Module 04_Operations Management FOR PRINTING
Module 04_Operations Management FOR PRINTING
This lesson explores the comprehensive concept of quality management within the framework of
operations management, starting with the Evolution of Quality Management, which highlights how quality
practices have progressed over time. It examines the influence of The Gurus of Modern Quality Management,
focusing on pioneers like Deming, Juran, and Crosby, who laid the foundations of quality principles widely used
today. The lesson delves into the Insights of Quality Management, emphasizing key concepts that continue
to shape best practices.
We will discuss various Quality Awards, such as the Malcolm Baldrige National Quality Award, which
recognizes excellence in quality management, and Quality Certifications, including ISO standards that certify
adherence to quality management systems.
The lesson then explores the use of Quality Tools like Pareto charts and cause-and-effect diagrams
to aid in decision-making. Quality Control mechanisms are discussed, highlighting methods to maintain desired
quality levels. The importance of Inspection in ensuring product standards is analyzed, alongside techniques
in Statistical Process Control (SPC), which uses statistical methods to monitor and control processes.
By the end of this lesson, students will have a thorough understanding of the strategies, tools, and
systems integral to maintaining and improving quality in operational processes.
a. Describe the historical evolution of quality management and explain how past practices have influenced
modern approaches to quality in operations management.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
b. Identify and compare the key contributions of major quality management gurus (e.g., Deming, Juran,
Crosby) and discuss their impact on current quality practices.
c. Analyze the core principles of modern quality management and apply these insights to real-world
scenarios in operations management.
d. Differentiate between quality awards and quality certifications and evaluate their significance in ensuring
and recognizing organizational quality standards.
e. Explain the concept of Total Quality Management (TQM) and describe how it fosters continuous
improvement across all levels of an organization.
f. Apply problem-solving techniques and process improvement strategies to enhance quality and efficiency
in operational processes.
g. Utilize quality management tools effectively (e.g., Pareto charts, cause-and-effect diagrams) to identify
and resolve quality-related issues.
h. Examine the role of quality control and inspection in maintaining product and service standards, and
discuss the advantages and limitations of each.
i. Interpret statistical process control (SPC) data to monitor and control processes, ensuring they remain
within defined quality limits.
j. Assess process capability and determine whether a process can consistently produce outputs that meet
quality specifications.
V. LESSON CONTENT:
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
it meets the established quality standards. Tools such as control charts, statistical methods, and
inspections are used to detect deviations from standards.
3. Quality Assurance:
Quality assurance focuses on the process, ensuring that the systems and procedures are designed to
prevent defects in the first place. It aims to prevent errors by implementing standards and auditing
processes regularly.
4. Continuous Improvement:
The concept of continuous improvement (often embodied in methodologies like Kaizen) suggests that
processes should be consistently evaluated and improved upon. This can include refining processes,
reducing waste, or enhancing service delivery.
5. Total Quality Management (TQM):
TQM is a comprehensive approach that seeks to improve quality at all levels of an organization. It
emphasizes customer satisfaction, employee involvement, and integrated systems to create a culture
of continuous improvement.
6. Six Sigma:
Six Sigma is a data-driven methodology that focuses on eliminating defects in processes. It uses
statistical tools to measure and improve operational performance, aiming for near perfection (3.4
defects per million opportunities).
7. Lean Management:
Lean focuses on minimizing waste within manufacturing systems while simultaneously maximizing
productivity. The goal is to create value for the customer with the least amount of resources.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
D. QUALITY AWARDS
Quality awards are recognition systems that are established to acknowledge the achievements of organizations
in implementing and maintaining high standards of quality in their operations. In the Philippine context, quality
awards are significant in driving continuous improvement, fostering competitive advantage, and promoting
excellence across various sectors of the economy. Quality awards not only celebrate organizational success but
also serve as a benchmark for others to strive toward.
Categories of PQA:
o Level 1: Recognition for the organization's commitment to quality.
o Level 2: Performance excellence achieved through established and sustainable quality systems.
o Level 3: Full integration of quality into every aspect of the organization, including governance,
leadership, and corporate culture.
2. National Quality Awards for Government Service (NQAG): This award recognizes government
organizations that excel in delivering quality public service. It aims to encourage government agencies
to improve their operational processes, efficiency, and service delivery, ensuring that citizens receive the
best possible service.
3. ISO Certifications (International Organization for Standardization): While not a specific Philippine
award, many organizations in the Philippines pursue ISO certifications such as ISO 9001 for Quality
Management Systems, ISO 14001 for Environmental Management, and ISO 45001 for Occupational
Health and Safety Management. These certifications are recognized globally and serve as a mark of
excellence in operational processes.
4. Outstanding Filipino Quality Achievement Awards (OFQAA): This is a prestigious award given to
individuals and organizations in the Philippines that have made significant contributions to the promotion
of quality in business practices and public service. The award aims to encourage continuous quality
improvement at all levels of society.
5. CSC-DOLE Employer Award for Excellence in Employment Practices: This award is given by the
Civil Service Commission (CSC) and the Department of Labor and Employment (DOLE) to private and
government employers who adopt best practices in human resources, workplace quality, and worker
satisfaction.
4. Employee Engagement:
Winning quality awards often boosts employee morale as they feel their efforts and contributions are
recognized. This fosters a positive work culture and motivates employees to maintain high standards.
5. Competitive Advantage:
Organizations with recognized quality standards are better positioned to compete in both local and
global markets, as they demonstrate a commitment to quality and operational excellence.
E. QUALITY CERTIFICATIONS
Quality certifications are recognized standards awarded to organizations that demonstrate a commitment to
maintaining high-quality processes, products, and services. These certifications serve as proof that an
organization adheres to internationally accepted practices, which can enhance its reputation, improve operational
efficiency, and increase competitiveness. In the Philippine setting, quality certifications play a crucial role in raising
business standards, promoting customer trust, and ensuring compliance with regulatory requirements.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
Description: ISO 22000 is an international standard that focuses on food safety management
o
systems. It helps organizations in the food industry ensure that their products are safe for
consumption, comply with food safety regulations, and meet consumer expectations. In the
Philippines, this certification is especially important for companies in food production,
processing, and distribution.
o Benefits: Enhanced food safety, compliance with regulations, and increased consumer trust.
5. Good Manufacturing Practices (GMP)
o Description: GMP is a certification for ensuring that products are consistently produced and
controlled according to quality standards. It is essential for businesses in the pharmaceutical,
food, and cosmetics industries. In the Philippines, GMP certification is required for manufacturers
to ensure their products are safe and of high quality.
o Benefits: Ensures product consistency and safety, minimizes the risk of contamination, and
increases customer confidence in the brand.
F. QUALITY TOOLS
Quality tools are essential instruments used in operations management to ensure that products and services
meet desired standards of quality. These tools help in problem identification, process improvement, and decision-
making to achieve optimal operational efficiency. In the Philippine setting, various quality tools are employed by
companies across different industries to improve product quality, reduce costs, and enhance customer
satisfaction.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
Quality tools are typically part of quality management systems (QMS) and are often used in combination with
other tools to create a comprehensive approach to quality improvement. Commonly used quality tools in the
Philippine setting include checklists, Pareto charts, fishbone diagrams, control charts, and histograms.
• Compliance with Standards: Quality tools help organizations meet national and international quality
standards, such as ISO certifications, ensuring they maintain high product and service standards.
• Customer Satisfaction: By using these tools to improve quality, businesses can meet or exceed
customer expectations, leading to higher customer satisfaction and loyalty.
G. QUALITY CONTROL
Quality Control (QC) is an essential component of operations management aimed at ensuring that products and
services meet consistent standards of quality. In the Philippine setting, where industries such as manufacturing,
agriculture, and services are prevalent, effective quality control systems are vital for maintaining product
standards, meeting customer expectations, and adhering to local and international regulations.
Quality control involves the use of various tools and techniques to monitor, measure, and improve the quality of
products at every stage of the production process. It is part of a broader quality management system (QMS) that
includes planning, assurance, and continuous improvement. The goal of QC is to detect defects or variations
before they reach the customer, ensuring that the final product or service meets the specified requirements.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
Example: A construction company in the Philippines might maintain inspection reports detailing
o
compliance with building codes and safety standards throughout the project.
5. Corrective and Preventive Actions (CAPA)
o The CAPA process involves identifying the root causes of defects and taking corrective actions
to eliminate them, along with preventive measures to avoid recurrence. Many industries in the
Philippines use CAPA systems to address quality issues and improve operational processes.
o Example: A manufacturing company might identify a defect in the assembly process and
implement a corrective action to fix the machine causing the problem and a preventive action to
avoid future occurrences.
H. INSPECTION
Inspection is a key component of quality management within operations management. It involves the process of
examining products, services, or processes to ensure that they meet predefined quality standards and
specifications. Inspection activities help detect defects, variations, or non-conformities at various stages of the
production or service delivery process. In the Philippine setting, where various industries such as manufacturing,
construction, and food production are prevalent, inspection is crucial in maintaining the quality and safety of
products, ensuring compliance with local and international standards, and enhancing customer satisfaction.
The primary goal of inspection is to identify and correct potential problems before the product or service reaches
the customer. Inspection can be performed at various stages of the production process, such as raw material
inspection, in-process inspection, and final product inspection.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
Example: A furniture manufacturing company inspects the quality of wood or fabric to ensure they meet
the required standards before beginning production.
2. In-Process Inspection
This type of inspection occurs during the production process. It helps identify defects early, preventing
defective products from progressing to the next stages of production. In industries like electronics
manufacturing in the Philippines, in-process inspections are crucial to ensure product consistency and
prevent errors before the final assembly.
Example: An electronics manufacturer might inspect a circuit board during assembly to check for
soldering issues or component alignment before it is installed into the final product.
Example: A food processing plant conducts inspections of packaged products to check for correct
labeling, expiration dates, and proper sealing before they are shipped to distributors.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
• Utilizing Inspection Tools: Using tools like checklists, measurement instruments, or even automated
inspection systems can increase the accuracy and speed of inspections, especially in large-scale
operations.
• Continuous Improvement: Regularly reviewing and updating inspection procedures ensures that they
remain effective and aligned with the latest industry practices and standards.
In the Philippine setting, where industries like manufacturing and food processing play a significant role in the
economy, SPC is crucial in maintaining competitiveness, ensuring product quality, and meeting customer
expectations. SPC helps identify areas for improvement, minimize waste, and reduce costs, making it a vital tool
for businesses that aim to meet both local and international standards.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
REFERENCES
1. American Society for Quality (ASQ). (2020). The Seven Basic Quality Tools. https://asq.org
2. Crosby, P. B. (1979). Quality Is Free. McGraw-Hill
3. Deming, W. E. (1986). Out of the Crisis. MIT Press.
4. Feigenbaum, A. V. (1991). Total Quality Control. McGraw-Hill.
5. George, M. L., Rowlands, D., & Price, M. (2005). The Lean Six Sigma Pocket Toolbook. McGraw-Hill.
6. Goetsch, D. L., & Davis, S. B. (2014). Quality Management for Organizational Excellence: Introduction to Total
Quality. Pearson.
7. Ishikawa, K. (1985). What Is Total Quality Control? The Japanese Way. Prentice Hall.
8. Juran, J.M., & Godfrey, A.B. (2010). Juran's Quality Handbook: The Complete Guide to Performance Excellence.
McGraw-Hill.
9. Oakland, J. S. (2014). Oakland on Quality Management. Routledge
10. Philippine Institute of Industrial Engineers (PIIE). (2021). Operations Management and Quality Tools in the Philippine
Context. https://www.piie.org.ph
11. Philippine National Standards (PNS) – Bureau of Philippine Standards. (2022). Quality Management Systems in the
Philippine Manufacturing Sector. https://www.bps.dti.gov.ph
12. Taguchi, G. (1986). Introduction to Quality Engineering. UNIPUB/Kraus International
13. Slack, N., Chambers, S., & Johnston, R. (2010). Operations Management. Pearson Education
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
LEARNING ACTIVITIES:
EVALUATION:
MULTIPLE CHOICE:
32. What is the primary goal of Corrective and Preventive Actions (CAPA) in quality control?
a) To increase product prices
b) To reduce customer complaints
c) To identify and eliminate the root causes of defects
d) To improve employee morale
33. Which tool is used to identify the root causes of problems in a process?
a) Pareto analysis c) Flowchart
b) Fishbone diagram d) Control chart
34. What is the goal of Six Sigma methodology?
a) To increase production speed c) To increase employee satisfaction
b) To eliminate defects in processes d) To reduce employee turnover
35. Which of the following focuses on minimizing waste and maximizing productivity?
a) Total Quality Management (TQM) c) Lean management
b) Six Sigma d) Quality control
36. Which Quality Guru is known for the concept "Quality is Free"?
A. W. Edwards Deming C. Philip Crosby
B. Joseph Juran D. Armand V. Feigenbaum
37. What is the focus of Juran's Trilogy?
A. Zero Defects
B. Plan-Do-Check-Act Cycle
C. Quality Planning, Quality Control, Quality Improvement
D. Statistical Process Control
38. Who introduced the Cause-and-Effect Diagram to identify root causes of problems?
A. Kaoru Ishikawa C. Shigeo Shingo
B. Genichi Taguchi D. Armand V. Feigenbaum
39. The "Poka-Yoke" system of mistake-proofing is associated with which Quality Guru?
A. W. Edwards Deming C. Joseph Juran
B. Shigeo Shingo D. Philip Crosby
40. What did Genichi Taguchi develop to minimize variations in product design?
A. Total Quality Control C. Quality Circles
B. Taguchi Methods D. Four Absolutes of Quality Management
TRUE OR FALSE: Write TRUE on the space provided in your answer sheet of the statement is correct and FALSE if it is
wong.
1. Total Quality Management (TQM) emphasizes that quality should be controlled only at the production stage.
2. The Lean Management approach focuses on reducing waste and maximizing customer value.
3. Walter A. Shewhart developed the Plan-Do-Check-Act (PDCA) cycle for continuous improvement.
4. Six Sigma aims to achieve a defect rate of 3.4 defects per million opportunities.
5. The concept "Quality is Free" suggests that investing in quality reduces overall costs.
6. W. Edwards Deming's 14 Points for Management focus on continuous improvement and reducing variation.
7. Total Quality Management (TQM) emphasizes continuous improvement at all levels of an organization.
8. The primary focus of Six Sigma is to increase customer satisfaction by improving product design.
9. A fishbone diagram is used to prioritize issues based on their frequency.
10. A checklist is primarily used to ensure that all necessary steps or actions are completed.
11. A histogram helps in identifying the relationship between two variables.
12. Control charts are used to monitor the consistency and stability of a process over time.
13. The Pareto chart is used for root cause analysis and shows cause-and-effect relationships.
14. Quality control is primarily concerned with preventing defects rather than identifying them.
15. ISO 45001 certification focuses on environmental sustainability.
16. ISO 9001 certification is widely used by organizations to ensure the quality of their products and services.
17. The process of obtaining quality certifications is often inexpensive and requires minimal time.
18. ISO 22000 certification ensures that an organization complies with food safety regulations.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
IDENTIFICATION:
1. Name the quality management methodology that combines waste reduction and Six Sigma principles.
2. Who introduced the concept of "quality control circles" and contributed to the TQM philosophy?
3. What era of quality management used inspection as the main tool to ensure product quality?
4. Who is credited with the introduction of the statistical approach to improving product design known as Taguchi
Methods?
5. Who developed the "Zero Defects" philosophy that emphasizes doing things right the first time?
6. Identify the methodology that focuses on the elimination of defects and strives for perfection in processes.
7. Name the tool used to visually represent the sequence of steps in a process, often used to identify inefficiencies.
8. What is the highest recognition given to organizations for quality excellence in the Philippines?
9. What quality tool is used to monitor whether a process is in control or needs improvement?
10. Which tool helps identify the causes of a problem by mapping out potential causes in categories such as materials,
equipment, and processes?
11. Which quality tool is used to display data in descending order of frequency to prioritize the most significant issues?
12. Which certification focuses on improving the quality management systems of organizations?
13. Which certification is important for organizations that want to ensure employee health and safety in the workplace?
14. What certification is required for food manufacturing companies to ensure the safety of their products?
15. What global standard is the ISO 9001 certification related to?
ASSIGNMENT:
Research on the different awards and recognition that your municipality/city have received in the last 5 years. Identify the
award-giving body, describe the nature of the award and the incentives/benefits that the city/municipality received by having
that award. Refer to the municipality/city where you currently residing or where you were born.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
MULTIPLE CHOICE:
TRUE OR FALSE:
1 6 11 16 21 26
2 7 12 17 22 27
3 8 13 18 23 28
4 9 14 19 24 29
5 10 15 20 25 30
IDENTIFICATION:
1
2
3
4
5
6
7
8
9
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
10
11
12
13
14
15
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.
“In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational
purposes only and not for commercial distribution”.