OPERATIONS MANAGEMENT

Dr Breno Nunes
PhD in Management,
MSc and BSc in Industrial Engineering
Agenda
• Session 1: Operations management definition
and scope
▫ Service/ manufacturing contrast
▫ Evolution of operations management
• Session 2: Modern view and trends of
operations management
• Session 3: Lean Management
• Session 4: Quality Management
• Session 5: Assignment
Modern quality management requires:
• Customer satisfaction

• Prefers prevention to inspection

• Recognizes management responsibility for

quality
• Quality has proved more difficult to define than
other operations concepts.
Quality definition from different
perspectives
• Manufacturing-based quality is ‘conformance
to requirements’, adhering to a design or
specification.

• Product-based quality is a precise and

measurable variable, and goods can be ranked
according to how they score on this measure
• Value-based quality is performance or
conformance at an acceptable price or cost.

• User-based quality ‘lies in the eye of the

beholder’, so that each person will have a different
idea of quality, based on its fitness for
use by the individual.

The term ‘fitness for use’ is associated with one of

the quality gurus, Joseph Juran (1951
• Transcendent quality is ‘innate excellence’ – an
absolute and universally recognizable high level
of achievement
Quality
• Quality inspection
• Quality control
• Quality assurance ( Shewhart statistical
methods)
• Quality as a management philosophy
• Excellence
Gurus of Quality
• Two of Shewart’s students, Joseph Juran and W.
E. Deming, helped develop quality from quality
control into quality management.

• Juran’s Quality Control Handbook, written in

1951, provided the most comprehensive
reference to quality, and is still used today.
Quality trilogy (Juran, 1988)
• Quality planning
• Quality control
• Quality improvement
Deming
• In particular, in 1950 Deming was invited by the
Japanese government to give a series of lectures
on quality control.

• Deming believed that variation was the major

cause of poor quality, and thus reducing
variability in manufacturing would improve
quality.
Deming (1986) summarized his
thinking about quality in his famous Fourteen Points for improving
quality and productivity:

1 Create constancy of purpose for improvement

2 Adopt new philosophy
3 Cease dependence on inspection
4 End awarding business on price alone
5 Improve constantly the system of production
and service
6 Institute training on the job
7 Institute leadership
8 Drive out fear
9 Break down barriers between departments
10 Eliminate slogans and exhortations
11 Eliminate quotas or work standards
12 Give people pride in their job
13 Institute education and a self-improvement
programme
14 Put everyone to work to accomplish it.
Armand Feigenbaum
• Another American whose ideas became popular
in Japan was Armand Feigenbaum, who
proposed total quality control in 1956.

• This emphasized that quality was everyone’s

responsibility, rather than that of a specialized
department or a small group of people.
Timeline of Quality Management
Quality standards
• ISO 9001
• GMP
Excellence awards
• EFQM
• Malcolm Baldrige MBNQA
EFQM
TQM
1 Customer-driven quality
2 Leadership
3 Employee involvement
4 Continuous improvement.
Standardization & Quality
End