Prepared by

Jc Noel C. Fermano

In collaboration with
Justin Ross Alesna
Rizza Krystelle Balba
Christian Philip Lozano
Operations Management
Quality Management and International Standards
Quality and Strategy
Quality is a term that means different things to
different people.
Quality is defined as the totality of features and
characteristics of a product or service that bears
ability to satisfy stated or implied needs.
Quality requires building a total quality
management(TQM) environment because quality
cannot be inspected into a product.
Defining Quality
Operations managers objective is to build a total
quality management system that identifies and
satisfies customer needs.
American Society for Quality: The totality of
features and characteristics of a product or
service that bears the ability to satisfy stated or
implied needs.
Others define quality from: user based,
manufacturing based, and product based.

Defining Quality
Implications of Quality
Company Reputation
Product Liability
Global implication
Defining Quality
Malcolm Baldridge National Quality Award
Award conferred to quality achievements that was
established by the U.S.
Named after former Secretary of Commerce
Malcolm Baldridge.
Defining Quality
ISO 9000 International Quality Standards
Quality standard with international recognition.
Focuses to enhance success through eight
quality management principles namely: top
management leadership, customer satisfaction,
continual improvement, involvement of people,
process analysis, use of data-driven decision
making, a systems approach, and mutually
beneficial supplier relationship.
Defining Quality
Cost of Quality
Prevention costs
Appraisal costs
Internal failure costs
External failure costs
Defining Quality
Ethics and Quality Management
One of the most important jobs is to deliver
healthy, safe, and quality products and services to
customers.
Total Quality Management
Total Quality Management(TQM) refers to a
quality emphasis that encompasses the entire
organization, from supplier to customer.

Total Quality Management
Continuous Improvement
TQM requires a never-ending process of
continuous improvement that covers people,
equipment, suppliers, and procedures.
Plan-Do-Check-Act
Total Quality Management
Six Sigma
Has two meanings in TQM: statistical and
program.
Developed by Motorola in the 1980s in response
to customer complaints about its products about
its products and in response to stiff competition.
Total Quality Management
Employee Empowerment
Involving employees in every step of the
production process.
Techniques include:
1. building communication networks that include
employees.
2. developing open and supportive supervisors.
3. moving responsibility from both managers and
staff to production employees.
4. building high-morale organizations; and
5. creating such formal organization structures as
teams and quality circles.
Total Quality Management
Benchmarking
Involves selecting a demonstrated standard of
products, services, costs, or practices that
represent the very best performance for
processes or activities very similar to your own.
Total Quality Management
Just-In-Time (JIT)
JIT systems are designed to produce or deliver
goods just as they are needed. JIT is related to
quality in three ways:
1. JIT cuts the cost of quality
2. JIT improves quality
3. Better quality means less inventory and a better,
easier-to-employ JIT system
Total Quality Management
Taguchi Concepts
Conceptualized by Genichi Taguchi.
Composed of concepts aimed at improving both
product and process quality, namely:
1. Quality robustness
2. Quality loss function
3. Target-oriented quality
Total Quality Management
Knowledge of TQM Tools
Composed of the following:
A. Tools for Generating Ideas
1. Check Sheet
2. Scatter Diagram
3. Cause-and-Effect diagram
B. Tools for Organizing the Data
1. Pareto Chart
2. Flowchart
C. Tools for Identifying Problems
1. Histogram
2. Statistical Process Control Chart
Tools of TQM
Check Sheets
Tools of TQM
Scatter Diagrams
Tools of TQM
Cause-and-Effect Diagrams
Tools of TQM
Pareto Charts
Tools of TQM
Flowcharts
Tools of TQM
Histograms
Tools of TQM
Statistical Process Control (SPC)
The Role of Inspection
When and Where to Inspect
Depends on the type of process and the value
added at each stage.
Inspections can take place at any of the following
points:
1. At your suppliers plant while the supplier is
producing.
2. At your facility upon receipt of goods from your
supplier.
3. Before costly or irreversible processes.
4. During the step-by-step production process.
5. When production or service is complete.
6. Before delivery to your customer.
7. At the point of customer contact.
The Role of Inspection
Source Inspection
Controlling or monitoring at the point of
production or purchase at the source.
Inspection may be assisted by the use of controls
and fail-safe device poka-yoke. (JPN: foolproof)
The Role of Inspection
Service Industry Inspection
In service-oriented organizations, inspection
points can be assigned at a wide range of
locations.
Operations Manager must decide where
inspections are justified and may find the seven
tools of TQM useful in making these judgements.
The Role of Inspection
Inspection of Attributes versus Variables
Qualities may be measured as either attributes or
variables.
Attribute Inspection classifies items as being
either good or defective without assessing the
degree of failure.
Variable Inspection measures dimensions to
see if an item falls within an acceptable range.
TQM in Services
TQM in Services
Determinants of Service Quality
1. Reliability
2. Responsiveness
3. Access
4. Communication
5. Credibility
6. Security
7. Understanding/Knowing the customer
8. Tangibles