Operations Management Cheat Sheet

1. Total Quality Management (TQM)

- Definition: A company-wide approach to continuous improvement, focusing on quality at every

stage to meet or exceed customer expectations.

- Core Principles:

- Customer Focus: Everything revolves around customer satisfaction.

- Continuous Improvement: Always seeking ways to improve processes and products.

- Employee Involvement: Encourages all employees to participate in quality initiatives.

- Process Approach: Quality control at every step of production.

- Data-Driven Decision Making: Using metrics to guide improvements.

- Example: Toyota’s focus on quality at every level to reduce defects and maintain reliability.

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2. Jidoka

- Definition: A principle in Lean manufacturing where machines or employees stop work

immediately when a defect is detected.

- Purpose: Ensures that errors are caught and corrected quickly, preventing defective products from
progressing further in the production line.

- Core Elements:

- Autonomous Automation: Machines detect issues automatically.

- Stop and Fix: Production halts to fix problems before moving on.

- Employee Empowerment: Workers are encouraged to stop the line if issues arise.

- Example: In Toyota’s assembly line, if an error is detected, the line stops, and the issue is resolved
before production continues.

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3. Agile Methodology

- Definition: A flexible project management approach that focuses on delivering small, workable
parts of a product incrementally.
 - Core Values:

- Individuals and Interactions: Emphasizes collaboration.

- Working Software/Product: Prioritizes functional deliverables over documentation.

- Customer Collaboration: Continuous feedback from clients.

- Responding to Change: Adaptable to changing requirements.

- Phases: Iterative cycles known as sprints, typically lasting 1-4 weeks, where progress is reviewed
and adjusted.

- Example: In software development, Agile allows teams to release updates and improvements
regularly based on user feedback.

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4. Waterfall Methodology

- Definition: A sequential project management approach where each phase must be completed
before moving to the next.

- Phases:

- Requirements: Detailed understanding of project needs.

- Design: Blueprint of how the project will be built.

- Implementation: Actual development or production phase.

- Verification: Testing for quality and performance.

- Maintenance: Ongoing support and updates.

- Strengths: Works well for projects with well-defined, unchanging requirements.

- Example: Construction projects often use Waterfall since stages like design and structural
foundations must be completed before moving forward.

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5. Theory of Constraints (TOC)

- Definition: A management approach that focuses on identifying and managing the most
significant limitation (constraint) that restricts output.

- Core Process:

- Identify the Constraint: Determine what limits production.

- Exploit the Constraint: Optimize the performance of the constraint.

 - Subordinate: Align other processes to support the constraint.

- Elevate the Constraint: Increase the capacity or efficiency of the constraint.

- Repeat: Continuously improve as new constraints arise.

- Example: A factory with limited machinery would focus on maximizing that machine’s output until
it’s no longer the bottleneck.

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6. Little’s Law

- Purpose: Used to determine throughput, wait time, and inventory levels in a process.

- Example: If a factory receives 10 orders per hour and each order takes 2 hours to complete, there
would be 20 orders on average in the system.

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7. Muda

- Definition: Japanese term for “waste” in the Lean methodology; activities that add no value to the
product or service.

- Types of Muda (7 Wastes):

- Transportation: Unnecessary movement of materials.

- Inventory: Excess stock that isn’t needed immediately.

- Motion: Unnecessary movement by workers.

- Waiting: Idle time due to delays.

- Overproduction: Making more than is needed.

- Over-Processing: Doing more than necessary for quality.

- Defects: Faulty products requiring rework or disposal.

 - Example: Reducing Muda can involve rearranging workspaces to minimize unnecessary motion or
inventory holding.

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8. 5S Methodology

- Purpose: Workplace organization technique to improve efficiency, cleanliness, and

standardization.

- Steps:

- Sort (Seiri): Remove unnecessary items.

- Set in Order (Seiton): Arrange tools and materials for easy access.

- Shine (Seiso): Clean the workspace and equipment.

- Standardize (Seiketsu): Establish consistent practices.

- Sustain (Shitsuke): Maintain the new standards long-term.

- Example: A manufacturing plant implementing 5S would organize tools in specific locations to

reduce search time.

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9. Bottleneck

- Definition: A point in the production process that has the lowest capacity, causing delays and
limiting the system’s overall throughput.

- Impact: Leads to increased lead times, idle time in downstream activities, and limits on
production output.

- Solution:

- Increase Capacity: Add resources or improve efficiency at the bottleneck.

- Optimize Workflow: Redistribute tasks or materials to balance production.

- Reduce Load: Reduce demand at the bottleneck by prioritizing tasks.

- Example: In a bakery, if only one oven is used, it becomes a bottleneck for baking orders.

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10. Just-In-Time (JIT)

 - Definition: Inventory management strategy where materials are produced or acquired only as
needed for production.

- Key Principles:

- Reduce Inventory: Lowers costs by minimizing stock on hand.

- Demand-Based Production: Items are made in response to actual demand, not forecasted
needs.

- Quality Focus: Since errors directly affect output, JIT promotes quality control.

- Benefits: Decreases waste, reduces holding costs, and aligns closely with Lean principles.

- Example: Toyota uses JIT to deliver parts to the assembly line only as they are needed, reducing
storage and handling costs.

11. Mizusumashi

- Definition: A "water spider" role in Lean manufacturing, responsible for keeping workstations
stocked with materials and tools.

- Purpose: Ensures production workers stay focused on their tasks by managing supplies, reducing
unnecessary movement (Muda).

- Example: In a factory, the Mizusumashi delivers needed parts to each station, preventing delays
and keeping the workflow smooth.