Conceptual theory – System dynamics and quality improvement programmes

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Introduction

Organisations are challenged to provide the best return on investment for their shareholders. As Goldratt puts it “The goal of the company is to serve the clients only as a means to the real task, serving the company’s shareholders” (Goldratt 1990). This challenge has become increasingly more difficult today through globalisation of the market place. Globalisation introduced competitive forces into the market place, where manufacturing in the western world became under threat from manufacturing from the East. The emphasis being on profit and growth.

Background

Manufacturing operations may use quality improvement programmes such as six sigma to improve quality and reduce cost. The DMAIC (Define, Measure, Analyse, Improve and Control) methodology of six sigma is used to reduce variation in a process and shift the mean. When the process is broken or a new product, process or service is introduced, design for six sigma (DFSS) is typically used.

Problem statement

Successful implementation and sustainability of quality improvement programmes, such as six sigma, are very important for the financial gain of any company. It is therefore valid todefine the problem statement as follows; Why are gains from quality improvement programmes such as six sigma, after successful implementation, not always sustained over a long-term in a heavy engineering manufacturing environment?

Research objective

The first objective with this research is to study the applicability of system dynamics in the implementation of a quality improvement programme such as six sigma, in a heavy engineering manufacturing environment.

ABSTRACT
CHAPTER 1 Introduction, purpose and expected contribution of this study
1 Introduction
1.1 Background
1.2 Problem statement
1.3 Research objective
1.3.1 Research questions
1.4 Dynamic hypothesis
1.5 Expected contributions
1.6 Thesis research road map
1.7 Summary
CHAPTER 2 Literature overview of quality improvement programmes, sustainability and system dynamics
2 Introduction
2.1 Overview of quality improvement programmes
2.1.1 Lean manufacturing
2.1.2 Lean six sigma
2.1.3 Six sigma
2.1.4 Design for six sigma (DFSS)
2.1.5 Total quality management (TQM)
2.2 Overview of systems thinking and system dynamics
2.2.1 Systems thinking
2.2.2 System dynamics
2.2.3 System dynamics and soft factors
2.3 Sustainability and continuous improvement
2.4 Summary
CHAPTER 3 Conceptual theory – System dynamics and quality improvement programmes
3 Introduction
3.1 System dynamics model of a quality improvement programme
3.2 Modelling of the interaction between first- and second-order improvement loops
3.3 Discussion of the simulation results from the interaction of the first – and second order improvement loops
3.4 Summary
CHAPTER 4 Research design and methodology
4 Introduction
4.1 Research design
4.2 Methodology
4.3 Selecting the cases
4.4 Planning of the case study
4.4.1 Components of the research design
4.4.1.1 Case study questions
4.4.1.2 Case study propositions
4.4.1.3 Unit of analysis
4.4.1.4 Selecting the cases
4.4.1.5 Field procedures, data collection plan and instruments
4.5 Summary
CHAPTER 5 Theory testing through a qualitative research design
5 Introduction
5.1 Case study Background
5.2 Compiling case studies for theory testing
5.2.1 Case study 1 – machine shop
5.2.2 Case study 2 – manufacturing and assembly plant
5.3 Discussion of the results determined from the case studies
5.3.1 Case study 1 – machine shop
5.3.2 Case study 2 – manufacturing and assembly plant
5.3.3 Discussion of the results for the re-investment cycle
5.4 Summary
CHAPTER 6 Sustainability -Theory building through a qualitative research design
6 Introduction
6.1 Theory building for sustainability of quality improvement programmes
6.1.1 Conceptual theory for management feedback
6.1.2 Reference mode of the dynamics for the implementation of a quality improvement programme
6.1.3 Dynamic hypothesis
6.1.4 Introduction to operations management and organisational behaviour
6.1.5 Conceptual theory of a sustainability feedback loop
6.1.5.1 Introduction
6.1.5.2 Theory of sustainability with feedback
6.2 System dynamics simulation model of sustainability for a quality improvement programme in a heavy engineering manufacturing environment
6.2.1 Theory of sustainability and management support
6.2.2 Analogy between capacitated delay and management support
6.2.2.1 System dynamics structure for management support
6.2.3 Soft factors – managerial effectiveness and management pressure
6.2.3.1 System dynamics structure – defects and the management support loop
6.3 Simulation results for the system dynamics simulation model of the quality improvement programme
6.3.1 Results from the simulation of the dynamic behaviour of the management support model
6.3.2 System dynamics structure for the rework loop
6.3.2.1 Dynamic behaviour of the interaction of the first- and second-order improvement loops with the rework loop included
6.3.2.1.1 Description of the model with the different balancing and reinforcing loops
6.3.2.1.2 Results of the simulation for the dynamic behaviour of the
interaction of the first – and second-order improvement loops including the rework loop
6.3.2.1.3 Results of the simulation for the dynamic behaviour of the re-investment loop
6.3.3 Results from the simulation of the system dynamics model with a sustainability feedback loop
6.3.3.1 System dynamics model assumptions and feedback loops
6.3.3.2 Dynamic behaviour of the quality improvement programme system dynamics model with a sustainability feedback loop
6.3.3.2.1 Dynamic simulation of the information delay
6.3.3.3 Simulation results for the complete quality improvement system dynamics structure including an information delay
6.4 Summary
CHAPTER 7 Model testing and validation of management decision policies for quality improvement programmes in a heavy engineering manufacturing environment
7 Introduction
7.1 Validation and model tests to gain confidence in the model
7.1.1 Model tests and validation of the interaction of the first- and second-order improvement loops including the rework loop
7.1.1.1 Discussion of the model tests for the system dynamics model
of the a quality improvement programme including the rework loop
7.1.2 Model tests and validation of the complete quality improvement programme model including the sustainability feedback loop and management support loop
7.2 Modelling management decisions and decision rules – a sensitivity study
7.2.1 Decision rule for management support, information from model parameter – information delay and delay in management support
7.2.2 Decision rule for defect correction, information from model
parameter – maximum allowable time for concession and productivity of production time
7.2.3 Decision rule for adjusting allocation, information from model parameter – throughput gap and time to adjust allocation
7.2.4 Decision rule for problem correction, information from model parameter – time to correct problems
7.3 Possible management decision policies for quality improvement programmes in a heavy engineering manufacturing environment
7.3.1 Discussion of the results from the sensitivity analysis
7.3.2 Discussion of proposed decision policies for sustainable performance of quality improvement programmes
7.3.2.1 Discussion of the results for simulating the complete quality improvement model with the proposed decision rules
7.4 Summary
CHAPTER 8 Discussion of results and future research
8 Introduction
8.1 Purpose and objective of this research
8.2 Research questions
8.3 Future research
9 References

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SUSTAINABILITY OF QUALITY IMPROVEMENT PROGRAMMES IN A HEAVY ENGINEERING MANUFACTURING ENVIRONMENT: A SYSTEM DYNAMICS APPROACH