TOTAL QUALITY MANAGEMENT

Name: Awais Saleem

Roll #: 01
Executive – MBA
2019 – 2021
IBM – UET
Date: 02-04-2021

Submitted to: Dr. Abdus Salam

Question # 1:
Briefly describe total quality management?

Answer: Total Quality Management is defined as a customer-oriented process and aims for
continuous improvement of business operations. It ensures that all allied works (particularly
work of employees) are toward the common goals of improving product quality or service
quality, as well as enhancing the production process or process of rendering of services.
However, the emphasis is put on fact-based decision making, with the use of performance
metrics to monitor progress.

QM prescribes a series of ways for organizations to accomplish this, with the pathway to
successful continuous improvement centered on the use of strategy, data and effective
communication to instill a discipline of quality into the organization's culture and processes.

More specifically, TQM puts a spotlight on the processes that organizations use to produce
their products, and it calls for organizations to define those processes, continuously monitor
and measure their performance, and use that performance data to drive improvements.
Furthermore, it calls for all employees, as well as all organizational departments, to be part of
this process.

TQM's objectives are to eliminate waste and increase efficiencies by ensuring that the
production process of the organization's product (or service) is done right the first time.

This management framework was initially applied to companies in the manufacturing sector,
but, over the decades, organizations in other sectors have adopted it, as well.

Question # 2:
What do you understand from the word "Quality"?

Answer: Quality refers to how good something is compared to other similar things. In other
words, its degree of excellence. When used to describe people, it refers to a distinctive
characteristic or attribute that they possess. In this sense, we can also use the term for things. If
I think that Mary’s best attribute is her honesty, I can say “Mary’s best quality is her honesty.”

When we refer to ‘people of quality’ we usually mean people of high social standing. However,
the term, with this meaning, is less common today than in the past.

In business, especially manufacturing, it is a measure of excellence. In this context, it can also

refer to a state of being defect-free.

The ISO 8402-1986 standard defines quality as:

“The totality of features and characteristics of a product or service that bears its ability to
satisfy stated or implied needs.”

ISO stands for International Organization for Standardization, an international standard-setting

body. ISO consists of representatives from several national standards organizations.

The term contrasts with the word ‘quantity.’ When somebody says ‘how much,’ we think
about quantity. If they say ‘how good,’ on the other hand, we think about quality.

Question # 3:
Can the quality can quantified? If it is so, describe one way to quantify it?

Answer: I think, the quality can be quantified according to your epistemological and
methodological positioning in terms of your research area.

For example:

- in terms of production management: the quality is measurable from the producer side by
using several indicators and ratios.

- in terms of marketing: perceived quality is measured on the consumer's side by using a

specific validated scale and measure.

Question # 4:
Define Quality as per ISO 9000?

Answer: The term quality is defined in ISO 9000 as the degree to which a set of inherent
characteristics of an object fulfils requirements. ... “inherent” as opposed to "assigned", means
existing in the object therefore neither price nor delivery is a quality characteristic of a product
but can be a characteristic of a service

Question # 5:
Name at least five (05) dimensions of Quality along with the meanings?

Answer:

1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
Question # 6:
What are operations functions? Name three (03) basic functions of a business organization
and briefly describe each of these?

Answer: The Operations function brings together raw materials with the production process to
make products that customers need. It also shares ideas across the company about how to
improve processes and achieve cost savings cost savings.

The benefits include increased efficiency and more effective management of health and safety
and environmental issues. For example, Tarmac is implementing sustainable projects such as
restoring quarries after use.

Finance
The finance function of a business is responsible for securing and distributing funds for
operations.

This function also is typically in charge of purchasing goods, supplies, and services that are
necessary to carry out marketing and operational activities.

Budgeting and forecasting expenses, revenue, profits, costs, losses, and debt are crucial tasks
that the finance function of any business must be able to perform successfully.

Managing cash flow and the financial assets of a company is no easy task. To stay competitive a
business must be able to manage their money effectively. This could mean developing
investment strategies that produce a significant short-term yield without taking on excess risk.

Marketing
The marketing function of a business is ultimately responsible for ensuring the business has
customers. The marketing activities and efforts of a company must focus on ensuring that the
products and or services of the business are able to meet the needs and wants of the customer.
Perhaps just as important, the marketing department must ensure that the target market is
aware that the companies’ goods and services, and further, are aware that the products are
able to meet their needs and wants. This "awareness" must be strong enough to convince an
acceptable portion of the target market to purchase the goods or services as a means to meet
their needs and wants.

Operations
Operations is the function of a business that is responsible for creating the goods and services
of a business. Operations are responsible for producing what the company sells within the
boundaries of the budgets and forecasts supplied by the finance department as well as the
supply and demand forecasts of determined by the marketing department. Operations must
produce products and services in line with what the marketing department has dictated is
necessary to meet the needs and wants of the consumer.

Operations is also the biggest player in running and managing the supply chain. Supply chain
management is a crucial aspect of any business and the proper operations management
approach can make or break a business. For instance despite Block Buster having multiple times
the amounts of revenue as Red Box, Red Box stock is selling for extremely high multiples of
their earnings per share while Block Buster is in bankruptcy trying to restructure their debt. This
is because Red Box has a lean and mean well-managed supply chain and Block Buster is still
working on optimizing a clunky retail cross-selling approach.

Question # 7:
Name most of the inputs which may be required in most the processes for the production of
goods or delivery of the services?

Answer: Land is the natural resource that an enterprise uses to produce goods and services to
generate a profit. Land is not just restricted to the physical property or real estate. It includes
any natural resources the land produces, such as crude oil, coal, water, gold or natural gas. The
resources are natural materials that are included in the production of goods and services.

Labor is the amount of work laborers and workers perform that contributes to the production
process. For example, if a laborer works and her efforts create a good or service, she
contributes to labor resources.

Capital is any tool, building or machine used to produce goods or services. Capital varies
throughout each industry. For example, a computer scientist uses a computer to create a
program; his capital is the computer he uses. On the other hand, a chef uses pots and pans to
deliver a good and service, so the pots and pans are the chef's capital.

Entrepreneurship combines these factors of production to earn a profit. For example, an

entrepreneur brings together gold, labor and machinery to produce jewelry. The entrepreneur
takes on all the risks and rewards that come with producing a good or service.

Question # 8:
Briefly describe the following terms?

1. Operations Management

Operations management is the administration of business practices to create the highest

level of efficiency possible within an organization. Operations management is concerned
with converting materials and labor into goods and services as efficiently as possible.

2. Inputs
 Inputs are the resources invested in accomplishing a task, and typically include time,
money, and effort. Process refers to what is done in order to accomplish a task. ...
Significant business growth can come from improving the Inputs, Processes, or Outputs.

3. Process

the basic inputs (natural resources, raw materials) are broken down into one or more
outputs (products).

4. Outputs

the amount of something produced by a person, machine, or industry.

5. Throughput

Throughput is the amount of a product or service that a company can produce and deliver
to a client within a specified period of time. The term is often used in the context of a
company's rate of production or the speed at which something is processed

6. Fluctuations

an irregular rising and falling in number or amount; a variation.

7. Control

a person or thing used as a standard of comparison for checking the results of a survey or
experiment.

Question # 9:
Mention examples of certain outputs which may also be used as inputs?

Answer: The Input-Output (IPO) Model is a functional graph that identifies the inputs, outputs,
and required processing tasks required to transform inputs into outputs. The model is
sometimes configured to include any storage that might happen in the process as well. The
inputs represent the flow of data and materials into the process from the outside. The
processing step includes all tasks required to effect a transformation of the inputs. The outputs
are the data and materials flowing out of the transformation process.

Example: A small engineering firm believes there are problems with its hiring process. Several
of the junior engineers that have been hired remained at the firm for less than one year. This is
a considerable cost to the firm, since recruiting and training new engineers is time consuming
and expensive. The human resources manager decides to put together a group of people with
extensive experience hiring new engineers. One of their first tasks is to produce an input-output
model of the hiring process.