Total Quality Management (TQM) is a management philosophy that supports the process of continuous improvement within an organization and where total emphasis is placed on the customer. In the socioeconomic viewpoint, TQM defines the customer as all members of society and facets of environment that interact with the activities of the company. TQM is also defined as a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. The goal of TQM philosophy is – “Do the right things right the first time, every time.” One of the principal aims of TQM is to limit errors to 1 per 1 million units produced. Total Quality Management (TQM) is a significant advance over traditional Quality Control (QC) programs. Traditional QC concerns itself with the number of final items found defective, replacing them with good items, or else negotiating the predicted failures into a supply Continue reading
Operations Management
Just-In-Time (JIT) Method – Eliminate Waste and Improve Productivity
Just-in-time or JIT means producing goods and services exactly when they are needed, like for example a new company opens that is producing steering shaft for automobiles. The company, under the JIT system, will set up the machines to produce the jobs in a row from those who collect the metals at one end, all of the way to those who ship the product at the other end of the factory. The people at each station, as they receive the product, take the job order, perform their duties on the product, and then transfer the product out to the next station after their work is completed. Along the way, the product is screened for infirmities, and if they exist, the line is stopped until the defect is repaired. In the end, the shipping agent will receive the product and ship it to the customer. All along Continue reading
5S – Japanese Concept of Workplace Improvement
What is 5S Concept? Simply put, 5S is a method/Japanese concept for organizing a workplace, especially a shared workplace (like a shop floor or an office space). It’s sometimes referred to as a housekeeping methodology, however this characterization can be misleading because organizing a workplace goes beyond housekeeping (see discussion of “Seiton” below). The key targets of 5S concept are workplace morale and efficiency. The assertion of 5S is, by assigning everything a location, time is not wasted by looking for things. Additionally, it is quickly obvious when something is missing from its designated location. 5S advocates believe the benefits of this methodology come from deciding what should be kept, where it should be kept, and how it should be stored. This decision making process should lead to a dialog which can build a clear understanding, between employees, of how work should be done. It also instills ownership of the Continue reading
Criteria for a Good Layout
The layout of a plant or facility is concerned with the physical placement of resources such as equipment and storage facilities, which should be designed to facilitate the efficient flow of customers or materials through the manufacturing or service system. The layout design is very important and should be taken very seriously as it can have a significant impact on the cost and efficiency of an operation and can involve substantial investment in time and money. The decisions taken with regards to the facility layout will have a direct influence on how efficiently workers will be able to carry out their jobs, how much and how fast goods can be produced, how difficult it is to automate a system, and how the system in place would be able to respond to any changes with regards to product or service design, product mix, or demand volume. In many operations the installation Continue reading
Method Study Procedure
Method study is the systematic recording and critical examination of existing and proposed ways of doing work, as a means of developing and applying easier and more effective methods and reducing costs. So it is the process of analyzing the methods involved in work flow to increase productivity. It deals with doing the work in a better way, with less time and effort. That is why it is also termed as work simplification. Method study procedure is an organized approach and its investigation rests on the following six basic steps: Select the work to be analyzed. Record all facts relating to the existing method. Examine the recorded facts critically but impartially. Develop the most economical method commensurate with plant requirements Install the new method as standard practice. Maintain the new method. The above basic method study procedure was first developed and articulated by Russell Currie at Imperial Chemical Industries (ICI). Continue reading
Receiving and Shipping Function of Materials Management
The principal function of receiving and shipping include deliveries of inbound and outbound freight, inspection, and transfer to and from storage. Efficient processing of materials at these points is essential for effective stock control, production, and customer satisfaction. Receiving takes delivery of inbound shipments and releases and materials to inventory. The major responsibilities include: Control and scheduling of deliveries. Accurate checking and recording of shipments received. Preparation for handling and storage. Whenever possible, deliveries should be scheduled to balance the workload throughout the day. For instance, deliveries from local vendors should be requested for the morning hours so that sufficient personnel and equipment are available for processing outbound shipments, which normally peak later in the day. To plan for receiving activities, supervisors should review information due in from purchase orders, bills of lading, or vendor notices of shipment to determine approximate dates of arrival. This enables Continue reading