Theories of Operations:
Theories of operations refer to a strategy use to build the highest level of efficiency in an organization. The ability to convert materials and labor into goods and services in the most efficient way possible will be able to maximize profits.
Operations management involves specific responsibilities:
Ensuring the business operates efficiently
Managing the process to convert raw materials, labor, and energy to goods and services.
Exhibiting effective interpersonal communication and conflict-negotiation skills
Demonstrating rational analysis and critical thinking skills
Possessing and utilizing technological knowledge
Operations Management:
Operations management is the controlling of the process of production and operations
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Principles of Total Quality Management
Focus on customer: When using TQM it is important to always remember that the level of quality will be determined by the customers
Whatever efforts are made with respect to training employees or improving processes, only customers determine.
Employee involvement: Employees are an organization’s internal customers. Employee involvement in the development of products or services of an organization largely determines the quality of these products or services.
Process centered: Processes are the guiding principle and people support these processes based on basis objectives that are linked to the mission, vision and strategy.
Integrated system: it is important to have an integrated organization system that can be modeled for example ISO 9000 or a company quality system for the understanding and handling of the quality of the products or services of an organization.
Strategic and systematic approach: A strategic plan must embrace the integration and quality development and the development or services of an
Berry, L. L. (2000). Cultivating service brand equity. Journal of the Academy of Marketing Science, 28(1), 128-137. Retrieved from http://link.springer.com/article/10.1177/0092070300281012
Total quality management is a management philosophy aimed at continuous growth in quality improvement of products, processes and services to achieve and surpass quality standards. It consists of strategic planning, organizing and implementing each process activity and of removing all the wasted effort and energy that is routinely spent. It is a methodology of strategic overview of quality and focus on prevention not detection of problems.
Total quality management can be defined as a system of management that is based on the principle that every staff member needs to be committed to maintaining standards of work in every aspect of a company’s operations. This form of management is done in order to make sure that the entire organization can excel as a whole when it comes to the products or services that are important to the customer. Subsequently, this form of management has two fundamental operational goals. These goals are; careful design of the product or service, and ensuring that the organizations systems can produce the design at a consistent rate. What makes these two goals so important is the fact that they cannot be accomplished without the entire organizations unity. Furthermore this is how the term total quality management, was established.
Successful companies who are focusing on customers’ loyalty. To identify customers’ satisfaction, there should be surveyed to analyze the strengths and weaknesses in performance, and develop scenarios for development and renewal. Customers satisfaction measurement focus usually on "how" services because product quantity easily measured and analyzed and is evidence of achievement and success of the organization. Therefore, senior executives are keen to highlight the quantitative achievements. But under the concept of Total Quality Management Principles (TQM), it has become more focused on quality rather than quantity of service. Thus, to measure customer satisfaction, there is two aspects, which they are quality and quantity and that what
In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work” (ASQ, 2016). TQM can be used based off eight (8) key elements that most if not all companies use. The key elements are customer-focused, total employee involvement, process-centered, integrated system, strategic and systematic approach, fact-based decision making and lastly communication. The first element of TQM is the most important element, which is the customer.
The purpose of these marketing strategy is to strengthen the customer relationship by value creation. Based on the TQM approach, quality is maintain along the whole process to gain customer satisfaction. The TQM philosophy focuses on relationship-based marketing which can lead to customer satisfaction (Christopher et al., 1991). Customer satisfaction happens when an organization create value in their services.
To compete now a day’s competitive environment companies have to take a look on customer satisfaction as a high priority because they now a days demands improved products in quality, cost and reliability. And these are the key factors on which the organization must focus on and to consider those key factors, organizations must adopt new approaches of management to gain the satisfaction of customer. We can examine every item in the figure shown below.
Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers. This function is at the heart of all organizations, giving the means of achieving their aims and reason for their existence. These activities include: managing purchases, inventory control, quality control, storage and logistics. A great deal of focus in operations is on efficiency and effectiveness of such a process.
First, it is essential to decompose the concept “Total Quality Management” to clearly understand its goal: “Total” goes for the fact that quality involves everyone and all activities in the company, “Quality” means conformance to Requirements “ Meeting Customer Requirements” and “Management” because Quality can and must be managed. 2 The TQM model is based on the hypothesis that a company’s survival is only possible if a competitive level is achieved and maintained for each of the so called «6 dimensions of quality»: • • • • • • Product & service quality On-time delivery Fair price Employees satisfaction Product & process safety Environment conservation.
Improving Quality means reducing bad quality and improving the work efficiency of the work in organisation. Company require to maintain the quality which is directly depending on the quality procedure followed by the employees and implemented by the management to improve overall product quality of a company.
The core responsibilities of operations managers tend to be similar across many industries. The planning of various company operations and activities is another major concern of the operations manager. Operations managers tend to determine which products are bought and sold, what prices they are bought or sold for and to whom they will be marketed. The operations manager also helps plan and coordinate activities between various departments such as determining what types of sales promotions the company will engage in. (Chron.com) Operation managers add value to a company’s products or services by ensuring that business operations are efficient in terms of using as few resources as needed, and effective in terms of meeting customer requirements. An operations manager typically ensures smooth operation of various processes that contribute to the production of goods and services of an organization. (Buzzle.com)
Operations refers to the total management of the production, processes, from resources to transformation processes to outputs. A business must have an understanding of influences such as Globalisation, technology, quality expectations and Environmental Sustainability in order to achieve a advantage over its competitors.
The primary goal of the operations manager is creating happy and loyal customers. By effectively analyzing and managing their business's operations, they created the right products with the right features at the right
Within every company there is a customer, regardless of what your line of business is it is being done for the consumer albeit an external consumer or the internal consumer. The customer’s needs and expectations should be the driving force behind the decisions we make and the problems we solve…the customer, not our own personal or monetary gain. As quality improves we have to make sure that we are improving what matters to our customers not want we want to improve upon for own sake.