HOW DO TQM FITS INTO OPERATIONS STRATEGY

& LEAN FITS INTO OPERATIONS STRATEGY

(SUBSTITUTE FOR STRATEGY)

PREPARED BY:
AKSHAY MOHANAN
 TQM FITS INTO OPERATIONS STRATEGY
Deming 14 points followed by the operations strategy decision areas by
which they relate:

• Plan for long-term commitment to quality (development and organization)

• Quality must be built into the process at every stage (process technology ,
supply network, development and organization)
• Cease mass inspection (process technology, supply network, development
and organization)
• Do not make purchase decisions on price alone ( supply network,
development and organization)
• Identify the problems and work continuously to improve the system
• Implement SPC and quality training
• Institute leadership and a human-centred approach to supervision
• Eliminate fear
• Break down barriers between departments
 TQM FITS INTO OPERATIONS STRATEGY
• Stop demanding higher productivity without the methods to achieve them
• Eliminate performance standards based solely on output
• Remove barriers to pride in workmanship
• Institute education and self-employment programmes
• Create a top management structure that emphasises the above 13 points
everyday
TQM ELEMENTS IN THE FOUR OPERATIONS STRATEGY MATRIX
• The matrix diagram Deming’s points in each decision area and illustrates
that the Deming points are comprehensive, though heavily emphasising
the infrastructural aspects of operational change. However changing
behaviours and beliefs is not easy and requires constant emphasis over a
extended period of time.

• The individual operations matrix is essentially a ‘snapshot’ in time but for

a strategy to be truly comprehensive, the different elements must not only
be in place, but be in place over time.
 LEAN FIT INTO OPERATIONS STRATEGY
• The core principles of the lean approach are contained largely within the
supply network and development and organizations decision areas. This is
not surprising given the emphasis on flow ( which is what supply network
strategy is partly about) and improvement though waste elimination ( an
important part of development and organization strategy).
• The role of process technology strategy is largely to ensure that
technology choices support the core elements of lean flexibility, reliability,
and reduced variability
• If lean principles are to be adopted through the supply network chain, the
to maintain synchronous flow it will be necessary to tolerate reduced
capacity utilisation.
• Putting it other way around, one cannot allow capacity bottlenecks to
disturb smooth and synchronous flow through the chain. The implication
is that under a lean approach more capacity may have to be provided than
under a more traditional approach to managing supply throughput.
LEAN ELEMENTS IN THE FOUR OPERATIONS STRATEGY DECISION CATEGORIES