Republic of the Philippines

GUIMARAS STATE COLLEGE

Mc Lain, Buenavista, Guimaras

MODULE 2
FIRST SEMESTER A.Y 2022-2023

PREPARED BY: INSTR. JANICE M. CHAVEZ

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 Republic of the Philippines
GUIMARAS STATE COLLEGE
Mc Lain, Buenavista, Guimaras

Course Title: Total Quality Management

Module 2: Strategic Dimensions of Quality and Gurus of Total Quality Management
Module Overview: This module discusses different strategic dimension of quality, involving
dimensions of product and service, and types of durability testing; identification
of philosophies of notable individuals who shaped the evolution of TWM.
Module Outcomes:

1. Identify the eight dimension of product quality

2. Name the five dimensions of service quality
3. Differentiate the dimensions of product and service quality.
4. Determine 3 types of durability testing
5. Acknowledge the contribution of Famous gurus in TQM.

Introduction

Quality is multidimensional. Product and service quality are comprised of a number of dimensions
which determine how customer requirements are achieved. Therefore, its essential that companies
consider the entire dimension that may be important to their customers. Evaluating all dimensions of
a product or service helps to determine how well the service is given against meeting the customer
requirements.

Eight Dimensions of Product Quality

1. Performance- (Will the product do the intended job?) consists of the primary operating
characteristics of a product.
For an automobile, performance would include traits like acceleration, handling, cruising
speed, and comfort; for a television set, performance means sound and picture clarity, and the
ability to receive distant stations.

2. Features- (What does the product do?) are added characteristics that boost the attraction of
the product or service to the user. They are all the qualities and characteristics of a product
like its size, shape, materials and its functionalities and capabilities. Examples of features
include free drinks on a plane, permanent-press cycles on a washing machine, and automatic
tuners on a color television set. Considers as the “bells and whistles of products and
services”.

3. Reliability- (How often does the product fail?) is the likelihood that a product will not fail
inside a particular time period. This is a key element for users who need the product to work
with no failures. This dimension reflects the likelihood of a product malfunctioning or failing
within a specified time period. For instance, farmers are especially sensitive to downtime
during the short harvest season.
Mean time between failures (MTBF)- is literally the average time elapsed from one failure to
the next.
MTBF= (Total UP Time)/ Number of breakdowns)
Failure rate- is the frequency with which a component fails, expressed in failures per unit of
time.
Failure rate= Number of fails/ number of units tested X total length of time.

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GUIMARAS STATE COLLEGE
Mc Lain, Buenavista, Guimaras

4. Conformance- (Is the product made exactly as the designer intended?) depicts to what extent
a product’s design and operating characteristics meet established standards. This dimension
owes the most to the traditional approaches to quality pioneered by experts like Juran. This
dimension may lead to “tolerance stack-up”.

5. Durability- (How long does the product last?) is a measure of how much use a person gets
from a product before it breaks down to such a point that replacement makes more sense than
a continual repair. It measures the length of a product’s life.

3 types of durability testing:

 Vibration testing- the vibration environment to which products will be exposed to in

real use is produced.

2 types of vibration testing:

Vibration experiment- used to test a sample or representative model of

volume production.
Vibration stress screening- all production products are tested to eliminate
faulty units and approved good units.

 Shock tests- replicates events to determine if structures can withstand sudden applied
forces. It is characterized by their short duration and sudden occurrence.
 Climate testing- materials can deteriorate over time, ageing prematurely due to either
high or low temperature extremes, while humid conditions may lead to condensation
which can be damaging to biological items, industrial products and others.

6. Serviceability- (How easy is it to repair a product?) involves the consumer’s ease of

obtaining repair service like access to service centers and/or ease of self-service, an
appointment and willingness of repair personnel to listen to the customer; and the reliability
of service like whether the service is performed right the first time.

7. Aesthetics- (What does the product look like?) means how a product looks like, feels,
sounds, tastes, or smells.

8. Perceived quality- (What is the reputation of the company or its product?) is the individual’s
subjective appraisal of product’s or service’s attributes; indirect measures may be their only
basis for comparing brands.

Dimensions of Service Quality

1. Tangibles- is associated to the environment in which the services is rendered to the
customers. This is the equivalent of physical characteristics of quality of goods.
2. Reliability- is the ability to perform the promised service dependably and accurately to
customers on specific service. It is all about what is promised about delivery, service
provision, problem resolutions and pricing, and what is delivered.

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GUIMARAS STATE COLLEGE
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3. Responsiveness- is the willingness to help customers and provide prompt service. This
dimension emphasizes attentiveness and promptness in dealing with customer’s requests,
questions, complaints and problems.
4. Assurance- an employee’s knowledge of courtesy and the ability of the firm and its
employees to inspire trust and confidence. This dimension of service quality is connected to
the competence of the service employee.
5. Empathy- a caring attitude that an organization provides toward customer. This dimension
calls for individual attention to customer, so as to make them feel exceptional and to show
the customer that the company does best to satisfy his needs.

Gurus of Total Quality Management

1. Dr. William Edwards Deming (14th October, 19200-20th December 1993)- often referred to
as the “ Father of Quality Control”. He is best known for initiating a transformation in the
Japanese manufacturing sector in the after effects of World War II, which enabled it to
become a big player in the world market. The Deming Prize, the highest award for quality in
Japan, is named in his honor. He is also known for his 14 points, for the Deming Chain
Reaction and for the Theory of Profound Knowledge. He also modified the Shewart PDSA
(plan, do, study, act).

Deming’s 7 Deadly Disease

 Lack of constancy of purpose to plan products and services that have a market
sufficient to keep the company in business and provide jobs.
 Stress on short-term profit; short-term thinking that is driven by a fear of unfriendly
takeover attempts and pressure from bankers and shareholders to generate dividends.
 Personal review systems for managers and management by objectives with no
methods or resources provided to achieve objectives; includes performance
evaluations, merit rating, and annual appraisals.
 Job-hopping by managers.
 Using only evident data and information in decision making with little or no
consideration given to what is unknown or cannot be known.
 Extreme medical costs.
 Too much costs of liability driven up by lawyers who work on contingency fees.

2. Phillip Crosby (18th June, 1962- 18th August, 2001)- came to national prominence with the
publication of his book “Quality is Free” in 1979. He established the absolutes of quality
management, which states that the only performance standard is zero defects and the basic
elements of improvement. Zero defects- is the heart to Crosby’s philosophy. He defines
quality as a means “conformance to requirements”.
Quality- must be defined in quantifiable and clearly stated terms to aid the organization take
action based on feasible targets, rather than experience, or opinions.

Crosby’s four absolutes of quality

 The definition- Quality is conformance to requirements, not goodness.
 The system- Prevention, not appraisal.
 The performance standard- Zero defects.
 The measurement- The price of non-conformance to requirements, not quality circles.

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GUIMARAS STATE COLLEGE
Mc Lain, Buenavista, Guimaras

14-step methodology of Crosby

1. Management commitment- to make clear the management’s position on quality.

2. Quality improvement team- to carry out the quality improvement program.
3. Quality measurement- to exhibit existing and possible non-conformance problems in the way
that permits objective evaluation and remedial action.
4. Cost of quality- to identify the components of the cost of quality, and give details on its
application as a management tool.
5. Quality awareness- to give a method of elevating individual concern among the personnel in
the company towards the conformance of the product and service, and the status of the
company on the subject of quality.
6. Corrective action- to offer a systematic method of deciding the problems recognized through
actions taken in the past.
7. Zero defects planning- to study the different activities that must be performed as groundwork
for officially initiating the zero defects program.
8. Supervisor training- to name the type of training that supervisors require to energetically
perform their roles with regard to the quality improvement program.
9. Zero defects day- to produce an event that will allow all employee appreciate, through a
personal experience, that there has been change.
10. Goal setting- to twist promises and commitments into action by persuading individuals to set
up improvement goals for themselves and their groups.
11. Error-cause removal- to offer individual employees a way of communicating to the
management, the situations that make it not easy for employees to fulfil the promise to
improve.
12. Recognition- to be thankful for those who contribute.
13. Quality councils- to bring collectively professionals in the realm of quality for planned
communication on a customary basis with the workforce and management alike.
14. Do it over again- to accentuate that the quality improvement program never ends.

Crosby claims that “mistakes are caused by two factors: lack of knowledge and lack of
attention”. Education and training can eradicate the first cause, and a personal commitment to
excellence (zero defects) and attention to detail will cure the second.

3. Dr. Joseph Moses Juran (24th December, 1904- 28th February, 2008)- he assisted the
Japanese in their reconstruction processes after World War II. He first became well-known in
the U.S. as the editor of the Quality Control Handbook (1951) and alter for his paper
introducing the quality trilogies which are quality planning, quality control and quality
improvement.
Juran defined quality as “fitness for use” and also developed the idea of cost of quality.
 Quality Planning- involves identifying the customer’s needs and expectations,
proposing products and services, setting goals, giving training, implementation of
projects, reporting, recognizing, and communicating outcome and improvements in
systems.
 Quality control- this concerns creating standards, naming measurements and methods
thereof, contrasting results with actual standards and construing the differences and
taking action on differences.

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GUIMARAS STATE COLLEGE
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 Quality improvement- the use of structured annual improvements projects and plans,
need of improvement, organizing to guide the projects, detecting the causes, giving
and verifying remedies and establishing control to keep up gains made.

Breakthrough activities or quality improvement

1. Breakthrough in attitudes- persuading those responsible that a change in quality level is

advantageous and practical;
2. Discovery of the vital few projects- determining which quality problem areas are essential;
3. Organizing for breakthrough in knowledge- defining the organizational system for attaining
the knowledge for accomplishing a breakthrough;
4. Formation of a steering arm- defining and staffing a system for directing the study for
quality management;
5. Formation of an investigative arm- defining and staffing a system for executing inquiry;
6. Diagnosis- collecting and examining the facts necessary and proposing the action desirable;
7. Breakthrough in cultural pattern- determining the effect of an anticipated change on the
people involved and looking for ways to rise above opposition to change;
8. Breakthrough in performance- getting agreement to take action;
9. Transition to the new level- implement the change.

4. Dr. Walter Andrew Shewart (18th March, 1891-11th March, 1967)- the “Grandfather of
Quality Control” was a giant among giants in the quality movement during the first half of
the 20th century. His mentoring of other engineers at Western Electric and his ground
breaking work with control charts arguably led a quality revolution and launched the quality
profession. He developed a Shewart cycle: Plan-Do-Study-Act (PDSA) to manage the effects
of variations.

5. Dr. Armand Feigenbaum (born in 1922)- is given the credit to the formation of the idea of
total quality control in his book Quality control- Principles, Practice and Administration
(1961) and in his article Total Quality Control (1956). The Japanese version of this concept is
called Company-wide Quality Control, while it is termed Total Quality Management (TQM)
in the United States and elsewhere. He was also the first to classify quality costs as costs of
prevention, appraisal and internal and external failures.

Feigenbaum’s Three Steps to Quality

 Quality leadership- is apparent when the management stresses on sound planning

rather than reacting to failures.
 Modern quality technology- the traditional quality development processes cannot
resolve 80%-90% of quality problems. This task involves integration of office staff
and apply latest techniques to satisfy customers in the future.
 Organizational commitment- continuous training and motivation of the whole
workforce as well as a combination of quality in business planning stage.

Feigenbaum’s 10 points on TQM

1. Quality is consciousness programmed not only a technical function.

2. Quality is not what an engineer or marketer says but it is what the customer speaks of.
3. Quality and cost are a sum, not differences.

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4. Quality must be organized to identify everybody’s job in the organization.

5. Quality is a technique of managing an organization. Good management means continuous
stress on the quality.
6. The quality improvement highlighting must take place all trough out all of the activities of
the organization.
7. Quality is realized through assistance and contribution of each and every person related to the
organization. It is also an ethic.
8. Continuous quality improvement needs extensive range of new and existing quality
technology of information applications.
9. Total quality program approach leads to productivity and is most effective and less capital
intensive.
10. Quality comes, if it is clear, customer oriented, effective and structured.

Feigenbaum defines quality as the “total composite product and service characteristics of
marketing, engineering, manufacture and maintenance through which the product and service in use
will meet the expectations of the customer”.

6. Prof. Kaoru Ishikawa (13th July, 1915- 16th April, 1989)- the “Father of Quality Circles” for
his role in launching Japan’s quality movement in 1960s. he is recognized with developing
the idea of company-wide quality control in Japan. He established the use of quality circles
and championed the use of quality tools to know the root causes of problems. He developed
one of those tools, the cause-and-effect diagram, which is also known at the Ishikawa
diagram or the fishbone diagram.
For Ishikawa quality is the “development, design, production and service of a product that is
most efficient, most helpful, and constantly acceptable to the consumer”.

7 basic tools were “indispensable for quality control”

1. Process flow chart

2. Check sheet
3. Histogram
4. Pareto chart
5. Cause-effect diagram (Ishikawa diagram)
6. Scatter diagram
7. Control chart

Ishikawa’s 6 fundamental principles

1. Quality first- not short-term profits first

2. Customer orientation- not producer orientation
3. The next step is your customer- breaking down the fence of sectionalism
4. Using facts and data to make presentations- use of statistical methods
5. Reverence for humanity as a management philosophy, full participatory management
6. Cross-functional management

7. Genichi Taguchi (1st January. 1924- 2nd June, 2012)- is a Japanese quality expert known for
his work in the area of product design. He estimated that 80% of all detective items are
caused by poor product design. He stressed that companies needed to center their quality

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efforts on the design stage, as it was much less expensive and easier to make changes during
this stage later in the production process. He is known for applying a concept called design of
experiments to product design.
Taguchi defines quality as the “loss imparted to the society from the time the product is
shipped”.

Taguchi’s 8 point approach

Determine the main functions, side effects and loss lodes.
Determine the noise factors and the testing conditions for evaluating failure of
quality.
Determine the quality characteristics to be observed and the objective functions to be
optimized.
Determine the control factors and their alternative levels.
Blueprint the matrix requirements and define the data analysis procedure.
Carry out the matrix.
Examine the data, identify optimum levels for the control factors and foresee
performance under these levels.
Perform the confirmation experiment and prepare future actions.

8. Dr. Shingo Shigeo – is the greatest contributor to modern manufacturing practices.

Shigeo’s teachings can be classified into 3 concepts

 Just In Time (JIT)- its manufacturing concept was originated in part due to the
contribution of Dr. Shingo Shigeo and Taichii Ohno of Toyota Motor Corporation
from 1949-1975. JIT is about supplying customers with what they want when
they want it. Its aim is to diminish inventories by producing only what is
necessary when it is necessary.
 Single Minute Exchange of Dies (SMED)- it is a system for speedy changeovers
between products. The target is to make simpler materials, machinery, processes
and skills to significantly decrease changeover times from hours to minutes.
 Zero Quality Control (ZQC)- the ZQC concepts are based on the theoretically
idea scenario.

9. Masaki Imai- the Founder and President of Kaizen Institute who threw the word
“KAIZEN”.
Kaizen- refers to continuous or on-going improvement in Japanese.

Kaizen is based on the following guiding principles:

1. Good processes carry good results
2. Go see for yourself to grab the present situation
3. Speak with data, direct by facts
4. Take action to contain and remedy root causes of problems
5. Work as a team
6. Kaizen is everyone’s business

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Operations management- is an area of management concerned with designing and controlling the
process of production and redesigning business
operations in the production of goods or services.

- is the administration of
business practices to create the highest level of
efficiency possible within an organization.

- is concerned with
converting materials and labor into goods and
services as efficiently as possible to maximize the
profit of an organization.

Goods- are physical items produced by business organizations.

Services- activities that provide some combination of time, form and psychological value.

Supply chain- a sequence of organizations-their facilities, functions, and activities- that are involved
in producing and delivering a product or service.

Value-added- the difference between the cost of inputs and the value or price of outputs.

Overview of Operations Management

The most complex types of operations management exist in the manufacturing industry. When
goods are manufactured, a lot of different steps go into the operation of the plant or company doing
the manufacturing. For example, parts must be ordered and purchased and delivered to employees;
employees must be hired, trained and supervised; and goods must be packaged and shipped or
distributed to resellers or end users. Within manufacturing, operations management involves taking
care of all these individual steps. Techniques such as total quality management, which involve
focusing on ensuring quality at each type of the production process, are used in order to successfully
manage such large and complex processes.

Operations management involves planning, organizing,

and supervising processes, and make necessary
improvements for higher profitability. The adjustments in
the everyday operations have to support the company’s
strategic goals, so they are preceded by deep analysis and
measurement of the current process.

What is Operations Management?

Operations Management- is about how organizations produce or deliver the goods and services
that provide the reason for their existence. Operations can be seen as one of many functions
(marketing, finance, personnel) within the organization.

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Operations function can be described as that part of the organization devoted to the production or
delivery of goods and services. This means all organizations undertake operations activities because
every organization produces goods/services.

Production- is a process of combining various material inputs and immaterial inputs in order to
make something for consumption. It is the act of creating output, a good or service which has value
and contributes to the utility of individuals.

Operations management is primarily concerned with three

kinds of technology:

 Product and service technology- refers to the

discovery and development of new products and services.
This is done mainly by researchers and engineers, who use the
scientific approach to develop new knowledge and translate
that into commercial applications.
 Process technology- refers to methods, procedures, and
equipment used to produce goods and provide services.
 Information technology (IT)- refers to the science and
use of computers and other electronic equipment to store, process, and send information. It is
heavily ingrained in today’s business operations. This includes electronic data processing, the
use of bar codes to identify and track goods, obtaining point-of-sale information, data
transmission, the Internet, e-commerce, e-mail and more,
Quality management- is a system for mapping, improving, and monitoring operations processes
like ISO systems and Six Sigma. These systems aim to increase the efficiency of business processes.

Six Sigma- a process for reducing costs,

improving quality and increasing customer
satisfaction.

Production of Goods versus Providing Business

Production of goods results in a tangible output, such as an

automobile, eyeglasses, a golf ball, a refrigerator—
anything that we can see or touch.

Delivery of service generally implies an act.

The majority of service jobs fall into these categories:

Professional services (financial, health care, legal)

Mass services (Internet, communications)
Service shops (tailoring, car wash, auto repair/maintenance)
Education (schools, universities)
Food service (catering)
Transportation (taxi, airlines, ambulance)

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Consider this points of comparison:

 Degree of customer contact. Many services involve a high degree of customer contact,
although services such as Internet providers, utilities, and mail service do not. When there is
a high degree of contact, the interaction between server and customer becomes a “moment of
truth” that will be judged by the customer every time the service occurs.
 Labor content of jobs. Services often have a higher degree of labor content than
manufacturing jobs do, although automated services are an exception.
 Uniformity of inputs. Service operations are often subject to a higher degree of variability
of inputs while manufacturing operations often have a greater ability to control the variability
of inputs, which leads to more-uniform job requirements.
 Measurement of productivity. It can be more difficult for service jobs due largely to the
high variations of inputs.
 Quality assurance. Is usually more challenging to services due to the higher variation in
input, and because delivery and consumption occur at the same time. Unlike manufacturing,
which typically occurs away from the customer and allows mistakes that are identified to be
corrected, services have less opportunity to avoid exposing the customer to mistakes.
 Inventory. Many services tend to involve less use of inventory than manufacturing
operations, so the costs of having inventory on hand are lower than they are for
manufacturing. However, unlike manufactured goods, services cannot be stored, instead, they
must be provided on demand.
 Wages. Manufacturing jobs are often well paid, and have less wage variation than service
jobs, which can range from highly paid professional services to minimum-wage workers.
 Ability to patent. Product designs are often easier to patent than service designs and some
services cannot be patented, making them easier for competitors to copy.

Finance and operations management personnel cooperate by exchanging information and

expertise in such activities as the following:

 Budgeting. Budgets must be periodically prepared to plan financial requirements. Budgets

must sometimes be adjusted, and performance relative to a budget must be evaluated.
 Economic analysis of investment proposals. Evaluation of alternative investments in plant
and equipment requires inputs from both operations and finance people.
 Provision of funds. The necessary funding of operations and the amount and timing of
funding can be important and even critical when funds are tight. Careful planning can help
avoid cash-flow problems.

Operations also interacts with other functional areas of the organization, which includes the
following:

 Legal. The legal department must be consulted on contracts with employees, customers,
suppliers, and transporters, as well as on liability and environmental; issues.
 Accounting. Accounting supplies information to management on costs of labor, materials,
and over-head, and may provide reports on items such as scrap, downtime, and inventories.
 Management information systems (MIS) is concerned with providing management with
the information it needs to effectively manage. This occurs mainly through designing
systems to capture relevant information and designing reports.
 Personnel/human resources. This department is concerned recruitment and training of
personnel, labor relations, contract negotiations, wage and salary administration, assisting in
manpower projections, and ensuring the health and safety of employees.

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GUIMARAS STATE COLLEGE
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 Public relations. Is responsible for building and maintaining a positive public image of the
organization. Good public relations provides many potential benefits like marketplace.

Process Management

Three categories of business processes:

 Upper-management processes. These govern the

operation of the entire organization including organizational
governance and organizational strategy.
 Operational processes. These are the core processes
that make up the value stream including purchasing, production
and/or service, marketing and sales.
 Supporting processes. These support the core
processes including accounting, human resources, and IT.

The Scope of Operations Management

The operations management is mostly concerned with the conversion of input to physical
resources that cater to the customer’s needs. They need to reach the effectiveness efficiency and
adaptability in an organization.

 Facility Location

The option of the venue is a crucial factor in the making of a plant and other facilities. The
inappropriate position of the plant can contribute to an incorrect location of the plant causing a
huge wastage of time, money, and resources. After this, the position of the plant focuses on the
growth of the business project. Moreover, it also centers on various other sectors. For instance,
strategy, commodity diversification program, shifting sources, raw materials, and a number of
other considerations.

 Material handling

Material handling refers to the ‘moving of materials from the storeroom to the machine and from
one machine to the next during manufacture.’ This activity is specialized for modern
manufacturing concern. Firstly, minimization of costs by proper segment and process. Secondly,
maintenance of facilities for treating goods. Thirdly, material handling facilities increases
performance, efficiency, and hence, speeds up distribution. And lastly, reduces the cost of
development and production. Stock management is also a prime concern in the construction of a
new plant and maintenance of current plants.

 Product design

Each company enterprise will plan, produce, and execute new products as a strategy for
sustainability and development. Developing and launching new products on the market is the
greatest challenge facing organizations. The whole cycle of recognition of the need for physical
processing of the goods requires three functions. Firstly, Branding and promotion. Secondly,
plant and creation. Lastly, manufacturing.

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Product design and creation offer a connection between marketing, consumer demands and
preferences. It also offers activities needed for the manufacture of the product.

 Process design

Product design and creation offer a connection between marketing and consumer demands and
preferences. The relevant decisions in the process design stand important. In addition, it evaluates
the workflow for transforming the raw material to the finished product. And in the end, to pick
the workstation for each one used in the workflow.

 Production Planning and Control

Planning and management of output is the planning process of pre-production. It specifies the
exact route of each object, fixes the starting and finishing dates for every product. In addition, it
also includes sending orders for output shops. It also tracks the production of goods according to
orders.

 Quality control

Quality Control is ‘a system that maintains a desired level of quality in a product or service’. It is
a systematic control of various factors that affect the quality of the product. Quality Control aims
at the prevention of defects at the source. It also relies on an effective feedback system and
corrective action procedure.

 Material and maintenance management

Materials Management is a big part of the management system. It includes the procurement,
control and usage of the materials required. Moreover, it also affects the distribution of products
and services concerning the manufacturing cycle. Equipment and machinery are a very important
part of the total productive effort. Hence, their idleness or downtime becomes very expensive.
This makes it very important that proper maintenance of the plant machinery takes place.

Strategies of Operations Management

An operations manager mostly functions as an engine to the company’s powerhouse. In
operations management many roles and functions are involved in the development of various
essential strategies and preparations that ensure the smooth implementation of duties and
responsibilities to rely on:

 Leveraging Data

Savvy and experienced operations managers mostly rely on the quality, accuracy, and reliable
data for planning, and creating strategic marketing and decision making. Efficiency and
effectiveness metrics are two types of data analysis that are commonly used.

 Controlling Data Challenges

Often the samples can be very broad and the findings can differ, rendering it impossible to
compare. However, with the aid of sophisticated tools and applications, administrators can view,
handle, and interpret data more effectively.

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 Analyzing Inventory

The product can be evaluated quite efficiently if the organization utilizes material control
programs and software. Moreover, this method would also make it easy for administrators to
categorize their goods (known as the ABC analysis).

 Designing Processes

Operations managers are working constantly to produce the best understanding, reliable forecasts
and correct implementation of efficient processes that are available at the moment. Both of these
measures will ultimately contribute to long-lasting progress.

 Forecasting and Setting Goals

Having objectives provides guidance and inspiration to the organization and its staff. Forecasting
offers optimism as well as an incentive for the business to brace for poor performance.
Forecasting includes precise and reliable historical details. Normally that takes a long time, but
this can be accomplished very simply and quite rapidly due to ERP tools.

 Collaboration Between Departments

Collaboration across helps in the smooth functioning to develop a business. It blends people of
accounting, distribution, marketing and human resources to work together. The ERP program
facilitates inter-departmental cooperation by supplying unified knowledge to all agencies,
allowing coordination to be simpler and clearer.

 Social Responsibility

Responsibility for the climate and also for the societies that enterprise impacts are the key issues
that an organization needs to resolve. This is particularly true of producers that sometimes
struggle with waste generation.

 HR Management

Managing workers is a very critical function in any business expansion because workers are the
foundation of the organization. Without such individuals, everyday market operations will stop.
Moreover, the organization may also not be able to manufacture high-quality products or
services.

Required skills

To perform in operations, the skills are

pretty diverse just like its functions. The
most important skills are:

 Organizational Abilities

Organizing procedures in an enterprise requires a range of expertise. It starts from planning to

creating goals for implementation as well as tracking. Together, these skills help the boss
maximize profitability and performance.

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 Analytic Capabilities/Understanding of the Process

The ability to comprehend processes in your expertise often includes a broad understanding of all
other functions. An eye for detail is often helpful in deepening the analysis and understanding.

 Coordination of Processes

For optimal performance, a heavy study and recognition of the system happens. Fast decision-
making is a major asset here, as is a strong emphasis on problem-solving.

 People Skills

Failures in communications with staff or representatives of senior management will significantly

hinder efficiency. This means that the manager of the project will have the expertise to properly
navigate the fine lines with their subordinates. Furthermore, the consistent coordination of goals
and priorities is a huge encouragement and a priority for all.

 Creativity

Again, problem-solving skills and techniques are vital to a modern approach if situations don’t go
in the proper direction. Creativity tends companies discover fresh avenues and companies boost
organizational efficiency as they start.

 Tech-savviness

It is important to upgrade and develop systems due to the rising era of technology. Familiarity
with technology is an ability that no one can overlook. Operations managers must acquaint
themselves with more prevalent innovations employed in their businesses. They need to provide a
much greater knowledge of the unique operational technology in their organizations.

Principles of Operations Management

There are ten principles followed in operations management which were first presented by
Randall Schaeffer. These are applied by operations managers to have a leading level of efficiency
and effectiveness. These principles were first presented in a regular speaker at conferences
organized by APICS, the leading association of supply chain and operations management in the
United States.

1. Reality

Operations managers in reality rely on challenges that occur which are dynamic in nature and not
on strategies, since there are no methods to offer standardized answers.

2. Organization

The industrial methods of production are interlinked. All components must be stable and reliable
in order to produce the same outcome in earnings and generate good revenue in the future.

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3. Fundamentals

Operations management should learn how to stick with all the fundamental rules, as that is the
secret to success in the manufacturing cycle. It is necessary to ensure that product records,
BOMs, and other general activities are correctly working in order to produce the required results.

4. Accountability

Managers are required to set down guidelines and targets to assess the roles of their employees
and periodically review how the goals are being accomplished. This is the only way that the
operations manager can do to extract the desired output from the workers.

5. Variance

Variance in procedures must be welcomed. This is due to the fact that variations may be a source
of innovation if properly handled. Also, they might lead to increased efficiency of the workers.

6. Causality

Sometimes, even though the strongest attempts are made, difficulties can always occur. Managers
ought to identify the root cause of the issue and so that things won’t get any worse, the things
may have triggered the same causes and issues and come again.

7. Managed Passion

Employee productivity can be the main factor affecting business success. Managers should be
willing to encourage and inspire their employees to be excited for jobs.

8. Humility

Sometimes everyone has to deal with an arrogant know-it-all. This is also necessary for
operations managers to view themselves as average citizens who do not know anything and who
may therefore make errors, just like any individual.

9. Success

Managers ought to be able to accurately identify what they find to be effective so that everyone in
the organization knows the guidelines to deal with in the course of meeting the goals.

10. Change

Everybody in the business must prepare to respond to developments in the industry. It involves
knowing the customers, the intended markets, and what they desire. It, of example, always
requires the usage of digital systems to ensure that the business is still a move ahead.

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Methods & Techniques Used in Operational Management

 Designing Processes

The foundation of operational management revolves around putting a set of processes in place to
ultimately improve your business’s bottom line. A process is an automatic system that a business
uses to address a specific problem. Processes offer small businesses a host of benefits including
saving time, eliminating problems and improving productivity.

While some processes are instinctively created, others require more planning to implement. To
develop processes in your business, you must first identify issues that happen regularly and take up
a lot of your employees’ time or issues that frustrate you. Then, create a well-defined plan to
alleviate the issue at hand. Finally, execute your plan over and over again until it becomes routine.

 Project Management

Successful operational management includes the use of project management techniques. Business
owners must continually make decisions regarding scheduling, work assignments and sequencing
of various projects or processes in the short-and-long-term confines of the business. Small
businesses can make use of a variety of project management tools or software to simplify the task
of managing projects.

When managing various projects within your business, there are four factors to consider: schedule,
financing, controls and evaluation. Each project completed in a business must be finished in a
limited time frame. Effective project management means ensuring that each individual component
of the project is completed in a timely manner so the project as a whole remains on schedule.
Additionally, a project’s manager must also track project costs using cost functions or a traditional
budget. To ensure your project stays on track and on-budget, controls are a necessity. Consider
controls that place a limit on spending among individual team members or setting milestones as
deadlines for each component of the project. And as the project wraps up, it is important to
evaluate the project as a whole and the controls within it to determine what aspects were a success
and areas where the team can improve.

 Continuous Improvement

The best organizational managers are never satisfied with their results. Instead, they always seek to
improve upon what they have done. The concept of continuous improvement is based on a
Japanese philosophy called Kaizen, which involves identifying benchmarks and allowing your
employees to take ownership of their improvements. A business’s processes can always be
improved upon, whether you seek to save additional time or increase revenue.

Long-term planning requires that you build upon the improvements achieved through your
operational management strategies. To create an environment of continuous improvement in your
business, instill a sense of employee involvement in all business processes, emphasize the
importance of teamwork throughout each process and encourage employees to develop a sense of
ownership of the business’s processes.

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References:
 https://www.investopedia.com/terms/o/operations-management.asp
 https://www.cheggindia.com/career-guidance/operations-management-definition-principles-
strategies/
 https://bizfluent.com/info-8237739-methods-techniques-used-operational-management.html
 Essential Learning, Operations Management: An Introductory Guide, Essential Learning
Canada, 2019
 Stevenson, William, J., Operations Management 13th edition, McGraw-Hill Education, 2018

 Prof. Angelita Ong Camilar Serrano, DBA, “Total Quality Management”, Unlimited
Books Library Services & Publishing House, 2016
 http://www.pinoy-ofw.com/news/36250-why-ofws-should-avoid-flying-cebu-pacific.html
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tqm#:~:text=Although%20several%20individuals%20(mentioned%20above,Juran%2C%20a
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