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Operations Management and TQM - An Overview

The document discusses operations management and total quality management, explaining that operations management ensures goods and services are delivered successfully to customers, while total quality management aims for continual increases in customer satisfaction at lower costs through learning and adaptation. It also outlines some key differences in how operations management activities are approached for goods versus services production due to factors like physical products, customer involvement, and inventory.

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Kenma ApplePi
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233 views

Operations Management and TQM - An Overview

The document discusses operations management and total quality management, explaining that operations management ensures goods and services are delivered successfully to customers, while total quality management aims for continual increases in customer satisfaction at lower costs through learning and adaptation. It also outlines some key differences in how operations management activities are approached for goods versus services production due to factors like physical products, customer involvement, and inventory.

Uploaded by

Kenma ApplePi
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Operations Management

and TQM
An Overview
Difference Between Operations and Projects

OPERATIONS PROJECTS
Ongoing Temporary
Repetitive Unique
Operations Management
•What OM is all about?
•Why is OM important?
•Why Learn About Operations Management?
•What are the possible titles that an
“Operations Managers” have?
What is Operations Management?

Operations Management (OM) – is the


science and art of ensuring that goods
and services are created and delivered
successfully to customers.
What is TQM?
Total Quality Management (TQM) – is a
people-focused management system
that aims at continual increase in
customer satisfaction at continually
lower real cost. It stresses learning and
adaptation to continual change as keys
to organizational success.
Goods vs. Services
Good – is a physical product that you can
see, touch, or possibly consume.

Services – is any primary or complementary


activity that does not directly produce a
physical product.
How Goods and Services Affect Operations
Management Activities
OM Activity Goods Services
Forecasting Forecasts involve longer-term Forecasts horizons generally are
time horizons. shorter, and forecasts are more
valuable and time-dependent.
Facility Location Good producing facilities can be Service facilities must be located close
located close to raw materials, to customer/markets for convenience
supplies, labor, or and speed of service.
customer/markets.
Facility Layout and Factories and warehouse can be The facility must be designed for good
Design designed for efficiency because customer interaction and movement
few, if any, customers are present. through the facility and its processes.

Technology Goods-producing facilities use Service facilities tend to rely more on


various types of automation to information-based hardware and
produce, package, and ship software.
physical goods.
Automatic Car Assembly Technology
How Goods and Services Affect Operations
Management Activities
OM Activity Goods Services
Quality Goods-producing firms can define Quality measurements must account
clear, physical, and measurable for customer’s perception of service
quality standards and capture quality and often must be gathered
measurements using various through surveys or personal contact.
physical devises.
Capacity Goods-producing firms use Service capacity such as equipment or
physical inventory such as raw employees is the substitute for physical
materials and finished goods as a inventory.
buffer for fluctuations in demand.
Process Design Because customers have no Customers usually participate
participation or involvement in extensively in service creation and
goods-producing processes, the delivery (sometimes called
processes can be more coproduction), requiring more
mechanistic and controllable. flexibility and adaptation to special
circumstances.
How Goods and Services Affect Operations
Management Activities
OM Activity Goods Services
Work Design Goods-producing employees Service employees need more
require strong technical and behavioral and service
production skills. management skills.
Scheduling Scheduling revolves around Scheduling focuses on when to
the movement and location assign employees and
of materials, parts, and equipment (i.e., service
subassemblies and when to capacity) to accomplish the work
assign resources (i.e., most efficiently without the
employees, equipment to benefit of physical inventory.
accomplish that works most
efficiently.

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