Operation Management is the study of how people organize themselves for productive enterprise .In order to be effective and efficient, an operation manager must possess a series of attitudes and skills to push his/her company forward to reach goals and objectives. Operation management consists of the four functions, that is, planning, organizing ,controlling and leading. These functions help in the analysis of the activities done by the organization.
Operation is also about creating goods and services and it is known as the transformation process which turns a range of inputs into the desired output (services) having the requisite quality level. Management is the process which makes the combination and transformation of various resources used in the operations scheme of the organization .If the same concept is extended to services management, then the
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TQM does not prescribe a number of steps that must be followed in order to achieve high quality but rather should be considered a framework within which organisations can work.
3.1.2.Just- In- Time
William J. Stevenson, in Production/Operations Management, defines the term just-in-time manufacturing as “a repetitive production system in which processing and movement of material and goods occurs just as they are needed,usually in small batches” (Stevenson, 1996). However, just-in-time (JIT) is more than an inventory system. JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste (Ptak, 1997)
3.1.3The Six Sigmas
Six sigma is a quality management approach that places heightenedmanagerial attention on customer satisfaction and on seeking businessprocess improvements.
Operations Management in an organisation is repsonsible for managing and in making decisions concerning the activities that convert inputs into outputs , that is goods and services. This covers both short term actvities as well as longer term activities to meet strategic goals. Inputs can be the raw materaials need to manufacture goods such as furniture or the computers needed to create a service like online shopping site. Operation management’s role is to make decisions to improve how operation activities function, for example, to improve the final quality of the output or to change production methods to be more efficient in terms of cost and in time.
Six Sigma improves the design, the original design business strategies, optimize satisfaction and minimize waste while increasing the financial stability or include monitoring the process of elimination.
Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimising variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organisation ("Black Belts", "Green Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organisation follows a defined sequence of steps and has quantified targets. These targets can be financial (cost reduction or profit increase) or whatever is critical to the customer of that process (cycle time, safety, delivery, etc.).
The TQM theory was elaborated by W. Edwards Deming to better the management of industrial units (Militaru et al, 2013). Contributors to the concept of TQM are people such as Deming (Anvari et al, 2011). Dr Deming considered quality and process improvement activities as the catalyst necessary to start an economic chain reaction. Improving quality leads to decreased costs, fewer mistakes, fewer delays, and better use of resources, which in turn leads to improved productivity, which enables a company to
This created great pressures on organizations and made them willing to create and innovate so that they can gain competitive advantage over their rivals in the world markets. Adding quality to the final products may be one element that attracts and satisfies the customers. However, elements there have been numerous elements or factors that started to occur in the management and organizational domains. These included TQM or Total quality Management and COQ or Cost Of Quality. These concepts and more became dominant aspects that required concentration from companies. TQM is not only a strategy to be applied; it is an approach of management that must prevail all over the whole organization. The practices of the TQM are essential to exist in the
TQM focuses on improving quality and performance to meet customers’ expectations and reduce waste in the business. TQM can help a company produce goods at lower cost while delivering good quality products that achieve customers’ satisfactions to compete with other companies.
Operations Management explores the way organizations produce and distribute goods and services. Everything you wear, eat, sit on, use or read comes to you courtesy of the
Six Sigma is defined as highly controlled and well-ordered process to focus on developing and delivering perfect products and services .
Management is defined as organization of activities so that something can be achieved and objective is met. On the other hand, operations are defined as job tasks which consists of more than one task where the task is performed in one place (businessdictionary.com, 2018). So therefore, management operation shows the way of how those tasks are managed and done.
Whereas, Six Sigma is a business management strategy which seeks to improve the quality of process outputs by reducing defects and minimizing variability in manufacturing and business processes. Using Six Sigma, a company can reaches to 99.99966% accuracy in manufacturing which is statistically expected to be free of defects. Many companies are now integrating TQM and Six Sigma to get maximum benefit. Using Six Sigma with TQM, it is possible to go through detailed data analysis for improvement and
TQM is an approach for continuously improving the quality of goods and services delivered through the participation of all levels and functions of the organization. TQM aims to do things right the first time, rather fix problems after they emerge or fester. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices.
In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. The methods for implementing this approach come from the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa, and Joseph M. Juran.
Operation Management is concerned with any productive activity, whether manufacturing or service, in public sector or private sector, profit making or not profit making. It is concerned with ensuring that operations are carried out both efficiently and effectively. All mangers are operations managers since all functions within an organization are, presumably, productive activates it goes without saying that all function should be carried out efficiently and effectively. However the operation function is the hear t of all manufacturing and service enterprises, and unless this core operation is carried out effectively there is little hope that organization as a whole will be effective. An understanding of
John Stark associates reports that "Many companies have difficulties in implementing Total Quality management Approach" According to the prestigious management consultant company, "Surveys by consulting firms have found that only 20-36% of companies that have undertaken TQM have achieved either significant or even tangible improvements in quality, productivity, competitiveness or financial return. As a result many people are skeptical about TQM. " (http://www.johnstark.com/fwtqm.html).
Numerous definitions have been given on Total Quality Management (TQM) by quality gurus, practitioners and academician. Besterfield defined TQM as both a philosophy and a set of guiding principles that represents the foundation of a continuously improving organization. It integrates fundamental management techniques, existing improvement efforts and technical tools under a disciplined approach (D.H. Besterfield, 1995). Using a three-word definition, Wilkinson and Wither defines TQM as below