P. 1
TQM book

TQM book

4.75

|Views: 2,467|Likes:
Published by Ashish Gupta
My purpose in downloading this text is to give a concise, targeted document describing Total Quality Management (TQM) and its foundations. Many students/professionals must have wished a single source which gave them enough material to understand TQM but did not require reading several thousand pages. The reader must understand that this text is but a brief overview of the subject matter.
My purpose in downloading this text is to give a concise, targeted document describing Total Quality Management (TQM) and its foundations. Many students/professionals must have wished a single source which gave them enough material to understand TQM but did not require reading several thousand pages. The reader must understand that this text is but a brief overview of the subject matter.

More info:

Published by: Ashish Gupta on Dec 13, 2008
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

10/29/2012

pdf

text

original

Objectives

After this lesson, the reader should be able to:

• identify the sources for information regarding forecasting demand

• explain to others the importance of absolute error

• calculate the time to produce a given unit based on the appropriate learning curve

model

• calculate the desired amount of perishable material based on the newsboy model

• explain the difference between level employment and chase demand and give
examples of both

• produce an MRP or MRPII chart

Key Terms

forecasting

jury of peers

trends

cyclical

seasonality

error

absolute error

aggregate demand

learning curve

Newsboy Model

Level employment

Chase Demand

Materials Requirement Plan (MRP or MRPII)

Introduction

While the marketing managers typically oversee forecasting for the company,
operation managers must participate in the process to provide capacity information
and look for ways the firm's marketing demand might be met. Forecasting is, at best,
an educated guess. Good forecasters, over time, become quite accurate, forecasting
sales and production within two to three percent of actual.

Total Quality Management

186

Forecasting assists the operations manager to understand raw material and
component needs allowing better relationships with suppliers. Suppliers, like friends,
do not like surprise demands. An occasional unexpected request should always be
accommodated, but repeated cries for help and overstocking indicate a one-sided
relationship which is not good for both parties.

Forecasting assists with labor planning. Too few labor hours available leads to missed
deliveries. Too many labor hours lead to layoffs and downsizing. Downsizing comes
as a shock to many employees and communities because little is said by upper
management. Better transition of labor hours out of the firm could occur with accurate
forecasting, planning and implementation of labor strategies.

The emphasis of forecasting should always be twofold: (1) improved customer
satisfaction and (2) improved operational efficiency.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->