OPERATIONS MANAGEMENT

What is Quality?

The definition of quality depends on the role of the people defining it.

Performance to standards

Meeting the customer needs or satisfying the customer

Some more common definations:

Conformance to specificationo How well a product or service meets the targets and tolerances determined by its designers.

Fitness for useo Focuses on how well the product performs for its intended use.

Value for price paido Is a definition of quality that consumers often use for prod- uct or service usefulness

Support serviceso Quality defined in terms of the support provided after the product or service is purchased.

Psychological criteriao A way of defining quality that focuses on judgmental evaluations of what constitutes product or service excellence.

Evolution of Quality Management

o o o o Inspection Quality Control Quality assurance Total quality Management

Tradional v/s modern quality management

http://www.academy-forleaders.com/blog/post/61

Aspects Overall mission Objectives Management

Tradional Maximize return on investments. Emphasis on short term. Not always open; sometimes inconsistent objectives.

Modern Meet or exceed customer satisfaction. Balance of long term and short term. Open; encourages employee input; consistent objectives.

Role of manager
Customer requirements Problems Problem solving Improvement Jobs Quality Focus

Issue orders; enforce.

Not highest priority; may be unclear. Assign blame; punish. Not systematic; individuals. Erratic. Narrow; specialized; much individual efforts.

Couch; remove barriers; build trust.

Highest priority; important to identify and understand. Identify and resolve. Systematic; teams. Continual. Broad; more general; much team efforts.

Depends only on production. Depends on all the phases of the production process. Product oriented. Process oriented.

What is total quality management

 Total Quality Management is formally defined as management philosophy and company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization.

 The core of TQM is the customer-supplier interfaces, both externally and internally, and at each interface lie a number of processes. This core must be surrounded by commitment to quality, communication of the quality message, and recognition of the need to change the culture of the organisation to create total quality. These are the foundations of TQM, and they are supported by the key management functions of people, processes and systems in the organisation.

Need for TQM

Enables companies to combine all their quality systems directly into a single, unified system

 A total quality management system will ideally incorporate a range of tools that will help businesses preserve their standards of quality in addition to compliance with any kind of industry regulations.

 A TQM system boosts the level of quality.

Resolve problem

Consumer complain

 A total quality management system may help companies set measurable goals which are based on customer wishes.

 TQM is economic in the long run to both company and its customers.(from bk pg 71)

Benefits tqm
Cost Cutting :

 Happier employees

 Better organization .

 Increased customer satisfaction

 Other benefits of TQM

The Eight Elements of TQM

1. 2. 3. 4. 5. 6. 7. 8. Ethics Integrity Trust Training Teamwork Leadership Recognition Communication

 I. Foundation It includes: Ethics, Integrity and Trust. II. Building Bricks It includes: Training, Teamwork and Leadership. III. Binding Mortar It includes: Communication. IV. Roof It includes: Recognition

 I. Foundation.

II. Bricks

 III. Binding Mortar

 IV. Roof

 What next to include????

Quality management principles Images\qmp_2012.pdf Core elements of TQM(pdf file) Images\discuss-the-key-elements-of-total-quality-management.pdf
Elements of total quality management concept(from book) (pilosophies) Page NO 80

Kaizan new\Kaizen.docx