
3. Mobile phones
4. E-mail
5. DNA testing and sequencing/human genome mapping
6. Magnetic Resonance Imaging
7. Microprocessors
8. Fibber optics
9. Office software (spreadsheets, word processors)
10. Non-invasive laser/robotic surgery (laparoscopy)
11. Open-source software and services (e.g., Linux, Wikipedia)
12. Light-emitting diodes
13. Liquid crystal display (LCD)
14. GPS systems
15. Online shopping/e-commerce/auctions (e.g., eBay)

Top 30 Innovations Of The Last 30 Years

16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.

Media file compression (jpeg, mpeg, mp3)

Microfinance
Photovoltaic solar energy
Large- scale wind turbines
Social networking via the Internet
Graphic user interface (GUI)
Digital photography/video graphy
RFID and applications (e.g., EZ Pass)
Genetically modified plants
Bio fuels
Bar codes and scanners
ATMs
Stents
SRAM flash memory
Anti-retroviral treatment for AIDS

R&D

involves novelty and the resolution of scientific and

technological uncertainty

Basic Research- Gaining comprehensive knowledge or

understanding of the subject without specific
applications
in
mind.
No
specific
immediate
commercial objectives.

Applied
ResearchGaining
knowledge
or
understanding of the subject to meet a specific ,
recognized need. In industry it includes investigations
to discover new scientific knowledge that has specific
commercial objectives with respect to products,
processes, or services.

Development- Systematic use of the knowledge or

understanding gained from research.

DIFFERENT WAYS OF INTERNATIONALIZATING

INNOVATION

THREE CATEGORIES OF INNOVATION INTERNATIONALIZATION

1.
The National Enterprises, TNCs and individuals
2.
The domestic and International technical and scientific
collaborations among private and public institutions,
including domestic firms and TNCs, universities and
research centres.
3.
International Innovation by TNCs

TNCs is the only institution that can control and carry out
within its boundaries the process of innovation across
the globe

Technology transfer

Technology transfer is defined as the transfer of

results of basic and applied research to the
design,
development,
production,
and
commercialization of new and improved products,
services or processes.
That which is transferred is often not really
technology but rather a particular kind of
knowledge that is a precursor of technology. The
transfer process emphasizes the value and
protection of the intellectual product of the
researchers.

1. What is technology transfer?

Technology: at the core of
global environmental
challenge
As a source of environmental degradation and
emissions
As a means to address negative impacts,
reduce emissions, manage natural resources,
and monitor conditions
As a foundation for economic development,
value creation, and employment
Developing, demonstrating, deploying and
diffusing environmentally sound
technologies (ESTs) are activities in the
critical path toward an effective
responsible to global environmental
challenges (Agenda 21)

TRANSFER OF TECHNOLOGY-The need to

promote technology transfer
The transfer and dissemination of technology and the promotion of
innovation are among the most important benefits that host
countries seek from FDI.
TNCs are the dominant source of innovation.
Direct investment is an important mode of international technology
transfer.
It requires local Government Transfer.

Ways Technology is Transferred

Consulting

Graduating students (moving heads)

Faculty moving on (moving heads)

Collaborative research

Patenting and licensing

Service and outreach (extension)

Spin-off companies

Technology Transfer is a Process

It has stages, phases, and typical behaviors.

It operates and can be understood at different levels

(e.g., technology policy, individual scientists).

It involves different stakeholder perspectives (e.g.,

developers and users).

It is therefore a communication process.

Varied Roles
IDEA
Start-up
Start-up
Firms
Firms
RR &
&D
D
Firms
Firms
Larger
Larger
Companie
Companie
ss

Research
Developmen
t
Production
Manufacturing
Distribution

MARKE
T

Universiti
Universiti
es
es
Research
Research
Institutes
Institutes

Technology Transfer

RESEARCH

DEVELOPMENT

DEPLOYMENT

The Technology Transfer

Process
Disclosur
e
Commercialization
Patenting
Agreement Administration

Licensing

Products/Processes
(Royalties)

Nov.2012

KNOWLEDGE
MANAGEMEN
T
RPS

What is
knowledge ?

Nov.2012

Information is all about knowing what

occurred / happened / resulted.

Knowledge is all about acquiring

information and utilizing it in a similarly
placed situation so that latest action
gives value addition over the earlier
action.
Information can become knowledge
when a human being interacts with it,
appropriates it and makes it his own,
contextualize it by placing it in relation
to other knowledge's that are already
his own, and internalizes it by making it
a part of his belief system.

RPS

Nov.2012

What is knowledge Management ?

A
systematic
and
integrated
coordination of organization-wide
activities of acquiring, creating,
storing,
sharing,
dissemination,
developing and deploying knowledge
by individuals and groups in pursuit
of organizational goals.

RPS

Nov.2012

Knowledge Management is
akin to `digging for gold in ones
own backyard. Knowledge
Management is all about
management of intangibles to
deliver tangible results.

WHAT DO WE DO IN
KNOWLEDGE MANAGEMENT ?

Jan2002

Creating and populating a repository

of
in-house knowledge
Valuation of Knowledge
Facilitating the transfer of knowledge
Creating a knowledge sharing
environment
Building an organizational culture
focused on innovation and
knowledge
creation

RPS

Processes Involved in
Knowledge Management
Identification

Mapping
Acquiring

Capturing
Storing
Applying

Nov.2012

Sharing
Creating

RPS

Nov.2012

MISSING LINKS
(KAMZOR KADI)
RPS

Nov.2012

Ways to capture and disseminate

valuable
information on best
practices hardly exist.
Unrecorded history/ useful experiences
of specialists.
Success Stories are neither shared
nor related.
Lessons are learnt but not shared.
Ignorance in the company about
what they already know.

RPS

Jan200
2

HE WHO KNOWS NOT ,

AND KNOWS NOT THAT HE KNOWS
NOT .
He is a Fool. SHUN him.

HE WHO KNOWS NOT,

AND KNOWS THAT HE KNOWS NOT
He is Ignorant. TEACH him.

HE WHO KNOWS ,
AND KNOWS NOT THAT HE KNOWS
He is Asleep, AWAKE him.

HE WHO KNOWS,
AND KNOWS THAT HE KNOWS
He is Wise, FOLLOW him.
RPS

Thanks