Total Quality Management (TQM)

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Total Quality Management (TQM)

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Total Quality Management (TQM)

  1. 1. Managing Operations Orlando A. Moreno omoreno@hotmail.com 408.656.2498 Orlando Moreno
  2. 2. Operations Management Definition Operations management may be defined as the operation, and improvement of the production system that creates the firm’s primary products and services for its customers.... 2 408.656.2498 Orlando Moreno
  3. 3. Operations Strategy and Competitiveness Operations Strategy A Framework for Operations Strategy in México Operations Strategy for Integration Meeting the Competitive Challenge Productivity Measurement 3 408.656.2498 Orlando Moreno
  4. 4. Operations Strategy Customer Needs Corporate Strategy Alignment Operations Strategy Core Competencies Decisions Processes, Infrastructure, and Capabilities 4 408.656.2498 Orlando Moreno
  5. 5. Operations Priorities Controlling Cost Ensure Quality Delivery Flexibility Delivery Speed Delivery Reliability Coping with Changes in Demand Flexibility and New Product Introduction 5 408.656.2498 Orlando Moreno
  6. 6. Operations Decision Making Marketplace Corporate Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Services & People Partners VARs Processes Products & Customers Services Planning and Control Input Output Production System 6 408.656.2498 Orlando Moreno
  7. 7. A Framework for Operations Strategy Customer Needs Strategic Vision New and Current Products Performance Priorities and Requirements Quality, Dependability, Speed, Flexibility, and Price Enterprise Capabilities Operations & Supplier Capabilities Technology Systems People R&D IT TQM Distribution Support Platforms Financial Management Human Resource Management Information Management 7 408.656.2498 Orlando Moreno
  8. 8. Operation’s Role in Corporate Strategy  Stage I--Internally Neutral Minimize negative potential Management control systems  Stage II--Externally Neutral Achieve parity with Integration Partners Follow industry practice  Stage III--Internally Supportive Support the business strategy  Stage IV-- Externally Supportive Manufacturing-based competitive advantage 8 408.656.2498 Orlando Moreno
  9. 9. Productivity Partial measures output/(single input) Multi-factor measures output/(multiple inputs) Outputs Productivi ty = Total measure Inputs output/(total inputs) 9 408.656.2498 Orlando Moreno
  10. 10. Total Quality Management (TQM) PRODUCT PROCESS Management consists of: • planning, • organizing, ORGANIZATION • directing, • control, and • assurance LEADERSHIP COMMITMENT "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." ISO 8402:1994 10 408.656.2498 Orlando Moreno
  11. 11. THE FIVE PILLARS OF TQM Product is the focal point for organization purpose and achievement. Quality in the product is impossible without quality in the process. Quality in the process is impossible without the right organization. The right organization is meaningless without the proper leadership. Strong, bottom-up commitment is the support pillar for all the rest. Each pillar depends upon the other four, and if one is weak all are. 11 408.656.2498 Orlando Moreno
  12. 12. The structure is based on TEAMS not FUNCTIONS. CENTRALIZED APPROACH DECENTRALIZED APPROACH FUNCTIONS INPUTS TEAMS OUTPUTS MANAGERSHIP LEADERSHIP JOB PRODUCT 12 408.656.2498 Orlando Moreno
  13. 13. •The supervisory focus is centered on OUTPUTS not INPUTS. •The work accomplishment mindset is on the team PRODUCT , not on each person’s JOB. •This decentralized orientation affects every aspect of the management system operation and interaction, not only the structure, but the human spirit and the human system aspects into full account. In fact it is based on them. •Its great and proven strength lies in the creation of new motivation and commitment among all employees and of proactive leadership from the bottom up 13 408.656.2498 Orlando Moreno
  14. 14. Orlando Moreno omoreno@hotmail.com 408.656.2498 14 408.656.2498 Orlando Moreno

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