Unformatted text preview: ologies)
Inventory management AEM1200, Introduction to Business Management.
AEM1200, Wednesday 2/26 Operations Management Definition Economies of scale as potential
Services Activities Facility location and outsourcing
Facility layout and production scheduling Scheduling and Inventory Management in Operations MRP/ERP
Total Quality Management Dimensions of Quality
Performance Durability Features Serviceability Reliability Aesthetics Conformance Perceived Quality Total Quality Management
An integrated, principle-based, organization-wide
strategy for improving product and service quality;
strategy Customer focus and satisfaction
Continuous improvement and reduction of variation
Knowledge of tools
Just in time Philosophy of Total Quality Management
5. Quality is customer driven.
The environment is data rich.
Processes are never perfect.
Problems require quick response.
Employees, particularly at low levels (operators)
are an organization’s most important asset.
6. Organizations, including suppliers and customers,
are like families; we should reduce uncertainty by
developing friendly, mutually supporting,
partnership relationships with them and share
information freely with them.
7. Quality and error prevention should be part of
product and process design.
product Just-in-Time and Lean Production
Reducing setup times Increasing flexibility
Reducing inventory costs
Increasing quality Worker empowerment Quality circles
Authority to “stop the line”
“Lifetime” employment Managing the supply chain Integrate suppliers into the design and planning process
Promote networking across suppliers Continuous Improvement
The continuous implementation of incremental
improvements to steadily bring a process closer
to the ideal
to Management by sight
Management by stress
Management by objectives Six-Sigma Paradigm Six sigma quality is a quality measure that allows only
3.4 defects per million of opportunities.
3.4 Employee Empowerment
The involvement of employees in every step of
the production process
Quality circles Groups made up of work center members chartered
with implementing continuous improvement;
with Focus teams Multidisciplinary teams chartered to focus on specific
problems or continuous improvement objectives.
problems Just-in-Time Philosophy:
View Full Document