MODULE 1

INTRODUCTION

MODULE OVERVIEW
Operations Management is a modern
management concept where successful organizations
worldwide have adopted. This module will help you to have a
thorough understanding of the fundamentals of quality
management, so as to understand operations management
in the right perspective. The precise definition of operations
management will be presented in this module as well as the various quality
standards and the notable persons with commendable knowledge in TQM who
shared the important points for quality management.

MODULE OBJECTIVES
At the end of this module, you will be able to:

 Define total operations management

 Identify operations performance objectives and 5S
 Recognize the concept of quality from the Gurus of TQM
 Differentiate between quality standards of Malcolm Baldridge and the
International Organization for Standardization (ISO)

LESSONS IN THE MODULE

In this module, you will be able to learn the following lessons:
Lesson 1: Operations Management and Quality Management
Lesson 2: Gurus of TQM and Quality Standards

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 MODULE 1

INTRODUCTION

Operations Management/Quality
Management
1
Lesson

This lesson will be completed by the students at the end of the

2nd week of classes. At the end of this lesson, the students should be
able to:

 Define quality and operations management

 Identify the activities of operations management
 Differentiate the operations performance objectives
 Recognize the importance of 5S methodology

In lesson 1, the introduction to operations management and quality management will be

discussed. A mutual trust must be needed by both management and staff to create a culture in
which an effective quality management program can become successful. As students, you
should be able to learn that quality is currently everyone’s task, not just the inspection
department. Also, this module will help you understand better the benefits from having a well-
constructed 5S program in the workplace. A chaotic workplace with mess around everywhere
and conflicts between the management and the staffs are bound to produce poor quality
products. However, this could be avoided by having proper operations management in every
business organization.

At the end of the lesson, you will learn about:

 Defining Quality
 Defining Operations Management
 Activities of Operations Management
 Operations Performance
 5S
-Sort
-Set in Order
-Shine
-Standardize
-Sustain

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Task 1: Define Me
Instruction: Give five words that will define what is written in the box below. Each correct
definition will earn 1 point.

_________________________________
_________________________________
_________________________________
_________________________________
_________________________________
________________________________
________________________________
________________________________
________________________________
________________________________

Task 2: How You See Me

Instruction: Describe the picture given below. Limit your answer to 100-150 words. (5 points)

___________________________________________________________
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___________________________________________________________
___________________________________________________________
___________________________________________________________ RUBRICS
Content 3
___________________________________________________________
Organization 2
___________________________________________________________
Total 5
___________________________________________________________
___________________________________________________________
___________________________________________________________

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Directions: Answer the following questions below. (Answers should be not more than
100 words)

1. Is operations management important un business

organizations? Why or why not?

2. What are the ways in maintaining quality in every

business organization?

3. What would happen yo business organizations if they will not follow 5s?
Explain why.

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What is Quality?
Quality is a lot more than the nonexistence of defects which allow companies to meet
customer expectations. Quality needs controlled process improvements, allowing companies
to exceed customer’s expectations. Quality cam only be attained by the nonstop
improvement of all systems and processes in the organization, not by simply the production
of products and services but also the design, development, service, purchasing,
administration and indeed, all aspects of the transaction with the customer. Each one must
work in concert toward similar end.
Approaches to Quality Definition
1. Transcendent – quality is far better or greater than what is usual.
2. Product-Based – quality is observed as a quantifiable or measurable characteristic or
attribute like durability or reliability which are concluded objectively.
3. User-Based - this definition is founded on the idea that quality is an individual issue
and products that best pleasure their preferences are those with the highest quality.
4. Manufacturing-Based – focused mainly with engineering and manufacturing practices
and use the universal definition of “conformance requirements”
5. Value-Based - quality is defined using costs and prices as well as the number of
attributes.
Quality Types
1. Quality of Design – is all about set characteristics that the product or service must
minimally have to satisfy the requirements of the customer based on market
research.
2. Quality of Conformance – basically meeting the standards of user-based
characteristics defines in the design phase after the product is manufactured or while
the service is delivered
3. Quality of Performance – is how sound the product functions or service performs
when put to use
Cost of Quality
1. Prevention Cost – incurred to prevent or avoid failure problems. Examples are
product or service requirements, quality planning, quality assurance and training.
2. Appraisal Cost – associated with measuring and monitoring activities related to
quality standards and performance requirements. Examples are verification, quality
audits and supplier rating.
3. Internal Failure Costs – acquired to treat defects revealed earlier when the product
or service is delivered to the customer. Examples are wastes, scraps, rework or
rectification, and failure analysis.
4. External Failure Costs – obtained to treat defects exposed by customers. Examples
are repairs and servicing, warranty claims, complaints and returns.

What is Operations Management?

Operations Management is the activity of managing the resources which produce
and deliver products and services. The operations function is the part of the organization that

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is responsible for this activity. Operations Managers are the people who have particular
responsibility of managing the resources in the organization.
Operations in the organization
Core functions: 1. Marketing Function
2. Product/Service Development Function
3. Operations Function
Support functions: 4. Accounting and Finance Function
5. Human Resources Function

What are the Activities of Operations Management?

a. Understanding the operation’s strategic performance objectives
b. Developing an operations strategy for the organization
c. Designing the operation’s products, services and processes
d. Planning and controlling the operation
e. Improving the performance of the operation
f. Recognize social responsibilities of operations management
Insert pic for general model of operations management

Why is Operations Performance important in any organization?

Operations management can either ‘make or break’ any business. It is large and, in
most businesses, represents the bulk of its assets, but also because the operations function
gives the ability to compete by providing the ability to respond to customers and by
developing the capabilities that will keep it ahead of its competitors in the future.
Five Operations Performance Objectives
1. Quality Objective – you would want to do things right; that is, you would not want to
make mistakes, and would want to satisfy your customers by providing error-free
services which are ‘fit for their purpose’. This is giving a quality advantage.
2. Speed Objective – You would want to do things fast, minimizing the time between a
customer asking for goods or services and the customer receiving them in full, thus
increasing the availability of your goods or services and giving a speed advantage.
3. Dependability Objective – You would want to do things on time, so as to keep the
delivery promises you have made. If the operation can do this, it is giving a
dependability advantage.
4. Flexibility Objective – you would want to be able to change what you do; that is,
being able to vary or adopt the operation’s activities to cope with unexpected
circumstances or to give customers individual treatment. Being able to change far
enough and fast enough to meet customer requirements gives a flexibility advantage.
5. Cost Objective – you would want to do things cheaply; that ism produce goods and
services at a cost which enables them to be prices appropriately for the market while
still allowing for a return to the organization; or, in a not-for-profit organization, give
good value to the taxpayers or whoever is funding the operation.

What are the 5S?

1. SORT (Seiri) – refers to the sorting of the clutter from the other items within the work
area that are actually needed. This stage requires the team to remove all items that
clearly do not belong in the working area and only leave those that are required for
the processes in question. Label the items as “Necessary”, “Critical”, “Most
Important”, “Not needed now”, “Useless”, and so on. Throw what all is useless. Keep
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 aside what all is not needed at the moment. Items which are critical and most
important should be kept at a safe place.
2. SET IN ORDER (Seiton) – refers to straightening and orderliness. It is the process of
taking the required items that are remaining after removal of clutter and arranging
them in an efficient manner through the use of ergonomic principles. In this phase, all
materials and tools selected for the production process are organized.

3. SHINE (Seiso) – stands for sweeping and cleanliness. It means to clean all items
used at work or all materials used during a manufacturing process. Maintaining
cleanliness should be component of daily work. It must not be a special activity that is
initiated only when things get too cluttered.

4. STANDARDIZE (Seiketsu) – refers to making all cleaning, control and improvement

process a customary activity in the workplace, allowing for control and consistency.
Fundamental housekeeping standards apply everywhere in the facility. Everybody
knows precisely what his responsibilities are.

5. SUSTAIN (Shitsuke) – means maintaining the process to retain long-term kaizen

goals and to retaining and reviewing standards. This is to ensure that the firm has
common standards and ways of working.

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Task 3: Case Study
 Instruction: Read the Case Study below and answer the follow up questions.
Answers in each questions must not exceed 200 words. (Case study extracted from
Operations Management Sixth Edition by Nigel Slack, et al. 2010 by Pearson
Education Limited, England).

Operations Objectives at the Penang Mutiara

There are many luxurious hotels in the South-East Asia region but few can compare
with the Penang Mutiara, a 440-room top-of-the-market hotel which nestles in the lush
greenery of Malaysia’s Indian Ocean Coast. Owned by Pemas-OUE of Malaysia and
managed by Singapore Mandarin International Hotels, the hotel’s General Manager is under
no illusions about the importance of running an effective operation. ‘Managing a hotel of this
size is an immensely complicated task’, he says. ‘Our customers have every right to be
demanding. They expect first-class service and that’s what we have to give them. If we have
any problems with managing this operation, the customer sees them immediately and that’s
the biggest incentive for us to take operations performance seriously. Our quality of service
just has to be impeccable. This means dealing with basics. For example, our staff must be
courteous at all times and yet also friendly towards our guests. And of course they must have
knowledge to be able to answer guests’ questions. The building and equipment- in fact all the
hardware of the operation – must support the luxury atmosphere which we have created in
the hotel. Stylish design and top-class materials not only create the right impression but, if we
choose them carefully, are also durable so the hotel still looks good over the years. Most of
all, though, quality is about anticipating our guests’ needs, thinking ahead so you can identify
what will delight or irritate a guest.’ The hotel tries to anticipate guests’ needs in a number of
ways. For example, if guests have been to the hotel before, staff avoid their having to repeat
the information they gave on the previous visit. Reception staff simply check to see if guests
have stayed before, retrieve the information and take them straight to their room without
irritating delays. Quality service also means helping guests sort out their own problems. If
airline loses a guest’s luggage en route to the hotel, for example, he or she will arrive at the
hotel understandably irritated. ‘The fact that it is not us who have irritated them is not really
the issue. It is our job to make them feel better.’
Speed, in terms of fast response to customers’ requests is something else that is
important. ‘A guest just should not be kept waiting. If a guest has a request, he or she has
that request now so it needs to be sorted out now. This is not always easy but we do our
best. For example, if every guest in the hotel tonight decided to call room service and request
a mal instead of going to the restaurants, our room service department would obviously be
grossly overloaded and customers would have to wait an unacceptably long time before the
meals were brought up to their rooms. We cope with this by keeping a close watch on how
demand for room service is building up. If we think it’s going to get above the level where
response time to customers would become unacceptably long, we will call in staff from other
restaurants in the hotel. Of course, to do this we have to make sure that our staff are multi-
skilled. In fact, we have a policy of making sure that restaurant staff can always do more than
one job. It’s this kind of flexibility which allows us to maintain fast response to the customer.’
Dependability is also a fundamental principle of a well-managed hotel. ‘We must
always keep our promises. For example, rooms must be ready on time and accounts must be
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ready for presentation when a guest departs; the guest expect a dependable service and
anything less than full dependability is a legitimate cause for dissatisfaction.’ It is on the grand
occasions, however, when dependability is particularly important in the hotel. When staging a
banquet, for example, everything has to be on time. Drinks, food, entertainment have to be
available exactly as planned. Any deviation from the plan will very soon be noticed by
customers. ‘It is largely a matter of planning the details and anticipating what could go wrong.
Once we’ve done the planning we can anticipate possible problems and plan how to cope
with them, or better still, prevent them from occurring in the first place.’
Flexibility means a number of things to the hotel. First of all, it means that they should
be able to meet a guest’s requests. ‘We never like to say NO! For example, if a guest asks
for some Camembert cheese and we don’t have it in stock, we will make sure that someone
goes to the supermarket and tries to get it. If, in spite of our best efforts, we can’t get any, we
will negotiate an alternative solution with the guest. This has an important side-effect – it
greatly helps us to maintain the motivation of our staff. We are constantly being asked to do
the seemingly impossible – yet we do it, and our staff think it’s great. We all like to be part of
an organization which is capable of achieving the very difficult, if not the impossible.’
Flexibility in the hotel also means the ability to cope with the seasonal fluctuations in demand.
They achieve this partly by using temporary part-time staff, in the back-office parts of the
hotel this isn’t a major problem. In the laundry, for example, it is relatively easy to put on extra
shift in busy periods by increasing staffing levels. However, this is more of a problem in the
parts of the hotel that have direct contact with the customer, ‘New temporary staff can’t be
expected to have the same customer contact skills as our more regular staff. Our solution to
this is to keep the temporary staff as far in the background as we possibly can and make sure
that our skilled, well-trained staff are the ones who usually interact with the customer. So, for
example, a waiter who would normally take orders, service the food, and take away the dirty
plates would in peak time restrict his or her activities to taking orders and serving the food.
The less skilled part of the job, taking away the plates, could be left to temporary staff.’
As far as cost is concerned, around 60 percent of the hotel’s total operating
expenses go on food and beverages, so one obvious way of keeping costs down is by
making sure that food is not wasted. Energy costs, at 6 percent of total operating costs, are
also a potential source of saving. However, although cost savings are welcome, the hotel is
very careful never to compromise the quality of its service in order to cut costs. ‘It is
impeccable customer service which gives us our competitive advantage, not price. Good
service means that our guests return again and again. At time, around half of our guests are
people who have been before. The more the guests we have, the higher is our utilization of
rooms and restaurants, and this is what really keeps cost per guest down and profitability
reasonable. So in the end, we’ve come full circle: it’s the quality of our service which keeps
our volumes high and our costs low.’
QUESTIONS:
1. Describe how you think the hotel’s management will:
a. Make sure that the way it manages the hotel is appropriate to the way it
competes for business:
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
b. Develop its operation so that it drives the long-term strategy of the hotel

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 ________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
2. The case describes how quality, speed, dependability, flexibility and cost impact on
the hotel’s external customer. Explain how each of these performance objectives
might have internal benefits.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
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___________________________________________________________________

Task 4: Good Housekeeping

Instruction: Select an area in your house where you can apply 5S. It could be in your kitchen,
bedroom, study area, dining room, living room, etc. Post the before and after
pictures in the boxes below. Lastly, answer the follow up questions.

B
E
F
O
R
E

A
F
T
E
R
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 QUESTIONS:
From your 5S experience, what could be the possible consequences if each step is
not being practiced? List at least 3 consequences in each box below.

1.________________________________________________________

sort 2.________________________________________________________
3.________________________________________________________
_________________

4.________________________________________________________

set in order 5.________________________________________________________

6.________________________________________________________
_________________

7.________________________________________________________

shine 8.________________________________________________________
9.________________________________________________________
_________________

10. ______________________________________________________

standardiz 11. ______________________________________________________

12. ______________________________________________________
e ___________________

13. ______________________________________________________

sustain 14. ______________________________________________________

15. ______________________________________________________
___________________

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Directions: Fill in the spaces below. Answers should not be 100 words.

I now know that quality is ___________________________________________________________

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
Operations management is essential in business organizations because _______________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

I realized that of 5S is business organization is

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Congratulations! You have completed the Lesson 1: Operations

Management/Quality Management for Module 1 of this course pack. You may now
proceed to the next lesson. Keep up the good work.

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 MODULE 1

INTRODUCTION

Gurus of TQM and Quality

Standards
2
Lesson

This lesson will be completed by the students at the end of the

4 week of classes. At the end of this lesson, the students should be
th

able to:

 Identify the various quality gurus in quality management

 Recognize the contributions of quality gurus in quality management
 Differentiate quality standards of Malcolm Baldridge and International
Organization for Standardization (ISO)
 Recognize importance of Environmental Management System

In order to fully understand the TQM movement, there are philosophies of notable
individuals who have shaped the evolution of TQM which will be discussed in this lesson. Also,
presented in this lesson are the several quality awards and standards for organizations to strive
towards which served as tools to improve their quality processes and move toward
implementing successful TQM. As students, it is important to connect the two concepts so as to
apply it in your future work environment.

At the end of the lesson, you will learn about:

 Deming: 14 points for quality management

 Crosby: 14 steps to quality
 Juran: 10 steps to quality
 Malcolm Baldridge
 ISO Standards
 Environmental Management System

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Task 1: Word Search Puzzle
Instruction: Complete the crossword puzzle below and identify the various quality gurus of
Total Quality Management.

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Task 2: Collage Making
Instruction: Make a collage of the how quality management is being done in a business
organization using printed materials like magazine, newspaper, catalogue, etc.
Then use the space below for the follow up question.

Question: What do you think an organization would look like without practicing quality
management? Limit your answer up to 150 words.
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________ RUBRICS
Content 3
___________________________________________________________
Organization 2
___________________________________________________________
Total 5
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___________________________________________________________
___________________________________________________________
___________________________________________________________

Directions: Answer the following questions below. (Answers should be not more than
100 words)

1. Is total quality management significant in every

business organizations? Why or why not?

2. How can business organizations achieve and/or

maintain quality standards?

3. Is it important to implement the Environmental Management System (EMS) in

business organization? Why or why not?

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What are Deming’s 14 points for Quality Management?
Dr. William Edwards Deming is often referred to as the “Father of Quality Control”.
Deming is best known for initiating a transformation in the Japanese manufacturing sector in
the after effects of World War II, which enabled it to become a big player in the world market.
1. Constancy of purpose
2. The new philosophy
3. Cease dependence on inspection
4. End lowest tender contracts
5. Improve every process
6. Institute training on the job
7. Institute leadership
8. Drive out fear
9. Break down barriers
10. Eliminate exhortations
11. Eliminate arbitrary numerical targets
12. Permit pride of workmanship
13. Encourage education
14. Top management’s commitment
Deming’s 7 Deadly Diseases
These are the factors that Deming believes can slow down the transformation that
the 14 points can bring about.
1. Lack of constancy of purpose to plan products and services that have a market
sufficient to keep the company in business and provide jobs.
2. Stress on short-term profit; short-term thinking that is driven by a fear of unfriendly
takeover attempts and pressure from bankers and shareholders to generate
dividends.
3. Personal review systems for managers and management by objectives with no
methods or resources provided to achieve objectives; includes performance
evaluations, merit rating, and annual appraisals.
4. Job-hopping by managers.
5. Using only evident data and information in decision making with little or no
consideration given to what us unknown or cannot be known.
6. Extreme medical costs.
7. Too much costs of liability driven up by lawyers who work on contingency fees.

What are Crosby’s 14 steps to Quality?

Philip Crosby came to national prominence with the publication of his book “Quality is
Free” in 1979. He established the absolutes of quality management, which states that the
only performance standard is zero defects and the basic elements of improvement.

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 The essence of Crosby’s teachings is contained in what he calls the “four absolutes
of quality.”
1. The definition – Quality is conformance to requirements, not goodness.
2. The system – Prevention, not appraisal.
3. The performance standards – Zero defects.
4. The measurement – The price of non-conformance to requirements, not quality
circles.
He then developed the 14-step methodology:
1. Management commitment
2. Quality improvement team
3. Quality measurement
4. Cost of quality
5. Quality awareness
6. Corrective action
7. Zero defects planning
8. Supervisor training
9. Zero defects day
10. Goal setting
11. Error-cause removal
12. Recognition
13. Quality councils
14. Do it over again

What are Juran’s 10 steps to Quality?

Dr. Joseph Moses Juran assisted the Japanese in their reconstruction process after
World War II. Juran first became well-known in the US as the editor of the Quality Control
Handbook (1951) and alter for his paper introducing the quality trilogies which are quality
planning, quality control, and quality management.
Juran proprounded the following message on quality:
1. Quality control must be essential part of management
2. Quality is no mistake
3. Quality must be planned
4. There are no shortcuts to quality
5. Make use of problems as sources of improvement
Juran’s formula consists of:
1. Create an awareness about the need and propose an opportunity for improvement
2. Set goals for improvements
3. Systematize paths to attain the goals (begin a quality council, identify problems,
choose projects, assign teams, delegate facilitators and so on)
4. Give training
5. Do projects to resolve problems
6. Inform progress
7. Provide recognition
8. Communicate outcome
9. Keep score
10. Uphold thrust by making yearly improvements component pf the regular systems and
processes of the company

What is Malcolm Baldridge Quality Standard?

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 The Malcolm Baldridge Award is a United States quality award that covers an
extensive list of criteria evaluated by independent judges. In many cases, organizations use
the Baldridge criteria as a guide for their internal quality efforts rather than competing directly
for the award.

Purposely the Baldridge Award was created to:

1. Assist encourage US firms to make quality and productivity improvement for pride of
recognition at the same time gain profit despite competition;
2. Distinguish the accomplishment of those firms that made quality improvements of
their goods and services and become an example for the rest;
3. Create guidelines and standards which business, industry, government and other
enterprise can use to assess their own quality efforts for improvements; and
4. Offer definite guidance for other US firms that desire to learn how to manage for high
quality through making accessible specified information on how winners were able to
transform their cultures and achieve distinction.

The criteria to address are categorized as:

1. Leadership – Examines how senior executives guide the organization and how the
organization addresses the responsibilities to the public and practices good
citizenship.
2. Strategic planning – Examines how the organization sets strategic directions and
how it determines key action plans.

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 3. Customer focus – Examines how the organization determines requirements and
expectations of customers and markets; build relationships with customers; and
acquire, satisfies and retains customers.
4. Measurement, analysis, and knowledge management – examines the management,
effective use, analysis and improvement of data and information to support key
organization processes and the organization’s performance management system.
5. Workforce focus – examines how the organization enables its workforce to develop
its full potential and how the workforce is aligned with the organization’s objectives.
6. Operations focus – examines aspects of how key production/delivery and support
processes are designed, managed and improved.
7. Results – examines the organization’s performance and improvement in its key
business areas: customer satisfaction, financial and marketplace performance,
human resources, supplier and partner performance, operational performance, and
governance and social responsibility. The category also examines how the
organization performs relative to competitors.

What is Quality Standards from ISO?

The International Organization for Standardization (ISO) is an international standard-
setting body composed of representatives from various national standards organizations.
Founded on 23rd of February 1947, the organization promotes worldwide proprietary,
industrial and commercial standards. They ensure that products and services are safe,
reliable and of good quality. For business, they are strategic tools that reduce costs by
minimizing waste and errors, and increasing productivity. They help companies to access
new markets, level the playing field for developing countries and facilitate free and fair global
trade.
Different Types of ISO
1. Quality Management (ISO 9000 family)
ISO 9001: 2015 – sets out the requirements of a quality management system
ISO 9000: 2015 – covers the basic concepts and language
ISO 9004:2009 – focuses on how to make a quality management system more
efficient and effective
ISO 19011:2011 – sets out guidance on internal and external audits of quality
management systems
ISO 9001: 2015 – sets out criteria for a quality management system and is the only
standard in the family that can be certified to

2. Environmental Management
ISO 14001:2004 – basis for development of an environmental management system
ISO 14004:2004 – provides more specific information for
implementation and maintenance of EMS
ISO 5001 – address energy management and ways to increase energy efficiency and
reduce environmental impact of organizations

3. Health and Safety

ISO 22000 – sets global guideline for food safety and handling
IWA 1:2005 – addresses issues in the healthcare sector
ISO 9001:2000 – addresses quality management in the medical device industry

4. Transportation
ISO/TS 16949 – reviews all areas of the automotive industry supply chain

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 ISO/PAS 30003:2008 – looks at specific concerns within shipping and marine
technology

5. Social Responsibility
ISO 26000 – assures that business and organizations do not operate in a vacuum
ISO 26000:2010 – provides guidance rather than requirements, so it cannot be
certified to unlike some other well0known ISO standards

6. Energy Management
ISO 50001 – using energy efficiently helps organizations save money as well as
helping to conserve resources and tackle climate change
ISO 50001:2011 – based on the management system model of continual
improvement also used for other well-known standards such as ISO 9001 or ISO
14001.

7. Risk Management
ISO 31000 – about the risks affecting organizations that can have consequences in
terms of economic performance and professional reputation
ISO 31000:2009 – offers principles and guidelines, framework and process for
managing risk

8. Food Safe Management (ISO 22000 family)

ISO 22000:2005 – contains the overall guidelines for food safety management
ISO 22004:2014 – provides generic advice on the application of ISO 22000
ISO 22005:2007 – focuses on traceability in the feed and food chain
ISO/TS 22002-1:2009 – contains specific prerequisites for food manufacturing
ISO/TS 22002-2:2013 – contains specific prerequisites for catering
ISO/TS 22002-3:2011 – contains specific prerequisites for farming
ISO/TS 22002-4:2013 – contains specific prerequisites for food packaging
manufacturing
ISO/TS 22003:2013 – provides guidelines for audit and certification bodies
ISO 22000:2005 – sets out requirements for a food safety management system and
can be certified to

9. Information Security Management

ISO/IEC 27001 – family of standards that helps organizations keep information
assets secured
10. Occupational Health and Safety (ISO 45001)
11. Anti-bribery Management Systems (ISO 37001)
12. Medical Devices (ISO 13485)

What is Environmental Management System?

An Environmental Management System (EMS) is a framework
that helps an organization achieve its environmental goals through
consistent review, evaluation, and improvement of its environmental
performance. The assumption is that this consistent review and
evaluation will identify opportunities for improving and
implementing the environmental performance of the organization. The
EMS itself does not dictate a level of environmental performance that

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must be achieved; each organization's EMS is tailored to its own individual objectives and
targets.

An EMS helps an organization address its regulatory demands in a systematic and cost-
effective manner. This proactive approach can help reduce the risk of non-compliance and
improve health and safety practices for employees and the public. An EMS can also help
address non-regulated issues, such as energy conservation, and can promote stronger
operational control and employee stewardship. Basic Elements of an EMS include the
following:

 Reviewing the organization's environmental goals;

 Analyzing its environmental impacts and legal requirements (or compliance
obligations);
 Setting environmental objectives and targets to reduce environmental impacts and
comply with legal requirements (or compliance obligations);
 Establishing programs to meet these objectives and targets;
 Monitoring and measuring progress in achieving the objectives;
 Ensuring employees' environmental awareness and competence; and,
 Reviewing progress of the EMS and making improvements.

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Task 3: Venn Diagram
Directions: Complete the Venn Diagram below. Provide three (3) words or terms that
describe the different concept of quality by the 3 gurus of quality in the outer circles
and write three details that the concepts from the three gurus are alike where the
circles overlap. You may base your answers from your previous knowledge and
readings about the given topic.

Quality Management

William Deming

Philip Crosby
Joseph Juran

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Task 4: Organizations Around Me
Instruction: Research for the names of organizations in the Philippines who were given ISO
Certificates in the different industries listed below. Then, complete the needed
requirements.

Manufacturing
Name of Organization: ______________________________________
ISO Certification: __________________________________________
Date Complied: ____________________________________________
Brief description of ISO Certification:

Health
Name of Organization: ______________________________________
ISO Certification: __________________________________________
Date Complied: ____________________________________________
Brief description of ISO Certification:

Education
Name of Organization: ______________________________________
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Date Complied: ____________________________________________
Brief description of ISO Certification:
Directions: Fill in the spaces below. Answers should not be 100 words.

Quality according to the gurus of quality management is ___________________________________

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
The most essential quality standard that should be followed is ______________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

I realized that the Environmental Management System is

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________

Congratulations! You have completed the Lesson 2: Gurus of TQM and

Quality Standards for Module 1 of this course pack. You may now proceed to the
next lesson. Keep up the good work.

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 MODULE 1

INTRODUCTION

Post-Assessment
Part I. Multiple Choice
Direction: Read each item carefully and write the letter of the right answer beside
each number. Erasures are strictly prohibited.
1. It refers to the extent in which the firm and its suppliers are able to
manufacture products with expected level of reliability and uniformity at a
specified cost with quality requirements based on the study made on quality
design.
a. Quality of Performance c. Quality of Conformance
b. Quality Product d. Quality of Design

2. This approach to quality definition means that the consumer’s purchase

decision is founded on quality at an up to standard price.
a. Transcendent c. Product-based
b. Manufacturing-based d. Value-based

3. Which cost of quality includes checking of inward bound material, process

setup, and products against contracted specifications?
a. Prevention costs c. Appraisal costs
b. Internal failure costs d. External failure costs

4. The consequences of not practicing setting in order does not include which of
the following?
a. Items are placed well in stores.
b. Items that are defectives and good ones get mixed up.
c. Visual control of the shop floor is not feasible.
d. Things are rarely obtainable when needed.

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 5. The consequences of not practicing sorting are the following, except
a. The unnecessary messes the place and the necessary are hard to find.
b. Every place can only contain so much
c. Mess sometimes causes misidentification
d. None of the above.

6. This 14-step methodology by Crosby includes carrying out the quality

improvement program.
a. Management commitment c. Cost of quality
b. Quality improvement team d. Corrective action

7. Deming’s 14-point methodology does not include

a. Constancy of purpose c. Goal setting
b. Drive our fear d. Encourage education

8. Juran’s formula of achieving quality are the following, except

a. Give training c. Inform progress
b. Avoid score d. Provide recognition

9. This examines how the organization sets strategic directions and how it
determines key action plans.
a. Leadership c. Customer focus
b. Workforce focus d. Strategic planning

10. This standard sets out the requirements of a quality management system.
a. ISO 9001:2015 c. ISO 22000
b. ISO 14004:2004 d. ISO 50001
Part II. Modified True or False
Direction: Write TRUE if the statement is correct. If the statement is false, write the
correct word (in capital letters) that would substitute the incorrect word/s to make the
statement correct. Each item is worth 2 points. Any erasures and/or alterations is
considered wrong.

_____________ 11. A dirty workplace cannot produce quality products.

_____________ 12. Quality of Performance is basically meeting the standards or
user-based characteristics defined in the design phase after the
product is manufactured or while the service is delivered.
_____________ 13. The 5S is a systematic approach and the key to total quality
environment, a philosophy most Chinese factories endorse and
practice.
_____________ 14. External failure costs are acquired to treat defects revealed
earlier when the product or service is delivered to the customer.
_____________ 15. During the sustain process, all materials and tools are sorted,
and only the unnecessary ones are kept for continued use.
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_____________ 16. Deming is also known for his 14 points, for the Deming Chain
Reaction and for the Theory of Profound Knowledge.
_____________ 17. Leadership is the first criteria to address for the evaluation of
Baldridge Award.
_____________ 18. ISO 22000:2005 cover the basic concepts and language.
_____________ 19. ISO 9000:2015 contains the overall guidelines for food safety
management.
_____________ 20. ISO 22000 sets global guidelines for food safety and handling.

Glossary
Activity – as used in project management, it is an identifiable and defined task, together
with event activities form network planning diagrams
Attributes of Quality – measures of quality that can take one of two states, for example,
right or wrong, works or does not work, etc.
Bottom-up – the influence of operational experience on operations decisions
Control – the process of monitoring operations activity and coping with any deviations from
the plan; usually involves elements of replanning
Kaizen – Japanese term for continuous improvement
Operations Strategy – the overall direction and contribution of the operation’s function with
the business; the way in which market requirements and operations resource
capabilities are reconciled within the operation
Purchasing – the organizational function, often part of the operations function, that form
contracts with suppliers to buy in materials and services
Total Quality Management – a holistic approach to the management of quality that
emphasized the role of all parts of an organization and all people within an
organization to influence and improve quality; heavily influenced by various
quality gurus, it reached its peak of popularity in the 1980s and 1990s
Zero Defect – the idea that quality management should strive for perfection as its ultimate
objective even though in practice this will never be reached

References

Marshal, J. (2010). Total Quality Management. McGraw Hill International Edition, Singapore.

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Serrano, A. (2016) Total Quality Management. Unlimited Books Library Services and
Publishing Inc., Intramuros Manila, Philippines.
Slack, N. (2010). Operations Management Sixth Edition. Pearson Education Limited.

ANSWER KEY
MODULE 1: INTRODUCTION
Task 3: Case Study (Individual) 20 pts.
POST-Assessment Learner’s answers may vary
(Individual)
Part I. 10 pts. Task 5: Good Housekeeping
1. C (Individual) 65 pts.
2. D Learner’s answers may vary
3. C
4. A LESSON 1: GURUS OF TQM AND
5. D QUALITY STANDARDS
6. B
7. C Task 1: Crossword Puzzle (Individual) 5
8. B pts.
9. D
10. A
Part II. 20 pts.
11. TRUE
12. QUALITY OF CONFORMANCE
13. TRUE
14. INTERNAL FAILURE COSTS
15. SORT
16. TRUE
17. TRUE
18. ISO 9000:2015
19. ISO 22000:2005
20. TRUE

LESSON 1: OPERATIONS
MANAGEMENT/QUALITY
MANAGEMENT
Task 2: Collage Making (Individual) 21
Task 1: Define Me (Individual) 10 pts. pts.
Learner’s answers may vary Learner’s answers may vary
Task 2: How You See Me (Individual) 5 Analysis (Individual) 15 pts.
pts. Learner’s answers may vary
Learner’s answers may vary
Task 3: Venn Diagram (Individual) 20
Analysis (Individual) 15 pts. pts.
Learner’s answers may vary
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Learner’s answers may vary Task 5: Organizations Around Me
(Individual) 30 pts.
Learner’s answers may vary

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