Introduction to Operations Management/Defining TQM
Defining TQM (Total Quality Management)
It is an all- inclusive and well thought-out means to organizational
management that searches to advance the quality of processes,
products, services and culture through continuing minor changes
in reply to constant feedback.
It is a management philosophy and approach that aims to
enhance the quality of products and services by involving all
levels and functions of an organization. It emphasizes continuous
improvement, customer satisfaction, and the involvement of
employees in the decision-making process.
Operations Management is:
is the field of management focused on designing, overseeing, and
controlling the production and delivery of goods and services. It
involves the coordination of resources, processes, and people to
ensure efficient and effective production and delivery of products
and services.
Operations Management/TQM
Operations Management is a critical aspect of organizational
success, evolving over time to meet the changing demands of
industries and markets. It involves strategic decision-making to
ensure efficiency, quality, and competitiveness in the production
and delivery of goods and services.
Typical Organization Chart
PRESIDENT OR CEO
Operations:
Finance:
Marketing: V.O Of Operations
V.P Of Finance
V.P Of Marketing
Manages:
Manages:
Manages: People
Cash flow
Customer Equipment
Current Assets &
Demands Technology and
Capital Invesments
Information
Generates: Sales
for Goods and To Produce:
Services Goods /
Services
Key aspects of operations management
• Inputs and Outputs: Understanding the transformation process
from inputs (raw materials, labor, technology) to outputs (goods
and services).
• Processes: Identifying and managing the processes that convert
inputs into outputs. This includes process optimization and
efficiency improvement.
• Supply Chain Management: Coordinating the flow of materials,
information, and finances as they move from suppliers to
manufacturers to wholesalers to retailers to consumers.
• Quality Management: Ensuring that products or services meet
or exceed customer expectations, involving quality control and
quality improvement initiatives.
Role and Importance in Organizations:
• Operations Management plays a crucial role in organizational
success for several reasons:
• Cost Efficiency: Effective operations management can lead to
cost reductions through process optimization and resource
utilization.
• Customer Satisfaction: Quality products delivered on time
contribute to customer satisfaction and loyalty.
• Competitive Advantage: Well-managed operations can be a
source of competitive advantage, enabling companies to respond
quickly to market changes.
• Innovation: Operations managers often drive innovation in
processes and products, contributing to the organization's overall
growth.
The Historical Evolution of Operations Management:
Operations Strategy and Competitive Advantage/ Key
elements
• Operations strategy involves aligning the operations function
with the overall business strategy to achieve a competitive
advantage. Key elements include:
• Cost Leadership: Emphasizing efficiency and cost reduction to
provide products or services at lower prices than competitors.
• Differentiation: Focusing on unique products or services, often
with higher quality or innovation.
• Flexibility: Being able to adapt quickly to changes in the market
or customer demands.
• Speed: The ability to deliver products or services faster than
competitors.
• Quality: Emphasizing quality as a strategic priority to meet or
exceed customer expectations.
Concepts and Trends in OM
Mass Customization
Supply Chain Management
Outsourcing
Lean manufacturing
Agility
Electronic Commerce
Concepts and Trends(1of 6):
• Mass Customization
The rapid, low cost production of goods and services that fulfill
constantly changing and increasingly unique customer desires.
• New Supply Chain Management
The management of the sequence of organizations- their
facilities, functions and activities- that are involved in producing
and delivering a product or service
SCM requires the application of a systems approach to managing
the flow of information, materials and services from raw material
suppliers through factories and warehouses to the end user
(customer)
Simple Product Supply Chain
•Outsourcing
Buying goods or services rather than producing goods or
performing services within the organization
• Lean Manufacturing Project Management (PERT, Program
Evaluation Review Technique,CPM critical path method)
Management of Technology and Information Systems (GPS,
ERPenterprise resource planning)
Quality and Process Improvements (Six Sigma)
Agility
The ability of an organization to respond quickly to demands or
opportunities.
Involves maintaining a flexible system that can quickly respond to
changes in either the volume of demand or changes in
product/service offerings
•Electronic Commerce
The use of computer networks, primarily the internet, to buy and
sell products, services, and information
