Key approaches and Theories
Six Sigma
Organisations like Huawei improve capability of their business processes through method called six-
sigma. The reduction in defects and improvement in profits, staff morale and products quality are
resultant of performance increase and decrease in process variation using six-sigma. The underlying
and rigorous DMAIC approach is recognised by the view of Six sigma. It starts with problem
identification and ends with implementation of long-lasting solutions. Huawei and competitor
Samsung use six sigma to focus on process variation reduction and enhanced process control
whereas usage of lean drives out waste. [ CITATION Ame201 \l 1033 ]
Lean manufacturing:
The methodology for focusing to minimise waste whilst at the same time enhancing productivity is
known as lean manufacturing. Huawei is using lean manufacturing in order to reduce lead times,
reduce operational costs and improve product quality. [ CITATION mar20 \l 1033 ] The waste
generated from uneven workloads is taken into account and reduced in order to increase value and
lessen costs.
Queuing theory
In queuing theory, mathematical sense of real-life scenarios is made; it is study of queues and
random processes characterising them. Huawei uses queuing theory to figure out wait times or
queue lines. [ CITATION Ste171 \l 1033 ] Using queuing theory, it can be determined, how many
resources are needed to meet demand increase.
Total Quality Management
A customer-oriented process that aims for continuous improvement of business operations is known
as total quality management. According to TQM, every employee in Huawei works for the
improvement of work-culture, services, processes and more for ensuring organisation’s continuing
success. Through TQM, higher customer satisfaction is achieved using this management approach
depending upon participation of all organisational members. Using TQM, it can be ensured that
works of all employees are directed towards improvement of product or service quality as well as
enhancement of production process.[ CITATION Cle20 \l 1033 ]
Just-in-Time inventory
The management strategy for alignment of raw material orders from suppliers with production
schedules is known as just-in-time inventory. Using this strategy, Huawei reduces inventory costs by
receiving goods only as they need them for production process. However, Huawei has to forecast
demand correctly. [ CITATION car20 \l 1033 ] After instalment of Just-in-time manufacturing system,
the amount of inventory owned by business is reduced. The intention is to deliver components and
sub-assemblies for creating finished goods to production area only on time. [ CITATION Ste20 \l 1033
]
Continuous Improvement (KAIZEN)
A lean manufacturing tool for improving quality, productivity, safety and workplace culture is known
as KAIZEN. Small daily changes are applied in KAIZEN that result in major improvements over time. In
Huawei, using KAIZEN approach makes improvements to enhance working experience. Huawei using
KAIZEN approach gets employees actively involved and engaged with the company. This results in
efficient processes, low turnover, and higher innovation rates in Huawei and competitor Samsung.
[ CITATION Doa17 \l 1033 ]
Operational functions
The following methods can be used for achieving efficient management of company’s operations.
This would lead to accomplishment of organisational goals and objectives:
Control and distribution systems- The function using distributed geographical control loops is
referred to the Control and Distribution system. The regional control loops are used in an
organization's system, factory and control areas to allow organizations to set dedicated controllers
for each system segment. Huawei performs this role in operations to monitor system and
distribution functions by the use of electrical power streams and high-speed communications
networks. [ CITATION Wan17 \l 1033 ]
Transformation of raw materials into finished goods and services- This is the essential feature of
any manufacturing and production enterprise. It includes the process of acquiring the necessary raw
material and turning it into finished products by putting the best possible effort into it. Huawei
acquires raw materials through the implementation of a Just-in-time procurement policy and
converts them into finished products through strategic measures and the application of Total Quality
management principles during the manufacturing process. [ CITATION Sin18 \l 1033 ]
Process design- The idea of considering the impact that the positioning of activities can have on the
manufacture of goods is called process design. There are two types of process design which include
serial process design and parallel process design. The activities occur one by one in serial process
design, and there is no room for simultaneous activity occurrence. On the other hand, parallel
process architecture involves the simultaneous occurrence of the activities. Huawei makes use of
serial process design for product manufacture. Huawei Company's rationale for using serial process
design is to ensure that the products manufactured meet the actual requirements of the consumers.
[ CITATION Ham15 \l 1033 ]
Capacity Management- Capacity management is referred to as the method of determining the
amount of resources acquired and input in the manufacturing process in order to achieve relative
output within the given time frame. In other words, capacity management is the output power in the
usual effort plan. Huawei uses capacity management to schedule and track production capacity.
[ CITATION Jac11 \l 1033 ]
Logistics and inventory management- The function of logistics and inventory management includes
international and organized measures to manage the effect of product supply within the
manufacturing process. It includes controlling the time and costs involved in the sourcing of the raw
materials required for the production process. It also means that the goods purchased are of good
quality and are delivered in the best condition to the customers. Huawei performs this role in its
operations management to ensure that the needs of the customers are met adequately and that the
supply chain logistics process is cost-effective for them. [ CITATION Dek13 \l 1033 ]
Scheduling- Scheduling is the function that appears to be less relevant but has a huge effect on
management operations. It significantly affects an organisation's profitability. This includes
determining and scheduling the timing of each task involved in the production cycle. In the
management's scheduling role, all activities from purchasing raw material to supplying goods to the
customers are taken into account. Huawei is introducing this approach in its operations
management to reduce the expense and time of production processes and to improve production
process quality and productivity. [ CITATION Ker17 \l 1033 ]
