OM & TQM
What Is Operations Management?
Involves system design and operating
decisions related to product and service
design, capacity planning, process
selection, location selection, work
management, inventory and supply
management, production planning, quality
assurance, scheduling and project
management.
Three Basic Functions of Business
SCOPE OF OPERATIONS MANAGEMENT
FORECASTING
CAPACITY PLANNING
LOCATING FACILITIE
FACILITIES AND LAYOUT
SCHEDULING
MANAGING INVENTORIES
ASSURING QUALITY
Organizations MOTIVATING AND TRAINING EMPLOYEES
CUSTOM
SIMPLE PRODUCT SUPPLY CHAIN
OPERATIONS TODAY
Technology The application of scientific
knowledge to the development and
improvement of products and services and
operations processes.
E-business The use of electronic
technology to facilitate business
transactions.
E-commerce Consumer-to-business
transactions
Operations Management is primarily
concerned with three kinds of technology:
PRODUCT & SERVICE TECHNOLOGY
Refers to the discovery and development
of new products and services.
PROCESS TECHNOLOGY
Refers to methods, procedures, and
equipment used to produce goods and
services.
INFORMATION TECHNOLOGY (IT)
Refers to the science and use of
computers and other electronic equipment
to store, process, and send information.
GOODS AND SERVICES
Goods
THE NEED FOR ETHICAL CONDUCT IN
Physical items produced by business BUSINESS
organizations.
ETHICS
Şervices
A standard of behavior that guides how
Activities that provide some combination one should act in various situations.
of time, location, form, and psychological
The UTILITARIAN PRINCIPLE
value.
The good done by an action or inaction
should outweigh any harm it causes or
Operations interfaces with a number might cause.
supporting functions
EMPLOYEE INVOLVEMENT
The RIGHTS PRINCIPLE The employees are the strength of an
organization. They are the prime
Actions should respect and protect the
contributors to its success. When an
moral rights of others.
organization wants to expand its business
The FAIRNESS PRINCIPLE or increase profits, only employees can
make it happen.
Equals should be held to, or evaluated by,
the same standards. TQM PRINCIPLES AND STRATEGIES -
EMPLOYEE INVOLVEMENT
The COMMON GOOD PRINCIPLE
MOTIVATION
Actions should contribute to the common TEAMWORK
good of the community. TRAINING AND MENTORING
RECOGNITION AND REWARDS
The VIRTUE PRINCIPLE
FEEDBACK & PERFORMANCE
Actions should be consistent with certain APPRAISAL
ideal virtues. EMPOWERMENT
MOTIVATION THEORY
SUMMARY THEORY X - SIGMUND FREUD
The operations function in business Characterizes employees as given below:
organizations is responsible for producing
Avoid work
goods and providing services. It is a core
No ambition
function of every business. Supply chains
No initiative
are the sequential system of suppliers and
Do not take
customers that begins with basic sources
Responsibility
of inputs and ends with final customers of
Needs security
the system.
Operations and supply chains are To make them work, the management has to do
interdependent-one could not exist the following:
without the other, and no business
organization could exist without both. Reward
Coerce
Intimidate
Punish
Total Quality Management (TQM)
THEORY Y - DOUGLAS MCGREGOR
is a management approach that focuses
on achieving long-term success through THEORY Y SIGMUND FREUD THEORY X
customer satisfaction. It originated in the characterizes employees as given below:
manufacturing sector but has since been
Avoid work
adopted in various Industries, including
No ambition
services, healthcare, education, and
No initiative
government.
Do not take responsibility
Is customer-oriented management
Needs security
philosophy and strategy. It is centered on
quality. To make them work, the management has to do
the following:
Reward
Coerce
Intimidate
Punish
THEORY Z - ABRAHAM MASLOW
Continuous improvement
Advocates a culture of continuous
CUSTOMER SATISFACTION improvement in all aspects of the
Is the most fundamental requirement for organization. This includes processes,
being in business. products, services, and employee skills.
The goal is to strive for perfection and
Involvement eliminate defects and errors.
An approach taken to improve quality and
productivity.
Leadership and Commitment
Effective leadership is essential in driving
a TQM initiative. Leaders set the vision,
establish a culture of quality, and provide
resources and support for TQM efforts.
Process-Oriented:
the importance of efficient and effective
processes. This involves analyzing and
redesigning processes to reduce waste,
increase productivity, and improve quality.
Supplier Relationships
TQM extends beyond the organization to
Include suppliers. Building strong,
collaborative relationships with suppliers
ensures the quality of materials and
components.
Data-Driven Decision Making
Decisions are based on the analysis of
data and facts, rather than Intuition or
guesswork. Data collection and analysis
are integral to TQM practices.
HERE ARE SOME KEY TOM TOOLS AND
METHODOLOGIES FOR PROCESS
IMPROVEMENT:
Voice of the Customer (VOC)
VOC tools capture and analyze customer
feedback and requirements, ensuring that
the organization aligns its processes with
customer expectations.
Kaizen
Is a Japanese term for "continuous
improvement." It encourages small,
incremental changes made by employees
at all levels. Kaizen events or workshops
gather teams to identify and address
problems and inefficiencies in specific
processes.
Benchmarking
Benchmarking involves. comparing an
organization's processes, performance,
and practices with those of industry
leaders or best-in-class companies. It
helps identify areas for improvement and
set performance goals.
Root Cause Analysis
Root cause analysis techniques like the 5
Whys and Fishbone (Ishikawa) diagrams
are used to identify the underlying causes
of problems or defects. By addressing root
causes, organizations can prevent issues
from recurring.
Six Sigma
is a data-driven methodology aimed at
reducing defects and process variations. It
defines specific roles (Champions, Black
Belts, Green Belts, etc.) and employs the
DMAIC (Define, Measure, Analyze,
Improve, Control) framework for problem-
solving and process improvement.
