This presentation was the part of my final assignment for the Course of Operational Management.

1. Quality and Operational
Excellence

2. TOPICS TO BE COVERED
• What is Quality ?
• What is Operational Excellence ?
• Core Principles Of Operational Excellence.
• Cost Of Quality.
• TQM.
• Six Sigma.
• Quality Assurance.
• Quality Control.
• ISO.
• Technology and Operational Excellence.

3. What can Good quality do?
 Raise Company Reputation
 Rationalize Premium Prices
 Increase Productivity
 Increase Customer Loyalty
 Increase Customer Satisfaction

4. What is Quality?
 Quality refers to the ability of a product or service to consistently meet or
exceed customer requirements or expectations. Different customers will
have different expectations, so a working definition of quality is customer-
dependent.
 Having good quality is a competitive advantage against others who offer
similar products or services in the marketplace.

5. What is Operational Excellence?
 There are three distinct value propositions or disciplines an organization can
choose to compete in their market or industry - Operational Excellence,
Product Leadership, and Customer Intimacy.
 Operational excellence is process of ongoing improvement in an
organization by focusing on the customers' needs, keeping the employees
positive and empowered, and continually improving the current activities in
the workplace, in other words, QUALITY.
 Organizations pursuing an Operational Excellence differentiation strategy
are able to deliver a combination of price, quality, and ease of purchase
and service that no other organization in their market or industry can
match.

6. Core Principles Of Operational Excellence
 Respect every individual
 Lead with humility
 Seek perfection
 Assure quality at the source
 Flow and pull value
 Embrace scientific thinking
 Focus on process
 Think systemically
 Create constancy of purpose
 Create value for the customer

7. Total Quality Management
 Total quality management (TQM) is a philosophy that involves everyone in
the organization in a continual effort to improve quality and achieve
customer satisfaction. This philosophy concentrates on continuous
improvement and quality at the source. Continuous improvement and
quality are the essence of operational excellence.

8. Total Quality Management
 To be successful implementing TQM, an organization must concentrate on the e
ight key elements:
 1. Ethics
 2. Integrity
 3. Trust
 4. Training
 5. Teamwork
 6. Leadership
 7. Recognition
 8. Communication

9. Quality Control
 A process through which a business seeks to ensure that product quality is
maintained or improved and manufacturing errors are reduced or
eliminated. Quality control requires the business to create an environment
in which both management and employees strive for perfection. This is
done by training personnel, creating benchmarks for product quality, and
testing products to check for statistically significant variations.
 A major aspect of quality control is the establishment of well-defined
controls. These controls help standardize both production and reactions to
quality issues. Limiting room for error by specifying which production
activities are to be completed by which personnel reduces the chance
that employees will be involved in tasks for which they do not have
adequate training.

10. Quality Assurance
 Quality assurance (QA) is a way of preventing mistakes or defects in
manufactured products and avoiding problems when delivering solutions
or services to customers; which ISO 9000 defines as part of quality
management focused on providing confidence that quality requirements
will be fulfilled.
 QA is applied to physical products in pre-production to verify what will be
made meets specifications and requirements, and during manufacturing
production runs by validating lot samples meet specified quality controls.
 Two principles included in quality assurance are: "Fit for
purpose" (the product should be suitable forthe intended purpose);
and "right first time" (mistakes should be eliminated).

11. Six Sigma
 Six Sigma is a disciplined, data-driven approach and methodology for
eliminating defects (driving toward six standard deviations between the mean
and the nearest specification limit) in any process – from manufacturing to
transactional and from product to service.
 The fundamental objective of the Six Sigma methodology is the implementation
of a measurement-based strategy that focuses on process improvement and
variation reduction through the application of Six Sigma improvement projects.
This is accomplished through the use of two Six Sigma sub-methodologies:
DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze,
improve, control) is an improvement system for existing processes falling below
specification and looking for incremental improvement. The Six Sigma DMADV
process (define, measure, analyze, design, verify) is an improvement system
used to develop new processes or products at Six Sigma quality levels.

12. What is a standard?
 A standard is a document that provides requirements, specifications,
guidelines or characteristics that can be used consistently to ensure that
materials, products, processes and services are fit for their purpose. We
published over 19 500 International Standards that can be purchased from
the ISO store or from our members

13. The ISO 9000
 The ISO 9000 family addresses various aspects of quality management and
contains some of ISO’s best known standards. The standards provide
guidance and tools for companies and organizations who want to ensure
that their products and services consistently meet customer’s requirements,
and that quality is consistently improved.
 ISO 9001:2008 - sets out the requirements of a quality management system
 ISO 9000:2005 - covers the basic concepts and language
 ISO 9004:2009 - focuses on how to make a quality management system
more efficient and effective
 ISO 19011:2011 - sets out guidance on internal and external audits of quality
management systems.

14. Technology and Operational Excellence
 A business can use technology in the following ways:
 In production
 In design
 In automated stock control
 In provision of services
 In communication
 In data collection
 E-commerce
 Recruitment

15. Technology and Operational Excellence
Computer-aided manufacturing (CAM)
CAM involves using robots in the production line. In addition, it involves
using computers in a variety of manufacturing tasks beyond the use of robots,
such as stock control and ordering stock.’
Computer-aided design (CAD)
‘CAD enables designers and draughtsman to store, retrieve and modify their
work using multi-dimensional images.’

16. Thank You