UNIT 1

Introduction to Operations Management

PRODUCTION SYSTEM
Random

Adjustments Fluctuations Monitor

Inputs
Needed ? Output
• Land Outputs
Conversion
• Labour • Goods
Process
• Capital
• Management
Comparison:
Actual vs.
Desired

This Photo by Unknown Author is licensed

under CC BY-NC
Introduction to Operations Management
OPERATIONS SYSTEM Random

Adjustments Fluctuations Monitor

Inputs
Needed ? Output
• Land Outputs
• Labour Conversion
• Goods
Process
• Capital & Or
• Management • Services
Comparison:
Actual vs.
Desired

This Photo by Unknown Author is licensed under CC BY-SA

 Introduction to Operations Management
A. Definition
Management of the conversion process, which converts land, labour, capital and management
inputs into desired outputs of goods and services.
Random
Fluctuations
PLANNING ORGANIZING
Planning (designing)
conversion systems • Job design
• Scheduling • Production/operations
• Operations strategies
conversion standards
• Forecasting systems
• Project Management
• Product and Process
choices
• Operations capacity Outputs
Inputs

CONVERSION PROCESS
• Facility location
planning
• Layout planning

CONTROLLING
• Inventory control
• Material requirement planning
• Quality control FEEDBACK

Source: Production And Operations Management: Concepts, Models, And Behavior by Adam, Everett E. (JR.) & Ebert, Ronald J., Fifth Edition, PHI
 Introduction to Operations Management
D. Production of Goods Vs Providing Services
Manufacturing Service
CHARACTERISTIC
Operations Operations

Output Tangible Intangible

Customer contact Low High
Uniformity of input High Low
Labor content Low High
Uniformity of output High Low
Measurement of productivity Easy Difficult
Quality problems High Low

Source: Production And Operations Management: Concepts, Models, And Behavior by Adam, Everett E. (JR.) & Ebert, Ronald J., Fifth Edition, PHI
Total Quality Management - Plan and Implement Suitable
Quality Control Measures in Quality Circles
TOTAL QUALITY MANAGEMENT (TQM)

Definition of TQM

Total Quality Management (TQM) is a comprehensive approach to

managing an organization with the goal of long-term success
through customer satisfaction.
TOTAL QUALITY MANAGEMENT (TQM)

Total

This implies everyone and everything in the organization is involved. It means:

• All departments, from production to marketing to HR, must work together.

• Every employee, from top management to frontline staff, plays a role in achieving quality goals.

• The organization's focus extends to its suppliers, stakeholders, and even the community it serves.
TOTAL QUALITY MANAGEMENT (TQM)

Quality

This refers to meeting or exceeding customer expectations. It means:

• Providing products or services that fulfill customer needs reliably.

• Striving for consistency, durability, and value in the output.

• Continuous improvement to enhance quality standards over time.

TOTAL QUALITY MANAGEMENT (TQM)

Management

This signifies the systematic coordination and leadership required to achieve quality. It
means:

• Managers and leaders must create a culture where quality is a priority.

• Establishing clear processes, goals, and strategies for maintaining quality.

• Using tools like planning, monitoring, and feedback to ensure that quality objectives are met.
TOTAL QUALITY MANAGEMENT (TQM)

• Principles of TQM

• Customer Focus: Understanding and meeting customer needs.

• Leadership Involvement: Commitment from top management.

• Continuous Improvement: Constant evaluation and enhancement.

• Evidence-Based Decision Making: Using data and metrics.

TOTAL QUALITY MANAGEMENT (TQM)

• Benefits of TQM

• Improved product and service quality.

• Enhanced customer satisfaction and loyalty.

• Greater operational efficiency and reduced waste.

QUALITY CONTROL MEASURES IN TQM
• Importance of Quality Control
o Ensures consistent delivery of quality products/services.
o Identifies and mitigates risks.

• Quality Control Tools

o Check Sheets: Data collection.
o Pareto Charts: Identify major issues.
o Fishbone Diagram: Root cause analysis.
CHECK SHEET

A Check Sheet is a
structured, prepared
form used to collect
and analyze data in a
systematic way. It is a
basic quality
management tool
often employed in
Total Quality
Management (TQM)
to record and tally
occurrences of
specific events,
defects, or errors.
PARETO CHART
A Pareto Chart is a type of bar chart that is
used to represent data in a way that highlights
the most significant factors contributing to a
particular outcome.

It combines bars and a line graph, where:

1.Bars represent the frequency or magnitude
of issues, causes, or categories in descending
order (from left to right).

2.Line graph shows the cumulative

percentage of the total occurrences or impact.

The chart is based on the Pareto Principle

(also known as the 80/20 rule), which states
that roughly 80% of effects come from 20% of
the causes. In a Pareto Chart, this principle is
often visually evident, as a small number of
categories tend to dominate the overall
impact. This Photo by Unknown Author is licensed under CC BY-SA
FISHBONE DIAGRAM

A Fishbone Diagram, also

known as an Ishikawa Diagram
or Cause-and-Effect Diagram, is
a visual tool used in Total
Quality Management (TQM) to
systematically identify and
analyze the root causes of a
problem or quality issue.

Its design resembles the skeleton

of a fish, with the main problem
or effect at the "head" and the
potential causes branching off
like "bones."

This Photo by Unknown Author is licensed under CC BY

Statistical Process Control (SPC)
• Control charts to monitor processes.
• Application: Identifying trends and deviations.
Control charts, also known as Shewhart charts or process- UCL
behavior charts, are graphical tools used in statistical
process control (SPC) to monitor, control, and improve the
quality of processes. They display data points over time
and include a central line (representing the process mean),
an upper control limit (UCL), and a lower control limit
LCL

(LCL). These limits help identify whether a process is stable

and within acceptable variation or if it is being influenced
by special causes of variation that require investigation.
Control charts are widely used in manufacturing,
healthcare, and service industries to ensure consistency
and to drive continuous improvement by identifying
trends, shifts, or anomalies in the process.
QUALITY CIRCLES
Definition of Quality Circles
• Voluntary groups of employees who meet regularly to solve
work-related problems.
• Promote teamwork and involve employees in decision-making.

Objectives of Quality Circles

• Identify and solve workplace problems.
• Enhance productivity and quality.
• Foster employee participation and morale.

Structure of Quality Circles

• Small groups (6-10 members).
• Includes a leader, facilitator, and team members.
• Regular meetings with structured agendas.
Planning Quality Circles in TQM

1. Setting Objectives for Quality Circles

• Define clear and measurable goals.
• Align objectives with organizational priorities

2.Organizing Quality Circles

• Identify and train potential members.
• Appoint facilitators and leaders.

3.Defining Scope of Work

• Focus on specific, solvable problems.
• Clarify deliverables and timelines.

4. Documenting Plans
• Use templates for clarity.
• Example of a documented plan for defect
reduction.
Implementation of Quality Control Measures in Quality Circles

1. Steps to Implement Measures

• Identify key issues through brainstorming and data analysis.
• Prioritize actions based on impact and feasibility.

2. Role of Teamwork
• Collaboration is critical for successful implementation.
• Encourage open communication and trust.

3. Monitoring and Feedback

• Regularly review progress with control charts.
• Adjust strategies as needed.