University of Bielsko-Biala Marcin Jakubiec, Ph.D. Faculty of Management and Transport Management...

University of Bielsko-Biala

Marcin Jakubiec, Ph.D.

Faculty of Management and TransportManagement DepartmentUnit of Logistics and [email protected]

Innovation management

(Introduction)

Modern concepts in management

Man

ag

em

en

t con

cep

ts

From eighties to present

TQM (management systems)

Benchmarking

Reengineering (process approach; lean management)

Intellectual capital

Knowledge management

Nets


Innovation and entrepreneurshi

p

Description of innovation category

Fulfillment of customers’ needs by creating new solutions which

result in definite profits.

pillars

Tech

nolo

gic

al

Mark

eti

ng

Org

an

izati

on

al

Innovation


Innovation creates competitive edge of company

Sources of competitive edge

Ways to achieve competitive edge

Offering new products Implementing new products which do not exist in competitors’ offer.

Implementing new processes Offering existing products in different way than competitors, e.g. lower price or better adjustment to customers’ requirements.

Technological advance Offering products whose production requires special competences.

Intellectual property protection

Offering products not available for competitors, because they are protected by law.

Changing/extending source of competitive edge

Adding next functions or changing a fundament of competition, e.g. price-quality.

Position of a leader or an imitator

Leadership in implementing innovative solutions, resulting in bigger market participation of a new product. Being imitator lets the company avoid mistakes and costs paid by leaders.

Standardization Designing universal solution which becomes a standard, used by other producers.

New ways of meeting existing needs

Offering products which meet needs of customers in a completely new way, making present ones become unwanted.

Re-designing existing organizational solutions

Re-designing management rules and processes in order to achieve new value, e.g. shortening processes’ cycles.

Alternative use of similar solutions

Using the same or modified solutions for different customers on different markets.


Knowledge

Organized set of information with rules of its interpretation.

Types of knowledge:


Tacit knowledge, tacit knowledge is not so easy to pass on. The user of this knowledge is conscious that he has it, uses it in daily activity, but its formalization is difficult

Explicit knowledge, it has externalized character and it is formalized; the user of such knowledge can pass it on further

Knowledge management

A system helping a company in gathering, processing and using of

knowledge in order to make a better decision leading to

competitive edge.

Three main approaches, so called models of knowledge

management development could be identified:


Japanese approach („spiral of knowledge”)

Resources approach

Process approach


Equals human capital and structural capital.



human capital structural capital

•not organization property,•created by: knowledge, skills and intellectual property,•taken away by employee.

•could be sold,•created by: organization’s knowledge, corporate culture and protected knowledge,•not taken away by employee.


Four stages of development of intellectual capital could be

showed:


• Visualization, a model showing areas in which company’s value is created

• Knowledge management by strengthening intellectual capital, this process concerns searching talented employees, motivation to constructive acting

• Transformation of knowledge into information concerning codified record

• Investments in structural capital, strengthening it

Nets

Language of net constitutes conceptually integral answer for the

tendency to cooperate between organizations, which is growing

in present economy.

Effects of functioning nets are as follows:

1. Economic benefits.

2. Distribution of resources.

3. Spreading new ideas and solutions.


Nets

Forms of coordination of business activity:


Characteristics Market Hierarchy Net

Normative fundamentContract, right of property

Relations based on employment contract

Completing potentials, strengthens

Ways of communication Price Procedures Relations

Methods of solving conflicts

Argument about price; court executing signs of contract

Administrative decisions, governance

Mutual norms, caring about reputation

Degree of flexibility High Low Average

Degree of sides’ engagement

High From average to high From average to high

Atmosphere of relations

Precision and/or suspect

Formal, bureaucraticOpening, attitude on mutual benefits

Preferences of choice of relations combining sides

Independence Dependence Co-dependence

Presence of elements of other types of transactions

Repeating business transactions; contracts as hierarchic documents

Informal organization; characteristics similar to market: centers of profits and transfers

Presence of hierarchy; many partners; formal rules

Innovation in quality – combined disciplines

Quality

Innovation


Aspects of quality perceiving

Product form

Characteristics and features

Object perceiving quality

Product lifecycle

e.g. material product, service, intellectual product

e.g. functionality, economy, unreliability, esthetics, brand, prestige, availability

1 client2 producer/supplier

e.g. marketing research, product designing, production, supply, use, utilization


Quality definition

How can we call quality?

Fulfilling of present and future needs of clients


Development of quality management

Control malfunction removing

Steering

prevention

Management command over quality

· restrict control and tests of products

· quality achieving by extending of tolerance interval of parameters

· feedback· motivation· critical control points· quality engineers

· management responsibility

· client approach · marketing research· work group· quality economy


Quality management system - founders

• ISO — International Organization for Standardization

• CEN – European Standardization Committee

• PKN – Polish Standardization Committee


Quality management system – family of ISO norm 9000

Family of ISO norm 9000

ISO 9000:2006Terminology

ISO 9001:2009

Requirements

ISO 9004:2010Company

sustainable growth

ISO 19011:2012

Auditing requirements


Quality management system – rules of management

Rules (from ISO norm)

customer focus leadership involvement of people process approach system approach to management continual improvement factual approach to decision making mutually beneficial supplier relationship


Quality management system – requirements

documentary

management

resources management

product realization

measurement, analysis, improvement


Quality management system


Statistics of QMS according to The ISO Survey 2013

Amount of certificates given in 2013

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

457,833

510,349

561,766

497,919

660,132

773,843

896,905

951,486

980,322

1,063,751

1,118,510

1,079,228

1,096,987

1,129,446



Amount of countries certified by ISO 9001 in 2013

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0 20 40 60 80 100 120 140 160 180 200

153161

159149

154161

170174176178178179

184187



Top 10 countries for ISO 9001 certificates - 2013

1 China 337 0332 Italy 160 9663 Germany 56 3034 Japan 45 990

5United

Kingdom 44 5856 Spain 42 6327 India 40 8488 USA 34 8699 France 29 598

10 Brazil 22 128

Top 10 countries for ISO 9001 growth - 2013

1 Italy 23 9752 India 12 2483 USA 8 6924 Germany 4 6025 Australia 3 9386 Colombia 3 5107 China 3 1638 Taipei, Chinese 2 5789 Indonesia 2 498

10 Greece 2 497



Top five industrial sectors for ISO 9001 certificates 2013

1 Basic metal & fabricated metal products 116 602

2 Electrical and optical equipment 87 797

3 Construction 80 920

4Wholesale & retail trade; repairs of motor vehicles, motorcycles & personal & household goods 73 167

5 Machinery and equipment 63 497


Instruments of quality management improvement

Rules (from ISO norm)

customer focus leadership involvement of

people process

approach system

approach to management

continual improvement

factual approach to decision making

mutually beneficial supplier relationship

Concepts

TQM – Total

Quality

Management

Kaizen

Six Sigma

Methods

FMEA –

Failure Mode

and Effect

Analysis

QFD – Quality

Function

Deployment

SPC –

Statistical

Process

Control

Tools (7 old and 7 new)

Most popular e.g.

Process map

Pareto figure

Ishikawa

figure

Control chart

Correlation

figure

Brain storm

Histogram


Total Quality Management

Customer and process approach

Each employee is responsible for quality (consciousness)

Long-time perspective


Kaizen

Japanese concept of quality improvement

Method „step-by-step”

It uses 5 steps rule: separate, straighten, shine, standardize, sustain


Six Sigma

Founded by Motorola Company

Measure: DPMO – defects per million opportunities

Six levels of production process’ ability


FMEA – Failure Mode and Effect Analysis

1. analysis of causes and effects of malfunctions,

2. consequent elimination of malfunctions of

products/constructions or process by recognizing real causes of

them happening and using proper prevention actions,

3. two types of FMEA method exist: FMEA product/construction or

process.


QFD – Quality Function Deployment

1. let the company measure, manage and improve processes’ quality of

products’ designing by listening to the voice of customers,

2. a basic tool of QFD method is a sheet “house of quality”, used during

analysis of specific object,

3. QFD as a systematic method lets them orient on customer during

product’s designing, which defines and creates plans for new or

improved products, competitive on the market.


SPC – Statistical Process Control

1. in case of processes, technological ones, even in conditions of

their stability, quantitative changes of parameters of processes

and characteristics of products happen,

2. from this fact comes usefulness of statistic techniques in

assessment of these changes, in order to stop their

destabilization causes reaching inconsistent product with set

requirements,

3. use of SPC method lets employees avoid an increase in

manufacturing malfunctions on production stage, eliminate

their sources; the method also helps in optimization of

production process.


SPC – Statistical Process Control


A

B

C

Czas

low level of deviation= high quality

University of Bielsko-Biala

Marcin Jakubiec, Ph.D.

Faculty of Management and TransportManagement DepartmentUnit of Logistics and [email protected]


(Introduction)

University of Bielsko-Biala Marcin Jakubiec, Ph.D. Faculty of Management and Transport Management...

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