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TQM Lesson 1

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34 views

TQM Lesson 1

Uploaded by

Jan Drew Oliva
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BSA_L.

1
Production management becomes the acceptable term from 1930s to
1950s.
 Workers were studied in great detail to eliminate wasteful efforts
and achieve greater efficiency.
 At the same time, psychologists, socialists and other social
scientists began to study people and human behavior in the working
environment.
 With the 1970s emerge two distinct changes in our views. The most
obvious of these, reflected in the new name operations
management was a shift in the service and manufacturing sectors
of the economy.
As service sector became more prominent, the change from
‘production’ to ‘operations’ emphasized the broadening of our field
to service organizations.

Globalization: contributes efficiency and adds value to products and


service | complicates the operations manager’s
job -- complexity, risk, and competition are intensified
Globalization: contributes efficiency and adds value to products and
service | complicates the operations manager’s
job -- complexity, risk, and competition are intensified
Globalization: contributes efficiency and adds value to products and
service | complicates the operations manager’s
job -- complexity, risk, and competition are intensified
Operations management is the administration of business
practices to create the highest level of efficiency possible within an
organization. It is concerned with converting materials and labor
into goods and services as efficiently as possible to maximize the
profit of an organization.
 involves utilizing resources from staff, materials, equipment, and
technology.

Global Strategies -sales and production are worldwide.

Reasons to Globalize
1.Reduce costs (labor, taxes, tariffs, etc.)
2.Improve supply chain
3.Provide better goods and services
4.Understand markets
5.Learn to improve operations
6.Attract and retain global talent Tangible Reasons Intangible
Reasons

 REDUCE COSTS
Foreign locations with lower wage rates can lower direct
and indirect costs. There are lots of organization that address
some of the policies, rules and regulations to assist in the trading
process and the use of foreign labor
 IMPROVE THE SUPPLY CHAIN
Locating facilities closer to unique resources . (Auto design
to California ,Athletic shoe production to China, Perfume
manufacturing in France)
 PROVIDE BETTER GOODS AND SERVICES
Objective and subjective characteristics of goods and
services , On-time deliveries ,Cultural variables ,Improved
customer service
 UNDERSTAND MARKETS
Interacting with foreign customers and suppliers can lead to
new opportunities.
 LEARN TO IMPROVE OPERATIONS
Remain open to the free flow of ideas, General Motors
partnered with a Japanese auto manufacturer to learn more about
technology.
 ATTRACT AND RETAIN GLOBAL TALENT
Offer better employment opportunities , Better growth
opportunities and insulation against unemployment , Relocate
unneeded personnel to more prosperous locations, Incentives
for people who like to travel

10 Strategic Operation Management Decisions


In 2008, Ford Motor Company reorganized using what’s known as the 10
strategic operations areas. It was part of the company’s turnaround and
enabled the organization be more flexible and survive the financial crisis
without taking government bailouts. Toyota, Google and Jet Blue are also
known for using the 10 area system in all of their business activities. It is
used across industries as a guide to operations management.
The areas are:
1.)Goods and services: This includes looking for ways to implement
consistency in costs, quality, and resources across all business
divisions.

2.) Quality Management: Be clear on the customer’s demands and then


meet those expectations. Use market research to determine customer
needs and batch quality assurance testing on products and services in
production.

3.) Process and Capacity Design: Design strategies which support all
production goals including technology and resources. A value stream map
can help determine what processes are necessary and how to keep them
running efficiently.

4.) Location: In developing a location strategy consider supply chain and


how the location will receive supplies, the movement of goods and
services internally and to customers, and the role of marketing and public
relations in the location choice.

5.) Layout Design and Strategy: Consider the placement of desks,


workstations, and how materials are delivered and used.

6.) Human Resources and Job Design: Implement continuous


improvement programs with regular reviews, provide continuous training
for employees, and institute employee satisfaction programs to achieve
success in this area.

7.) Supply Chain Management: Determine the best strategies to


streamline, be cost effective, and to develop trusted partners.

8.) Inventory: Different markets mean different challenges when it


comes to inventory but all need to strategize and plan their inventory
control. Weather, supply shortages, and labor all influence how an
organization maintains its inventory.

9.) Scheduling: Consider both production and people. Ask questions such
as how much product is required to be produced for the customer in the
required time? How many people and how many machines are required to
do the job effectively and efficiently? This differs among industries and
business departments..

10.) Maintenance: This includes maintaining people and machines, as


well as, process. What do you need to do to maintain quality and keep
resources reliable and stable?

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