Improving Quality Management, Implementation Of Lean Technique, And Introducing Incentive Systems

Depuy Synthes and Dr. Deming’s 14 Points

Dr. Deming enlists 14 Points on Quality Management to help the organizations improve quality and productivity. First, Depuy Synthes can create constancy of purpose by continually improving its products and services. They run Depuy Synthes Advantage Program that offer customized solution, drives demand and creates capacity while improving efficiencies for the organization [2]. Second, Depuy Synthes can adopt the new philosophy as companies are progressing towards a new economic age. The leaders can announce an exclusive strategic alliance that would support physicians and hospitals to meet governmental needs rewarding quality care [1]. Third, Depuy Synthes needs to eliminate the need for inspection and quality must be ensured at the operational level.

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Fourth, Depuy Synthes needs to minimize its cost by working with small yet diverse suppliers. The solution or treatment for each category such as spine, trauma, neuro-products and others must be taken from a single supplier [3]. Fifth, the company needs to pursue continuous improvement and develop improved products like they did with ATTUNE Knee System [4]. Sixth, Depuy Synthes must employ training specialists who can provide on-the-job training to the workers. Better healthcare services can be provided with effective training and education. Seventh, Depuy Synthes must have a planning leader for different departments to ensure innovative and comprehensive solutions. Eight, innovation must be at the forefront so that they can offer best solutions by driving out fear that would help transform health care delivery [5].

Ninth, the different departments for marketing, operations and sales must foresee the problems in the healthcare organization together as one unit by breaking down the barriers. Tenth, any slogans and targets used at work needs to be eliminated. The quotas at the operational level need to be eliminated and substituted with clinical leadership. The management standards followed at Depuy Synthes with numerical goals also need to be eliminated and substituted with clinical leadership. Eleventh, rather than employing a huge number of supervisors, a few leaders with defined responsibilities must undertake the work. Twelfth, barriers must be removed that rob the employees at Depuy Synthes by objective and abolish merit rating. Thirteenth, training and education programs can be run at Depuy Synthes so that employees can self-improve. Lastly, each employee at Depuy Synthes must strive towards transforming the company. Therefore, the effectiveness of Depuy Synthes can be improved [6].

Implementation of lean technique in Depuy Synthes shall reduce errors, standardize the customer or patient flow and eliminate non-value added activities. Depuy Synthes sells several products related to spine, orthopaedics, neurological disorders and sports medicine for treating soft tissues. The product chosen for value stream mapping is offering devices in sports medicine for treating soft tissue injuries. Mitek Sports Medicine is sold by the company for treating joint injuries related to sports leading to soft tissues. The following figures represent mapping icons and mapping notations.

Implementation of Lean Technique in Depuy Synthes

 

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Figure 1: Value Stream Mapping Icons 

 

Figure 2: Value Stream Mapping Notations 

Figure 3 presents the value stream map of the current state for the whole process. The current state map shows cycle time for process, lead time, waiting time, value-added and non-value added time. The change over time is assumed as 60 seconds that depicts preparation time for individual patients. The total lead time for process flow of clients or patients is 5601 seconds. Waste is shown in the diagram as waiting time. The figure also shows 1999 seconds as value-added time and 3602 seconds as non-value added time. Therefore, there needs to be an attempt for reducing the non-value added time to improve the process of selling products to the patients injured and having soft tissue.

 

Figure 3: Current State Map 

The registration and evaluation time to provide patients with the appropriate medicine or treatment needs to be reduced. The registration and evaluation process can be conducted by one staff to reduce idle time. The idle time can be reduced to 1072 after increasing the utilization time to 38528 seconds. According to the future state map, the total lead time can be reduced to 5185 seconds from 5601 seconds .

 

Figure 4: Future State Map

With reduced waiting time, Depuy Synthes can sell medicines and treat the patients having soft tissue.

  1. Incentive Systems

Literature Review of Incentive Systems

Incentive plans are used to motivate employees for increasing production. Incentives make an employee perform better and expend more energy. There are two types of incentives- monetary and non-monetary. The monetary incentives are rewarded to the employees in the form of money such as bonuses or commission. The non-monetary incentives are non-financial transactions such as recognition and appreciation of good work, better working conditions [8].

Introducing Incentive Systems

To introduce the incentive systems, the organization must identify the need to reward and particular business performance that needs to be improved. The incentive schemes must be introduced based on the goals of the organization in a manner that adds value to the business .

Pros and Cons of an Incentive System

Every incentive system has certain pros and cons. An advantage of incentive program is that it helps in saving hiring and training cost. If an organization has a good recognition program, they shall not tend to leave the organization quickly. With higher salary and perks, the employees shall leave. Further, the employees tend to have greater loyalty. For example, if an employee feels appreciated for his contribution, he shall stay loyal to the company. A disadvantage of incentive program is that it can create conflicts. For example, if the employees think that they are provided incentives based on group performance and perceived unfair, they might stop working hard and get offended.

Introducing Incentive Systems

Relationship between Empowerment and Incentive

Empowerment is defined as the employees’ feeling of being influential and in control. It is a sense of freedom and confidence in an employee to perform the job satisfactorily. Incentives make an employee perform better and expend more energy. Greater the incentives, higher shall be the employee empowerment. If the employees are paid greater incentives, the motivation level shall rise. With greater motivation comes confidence among the employees. They shall strive to work in a better way with high confidence that shall help them give better results. With better results, the senior management may empower the employees so that they can be in control.

Incentive System in Higher Education

Significant literature has been gathered for introducing incentive system at workplace. In the given situation, an incentive system can be beneficial for both teachers and students at my undergraduate school- <ENTER NAME OF YOUR SCHOOL>

For reducing the absenteeism, the recognition awards must be presented to the regular teachers. A small compensation for unplanned leaves must be given. The Performance Evaluations Reports (PERs) can help the school in assigning negative weight and absence. Both monetary and non-monetary incentives may be given to secretaries, department heads and faculty. The teachers must be promoted and upgraded based on their performance. Monetary rewards for regular attendance can help in reducing absenteeism. Also, the student learning can be linked with the teacher pay where the teacher can be paid with financial reward with higher learning.

The students also need to be rewarded with incentives for their better learning and willingness to learn. The non-financial rewards such as trophies and certificates can help in boosting their morale. The students can also be recognized in front of others so that they feel valued while performance appreciation. They can also be provided with scholarships for boosting performance. 

References

[1]J. Gonzalez, “The Future for the DePuy Synthes Companies: How We Plan to Address Unmet Needs in Orthopaedics | Johnson & Johnson”, 2016. [Online]. Available: https://www.jnj.com/leadership/the-future-for-the-depuy-synthes-companies-how-we-plan-to-address-unmet-needs-in-orthopaedics. [Accessed: 01- Mar- 2017].

[2] Depuysynthes.com, “DePuy Synthes Advantage™ Program | DePuy Synthes Companies”, Depuysynthes.com, 2017. [Online]. Available: https://www.depuysynthes.com/providers. [Accessed: 01- Mar- 2017].

[3] Jnj.com, “Supplier Diversity | Johnson & Johnson”, 2017. [Online]. Available: https://www.jnj.com/partners/supplier-diversity. [Accessed: 01- Mar- 2017].

[4]J. Sandberg, “DEPUY SYNTHES MANUFACTURING FACILITY WINS INDUSTRYWEEK’S BEST PLANT AWARD”, Orthospinenews.com, 2016. [Online]. Available: https://www.orthospinenews.com/depuy-synthes-manufacturing-facility-wins-industryweeks-best-plant-award/. [Accessed: 01- Mar- 2017].

[5] Jnj.com, “Innovation | Johnson & Johnson”, 2017. [Online]. Available: https://www.jnj.com/caring/citizenship-sustainability/innovation. [Accessed: 01- Mar- 2017].

[6]D. Summers, Quality management, 1st ed. Upper Saddle River, N.J.: Pearson/Prentice Hall, 2013.

[7]S. Haron and R. Ramlan, “Patient Process Flow Improvement: Value Stream Mapping”, Journal of Management Research, vol. 7, no. 2, p. 495, 2015.

[8]J. de Vries, R. de Koster and D. Stam, “Making the Right Pick: Aligning Order Picking Methods, Incentive Systems and Regulatory Focus to Increase Picking Performance”, IFAC-PapersOnLine, vol. 48, no. 3, p. 585, 2015.

[9]N. Gupta and J. Shaw, “Employee compensation: The neglected area of HRM research”, Human Resource Management Review, vol. 24, no. 1, pp. 1-4, 2014.

[10]S. Fernandez and T. Moldogaziev, “Employee Empowerment, Employee Attitudes, and Performance: Testing a Causal Model”, Public Administration Review, vol. 73, no. 3, pp. 490-506, 2013.

[11]C. Graham, W. Woodfield and J. Harrison, “A framework for institutional adoption and implementation of blended learning in higher education”, The Internet and Higher Education, vol. 18, pp. 4-14, 2013.

[12]N. Hillman, D. Tandberg and J. Gross, “Performance Funding in Higher Education: Do Financial Incentives Impact College Completions?”, The Journal of Higher Education, vol. 85, no. 6, pp. 826-857, 2014.