OPERATION MANAGEMENT NOTES

MODULE 1: INTRODUCTION TO QUALITY

Start: August 24, 2022

ADVANCE READING NOTES DISCUSSION NOTES

INTRODUCTION
 Overview of the importance of quality in
business environment.
 Quality is central to effective operation of these
systems
 Quality is not an “add-on” to organizational
processes, but it is “the way of doing business.”

3 IMPORTANT CONCEPTS OF PERFORMANCE

EXCELLENCE
1. Productivity
2. Cost
3. Quality - the most significant factor in
determining the long-run success or
failure of any organization is quality

MULTI-FACETED DEFINITIONS OF QUALITY:

1. Transcendent (Judgmental) quality
2. Product and value-based quality
3. Fitness for use (user-based)
 Consumers- who ultimately use
a product
 External customers- who may
be intermediaries between the
producer and the consumer
 Internal customers- who are
the recipients of goods and
services from suppliers within
the producing firm.
4. Conformance to specifications
(manufacturing-based)
 targets and tolerances
determined by designers of
products and services
5. Customer perspectives

EVOLUTION OF QUALITY
 12th Century B.C. Zou Dynasty in China,
through the Craftsmanship era in the
1700’s.
QUALITY ASSURANCE
 Providing consumers with goods and services of
appropriate quality, as a point of reference.

STATISTICAL QUALITY CONTROL (SQC)

 The application of statistical methods for
controlling quality.
 SQC was vital to military production during
World War II.

THE BIG Q AND LITTLE Q

 Managing for quality in all organizational
processes as opposed to simply in
manufacturing, referred to as Little Q.

TOTAL QUALITY MANAGEMENT

 a total, company-wide effort--through full
involvement of the entire workforce, and
requiring a focus on continuous improvement –
that companies use to achieve customer
satisfaction.

THE ORGANIZATIONAL INFRASTRACTURES

1. Customer relationship
management
2. Leadership and strategic
planning
3. Human resources management
4. Process management
5. Data and Information
management.

PERFORMANCE EXCELLENCE
 Delivery of ever-improving value to customers
and stakeholders, contributing to organizational
sustainability, improvement of overall
organizational effectiveness and capabilities,
and organizational and personal learning.

SIX SIGMA approach (supported by traditional lean

tools from The Toyota production system)
VIDEO WATCHED:
W. Edwards Deming: The 14 Points
(2012) W. Edwards Deming: The 14 Points - YouTube