Lecture 8 Operation Management MBA303.pptx

Operation Management

1. SUBJECT MBA303: OPERATION MANAGEMENT LECTURE NO.-8 Dr. Moiz Akhtar Faculty of Commerce & Management Integral University, Lucknow CENTRE FOR DISTANCE AND ONLINE EDUCATION INTEGRAL UNIVERSITY, LUCKNOW

2. Topics Covered Quality Management Risk Management

3. Topic 1 Quality Management

4. Quality Management

5. Quality Management What is Quality Management? Quality Management Processes Quality Management Components Planning, Control, Assurance, Improvement Total Quality Management Quality Circle 6 Sigma 5 S Kai Zen

6. “ Quality Management “It is a process that ensures the quality of the product throughtout its life cycle.”

7. Quality Man a g “ em e nt Pro c es s es

8. Component of QM Quality Pla n ning Quality C o ntrol Quality Impro v em e n t Quality A s s u rance QM Let’s start with the first set of slides

9. “ Quality Planning Quality control planning is the first step. Requirements must be identified, a criteria needs to be set, and important procedure must be recognized as a part of the plan.

10. “ Quality Control Quality control is needed to review the quality of the product or service. Inspection and testing is necessary to identify problems and defects that need correction. Quality Control focused on fulfilling quality requirements

11. Quality Control Objectives and functions of QC: To establish the desired quality standards which are acceptable to the customers? To discover flaws or variations in the raw materials and the manufacturing processes in order to ensure smooth and uninterrupted production. To evaluate the methods and processes of production and suggest further improvements in their functioning. To study and determine the extent of quality deviation in a product during the manufacturing process. To analyze in detail the causes responsible for such deviation. To undertake such steps which are helpful in achieving the desired quality of the product.

12. “ Quality Assurance Companies need to assure defects and mistakes are avoided in the manufacturing of good or the delivery of service, and quality assurance guarantees consistent results. Quality Control focused on providing confidence that quality requirements will be fulfilled.

13. Quality Control Vs Quality Assurance

14. Stages of Quality Assurance Understand the customer needs Define the objectives Designing the product Prototyping Quality Testing Customer approval Product pilot test Quality test Customer feedback Manufacturing Follow up customer feedback Sagar Vetal | E & TC | GGSP

15. “ Quality Improvement There is always room for improvement. Through quality improvement, the results can be measured and possible improvements in products or services can be made.

16. PDCA: Plan-Do-Check-Act It is a cyclic method for continuous improvement of processes

17. “ Total Quality Management “Total Quality management is defined as a continuous effort by the management as well as employees of a particular organization to ensure long term customer loyalty and customer satisfaction. ”

18. Difference Between ISO 9000 & TQM ISO describes the functions and the actions that you need to be able to have the minimum standard of quality systems in place. TQM focuses on finding the best and maximum results, and how to get to them.

19. Element s / Principles of TQM Sagar Vetal | E & TC | GGSP

20. Benefits of TQM Benefits to the Company ✘ Improvement in quality ✘ Reduces waste and defects hence reduced cost ✘ Increases productivity ✘ Results in Faster growth of the company Benefits to the employee ✘ More training and improved abilities ✘ More recognitions and rewards Benefits to Customers ✘ Greater satisfaction ✘ Better service ✘ Less no. of problems with product

21. A quality circle is a group of workers who do the same or similar work, who meet regularly to identify , analyze and solve work-related problems. Properties of Quality Circle: Participative management technique within the framework of a company teams of 6 to 12 employees voluntarily define and solve a quality or performance related problem. Quality Circle

22. Objectives of Quality Circle To improve quality, productivity, safety and reduce the cost. To give opportunity to the employees to use their wisdom and creativity To Promote team spirit, cohesive culture among different levels and sections of the employees. To endorse self and mutual development and leadership quality To fulfill the self esteem and motivation needs of employees To develop the quality of work-life of employees

23. Quality Circle Process

24. Benefits of Quality Circle Self-development Opportunity to attain knowledge Potential Leader Enhanced communication skills Job-satisfaction Healthy work environment Organizational benefits: The individual benefits create a synergistic effect, leading to cost effectiveness, reduction in waste, better quality, and higher productivity.

25. 6 Sigma Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service.

26. 6 Sigma

27. 6 Sigma DMAIC Principle

28. 5 S System

29. 5 S System

30. 5 S System

31. Kai-zen

32. Topic 2 Risk Management