OPERATIONS MANAGEMENT
05/09/2023
OPERATIONS efficiently execute
marketing project
MANAGEMENT (TQM) concept is called
OPERATIONS MANAGEMENT (OM)
 is the set of activities that creates
value in the form of goods and
services by transforming inputs into
outputs - Book by Barry Render and
Jay H Heizer
 oversees the complete operating
system of an organization.
 is essential for organizations to
manage their daily activities
seamlessly.
 controls all the processes and handles
issues including design, operation,
maintenance, and improvement of the
systems.
- https://emeritus.org/
Day to day activities ng isang business; which
make are business money….
 Yung operations na sinasabi natin ay ito
yung mga activities or day-to-day activities
ng isang term o business; kumbaga it’s a
broad range yung activities na ito.
 Pero ito yung day-to-day to keep our
business making money.
 Ang Operational Role ay mag engage ng
operational activities; probably on going
development; marketing sales. Production
and so on. So yung yung activities or task
ng isan organization na ginagamit nila to
produce goods and services especially
kung nasa production or may goods silang
prinoproduce or services.
WHAT IS MARKETING OPERATIONS
MANAGEMENT?
 Marketing operations management is a
system that oversees an entire marketing
process from start to finish. It is guide to
all phases of a
or strategy. This
end-to-end, a vital
method for successful marketing.
https://www.canto.com/blog/marketing-
operations-management/
"There's always a task you can cut; it's a
marketing operations manager's job to spot
it."
- ELISE DOPSON, CONTENT MARKETING
CONSULTANT
 Nag ooptimize ng marketing activities or
maiprove yung output ng marketing team
WHY STUDY OM?
 OM is one of three major functions of any
organization; we want to study how
people organize themselves for productive
enterprise
 We want (and need) to know how goods
and services are produced
 We want to understand what operations
managers do
 OM is such a costly part of an organization
 Keep as our business running smoothly
and to make money and to keep running
within the organization
 One of the goals of business is to stock a
product that costumers want.
 We wanted to perfect our shelves.
 Typhoon, drinks, and popcorn story is that
kung tayo ang perspective ng isang tao
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05/09/2023
pag may typhoon best buy is food so yun
ang istostock ng business… Pero nung nag
covid
 isa sa mga mabenta isa is popcorn or
alcoholic drinks. (SO IN SHORT TITIGNAN
NATIN YUNG HISTORICAL RECORDS, para
alam kung yung ba ang istostsock or not)
 We not makin decision by our subjective
feelings; it is more objective.
 MAKING SUBJECTIVE DECISION BASE ON
OBJECTIVE INFORMATION.
WHAT OPERATIONS MANAGERS DO
Basic Management Functions
• Planning
• Organizing
 Staffing
• Leading
• Controlling
 This is the principle of management; yung
activities or task na kailnan I cooperate sa
operations management..
FUNCTIONS OF OPERATIONS MANAGEMENT
 GUIDE OR PATTERNS NA GAGAMITIN FOR
ACTIVITY
 YUNG IKWEKWENTO DITIO AY MORE IN
BPO
1. Operational Planning- Resourcefulness
2. Finance - Financial planning
3. Product design- Data interpretation
4. Quality control - Conflict management
5. Forecasting - Data-driven decision making.
6. Strategy - Critical thinking
7. Supply chain management - Problem
solving
FUNCTIONS OF OPERATIONS MANAGEMENT
Operational planning (Resourcefulness)
 Operational planning is the
foundational function of operations
management. Your duties within this
function may include:
o Monitoring daily production of
goods
o Managing and controlling your
inventory
o Keeping tabs on team member
performance and well being
 Production planning
• The role of operations management is to
uphold operational efficiency. Always be
on the lookout for new advancements to
remove bottlenecks and improve your
operations strategy.
 Ang idea is pag tayo ang OM, merong
operations na kailangan I solve ang
problem so its critical to think quickly
 So we need to use of what we have to
come up with solutions so ito yung
tinatawag na RESOURCEFULNESS
SAMPLE SITUATION: Customer Service in a
Glance
 The situation is that na coconduct sila ng
Operational Planning to monitor the daily
production or daily operation sa contact
center or customer service; para makita
nila kun tayo ba ay performing or not.
 Base on result yung Quality, FCR yung mga
FIRST CONTACT RESOLUTION this are the
matrix na dapat I hit, kasi pag hindi na hit
hindi magiging okay in terms of
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05/09/2023
performance sa clients which ma cacall
out tayo.. (SO THIS IS THE MATRIX THAT
WE NEED TO HIIT EVERY MONTH PARA
MASABI NATIN AY OKAY AT ALIN TAYO
SA CLIENTS EXPECTATIONS)
 May red in agency which ang goal dapat
85%, pero yun ibang categories nag hihit
naman pero dun abesentesism pa dating
n Dec ay hindi nagging okay. (SO ITO YUN
MAGIGGING BASIS NATIN TO REALLY
PLAN OPERATIONALLY KASI NGA KUNG
ITO AY MAG CONTINUE NA MAY BLEEDIN
SITUATION IT WOULD NEEDED TO BE
STOP, so we need to stop the bleeding;
otherwise hindi na magiging okay yung
performance natin especially in particular
matrix, so yun magigin issue nila para ma
hit ang target.
 Mag coconduct sila ng training like
ISOSISAP na gagawin para mastisfy ang
customer satisfaction nila. (SO ITO YUNG
TINATAWAG NA OPEATIONAL PLANNING
PERSPECTIVE na gagawin ng management)
 WORK FORCE MANAGEMENT – of the operations team differ from those
gumagawa ng day – to – day activities..
 Assuming may hit na AHT (Average Handle
Time) dito may target na 700 seconds
 Assuming call dapat manhandle o masagot
yung call in 700 sec. Hindi dapat eexceed
sa 700
 HINDI NILA NA HIIT AN TARGET BASE SA
CHART; PERO NA CLOSE NA YUN TARGET
AND SA PLAN
 KISS (Keep It short and Simple Program) –
Ginawa nilang plan.. which sustain tge
improvement of AHT
FUNCTIONS OF OPERATIONS MANAGEMENT
Finance (Financial Planning)
 Finance is an essential-and universal-
function of operations management
because every company strives to
reduce costs and increase profits. As
an operations manager, you'll ensure
company leaders keep the budget in
consideration when they make
important decisions. Some of your
tasks may include:
o Creating budgets to meet production
goals
o Finding investment opportunities
o Allocating budgets and managing
resources
• You may wonder how the financial duties
of the finance department. The finance
department will handle everything from
revenue to salaries. Meanwhile, you
should limit your financial participation to
things relevant to the production process.
 Basically ang gusto ma aachieve dito is
diba may budget na binibigay sa
operations sa CALL CENTER which
base sa team member, ilan yung seats,
ilan yug premium na magiig budet
revenue na ipapasa kay FINANCE para
maging okay, Kasi kug yun ang budget
niya yun ang magiging basis ng plano
ng magigin operations; so dapat ma
achieve yung goals nayun
 Minimization in term of cost;
maximization in term of profitability.
 SO TO KEEP RE COST LOW ex lang is
dapat may raw materials tayong iput
up sa business para iproduce and
imanafcture ata magkaroon ng finish
product SO SA RAW MATERIALS BY
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OBTAINING RAW MATERIALS NA
LOW COST for example ang pwedeng
gawin ni FINANCE is to really acquire
things HIGH QUALITY raw materials
from this vendor or supplier with low
prices; by this we can make our
production cost low. SO WE CAN
LOW OUR PRICING.
SAMPLE: PROFITABILITY RESULTS
 So ito yung BuDGET; in tERMS of
PROFITABILITY let say the GROSS MARGIN
or bit percente HEALTHY PADIN. Pero yun
actual (RIHT) ay hindi okay that month
 
E kanila
xample if nag handle tayo ng 100 calls,
babayaran tayo nang Malaking budget
revenue;if konti mas konti ang revenue…
 Sa sample hindi nag marginaries kaya ay
profitability ay may impact. Lerts say sa
nov,dec and Jan but in FEB PARANG MAY
GINAW NA SILA
 Kung mataas ang call yung ang calculation
ng revenue, but what happened hindi nag
tugma so nagkaroon ng impact sa
revenue..
Above chart presents the results of the
account EBITDA Performance.
As of Feb YTD, the actual scorecard EBITDA of
the account is at 38.7% versus 44% in the
budget, mainly due to unmaterialized volume
forecast which translated to lower Gross
Margin (GM)/EBITDA results.
Therefore, it is advisable to have a sense of
balance between budget (forecast) and actual
revenue in order to somehow achieve the
target month over month profit based on
budget (forecast); similar to what happened in
February result.
COST OPPORTUNITY FOR INTERNAL OT
HOURS
 So sa situation operationally ay mayroon
nngyayring overtime
Every month merong overtime na
prinproduce base on BILLABLE MODEL
ibigsabihin ang binibayaran satin ng client
sa ginagawa nating customer service ay in
term of number of hours na tintrabaho
natin which iniinvoice/bayad natin sa
 If may overtime hindi natin babayran sa
client because one of they do overtime
because they want to full-fill the
expectations of client and complete
works. which may include kulang kasi sa
tao. (INTERNAL OVERTIME)
 Pero kung iququantify every month kung
ilan ang nag oovertime (INTERNAL
OVERTIME) hindni pabayad sa clients..
ASSUMING SITUATION LANG
 SO ISNG SOLUTION in minimization
overtime so why not mag hire ng is para
ma remove yung internal hours na inaad
every month..
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05/09/2023
OPPORTUNITY FROM AGENTS’ BREAKS
HOURS
 So my tinatawa tayong dealing clients sa
isang oras
 Sample Scenario 9 hours per day ksama
1hrs lunch so belable time is 8 hrs which
pag nag overtime mag drodop yung
babayaran ni clients kasi nga nag oover
break.
 SO IT’S MORE MAXIMAZATION REVENUE
Dealing clients with sa overtime
 Assuming we have 8 hrs billable time – so
ibigsabihin may nag oovertime na break
which na dodown yung billable so
mababawasan din ang bayad satin ni
client.. (MAXIMIZATION OF OUR
REVENUE)
 In term to control it dapat hindi mag
overtime sa breaks.
 So dapat I control ito; dapat hindi mag
over break kung hindi magkakaroon tayo
ng impact sa revenue natin kasi hindi ito
binabayaran ni clients
 Same lang siya ; pero may required
house yung blue which hindi na hihiiit
kailang iaanalyze ni operations bat
hindi na hihiit ang required
operations.
 Example 6,000 is dapat ang ihit para
makakuha ng amount ng pera na nasa
right side
 ITO DAHILAN BAT HIDNI NA MAMXIMIZE
YUNG KITA/REVENUE FOR REQUIRED
HOURS
 Ang goal ng operation manager turn the
data in to actionable insights para alam
niya pano gaawin.
FUNCTIONS OF OPERATIONS MANAGEMENT
• Product design (Data Presentation)
 Product designers may be the creatives
of the team, but the operation team is
the eyes and ears that gathers
information from the market. Once you
identify customer needs and marketing
trends, you'll relay what you've learned
back to the designers so they can make
a strong produc Specific tasks your
team may handle in this function
include:
o Consolidating market research
into digestible results
o Communicating results to a
product design team
o Offering design direction to help
designers devise a product
 Without the operations team, the
product design team would have
trouble knowing what to create. The
market is always changing, and
creating a successful finished product
requires extensive research.
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 Example gnto ang data Dapat per month
hindi tayo nakaka miss ng chat.
 In octorber to December mataas ang rate
so nung na January nag planning para
mag stop ang bleeding..
 Every month may nangyayari na hindi siya
pwede pumasok like health issue
especially nung covid time
 Same lang with problem in nutrition
 Dahilan bat tayo na oover stuff
FUNCTIONS OF OPERATIONS MANAGEMENT
Quality control ( Conflict Management)
 Quality control goes hand in hand
with product design. After the
production team creates a product,
the operations team will ensure it
meets quality standards. You'll need
to test the product to guarantee there
are no defects before releasing it to
the public. Your tasks for quality
control may include:
o Performing risk analysis to identify
potential problems
o Inspecting products to make sure they
meet quality standards
o Creating tests to control your product
quality
o Documenting any defects or
deficiencies of products Conflict ma
 The level and standards of quality
control vary by industry-one of the
first things your team should do
during the quality control process is to
perform market research to
determine what quality standards
should be in your industry. Once
you've outlined a set of quality
standards, use them as a benchmark
for quality management moving
forward.
 Release conflict
PROJECT TEAM
 PROJECT TEAM CONTROL THE RISK
GRANT SCHEDULE CHART EXAMPLE
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produce customer service.Theyhave
thistrainnin to relly improve or control the
quality in order to Improve and hit the
expectation of cutomers

SOFT SKILLS
 High level timeline which monitor if may
 Soft skills na kailangan para maimprove
progress
ang quality
FACILITIES 1. Greeting
 Good
o A greeting should be simple and to-
the-point
 "This is Andrew with [Client] Support.
Am I speaking with X?"
o For chats, don't include your name
as the customer already has visibility
to the agent name
 Needs Improvement
o Not greeting the customer or overly
verbose greeting
 One thing pwede gawin sa project is
 10sec threshold to greet the customer
facilitating layout.
– phone.
 30sec threshold to greet the customer
- chat.
o We will track these times based on
the first response of the agent, from
the automated greeting


 N/A
o Mostly observed in chat - instances
PRODUCT TRAINING AND NESTING DESIGN where agents use the automated
greeting and jump straight to
troubleshooting/resolving
 Outstanding
o There is no opportunity to achieve
an outstanding for 'Greeting'

 Scenario pra maacontrol ang quality ito ay

program, process or Action plan to 2. Metadata
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 Yes
o Did the agent ask for information
such as: email address, phone
number, restaurant name, etc when
the information is already available
o Agent confirms or asks a question
without showing direction to what
they plan to use that information for
 Yes, but information did not populate
o There will be times where certain
account details won't populate and
agents will need to ask customers
those questions
 Yes, but workflow direct to
o Some workflows will also ask agents
to ask for that information - select this
answer
 No
o This is the ideal scenario. Assuming
the necessary information populates,
the agent dives straight into working
on a resolution
o If agents confirm a piece of
information to enhance the
customer's experience
 See speaker notes for examples
3. Listen Actively
 Good
o Give time for the customer to
reply
o Understand their true problem
 Needs Improvement
o The customer had to repeat
themselves
o The agent has to backtrack the
conversation to understand the
problem
o Insincere phrases like "rest assured"
or "not to worry..."
o Agent asked for or restated obvious
information
- Conformational questions will not be
counted as not listening actively
 Outstanding
o Puts the customer at ease and makes
them feel confident that the agent
knows what they're doing
o Agent addressed all issues mentioned
by the customer
o Agent used critical thinking to ask
appropriate probing questions to get
to a true root issue, especially if root
issue wasn't obviously stated by
customer
4. Empathy
 It was not to say it was to do…
 We won't be requiring agents to hunt for
a specific empathy statement or quick text
 Empathy should be exercised throughout
the case or where it's
necessary/applicable to the customer
o Empathize throughout the
conversation if customer is upset
o If customer is not super upset, you
can do less empathy
o If it's a request but not an issue (Hey I
want to update my menu/hey can you
add this mx to client), you don't have
to empathize
 We want to the break the habit of agents
looking for a checklist to complete
o Empathy should be organic and at
the discretion of the agent (with
guidance from support staff/client)
 Don't use empathy quick texts, formulate
your own. Don't be overly verbose
 If agents do decide to empathize on a case
that doesn't require empathy, QA will
grade to efficiency
5. Tone, Pace, & Clarity
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 Good
o Be polite, friendly, concise
o Match the customer's tone & pace
to make sure conversations sounds
natural and sincere
o Agent is patient with customer and
does not use unnecessary verbiage or
repeat things
 Needs Improvement
o Insincere tone
o A pace that does not match the
urgency of the customer
o Interrupting customer
o Superfluous verbiage
o Customer asked the agent to repeat
themselves
 Outstanding
o This is the ideal interaction-- how
you'd want your best friend helped
 Demonstrated throughout the entire
contact
o Something you'd be proud to have
blasted on social media
o look for significant CX mood
improvement
6. Ownership
 Good
o Own the customer's resolution from
the beginning to end
 Be proactive in offering solutions
instead of reacting to what customers
are saying/asking
o Explain resolution in a manner where
our customers will fully understand
 Needs Improvement
o Customer had to re-contact us after
the interaction
o Agent does not attempt to reconnect
with customer if disconnected.
o Agent made false promise of
resolution ("no worries" or "rest
assured")
o Agents should own the issue and not
deflect blame to tooling or policies
 Outstanding
o If something is broken with process or
tools, agent properly documented in
notes and/or took the necessary steps
to get the issue remediated
o Agent made a reasonable exception
to the process to make the customer
happy
o There is evidence from the customer
that they're exiting the interaction
much happier and reassured about DD
Support. CX will say things like "that
was easy"
7. Closing
 Good
o Courteous and natural closing
statement
 Needs Improvement
o Hanging up or disconnecting on
customers before the problem is
resolved
 N/A
o Instances where agents do not have
the opportunity to deliver a closing
statement e.g. customer leaves chat
or merchant hangs up first
 Outstanding
o There is no opportunity to achieve an
outstanding for 'Closing'
FUNCTIONS OF OPERATIONS MANAGEMENT
Forecasting (Data -driven decision
making)
 Forecasting isn't just a term for the
weather-operations teams also use
forecasting to predict the demand for
a product. Your team can master
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forecasting by trying to answer oTelus Internal Forecast (Moving
hypothetical question like: average, mathematical regression,
o What will the demand for this product Based on Historical information)
be in the future? o Based on Budget
o What marketing and promotions  A Forecast can be classified as:
should we plan for this product? o Short-Term Forecast
o What sales initiatives should we plan o Long-Term Forecast
for this product?
o Can we estimate the storage costs
we'll need for inventory?
o Can we determine the cost of sourcing
and raw materials?
 Volumes na papasok satin… dapat mag
set na team na papasok every hours, data
etc.

 Mataas an ggap for actual and forecast so

HOW FORECASTING WORKS dpat gawan ng paraan

ARRIVAL PATTERN | INFORMATION AND

PRESENTATION

• Get Raw Data and get intervals

Transaction information, provided by the

team has to be arranged specifically for us to
FORECASTING| GENERAAL INFORMATION
get the required outcome
AND SOURCES
• Daily and Interval Distribution
 Forecast is a prediction or estimate of
future upcoming volume (Voice, Email & Volume behavior will also help recognize any
Chat) pattern out of the normal that we can use on
 Resource Planning Department is in our analysis.
charge of the analysis, obtaining and
• Weights (Interval and Daily)
evaluation of the Forecast Volume for a
program and its lines of business, in order Percentage per interval helps us create a
to determine the most optimized plan to forecast at that level.
perform
 The most common sources of a Forecast
Volume are:
o Client Forecast
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 Dapat nasa healthy percentage ang
forecasting
 Hindi lang dapat daily basis dapat interval
Scheduling
• The objective of scheduling is to allocate
and prioritize demand (generated by
either forecasts or customer orders) to
available facilities.
• Scheduling deals with the timing of
operations
 Isang ginagawa ni workforce management
is nag coconsiderate sila ng factor in
interval daily, weekly etc.
 Capacity planning is basing sa clients
 The photo above is workforce manement
life cycle in using operation na ginagamit
if may absent ba ..
VRINT (SCEDULING/MONITORING TOOL)
 Nakikita kung sino nag eextension or over
brake.
FUNCTIONS OF OPERATIONS MANAGEMENT
Strategy
 Strategy is a broad function of
operations management that can
involve operational planning,
monitoring, and analysis. The goal of
strategic management is to make sure
production decisions align with
business goals. Your company's
business objectives may include:
o Prioritizing customer satisfaction
o Improving the production system
o Controlling costs while maintaining a
competitive edge
 How they create thoughtful ideas and
thigh them in fundamental forts.
 Making research and ideas to support
team
 Sa call center ito yung coaching session.
COACHING FOR EXCELLENCE
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Feedback; Collaborative Approach;
Coaching Effectiveness Survey

 Almost 60% of our TLs are now on the

Advanced Skill Level, thus, effectiveness in
coaching is seen in the program's upward
performance.
 As you can see month over month nag
increase yung; although some of the
amount may decrease pero nagkaroon ng
recovery pero the thing is that the
important of having a coaching is to really
increase the level of skills ng team
members natin.

 That is why they conducting like this of

session in team members; not only in
agents on voice but also to the support
 If we wanted to increase the level of
staff
engagement will be building a positive
experience
 Once they intensified the level of
engagement mag increase din ang
productivity; mag increase din ang core
activity; different outdoor activity such as
sport activities such team buildings.

FUNCTIONS OF OPERATIONS MANAGEMENT

Supply chain management (Problem

 Way of skills para maiprove ang skill ng solving)
team members  If your company produces products or
 Weekly Coaching Session ; 100% TL services, your company will need supply
Accountability in Coaching; Asking vs. chain management for sourcing,
Telling; Skill/Behavior-based; Balanced
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producing, and shipping. You may have a
separate department for the supply chain,
but supply chain issues related to internal
production will be yours to handle. The
supply chain should flow in a cyclical
fashion as follows:
o Raw materials
o Supplier
o Production/manufacturer ADDITIONAL SCENARIOS:
o Distributer
o Retailer
o Consumer
 The supply chain is cyclical because once
you analyze consumer demand, you'll
source more raw materials and go down
the chain again.
 One of activity can be example in terms of
callcenter is active listening apara ma
solve ang problem and order fast to
improve sa supply chain may tinatawag
tayong value chain analysis which means  Operations improvements have helped
kailangan I evaluate yung each of activities Starbucks increase yearly revenue per
in the company value chain to understand outlet by $250,000 to $1,000,000.
where opportunities for improvement life;  Productivity has improved by 27%, or
so kung may raw materials, production, about 4.5% per year.
distributor
 Supply Chain Management
 In situations of Starbucks in order for
them to improve and save some saving or
cost in term of transaction sinasabi na
nasasave daw ng 8 sec etc if stop ang
credit card purchases under $25.
 Hindi lang ito basta gusto iimprove dapat
 Supply chain management in companies ay may back up or details; dapat merong
na we can see or we can find measures of success at masasabi mo na
opportunities specially if there bottle neck may improvement.
or chain dito; na pwedeng masabi na nag
add ng value of nag susubtract na
kailangan maimprove. PROCESS STRATEGY The objective is to create
a process to produce offerings that meet
customer requirements within cost and other
managerial constraints.

QUEUING THEORY (Waiting-Line Models)

 The study of waiting lines

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 Waiting lines are common situations
 Understanding queuing theory is useful in
both manufacturing and service areas
o Queue discipline - first-in, first-
out (FIFO) is most common

COMMON QUEUING SITUATION

QUEING SYSTEM DESIGNS

Multiple – server, single phase system and  Way improvement of Operations

multiple- server, multiphase system
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TQM CONCEPTS COMMONLYS USE IN BPO
INDUSTRY

 Different teams ang gumagawa nito

 Pag maaga na invoice mas maaga ma
expect ma receive ang revenue.

 Mga highlevel information

 Ito yung minemeasure pag delay

 WACC (weighted average cost of
 Battle neck of the process which has
capital)
purpose to minimize the above prices
 It indicate instead 2

Some Concepts of T Q M
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 Continuous improvement  Lean Six Sigma seeks to improve employee
 Six Sigma and company performance by eliminating
 Employee empowerment the waste of resources and
 Benchmarking process/product defects.
 Just-in-time (JIT)  It combines the process improvement
 Knowledge of T Q M tools methods of Six Sigma and lean enterprise.
 Lean Six Sigma helps to establish a clear
path to achieving improvement objectives.
Continuous Improvement  The Lean strategy was established by
Toyota in the 1940s and attempts to
 Never-ending process of continuous streamline operational processes, from
improvement manufacturing to transactions.
 Covers people, equipment, suppliers,  Six Sigma originated in the 1980s and
materials, procedures Every operation can seeks to improve output quality by
be improved reducing defects.
 End goal is perfection, which is never  Mostly lean use in manufacturing
achieved but always sought. techniques
 Kaizen describes the ongoing process of  Six sigma use to improve process
unending improvement
 TQM and zero defects also used to
describe continuous

improvement Six Sigma

 Originally developed by Motorola,

adopted and enhanced by
 Honeywell and GE
 Highly structured approach to process
improvement
 A strategy
Goal nila  A discipline - DMAIC

DMAIC Approach

 Defines the project's purpose, scope, and

 Way to prevent issues; realy improve
ideas through observation.
Lean Six Sigma
outputs, then identifies the required
process information keeping in mind the
customer's definition of quality
 Measures the process and collects data
 Analyzes the data, ensuring repeatability
and reproducibility
 Improves, by modifying or redesigning,
existing processes and procedures
 Controls the new process to make sure
performance levels are maintained
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Employee Empowerment  Production only when signaled
 Allows reduced inventory levels
 Getting employees involved in product
 Inventory costs money and hides
and process improvements
process and material problems
 85% of quality problems are due to
 Encourages improved process and
materials and process
product quality
 Techniques
 Its goal is to manage waste like in
 Build communication networks that
term of food sector business.
include employees
 Reduce inventory or hoarding coat.
 Develop open, supportive supervisors
 Move responsibility to employees
 Build a high-morale organization
TQM Tools
 Create such formal organization
structures as teams and quality circles  Tools for Generating Ideas
o Check Sheet
o Scatter Diagram
Benchmarking o Cause-and-Effect Diagram
 Tools to Organize the Data
 Selecting best practices to use as a
o Pareto Chart
standard for performance
o Flowchart (Process Diagram)
 Determine what to benchmark
 Form a benchmark team
 Identify benchmarking partners
 Collect and analyze benchmarking
information Tools for Generating Ideas
 Take action to match or exceed the
benchmark (a) Check Sheet: An organized method of
 Measuring company products or service recording data
against other business, which has goal to
improve business on its best.

 Identify how often problem deficts

Just-in-Time (JIT) (b) Scatter Diagram: A graph of the value of

one variable vs. another variable
 'Pull' system of production scheduling
including supply management
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 The goal is really identify two variables

 The sample shows negative relationship
which means if our productivity getting
lower the absenteeism also getting lower

(c) Cause-and-Effect Diagram: A tool that

identifies process elements (causes) that may
effect an outcome

 Assuming story of data

 80/20 rule mas prioritize yung top 4 para
ma solve problems

(e) Flowchart (Process Diagram): A chart that

describes the steps in a process

 Goal is to see flaw

 Sample causes effect

Tools for Organizing the Data

(d) Pareto Chart: A graph to identify and plot

problems or defects in descending order of
frequency

 USE OF DIFF ICONS

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 Para makita ang nagsususply,
ingredients, sino mag proprocess sa
Inputs and Outputs

MEASURE PHASE

Sample is medical perspective

DEFINE PHASE

 Tools in RCA
 Shows overall project in terms of
financial
ANALYZE PHASE
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 "Why is the pump not circulating
sufficient oil?"
 The pump intake is clogged with metal
shavings.
 "Why is the intake clogged with metal
shavings?"
 Because there is no filter on the
pump.
 Sample came from google

IMPROVE PHASE

- Improve process performance by

addressing and eliminating the root
causes

 Why techniques identified root cause.

Taiichi Ohno, the creator of the 5-Why

technique, is quoted using the following
example to teach using 5-Why's for root
cause analysis:

 "Why did the robot stop?"

 The circuit has overloaded, causing a
fuse to blow.
 "Why is the circuit overloaded?"
 There was insufficient lubrication on  Indicators of Improvement
the bearings, so they locked up.
 "Why was there insufficient lubrication
on the bearings?"
 The oil pump on the robot is not
circulating sufficient oil.
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Showing Investor if theres financial

improvement

Tracking/monitoring stage.