Meaning of Total Quality Management (TQM) Total quality management (TQM) is defined as “managing the entire organization so that it excels in all dimensions of products and services that are important to the customer.” As the definition states, this philosophy concentrates on quality as a primary component of the organization’s drive for competitive advantage. Marketing decision-making is directly effected by such a system because quality is a component of product/service design and can be an important decision-making criterion employed by potential buyers. The TQM model goes beyond product and service quality, however, and suggests that a highly structured system of management that emphasizes mechanisms like control and punitive action which stifles people and ultimately hinders an organization’s attempt to produce quality products and services. Rather, the organization that views all its employees as critical, creative resources will be much better able to pursue quality in every activity and through every Continue reading
Operations Management Techniques
Understanding Different Types of Supply Chain Risk
There have been many different definitions of supply chain risk, but it can be broadly defined as the variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective values. However, this definition has since been expanded upon to account for all the different departments and functions that operate within a supply chain. This leads to an overall definition of supply chain risk as any risks for the information, material and product flows from original supplier to the delivery of the final product for the end user. Simply put, supply chain risk refers to the probability of a risk event occurring the supply line and when the product goes on sale. Furthermore, risk sources are the predominant causes of risk events, which are the environmental, organizational or supply-chain variables which cannot be predicted with certainty and which impact on the supply chain outcome variables. Identifying Supply Chain Continue reading
Business Process Reengineering (BPR) and Total Quality Management (TQM)
Business Process Reengineering (BPR) Business process can be defined as a set of logically related tasks performed to achieve a defined business outcome. It is a structured, measured set of activities designed to produce a specified output for a particular customer or market. Improving business processes is important for businesses to stay ahead of competition in today’s marketplace. Over the last 10 to 15 years, companies have been forced to improve their business processes because customers are demanding better products and services. Many companies begin business process improvement with a continuous improvement model. The Business Process Reengineering (BPR) methodology comprises of developing business processes are simplified rather than being made more complex. Job descriptions expand and become multi-dimensional – people perform a broader range of tasks. People within the organization become empowered as opposed to being controlled. The emphasis moves away from the individual and towards the team’s achievements. The Continue reading
Role and Importance of Operations Management in an Organization
Operations Management is very important for managing large firms and running them successfully. Operation management is mainly related to production of goods and services in an organisation. The main purpose of the operations management is to run the business operations successfully, smoothly and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, labour to produce maximum output like products, goods and services. Operations Management is very crucial factor in order to increase company’s profit. Operations management is not only responsible for producing goods but also take control of distribution of services. Operations management plays a very crucial role in organisations as they produce professional managers which are capable of achieving organisation’s strategic goals in a defined period of time. Operations management is the heart of any organization as it controls the whole Continue reading
Inventory Management Techniques
The term inventory derives from the French word inventaire and the Latin word inventariom which simply means a list of things which are found. The term inventory includes materials which are in raw form, or are in process, in the finished packaging, spares and the others which are stocked in order to meet all the unexpected demands or distribution in the future. This term usually refers to the stock at hand at a particular period of time of all those materials which are in raw form, those goods which are in progress of manufacture, all the finished products, merchandise purchased products for resale of those products, tangible products which can be seen, touched, measured or are countable. In a connection with the financial statements and records of accounting, the reference may be to the amount assigned to the stock or the pile of goods owned by an enterprise at a Continue reading
Analyzing Toyota’s Recipe for Success – The Toyota Way
The fundamental reason for Toyota’s success in the global marketplace lies in the so called “Toyota way”. The Toyota Way is not only about technology and efficiency, it is about doing the right thing for the company, its employees, the customer and the society as a whole. In other words, the incredible success of the Toyota way is a direct result of operational excellence. Toyota has turned operational excellence into a strategic weapon. This operational excellence is only in part based on tools and quality improvement methods made famous by Toyota in the manufacturing world, such as JIT, Kaizen, and one-piece-flow. Although such techniques helped spawn the “lean manufacturing” revolution, tools and techniques are no secret weapon for transforming a business. Toyota’s continued success at implementing this tools stems from a deeper business philosophy based on its understanding of people and human motivation. Its success is ultimately based on its Continue reading