INTRODUCTION TO OPERATIONS

MANAGEMENT WITH TOTAL

QUALITY MANAGEMENT (TQM)
 LEARNING OUTCOMES
At the end of this module, students will be able to:
1.Define and understand the importance of operations
management
2.Identify similarities and differences between production and
service operations.
3.Summarize the two major aspects of process management.
4.Characterize current trends in business that impact operations
management.
 Introduction to Operations Management with TQM
• Operations is that part of a business organization that is
responsible for producing goods and/or services.
• Goods as physical items produced by business organizations, that
include raw materials, parts, subassemblies, and final products.
• Services are activities that provide some combination of time,
location, form, or psychological value.
• A value-added product can refer to any product that has been
subject to additional actions or combined with extra products to raise
the overall value of the product.
A Supply Chain for Bread that Create Value Added Product
Goods-Services Continuum
 Production of Goods versus Delivery of Services

1.Degree of customer
contact.
2.Labor content of jobs.
3.Uniformity of inputs.
4.Measurement of
productivity.
5.Quality assurance.
6.Inventory.
 Managing a Process to Meet Demand
Four basic Sources of
Process Variations
1.The variety of goods or
services being offered.
2.Structural variation in
demand.
3.Random variation.
4.Assignable variation.
 8 Steps to Proper Operational Process Change
1.Know the Current Process
2.Know Why We Wish to Change the Process
3.Clearly Identify the Change to be Made
4.Obtain Feedback and Buy-in from All Affected Stakeholders -
5.Revalidate Process Discipline, Data and Measuring Systems for
the Change
6.Train for the Change
7.Declare a Clean Line, and Execute the Change
8.Measure, Analyze, Improve and Control
 Scope of Operation Management
1.Forecasting
2.Capacity planning
3.Facility layout
4.Scheduling
5.Inventory Management
6.Quality assurance
7.Motivating and Training
Employees
 Operation Management and Decision Making
What: What resources will be needed, and in what amounts?
When: When will each resource be needed? When should the
work be scheduled?
When should materials and other supplies be ordered? When is
corrective action needed?
Where: Where will the work be done?
How: How will the product or service be designed? How will the
work be done (organization, methods, equipment)? How will
resources be allocated?
Who: Who will do the work?
THANK YOU