Chapter 20 Total Quality Management

1
Chapter 20 Total Quality Management

• gurus of TQM
• Feigenbaum
• Deming
• Juran
• Ishikawa
• Taguchi
• Crosby
• the objectives of TQM are
• meeting needs and expectations of customers
• seeing things from customers point of view
• whole organisation understanding customer needs

Page 1 of 3
2
20 Total Quality Management

• covers all parts of the organisation
• concept of internal customer and supplier
• every person in the organisation contributes to
  quality
• beyond not making mistakes bring something
  positive to the job
• all costs of quality are considered
• prevention costs (design, training, SPC)
• appraisal costs (controlling quality)
• internal failure costs (scrap, rework)
• external failure costs (loss of customers)

Page 2 of 3
3
20 Total Quality Management

• designing in quality rather than inspecting it
• reduced costs
• proactive rather than reactive
• developing systems and procedures
• documentation (procedures, work instructions,
  specifications)
• developing continuous process of improvement

Page 3 of 3
4
Part Five The Operations Challenge

• Chapter 21 The Operations Challenge

5
Chapter 21 The Operations Challenge

• the strategic challenges of an operation
  include
• globalisation
• configuration strategies
• home country configuration
• regional configuration
• global coordinated configuration
• combined regional and global coordinated

Page 1 of 7
6
21 The Operations Challenge

• social responsibility
• application of ethics in decision making
• there are several groups to whom ethical duty is
  due
• customers
• staff
• suppliers
• community
• shareholders

Page 2 of 7
7
21 The Operations Challenge

• environmental responsibility
• environmental burden
• created by the totality of operations activities
• EB P x A x T
• to reduce EB
• P unfeasible to decrease
• A not favourable to decrease
• only T (creation of goods and services) can be
  optimised
• product and service design affects utilisation
  of materials in the short-term and long-term
  recyclability

P population size A affluence (consumption
measure) T technology
Page 3 of 7
8
21 The Operations Challenge

• technology
• technology is a source of competitive advantage
• increases automation
• improve decision making performance
• offer something different form the competitors
• sophisticated manipulation of customer-related
  data
• technology plays a role in decision areas
• product design
• layout of facilities
• planning and controlling

Page 4 of 7
9
21 The Operations Challenge

• knowledge management
• knowledge is the essential ingredient which
  makes a product
• embedded in the products design, creation and
  delivery
• information is data which has been analysed in
  terms of its context
• knowledge is information which is interpreted
  through a process of using judgement and values

Page 5 of 7
10
21 The Operations Challenge

• explicit knowledge
• is codified
• explained verbally, in writing
• found in formal documents, specifications
• implicit knowledge
• is built up over time as a result of experience
• is difficult to explain in words
• its result is skill and intuition

Page 6 of 7
11
21 The Operations Challenge

• knowledge creation inside the company can be
  explained using the concepts of explicit and
  tacit knowledge
• individuals acquire knowledge by moving between
  tacit and explicit knowledge in cycles

Page 7 of 7
12
Exam

• 75 of grade
• need to pass to pass the course
• details
• location Festia Iso Sali
• date May 9 (or May 16)
• time 9am till 12 noon
• 3 hours
• 3 sections

13
Exam

• section A
• 3, short answer questions (approx. 3 5
  sentences)
• choose from 5 alternatives
• testing ability to know terminology
• points 5 each
• eg. What is vertical integration and what are
  the 3 factors used to define it?
• section B
• 1, medium answer question (approx. 0.5 1 page)
• choose from 2 alternatives
• testing ability to understand course material
• points 20
• eg. List and define the steps involved in
  "quality planning and control".

14
Exam

• section C
• 1, long essay question (approx. 1 3 pages)
• choose from 2 alternatives
• testing ability to link parts of the course and
  use own ideas
• points 40
• eg. Explain the steps you would take to improve
  the operations for its dependability, if you
  would concentrate on "planning and control" in
  your operations (eg. capacity, supply chain, lean
  operations, etc.).