Introduction to Operations Management and Total Quality Management (BM2408 Handout 1)

Vocabulary flashcards covering key terms from the notes on operations management and total quality management.

Traditional Definition of Operations Management

Overseeing the production of goods and services within an organization, focusing on efficiency and effective use of resources; emphasizes control and optimization of processes to meet production goals.

Modern Definition of Operations Management

Strategic management of processes involved in creating and delivering goods and services; integrates technology, data analysis, and cross-functional collaboration; emphasizes flexibility, adaptability, and customer-centricity.

Capacity Planning

Determining the production capacity needed to meet demand, including how many workers and machines are required; example: Toyota forecasting capacity for a new model.

Quality Management

Ensuring products or services meet desired quality standards through quality control measures to maintain consistency (e.g., Starbucks across outlets).

Inventory Management

Overseeing movement of goods and optimizing stock levels to meet demand while minimizing holding costs; example: Jollibee’s just-in-time inventory.

Supply Chain Management

Coordinating sourcing, procurement, conversion, and logistics; example: Amazon uses advanced technology and a robust logistics network.

Process Design and Improvement

Designing and improving production processes to enhance efficiency and productivity; example: McDonald’s standardized procedures and automation.

Facility Layout and Design

Arranging facilities to maximize efficiency and streamline movement; example: efficient layouts in DHL, J&T, and F2 Cargo warehouses.

Scheduling

Planning and managing the timing and sequencing of operations; example: airlines coordinating flights to maximize aircraft utilization.

Maintenance Management

Ensuring equipment and facilities are maintained to avoid downtime; example: preventive maintenance programs by Meralco and Manila Water.

Risk Management

Identifying and mitigating operational risks to ensure continuity; example: financial institutions protecting against fraud and cyber threats.

Waste Management

Maximizing value while minimizing waste; example: Apple applying lean principles to reduce inventory and lead times.

Customer Satisfaction

Products/services meet or exceed customer expectations; processes adapt to changing demands, leading to loyalty and competitive edge.

Utilization of Resources

Efficient use of labor, materials, and equipment to optimize productivity and minimize waste; example: SM Department Store real-time inventory tracking and energy efficiency.

Profit Maximization

Identifying and eliminating inefficiencies to reduce costs and increase revenue; example: automation in clothing manufacturing reduces labor costs.

Quality (Besterfield Definition)

Benchmark of excellence; meeting and surpassing customer expectations; encompasses the entire process from raw materials to delivery, tied to reliability, durability, performance, and satisfaction.

Total Quality Management (TQM)

Comprehensive management approach to enhance quality; involves employees in continuous quality improvement; sets benchmarks, monitors performance, analyzes data, and implements corrective actions.

Deming Cycle (PDCA)

Plan-Do-Check-Act; a continuous improvement model for problem solving and change management.

Quality Trilogy (Juran)

Quality planning, quality control, and quality improvement; emphasizes structured, ongoing quality management.

Pareto Principle

80/20 rule: a small number of causes account for the majority of problems.

Zero-Defects Philosophy

Crosby’s approach: do it right the first time; focus on prevention and a quality improvement process.

Fishbone Diagram (Ishikawa)

Root-cause analysis tool that categorizes causes into people, processes, materials, equipment, environment.

Loss Function (Taguchi)

Concept minimizing variability to reduce quality loss over the product lifecycle; supports robust design.

SMED (Single-Minute Exchange of Die)

Technique to dramatically reduce machine changeover time to improve flexibility and productivity.

Lean Manufacturing

Philosophy and set of practices aimed at eliminating waste and continuously improving processes.

Six Sigma

Data-driven quality improvement methodology focused on reducing defects and process variation (DMAIC/DM ADV).