Operations & Quality Management

(Notes according to Syllabus)

Module-1 (Fundamentals of Operations Management) Introduction to
Operations Management Introduction: Nature of Operations, Functions of
Operations; Recent trends in Production/Operations Management. Production
Planning and Control (PPC) Objectives and Functions of PPC, Production
Scheduling and Aggregate Planning, Inventory Control: EOQ, JIT, and Lean
Operations Introduction to Manufacturing Introduction, various types of
Manufacturing, location strategies, layout planning and analysis, facilities related
to production
Module-2 (Productivity and Quality Related Concepts) Productivity & Quality
Introduction, Importance of Productivity, Capital, Labour, Personal Productivity,
Introduction and definition of Quality, Dimensions of Quality, Quality Assurance,
cost & category of Quality, Optimization of Costs, Continuous improvement
process
Module-3 (Statistical Process Control) Statistical Process Control Introduction,
Statistical Process Control, Quality Improvement Techniques, Control Charts,
Variables and Attributes, Pareto & Scatter Diagrams, Run Charts, Six Sigma

Module-1: Fundamentals of Operations

Management

1. Introduction to Operations Management

What is Operations Management?
Operations Management = Managing how a company produces goods or
services efficiently.

Example:
At a pizza shop, operations management means buying ingredients, making
pizza fast, delivering hot pizza — all done perfectly!
Nature of Operations:
• Converts inputs (raw materials, labor) → into outputs (products, services).
• Focuses on efficiency, quality, and cost control.

Functions of Operations:
• Planning: Decide what, when, and how much to produce.
• Organizing: Arrange machines, workers, and materials.
• Directing: Guide workers and operations.
• Controlling: Check if production is on track and fix problems.

Recent Trends in Production/Operations Management:

• Automation (using robots)
• Use of AI and IoT (smart factories)
• Eco-friendly production (Green operations)
• Global supply chains

Example:
Amazon uses robots in warehouses to move products faster.

2. Production Planning and Control (PPC)

What is PPC?
Production Planning and Control (PPC) =
Planning + Organizing + Controlling production activities to make products on
time and cost-effectively.

Objectives of PPC:
• Produce goods at right time, right quantity, right quality.
• Minimize waste and cost.
 • Ensure smooth production without delays.

Functions of PPC:
• Planning: What to produce, how much, when.
• Routing: Finding best way to produce.
• Scheduling: Fixing exact time for production.
• Dispatching: Giving orders to start production.
• Follow-up: Checking production progress.

Production Scheduling:

Meaning:
Setting up a time-table for making products.

Example:
A car company plans to produce 100 cars every week.

Aggregate Planning:

Meaning:
Planning total production for months ahead, not just daily.

Example:
A company plans how many jackets to make for winter 6 months in advance.

3. Inventory Control

Inventory = Stock of materials, parts, and finished goods.

Managing inventory = Having enough, but not too much stock.

Techniques of Inventory Control:

EOQ (Economic Order Quantity):

Meaning:
Finds the best quantity to order that saves total cost.

Example:
A company calculates it should order 500 pens at once to save money.

JIT (Just-In-Time):

Meaning:
Buy or make products only when needed — no extra stock.

Example:
A Toyota car factory gets tires delivered just before they are installed.

Lean Operations:

Meaning:
Remove waste (time, materials, cost) and focus only on value.

Example:
A bakery stops making extra cakes that no one buys → saves money.

4. Introduction to Manufacturing

What is Manufacturing?
Manufacturing = Making products by using machines, tools, and labor.

Example:
Making mobiles in a factory like Apple.

Types of Manufacturing:
 • Job Production – One product at a time.
(Example: Customized wedding cake)
• Batch Production – Group of products made together.
(Example: Making 100 shirts of same size and color)
• Mass Production – Large number of products made continuously.
(Example: Cars in assembly line)
• Continuous Production – Non-stop production.
(Example: Oil refinery)

Location Strategies:
Choosing the best place for a factory or office.
Factors to consider:
• Near raw materials
• Near customers
• Cheap land
• Good transport

Example:
Setting up a steel plant near iron mines.

Layout Planning and Analysis:

Layout = How machines and work areas are arranged.
Good layout helps:
• Save time
• Increase production
• Make movement easy

Example:
A kitchen with fridge, stove, sink placed properly for easy cooking.
Facilities Related to Production:
Facilities include:
• Machines
• Storage areas
• Staff rooms
• Maintenance units
Purpose: Help smooth and efficient production.

Super Quick Chart

Topic Simple Meaning Example
Operations Managing production work Making pizzas fast
Management
PPC Planning and controlling Car making plan
production
EOQ Best quantity to order 500 pens at once
JIT No storage, get when needed Tires for cars
Lean Operations Removing waste Only baking needed
cakes
Manufacturing Making goods Building mobiles
Layout Arranging machines Kitchen setup

Module-2: Productivity and Quality Related Concepts

1. Introduction to Productivity
What is Productivity?
Productivity =
How efficiently we use resources (like time, money, labor) to produce goods
or services.
Simple Formula:
Productivity=OutputInput\text{Productivity} = \frac{\text{Output}}{\text{Input}}

Importance of Productivity:
• More output with same or fewer inputs.
• Lower costs and higher profits.
• Better competitiveness in the market.

Example:
If a worker makes 10 shirts in a day, and after training, makes 15 shirts —
productivity has increased.

2. Factors Affecting Productivity

Capital Productivity:
Capital Productivity = Using machines, money, equipment efficiently.

Example:
Using a faster sewing machine to make more shirts.

Labour Productivity:
Labour Productivity = How efficiently workers produce goods.

Example:
Training workers to work smarter, not harder.

Personal Productivity:
Personal Productivity = Managing your own time and energy to do more work in
less time.

Example:
Making a daily to-do list to finish work faster.

3. Introduction to Quality

What is Quality?
Quality =
How well a product or service meets customer expectations.

Simple Definition:
• No defects
• Good performance
• Meets promises made

Example:
A mobile phone that works smoothly without hanging = good quality.

4. Dimensions of Quality

Dimensions = Different aspects to judge quality.

Some important dimensions:
• Performance (How well it works)
• Features (Extra things offered)
• Reliability (Works without failing)
• Durability (Lasts long)
• Serviceability (Easy to fix)
 • Aesthetics (Looks and feels good)

Example:
A car:
• Performance: Speed and smooth drive
• Features: Bluetooth, GPS
• Reliability: No breakdowns

5. Quality Assurance

Quality Assurance (QA) =

Making sure products meet quality standards before reaching customers.
It focuses on processes (how work is done) rather than only checking finished
products.

Example:
Checking pizza ingredients quality before making pizzas.

6. Cost & Categories of Quality

Costs of Quality:
1. Prevention Cost
Cost of preventing defects (training, good machines)
2. Appraisal Cost
Cost of checking/testing products
3. Internal Failure Cost
Cost due to defects found before products reach customer
4. External Failure Cost
Cost due to defects after customer gets the product (returns,
complaints)
7. Optimization of Costs

Optimization =
Balancing costs and quality smartly to avoid wastage.
• Spend enough on prevention and appraisal to avoid big failure costs later.
• Not too cheap, not too costly — smart spending.

Example:
Spending ₹1000 on quality checks saves ₹10,000 in customer complaints.

8. Continuous Improvement Process (CIP)

Continuous Improvement =
Always trying to make small improvements in products, services, and
processes.
Famous Japanese word for this: Kaizen = "Change for better."

Steps in Continuous Improvement:

• Find small problems
• Make small fixes
• Repeat again and again

Example:
A restaurant notices food delivery is slow → adds more delivery staff → faster
service.
 Super Quick Chart
Topic Meaning Example
Productivity More output with less Worker making 15 shirts
input instead of 10
Capital Productivity Efficient use of Faster sewing machine
machines/money
Labour Productivity Efficient workers Trained workers
Quality Meeting customer Good working mobile
expectations
Dimensions of Different aspects of Car’s performance,
Quality quality reliability
Quality Assurance Ensuring quality Checking before baking
processes
Costs of Quality Money spent on quality Training costs
efforts
Continuous Small, regular Faster delivery
Improvement improvements

Module-3: Statistical Process Control (SPC)

1. Introduction to Statistical Process Control (SPC)

What is SPC?

Statistical Process Control (SPC) uses statistics (numbers and data) to

monitor and control a process to make sure it stays consistent and makes quality
products.

Simple meaning:
 • Measure the process
• Detect problems early
• Fix before defects happen

Example:
A factory checks the size of a bottle every 30 minutes to ensure it stays the
correct size.

2. Why is SPC important?

• Reduces waste (no defective products)
• Maintains consistency (products always same quality)
• Saves cost (fix problems early)
• Improves customer satisfaction

3. Quality Improvement Techniques in SPC

Some techniques used to improve quality:
• Collecting Data (measure things regularly)
• Finding problems early
• Analyzing causes (why the issue happened)
• Taking corrective actions (fix and prevent)

4. Control Charts
What are Control Charts?

A graph that shows how a process changes over time.

• Center Line (CL) = average
• Upper Control Limit (UCL) = highest acceptable level
• Lower Control Limit (LCL) = lowest acceptable level
If process data stays between UCL and LCL = process is under control
If outside = something is wrong

Example:
If machine fills bottles, a control chart tracks if the quantity is correct.

Two Types of Control Charts:

• Variables Charts – for measurable things (like weight, size)
• Attributes Charts – for countable things (like number of defects)

5. Variables and Attributes

Type Meaning Example
Variables Can be measured Length, weight, volume
exactly
Attributes Can be counted Number of broken items, number of
complaints

6. Pareto and Scatter Diagrams

Pareto Diagram

A bar chart showing which problems are most important.

• 80/20 Rule: 80% of problems come from 20% of causes.

Example:
Out of 100 defects:
• 70 due to Machine A
• 20 due to Worker B
• 10 due to Supplier issue
Focus on Machine A first!

Scatter Diagram

A graph showing relation between two things.

• Helps find cause-and-effect.

Example:
More machine usage = More breakdowns? (scatter plot will show if related.)

7. Run Charts

What are Run Charts?

A simple line graph showing data over time (no control limits).
Used to:
• See trends (up/down)
• See patterns

Example:
Daily sales over one month shown on a run chart.

8. Six Sigma

What is Six Sigma?

Six Sigma is a quality management method to make a process very, very

consistent with almost zero defects.
• Target: Only 3.4 defects per million items produced.
Six Sigma Steps (DMAIC):
• Define (problem)
• Measure (current performance)
 • Analyze (causes of problems)
• Improve (fix problems)
• Control (keep process on track)

Example:
Mobile company uses Six Sigma to reduce defect rate in smartphones.

Super Quick Chart

Concept Meaning Example
SPC Use of statistics to control Checking bottle size
quality
Control Charts Graph with UCL & LCL Monitoring filling machine
Variables Measurable values Weight, height
Attributes Countable values No. of defects
Pareto Find major problems Machine A causes 70%
Diagram defects
Scatter Relation between 2 things More usage → more
Diagram breakdown
Run Chart Data over time Daily sales graph
Six Sigma Near-zero defects method 3.4 defects per million