Segment 6 Production Management

Siddique Ahmed Industrial Management Autumn 2017
Asstt Prof. of Business Studies Segment 6 Dept of CSE

Int. Islamic University Chittagong IIUC
What is Production Management?

Production management means planning, organizing, directing and controlling of
production activities.
Production management deals with converting raw materials into finished goods or
products. It brings together the 6M's i.e. men, money, machines, materials, methods and
markets to satisfy the wants of the people.
Production management deals with decision-making related to production processes so that
the resulting goods or service is produced according to specification, in the amount and by
the schedule demanded and at minimum cost.
The main objective of production management is to produce goods and services of the right
quality, right quantity, at the right time and at minimum cost. It also tries to improve the
efficiency. An efficient organization can face competition effectively. Production
management ensures full or optimum utilization of available production capacity.
The importance of production management to the business firm:
Accomplishment of firm's objectives: Production management helps the business firm to
achieve all its objectives. It produces products, which satisfy the customers' needs and
wants. So, the firm will increase its sales. This will help it to achieve its objectives.
Reputation, Goodwill and Image: Production management helps the firm to satisfy its
customers. This increases the firm’s reputation, goodwill and image. A good image helps
the firm to expand and grow.
Helps to introduce new products: Production management helps to introduce new products
in the market. It conducts Research and development (R&D). This helps the firm to develop
newer and better quality products. These products are successful in the market because
they give full satisfaction to the customers.
Supports other functional areas: Production management supports other functional areas in
an organization, such as marketing, finance, and personnel. The marketing department will
find it easier to sell good-quality products, and the finance department will get more funds
due to increase in sales. It will also get more loans and share capital for expansion and
modernization. The personnel department will be able to manage the human resources
effectively due to the better performance of the production department.
Helps to face competition: Production management helps the firm to face competition in
the market. This is because production management produces products of right quantity,
right quality, and right price and at the right time. These products are delivered to the
customers as per their requirements.
Optimum utilization of resources: Production management facilitates optimum utilization

of resources such as manpower, machines, etc. So, the firm can meet its capacity utilization
objective. This will bring higher returns to the organization.
Minimizes cost of production: Production management helps to minimize the cost of
production. It tries to maximize the output and minimize the inputs. This helps the firm to
achieve its cost reduction and efficiency objective.
Expansion of the firm: The Production management helps the firm to expand and grow.
This is because it tries to improve quality and reduce costs. This helps the firm to earn
higher profits. These profits help the firm to expand and grow.
The importance of production management to customers and society:
Higher standard of living: Production management conducts continuous research and
development (R&D). So they produce new and better varieties of products. People use
these products and enjoy a higher standard of living.
Generates employment: Production activities create many different job opportunities in the
country, either directly or indirectly. Direct employment is generated in the production
area, and indirect employment is generated in the supporting areas such as marketing,
finance, customer support, etc.
Improves quality and reduces cost: Production management improves the quality of the
products because of research and development. Because of large-scale production, there
are economies of large scale. This brings down the cost of production. So, consumer prices
also reduce.
Spread effect: Because of production, other sectors also expand. Companies making spare
parts will expand. The service sector such as banking, transport, communication, insurance,
BPO, etc. also expand. This spread effect offers more job opportunities and boosts
economy.
Creates utility: Production creates Form Utility. Consumers can get form utility in the
shape, size and designs of the product. Production also creates time utility, because goods
are available whenever consumers need it.
Boosts economy: Production management ensures optimum utilization of resources and
effective production of goods and services. This leads to speedy economic growth and
well-being of the nation.
Summary of Key Differences between Services and Products

Products are tangible – they are physical in nature such that they can be touched, smelled,
felt and even seen. Services are intangible and they can only be felt not seen.
Need vs. Relationship– a product is specifically designed to satisfy the needs and wants of
the customers and can be carried away. However, with a service, satisfaction is obtained
but nothing is carried away. Essentially, marketing of a service is primarily concerned with
creation of customer relationship.
Perishability- services cannot be stored for later use or sale since they can only be used
during that particular time when they are offered. On the other hand, it can be seen that
products are perishable. For example, fresh farm and other food products are perishable
and these can also be stored for later use or sale.
Quantity- products can be numerically quantified and they come in different forms, shapes
and sizes. However, services cannot be numerically quantified. Whilst you can choose
different service providers, the concept remains the same.
Inseparability- services cannot be separated from their providers since they can be
consumed at the same time they are offered. On the other hand, a product can be separated
from the owner once the purchase has been completed.
Quality- quality of products can be compared since these are physical features that can be
held. However, it may be difficult to compare the quality of the services rendered by
different service providers.
Return ability- it is easier to return a product to the seller if the customer is not satisfied
about it. In turn, the customer will get a replacement of the returned product. However, a
service cannot be returned to the service provider since it is something that is intangible.
Value perspective- the value of a service is offered by the service provider while the value
of the product is derived from using it by the customer. Value of a service cannot be
separated from the provider while the value of a product can be taken or created by the
final user of the product offered on the market.
Shelf life- a service has a shorter shelf life compared to a product. A product can be sold
at a later date if it fails to sell on a given period. This is different with regard to a service
that has a short shelve line and should be sold earlier.
Transformation processes
A transformation process is any activity or group of activities that takes one or more inputs,
transforms and adds value to them, and provides outputs for customers or clients. Where
the inputs are raw materials, it is relatively easy to identify the transformation involved, as
when milk is transformed into cheese and butter. Where the inputs are information or
people, the nature of the transformation may be less obvious. For example, a hospital
transforms ill patients (the input) into healthy patients (the output).
Transformation processes include: (Types)
1. Changes in the physical characteristics of materials or customers
2. Changes in the location of materials, information or customers
3. Changes in the ownership of materials or information
4. Storage or accommodation of materials, information or customers
5. Changes in the purpose or form of information
6. Changes in the physiological or psychological state of customers.
Often all three types of input – materials, information and customers – are transformed by
the same organization. For example, withdrawing money from a bank account involves
information about the customer's account, materials such as cheques and currency, and the
customer. Treating a patient in hospital involves not only the ‘customer's’ state of health,
but also any materials used in treatment and information about the patient.
5 Ps of Operations Management
 Product: Defined as anything that can be offered to a market that might satisfy a
want or need. In manufacturing, products are purchased as raw materials and sold
as finished goods
 Process: Defined as a designed sequence of activities for changing the properties or
attributes of an object or system
 Plant: Refers to a place where goods and services are produced commonly referred
as factory, mill or establishment
 People: Referred as human resources who are engaged in operations
 Programs: Defined as a planned series of events.
Operation Manager’s Responsibilities and Duties:

 Manage and direct operations team to achieve business targets.
 Assist in developing or updating standard operating procedures for all business
operational activities.
 Build strong relationship by addressing customer issues and complaints in a timely
manner.
 Assist in employee appraisals, promotions, compensation and termination based on
the performance review.
 Provide operational support and guidance to staff.
 Assist in developing operating and capital budgets.
 Monitor and control expense according to allotted budget.
 Assist in interviewing, recruiting and training candidates.
 Manage work assignment and allocation for staff.
 Conduct performance review and provide performance feedback to staff.
 Maintain accurate and clear documentation for operational procedures and
activities.
 Work in compliance with company policies and procedures.
 Ensure team follows standard operating procedures for all operational functions.
 Conduct regular meetings with team to discuss about issues, concerns, updates etc.
 Support operational risk and audit process for the purpose of preventive
maintenance.
Plant Layout: Meaning, Factors and Tools

Meaning of Plant Layout:
Plant layout is a “technique of locating different machines and plant services within the
factory so that the greatest possible output of high quality at the lowest possible total cost
can be available”.
It signifies the arrangement of machines, work areas, material handling equipment’s,
transport, and storing of different materials, products, tools and fixtures etc. Proper plant
layout is one of the keys of success in factory management. The layouts for the same
product may be numerous, but which costs less in the long run is the best.
Since plant layout is responsible for an orderly flow of materials, productivity and morale
of the workers, it is necessary to have systematic layout planning. This has become all the
more necessary with the increasing costs of the land, labor and building materials.
Layout should be such that, it can be changed without much difficulty due to expansion,
diversification, change in product design or change in technology. In such cases we need
to minimize the effects of dislocation i.e., the transition has to be made quickly from old
layout to new layout, so as to minimize the production loss.
Most of the handling operations are performed repeatedly throughout the course of produc-
tion, therefore, if shortest manner of handling is not adopted, this will result wastage of
time and shall loose total effectiveness.
Type of building-single storied or multi storied depends upon the availability of land and
the type of products to be manufactured and its manufacturing methods. Where
manufacturing process involve the gravity flow of products such as chemicals, paints,
sugar, refineries, fertilizers etc., multi-storied building must be designed.
A good layout minimizes the handling time and efforts, saves the floor space, shortens the
travel of materials, increases production and reduces cost by utilizing labor more
efficiently. If the layout is haphazardous, the products will not be economical and cost may
be very high resulting in losses.
Factors Considered for Plant Layout:
Layout for a factory must be decided by considering the following factors:
i. Organization.
ii. Location of departments.
iii. Type of product, method of production, production process.
iv. Production capacity.
v. Type of industry, like synthetic, analytic, conditioning or extractive.
vi. Grouping of machines.
vii. Material flow pattern.

viii. Space requirement for machines, work area, material handling, storage, and other
facilities.
ix. Safety factors.
x. Health and other factors, like ventilation, natural light, removal of smoke, and fumes etc.
xi. Provision for future expansion.
xii. Flexibility for future modifications due to diversification, technology, or product de-
sign changes.
xiii. Storage system i.e., centralized or decentralized or a combination of both.
Analytical Tools of Plant Layout:

This is a procedure of making the layout of the plant or making improvement in the existing
layout with the help of a number of tools and techniques. In this, a plan showing the
position of machines, flow of work and material handling devices etc. is prepared to a scale
on a drawing sheet or floor.
The various tools and techniques used for the preparation of plant layout are described in
short below:
(a) Flow process chart,
(b) Process flow diagram,
(c) Machine data card,
(d) Templates, and
(e) Scale models.
(a) Flow Process Chart:
This is a graphic representation of sequence of operation, transportation, inspection, delays
and storage occurring during manufacture. This gives the information regarding distance
moved and time required for various activities such as transportation, delay, inspection etc.
This chart helps in determining hidden efficiencies in the processes and may suggest
rearrangement of layout.
This also points out elimination of unnecessary movement and processes.
(b) Process Flow Diagram:
It is the diagram of building plan representing graphically the movement of materials on

the drawing. With its help proper material handling arrangements can be made and it
indicates long material hauls and back tracking of present layout, which thereby helps in
improving the layout.
(c) Machine Data Cards:
These cards give complete specification of each machine to be installed such as output
capacity, foundations, space needed, method of operation, maintenance and handling
devices of machines etc.
(d) Templates:
After studying the flow process chart, process flow diagram and machine data cards, a floor
plan is prepared by fixing the area occupied by each item to be erected in the shops. This
floor plan is prepared at certain scale say 1 cm2 = 1 m2.
Now from thick sheets of paper or card board pieces are cut (known as templates) to
represent various items which are to be housed in the plants, and are placed on the floor
plans at suitable places. These templates are so arranged as to give best layout. The changes
if any, required are made before making the actual layout drawing.
(e) Scale Models:
It is an improvement over the template method. In this tool, instead of templates, use of
three dimensional scale models is made. These models may be of wood or metal and when
used on a layout, series of additional information about the height and of the projected parts
of the machines are obtained. This is similar to a child’s doll house.
This technique is useful for complex layout, requiring initially huge investment.
Conclusion: Plant layout is an important consideration. Hence various experts such as
production engineer, materials handling engineer, safety engineer and work study engineer
etc. should all sit together to arrive for final best shape of layout.
Advantages of Scientific Layout:

A scientific layout has got the following important advantages:
1. It reduces internal transport to a minimum.
2. It minimizes accidents and makes supervision easy and quick.
3. It makes repairs and maintenance easy.
4. It yields higher profits. Therefore, higher wages can be paid to workers.
5. It reduces labor turn-over.

6. It reduces production delays to a large extent.
7. It keeps the shops neat and clean.
8. It minimizes changes in the layout to a large extent every time.
9. It keeps control over production.
10. It eliminates waste effort and thus speeds of production increases.
11. Back tracking is reduced.
12. Less capital is spent on machinery.
13. It reduces set up and total operation time.
14. It reduces wastage and spoiled work.
15. Time and motion study can be easily and accurately performed.
16. Better utilization of manpower.
17. Improvement in methods of production can be made.
Layout of Services:
The tool rooms, store rooms, water, power, transportations, cafeteria, wash rooms, lavato-
ries etc. include the service centers of a plant. The shorter the distance from the operations
to these centers, the less time will be consumed by workers in using these services.
Generally the service centers are located where the space is available after planning for
manufacturing. The exact location is determined by its nature, number of persons to avail
such services and how much this service is made use of.
The factors affecting the layout of most important service centers such as store room, trans-
portation, water, and power fire protection are as under:
1. Store Room:
Store room layout, as far as possible, should satisfy the following essential requirements:
(I) It should provide an easy receipt, storage, issue and inspection of materials etc.
(ii) It should have enough storage capacities and facilities.
(iii) It should have proper protection against wastage, damage deterioration and thefts.
(iv) It should permit easy and clear identification and location of materials.
(v) It should be simple and serviceable.
(vi) It should have bins of proper width for handling the materials.
2. Transportation:
Transportation required in the factory premises is for different purposes, such as
transportation of materials and equipment, transportation of laborers and other employees
and transportation of products; proper consideration is essential so that the layout is
economical and convenient.
3. Water:
The layout of the water service is very necessary consideration. For this purpose, certain
provisions are given in the “FACTORY ACT”, those must be strictly followed. According
to Factory Act, in every factory in which more than 250 workers are employed, water
coolers should be installed at suitable places.
The water centers should be marked by the word “DRINKING WATER”. Water centers
should be located at least 6 m from latrines, urinals and washrooms. There should be one
water center for first 150 workers to 500 workers and one center for every additional 500
workers.
4. Power:
The electrical energy required for running the plants may be purchased from an outside
source or generated itself.
The electric energy is transformed into mechanical power and is supplied to the machines
and equipment’s in the following two ways:
(a) Group Drive.
(b) Individual Drive.
Today individual drive is generally adopted. So in the layout, it is to be seen that from
where electrical cables will pass and where protecting devices, switches, starters and
control panels are to be fixed.
5. Fire Protection:
For this, suitable places must be allotted in the shop for locating water buckets, sand
buckets and fire extinguishers. Inflammable materials must be kept in separate store at a
safe distance, minimum 15 m from the general storage.
Provision to escape in case of fire must be kept. A factory employing more than 20 persons
and storing, inflammable materials and explosives must arrange for training of persons in
the routine to be adopted in case of fire.
Objectives of Plant Layout and Material Handling:
Objectives of plant layout and corresponding objectives of material handling are indicated
in the following table:
Inter-Relationship between Plant Layout and Material Handling:

The success of a factory largely depends on the relationship of these departments.
Some of such fields are mentioned hereunder:
1. Production:
For production function, utmost cooperation is required between plant layout engineers,
material handling engineers, and production engineers.
2. Plant Engineering:
For maintenance etc., cooperation between these two departments is necessary.
3. Quality Control:
In order to avoid damages in the path during handling, cooperation between them is
essential.
4. Safety:
Since large number of accidents occur during handling, both these departments must work
closely with the safety engineer to design the layout and handling methods, equipment etc.
5. Sales and Distribution:
For packaging, loading system cooperation of these two departments with marketing and
sales department is essential.
Types of Plant Layout Problems:

It is not necessary that layout engineer deals with only new layout i.e., layout problems of
new facilities. Such problems are faced only once; however he is mostly involved in
problems related to the re-layout of an existing process or an alteration in the existing
arrangement.
Some of the examples of re-layout problems are:
1. Change in the design of part. This calls for the change in the process and may require
some alterations in the existing layout.
2. Layout change due to the change in method of production.
3. Expansion in production capacity.
4. Reduction in production capacity.
5. Diversification i.e., addition of a new product.
6. Planning a new facility or a new department.
7. Shifting a department.
8. Replacing equipment with advanced technology.
Symptoms of Bad Layout:
1. Some machines heavily loaded and some remain idle for long periods.
2. Excessive handling by skilled workers.
3. Long production cycles.
4. Stock control difficulties.

5. Bottlenecks in production.
6. Poor utilization of available space.
7. Delays in delivery.
8. Excessive fatigue on workers.
9. Backtracking.
10. Excessive temporary storage.
11. Poor house-keeping.
12. Difficulty in supervision and control.
13. Idle workers and equipment.
14. Obstacles in material flow.
Characteristics of Good Plant Layout:

Good layout can easily be observed by following characteristics:
1. Minimum handling between operations.
2. Minimum handling distances.
3. Straight passages.
4. Minimum backtracking.
5. Minimum goods in process.
6. Planned material flow pattern.
7. Layout adoptable to changing conditions.
8. Proper location of services.
9. Maximum automatic handling.
10. Control over noise, dirt, fumes, dust, humidity, temperature etc.
11. Minimum walking by operation people.
12. Minimum handling by skilled workers.
13. Scrap removal be properly planned.
14. Minimum re-handling.
Principles of Plant Layout:

Following are the basic principles of “best layout” which should be taken into consideration
by plant layout engineer and material handling engineer while designing a plant layout:
1. Principle of over-all integration:
According to this principle, the best layout is one which integrates the man, materials,
machinery, supporting activities and any other such factors that result in the best
compromise.
2. Principle of minimum distance:
According to this principle, other things being equal, the best layout is one in which men
and materials have to move the minimum distance between operations.
3. Principle of Flow:
Muther said that, other things being equal, the best layout is one which arranges the work
area for each operation or process in the same order or sequence that forms, treats or
assembles the materials.
4. Principle of Cubic Space:
According to this, the best layout is one in which all the available space both vertical and
horizontal is most economically and effectively used.
5. Principle of Satisfaction and Safety:
According to this other things being equal, the best layout is one which makes work
satisfying, pleasant and safer for workers.
6. Principle of Flexibility:
It means the best layout is one which can be adopted and re-arranged at a minimum cost
with least inconvenience.
Factors Influencing Plant Layout:

1. Type of Industry:
Industries are generally classified according to their processes of manufacture.
The process of manufacture can be classified into four categories:
(a) Synthetic Process:

When two or more materials are mixed to get a product, the process is known as synthetic
process. The example of such a process is to produce the cement by mixing limestone and
clay.
(b) Analytic Process:
This is opposite of synthetic process. It is the breaking up of a material into several parts.
The refining of petroleum is the example of this case.
(c) Conditioning Process:
In the conditioning process, the form of raw material is changed into desired product as in
jute industry.
(d) Extractive Process:
In this type, by applying heat, desired product is extracted from the original raw material
e.g. manufacture of Aluminum from Bauxite.
2. Type of Products:
Type of product means whether the product is heavy or light, large or small, liquid or solid.
It is also a consideration in plant layout.
3. Volume of Production:
According to this point, while plant layout is being done, it should be kept in mind that,
what volume is required to be produced. In this case, it should be seen that whether (a) Job
Production, (b) Batch Production or (c) Mass Production is being adopted.
4. Influence of Processes:
Last, but not the least factor to consider, is the process through which the material passes
in the concern. Much care should be given to the material handling problem, position of
store room and tool room.
Types of Plant Layout:

Keeping in view the type of industry and volume of production, there can be following
methods of layout:
(a) Line or Product Layout.
(b) Functional or Process Layout.
(c) Fixed Position Layout.

(d) Combination.
(a) Line or Product Layout:
This type of layout is very popular in mass production. In this layout only one product or
one type of product is produced in an operating area. In order to justify the line layout, the
product must be standardized and manufactured in huge quantities. The machines in such
layout are arranged in the order in which they are to be used.
The operations are performed in a sequence. All parts, sub-assemblies etc. are started at
right time so as to be ready at the required time and kept moving until the finished product
is available at the end of the assembly line. This arrangement is also known as the “syn-
thetic system” of manufacture.
For example, suppose a factory manufactures taps, drills, reamers and cutters. Production
of each of these articles may be made in a separate department and in each department
machines will be laid out in that sequence in which the operations have to be performed on
the product.
For example, in the reamer department, there will be group of lathes to turn the reamer
blanks, the lathes will be followed by the milling machines which square the shank and
mill the flutes; next to the milling machines will be furnaces for heat treating the reamers
and last will come the grinding machines to do the finishing. Fig. 32.1 (A) shows an
arrangement of this type.
Suitability:
This is suitable for continuous process industries such as automobile manufacturing or
chemical industries.
Advantages:
1. It lowers the overall manufacturing time as product proceeds rapidly from operation to
operation without any handling.
2. Less space is needed for placing machines.
3. There is minimum of handling and transportation.
4. There is less work-in-process.
5. Better utilization of machines and labor.
6. It minimizes counting, inspecting, clerical work etc.
7. There is smooth flow of materials.
8. Promises for supply of products to customers are more reliable.
9. Use of gravity and power conveyors for material handling reduces the necessity of aisles.
10. Production control is simplified greatly.
Disadvantages:
1. When the model or type changes, the layout of machinery also requires a change.
2. All machines in the arrangement cannot be used to their maximum capacities.
3. The manufacturing cost rises with a fall in the volume of production.
4. If one or more lines are running light, there is great machine idleness.
5. Specialized and strict supervision is needed.
6. If any of the machines in the line breaks down the other machines have to remain idle
till that machine becomes again ready to commence operation.
7. For expansion purpose, it is not possible to add more machines.
8. Each worker performs job on a particular machine, so he is not skilled for other machines
or operations.
(b) Functional or Process Layout (Group Technology):
Under this arrangement each department or section is responsible for carrying out a par-
ticular process and not a particular product as under line type layout. There are similar
operations in each department or section.
In a job order production factory, there are no standard products or if any, they repeat
orders. Therefore, machines in this type of layout are generally arranged on functional
basis. This type is also called analytical layout.
Thus for example, in a factory manufacturing taps, drills, reamers and cutters mentioned
above there may be four departments, the lathe, milling, the heat treatment and the
grinding, each responsible for a specific operation. All the products manufactured in this
factory have to pass through these four principle operations. Fig. 32.1(5) shows this
arrangement.
Suitability:
In this, similar equipment and similar machines are grouped together. This is very useful
where low volume of production is required.
Advantages:
1. Similar jobs are manufactured on similar machines, hence supervision is simple.
2. Less machines are required.
3. This offers great incentive for each worker to raise the level of performance.
4. There will be better control on precision or complicated process.
5. The layout is flexible, hence it can easily be managed to change in the rate of production,
in the design of products, in the methods of production or in the raw materials used.
6. Breakdown of any one machine does not affect production as its work can be done on a
standby machine.
7. Capital layout for machines is minimum.
8. New workers have better training facilities on the job. Workers know how to run various
machines in the group and also to set-up work.
9. Foremen become specialized in the performance of the job and know all about the
equipment’s and their operations.
Disadvantages:
1. Handling and back-tracking of materials is too much.
2. It makes necessary to plan and supervise the work of each department, each worker and
machine. This makes production control more difficult and more costly.
3. Generally more floor area is required.
4. Specialization creates monotony and there will be difficulty for the workers to find job
in other industries.
5. Total production cycle time is more due to long distances and waiting.
6. Routing and scheduling is more difficult, as the work does not flow through any definite
mechanical channels.
7. There are no cheaper and automatic devices for internal transportation.
8. Inspection of work for each operation is necessary as the material passes to the next
department. This results in more inspections and causes delay.
9. More training will be required to prepare the workers for the jobs.
(c) Fixed Position Layout:
This type of layout is used in manufacturing huge air crafts, ship vessels, and pressure
vessels etc. where the products are too heavy. For such type of products, it is convenient
and economical to bring the tools, machines, men etc. to the work place.
This type of layout was very common before the Industrial Revolution but the present
industries have grown much in size and complexity, therefore, now-a-days it is easy and
more economical to move the materials to the equipment and machines. Fig. 32.1 (C)
shows a simple arrangement of this type of layout. This type is also known as “Static
Product Layout”.
Advantages:
1. Capital investment is minimum.
2. Continuity of operations is ensured.
3. Less total production cost.
4. Less material movement.
Disadvantages:
1. Machines and tools etc. take more time to reach to the work place.
2. Highly skilled workers are required.
3. Complicated jigs and fixtures may be required in fixing jobs, tools etc.
(d) Combination Layout:
Now-a-days any one form of layout in pure state is rarely found. Therefore, a combination
of any of the three methods is formed according to the requirement of an industry. In
factories, where products are first manufactured and then assembled this method is mostly
used.
Flexibility of Plant Layout:

As far as possible certain amount of flexibility of arrangement in operation is essentially
desired in a plant layout. Economy should be the prime consideration in layout.
When changes are affected in the product design, methods of operations, the type of the
product or the production quantities then the machines or departments may also have to be
rearranged. Therefore, it is necessary to design layouts in such a way so as to minimize the
effect of subsequent alterations on the production process.
Flexibility in layout can be secured in several ways:
(i) Keep enough unobstructed floor areas.

(ii) Separate electric motors to be allowed on individual machines.
(iii) Mobile machinery should be used.
(iv) Equipment can be placed on rubber footings instead of being mounted permanently.
(v) As far as possible small tools should be used.
(vi) Portable conveyor units may be employed.
(vii) Overhead electrical lighting arrangements easily detachable can be used instead of
permanent fittings.
(viii) Make use of portable jigs and fixtures.
Total Quality Management

TQM is a management philosophy that seeks to integrate all organizational functions
(marketing, finance, design, engineering, and production, customer service, etc.) to focus
on meeting customer needs and organizational objectives.
TQM views an organization as a collection of processes. It maintains that organizations
must strive to continuously improve these processes by incorporating the knowledge and
experiences of workers. The simple objective of TQM is “Do the right things, right the first
time, every time.” TQM is infinitely variable and adaptable. Although originally applied
to manufacturing operations, and for a number of years only used in that area, TQM is now
becoming recognized as a generic management tool, just as applicable in service and public
sector organizations. There are a number of evolutionary strands, with different sectors
creating their own versions from the common ancestor. TQM is the foundation for
activities, which include:
 Commitment by senior management and all employees
 Meeting customer requirements
 Reducing development cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking

 Focus on processes / improvement plans
 Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in manufacturing,
marketing, engineering, R&D, sales, purchasing, HR, etc.
Principles of TQM
1. Management Commitment
2. Plan (drive, direct)
3. Do (deploy, support, participate)
4. Check (review)
5. Act (recognize, communicate, revise)
6. Employee Empowerment
7. Training
8. Suggestion scheme
9. Measurement and recognition
10. Excellence teams
11. Fact Based Decision Making
12. SPC (statistical process control)
13. Continuous Improvement
14. Systematic measurement and focus
15. Excellence teams
16. Cross-functional process management
17. Attain, maintain, and improve standards
18. Customer Focus
19. Supplier partnership
20. Service relationship with internal customers
21. Never compromise quality
22. Customer driven standards
The Concept of Continuous Improvement by TQM

TQM is mainly concerned with continuous improvement in all work, from high level
strategic planning and decision-making, to detailed execution of work elements on the shop
floor. It stems from the belief that mistakes can be avoided and defects can be prevented.
It leads to continuously improving results, in all aspects of work, as a result of continuously
improving capabilities, people, processes, technology and machine capabilities.
Continuous improvement must deal not only with improving results, but more importantly
with improving capabilities to produce better results in the future. The five major areas of
focus for capability improvement are demand generation, supply generation, technology,
operations and people capability.
A central principle of TQM is that mistakes may be made by people, but most of them
are caused, or at least permitted, by faulty systems and processes. This means that the root
cause of such mistakes can be identified and eliminated, and repetition can be prevented
by changing the process.
There are three major mechanisms of prevention:
1. Preventing mistakes (defects) from occurring (mistake-proofing).
2. Where mistakes can’t be absolutely prevented, detecting them early to prevent them
being passed down the value-added chain (inspection at source or by the next
operation).
3. Where mistakes recur, stopping production until the process can be corrected, to
prevent the production of more defects. (stop in time).
Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the organization’s current reality.
Relevant preconditions have to do with the organization’s history, its current needs,
precipitating events leading to TQM, and the existing employee quality of working life. If
the current reality does not include important preconditions, TQM implementation should
be delayed until the organization is in a state in which TQM is likely to succeed.
If an organization has a track record of effective responsiveness to the environment, and if
it has been able to successfully change the way it operates when needed, TQM will be
easier to implement. If an organization has been historically reactive and has no skill at
improving its operating systems, there will be both employee skepticism and a lack of
skilled change agents. If this condition prevails, a comprehensive program of management
and leadership development may be instituted. A management audit is a good assessment
tool to identify current levels of organizational functioning and areas in need of change.
An organization should be basically healthy before beginning TQM. If it has significant
problems such as a very unstable funding base, weak administrative systems, lack of
managerial skill, or poor employee morale, TQM would not be appropriate.5
However, a certain level of stress is probably desirable to initiate TQM. People need to feel
a need for a change. Kanter (1983) addresses this phenomenon be describing building
blocks which are present in effective organizational change. These forces include
departures from tradition, a crisis or galvanizing event, strategic decisions, individual
“prime movers,” and action vehicles. Departures from tradition are activities, usually at
lower levels of the organization, which occur when entrepreneurs move outside the normal
ways of operating to solve a problem. A crisis, if it is not too disabling, can also help create
a sense of urgency which can mobilize people to act. In the case of TQM, this may be a
funding cut or threat, or demands from consumers or other stakeholders for improved
quality of service. After a crisis, a leader may intervene strategically by articulating a new
vision of the future to help the organization deal with it. A plan to implement TQM may
be such a strategic decision. Such a leader may then become a prime mover, who takes
charge in championing the new idea and showing others how it will help them get where
they want to go. Finally, action vehicles are needed and mechanisms or structures to enable
the change to occur and become institutionalized.8
Steps in Managing the Transition
Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to a
new system such as TQM: identifying tasks to be done, creating necessary management
structures, developing strategies for building commitment, designing mechanisms to
communicate the change, and assigning resources.
Task identification would include a study of present conditions (assessing current reality,
as described above); assessing readiness, such as through a force field analysis; creating a
model of the desired state, in this case, implementation of TQM; announcing the change
goals to the organization; and assigning responsibilities and resources. This final step
would include securing outside consultation and training and assigning someone within the
organization to oversee the effort. This should be a responsibility of top management. In
fact, the next step, designing transition management structures, is also a responsibility of
top management. In fact, Cohen and Brand (1993) and Hyde (1992) assert that management
must be heavily involved as leaders rather than relying on a separate staff person or
function to shepherd the effort. An organization wide steering committee to oversee the
effort may be appropriate. Developing commitment strategies was discussed above in the
sections on resistance and on visionary leadership.6
To communicate the change, mechanisms beyond existing processes will need to be
developed. Special all-staff meetings attended by executives, sometimes designed as input
or dialog sessions, may be used to kick off the process, and TQM newsletters may be an
effective ongoing communication tool to keep employees aware of activities and
accomplishments.
Management of resources for the change effort is important with TQM because outside
consultants will almost always be required. Choose consultants based on their prior
relevant experience and their commitment to adapting the process to fit unique
organizational needs. While consultants will be invaluable with initial training of staff and
TQM system design, employees (management and others) should be actively involved in
TQM implementation, perhaps after receiving training in change management which they
can then pass on to other employees. A collaborative relationship with consultants and
clear role definitions and specification of activities must be established.
In summary, first assess preconditions and the current state of the organization to make
sure the need for change is clear and that TQM is an appropriate strategy. Leadership styles
and organizational culture must be congruent with TQM. If they are not, this should be
worked on or TQM implementation should be avoided or delayed until favorable
conditions exist.
Remember that this will be a difficult, comprehensive, and long-term process. Leaders will
need to maintain their commitment, keep the process visible, provide necessary support,
and hold people accountable for results. Use input from stakeholder (clients, referring
agencies, funding sources, etc.) as possible; and, of course, maximize employee
involvement in design of the system.7
Always keep in mind that TQM should be purpose driven. Be clear on the organization’s
vision for the future and stay focused on it. TQM can be a powerful technique for
unleashing employee creativity and potential, reducing bureaucracy and costs, and
improving service to clients and the community.
Conclusion
TQM encourages participation amongst shop floor workers and managers. There is no
single theoretical formalization of total quality, but Deming, Juran and Ishikawa provide
the core assumptions, as a “…discipline and philosophy of management which
institutionalizes planned and continuous… improvement … and assumes that quality is the
outcome of all activities that take place within an organization; that all functions and all
employees have to participate in the improvement process; that organizations need both
quality systems and a quality culture.
Total Quality through Six Sigma
Some argue that many of the tools Six Sigma uses are not new. However, while Six Sigma
uses conventional methods, its application is anything but conventional. Instead it stresses
the importance of searching for a new way of thinking and doing. In fact, Six Sigma
defines a clear road map to achieve Total Quality:
Leadership Commitment: Top management not only initiates Six Sigma deployment, it
also plays an active role in the whole deployment cycle. Six Sigma starts by providing
senior leadership with training in the principles and tools it needs to direct the development
of a management infrastructure to support Six Sigma. This involves reducing the levels of
organizational hierarchy and removing procedural barriers to experimentation and change.
Customer Focus: Systems are developed for establishing close communications with
“external customers” (direct customers, end-users, suppliers, regulatory bodies, etc.), and
with internal customers (employees). From upstream suppliers to ultimate end-users, Six
Sigma eliminates the opportunities for defects.
Strategic Deployment: Six Sigma targets a small number of high-financial leveraged

items. It focuses the company’s resources: right support, right people, right project, and
right tools, on identifying and improving performance metrics that relate to bottom-line
success.
Integrated Infrastructure: The Leadership Team defines and reviews project progress.
The Champion acts as a political leader and removes the barriers for the project team. The
Master Black Belt acts as a technical coach and provides in-depth knowledge of quality
tools. The Black Belt controls the project while the Green Belt supports the Black Belt -
together they form the Six Sigma Project Teams. In addition, the incentive and recognition
systems motivate the project teams to achieve the business goals.
Disciplined Framework: Six Sigma projects are implemented using the Measure,
Analyze, Improve and Control disciplined road map. This MAIC discipline sets up a clear
protocol to facilitate internal communication. In addition, from a business perspective, Six
Sigma is also a framework for continuous business improvement.
Education and Training: Six Sigma believes that true commitment is driven by true
understanding. As a fact-based methodology, it intensively utilizes quality and statistical
tools to transform a practical problem to a practical solution. Thus, a top-to-bottom training
is conducted in Six Sigma philosophy and system improvement techniques for all levels.
In conclusion, Six Sigma’s approach and deployment makes it distinguishable from other
quality initiatives. The Six Sigma approach involves the use of statistical tools within a
structured methodology for gaining the knowledge needed to achieve better, faster, and
less expensive products and services than the competition. The repeated, disciplined
application of the master strategy on project after project, where the projects are selected
based on key business objectives, is what drives dollars to the bottom line, resulting in
impressive profits. Moreover, fueled by the bottom line improvement, top management
will continuously be committed to this approach, the work culture will be constantly
nurtured, customers will definitely be satisfied, and Total Quality will ultimately be
achieved.
Six Sigma vs. TQM
TQM Six Sigma
A functional specialty within the An infrastructure of dedicated change

organization. agents. Focuses on cross-functional value
delivery streams rather than functional
division of labor.
Focuses on quality. Focuses on strategic goals and applies them

to cost, schedule and other key business
metrics.
Motivated by quality idealism. Driven by tangible benefit for a major

stockholder group (customers,
shareholders, and employees).
Loosely monitors progress toward Ensures that the investment produces the
goals. expected return.
People are engaged in routine “Slack” resources are created to change key
duties (Planning, improvement, business processes and the organization
and control). itself.
Emphasizes problem solving. Emphasizes breakthrough rates of

improvement.
Focuses on standard performance, Focuses on world class performance, e.g.,

e.g. ISO 9000. 3.4 PPM error rate.
Quality is a permanent, full-time Six Sigma job is temporary. Six Sigma is a

job. Career path is in the quality stepping-stone; career path leads
profession. elsewhere.
Provides a vast set of tools and Provides a selected subset of tools and
techniques with no clear techniques and a clearly defined framework
framework for using them for using them to achieve results (DMAIC).
effectively.
Goals are developed by quality Goals flow down from customers and
department based on quality senior leadership's strategic objectives.
criteria and the assumption that Goals and metrics are reviewed at the
what is good for quality is good for enterprise level to assure that local sub-
the organization. optimization does not occur.
Developed by technical personnel. Developed by CEOs.
Focuses on long-term results. Six Sigma looks for a mix of short-term and
Expected payoff is not well- long-term results, as dictated by business
defined. demands.
Applications Where Six Sigma Is Better

Six Sigma initiatives are based on a preplanned project charter that outlines the scale of a
project, financial targets, anticipated benefits and milestones. In comparison, organizations
that have implemented TQM, work without fully knowing what the financial gains might
be. Six Sigma is based on DMAIC (Define-Measure-Analyze-Improve-Control) that helps
in making precise measurements, identifying exact problems, and providing solutions that
can be measured.
DMAIC and TQM

DMAIC is a data-driven quality strategy used to improve processes. It is an integral part
of a Six Sigma initiative, but in general can be implemented as a standalone quality
improvement procedure or as part of other process improvement initiatives such as lean.
DMAIC is an acronym for the five phases that make up the

process:
Define the problem, improvement activity, opportunity for
improvement, the project goals, and customer (internal and
external) requirements.
Measure process performance.
Analyze the process to determine root causes of variation,
poor performance (defects).
Improve process performance by addressing and eliminating
the root causes.
Control the improved process and future process
performance.
DMAIC Phase Steps
D – Define Phase: Define the project goals and customer (internal and external) deliverables.
Define Customers and Requirements (CTQs)

Develop Problem Statement, Goals and Benefits
Identify Champion, Process Owner and Team
Define Resources
Evaluate Key Organizational Support
Develop Project Plan and Milestones
Develop High Level Process Map
M – Measure Phase: Measure the process to determine current performance; quantify the
problem.
Define Defect, Opportunity, Unit and Metrics

Detailed Process Map of Appropriate Areas

Develop Data Collection Plan
Validate the Measurement System
Collect the Data
Begin Developing Y=f(x) Relationship
Determine Process Capability and Sigma Baseline
A – Analyze Phase: Analyze and determine the root cause(s) of the defects.
Define Performance Objectives

Identify Value/Non-Value Added Process Steps
Identify Sources of Variation
Determine Root Cause(s)
Determine Vital Few x’s, Y=f(x) Relationship
I – Improve Phase: Improve the process by eliminating defects.
Perform Design of Experiments

Develop Potential Solutions
Define Operating Tolerances of Potential System
Assess Failure Modes of Potential Solutions
Validate Potential Improvement by Pilot Studies
Correct/Re-Evaluate Potential Solution
C – Control Phase: Control future process performance.
Define and Validate Monitoring and Control System

Develop Standards and Procedures
Implement Statistical Process Control
Determine Process Capability
Develop Transfer Plan, Handoff to Process Owner
Verify Benefits, Cost Savings/Avoidance, Profit Growth

Close Project, Finalize Documentation
Communicate to Business, Celebrate
Lean Manufacturing and TQM

What is Lean?
The core idea of lean manufacturing is actually quite simple…relentlessly work on
eliminating waste from the manufacturing process.
So what is waste? Waste is defined as any activity that does not add value from the
customer’s perspective. According to research conducted by the Lean Enterprise Research
Centre (LERC), fully 60% of production activities in a typical manufacturing operation are
waste – they add no value at all for the customer.
The good news is that just about every company has a tremendous opportunity to improve,
using lean manufacturing techniques and other manufacturing best practices. Techniques
that enable you to deliver higher quality products at significantly lower costs.
PDCA Model and TQM

PDCA cycle is one of the simplest and the easiest management approaches for process
control and continuous improvement.
PDCA – stands for Plan – Do – Check – Act.
Sometimes it is also called a PDSA cycle: Plan-do-Study-Act.
It is used for a new product or concept development, problem solving, project
implementation and many other fields.
Applications of the PDCA Cycle
PDCA cycle is mainly used in software field for Software development lifecycle. It is used
in manufacturing and Service industries for new product development. It also finds its place
in Project Management of any nature. Areas like Change Management also use PDCA
cycle for their implementation.
Stages in a PDCA cycle

Plan:
Establish the objectives and goals of the task to be improved or developed.
Describe the task in detail with clear specifications
Develop a team that will be a part of the PDCA and set the deadlines
Note down the data to be used, resources that will be needed, cost expected, risks and
mitigating steps, manpower required, support needed from management.
Draw an implementation plan with breakdown of each task, owner, expected outcome,
operating procedure or guidelines etc.
Do:
As per the implementation plan, perform all the tasks.
Keep the stakeholders informed of the progress
Adhere to the schedule and highlight any significant concerns and variations noted.
Check:
One the activity is performed, validate whether the outcome is as intended and planned.
Make a note of all variations, defects, best practices, pain areas and challenges faced
Identify the root causes for the problems
Act:
Correct the defects and make it comply with the specifications
Identify the preventive actions for all the root causes identified
Implement the preventive actions and check whether the outcome is as expected.
Repeat the steps Do-Check-Act until all of the objectives are met to the satisfaction of the
stakeholders.
Thus the PDCA cycle will help in improving the performance of a process stage by stage
in a steady and levelled manner.
5W2H tool and TQM
5W2H is a simple process improvement tool. 5W2H stands for 5 Ws and 2Hs or Who,
What, When, Where, Whey How and How much. When working on improving a
process this is a very simple tool to help you think thorough improvement opportunities.
 Who does this? This can lead to, could we do it with less people?
 What is done at this step? This can lead to, can we eliminate some of the steps?
 When does this start and finish? This can lead to, can we shorten the time it takes?
 Where is this work done? This can lead to, can we do this elsewhere or in various
locations?
 Why are we doing this? This can lead to, do we need to do this?
 How do we do this? This can lead to, is there another way to do this?
 How much does this cost? This can lead to, how much would this cost if we made
these changes?
These questions help avoid diving right into an assumed solution. They allow us to consider
the problem from a range of angles and allow us to drill down for more detail. These are
also excellent when you are stuck and are finding it hard to move forward on an
improvement project.
What? What will be done? Action steps, description.
Why? Why will it be done? Justification, reason.
Where? Where will it be done? Location, area.
When? When will it be done? Time, dates, deadlines.
Who? Who will do it? Who’s responsible for it?
How? How will it be done? Method, process.
How much? What will it cost to make? Costs or expenses involved.
Benchmarking and TQM

Benchmarking is the practice of a business comparing key metrics of their operations to
other similar companies. Benchmarking involves looking outward (outside a particular
business, organization, industry, region or country) to examine how others achieve their
performance levels, and to understand the processes they use.
In this way, benchmarking helps explain the processes behind excellent performance.
When lessons learned from a benchmarking exercise are applied appropriately, they
facilitate improved performance in critical functions within an organization or in key areas
of the business.
The application of benchmarking involves four key steps:
1. Understand in detail existing business processes
2. Analyze the business processes of others
3. Compare own business performance with that of others analyzed

4. Implement the steps necessary to close the performance gap
Benchmarking should not be considered a one-off exercise. To be effective, it must become
an integral part of an ongoing improvement process, the goal being to abreast of ever-
improving best practice.
Types of Benchmarking
1. Strategic Benchmarking
Used when businesses need to improve overall performance, strategic benchmarking
examines the long-term strategies and general approaches that have enabled high-
performers to succeed
It involves considering high level aspects such as core competencies, developing new
products and services, and improving capabilities for dealing with changes in the external
environment
Changes resulting from this type of benchmarking may be difficult to implement and take
a long time to materialize
Most appropriate for...
Re-aligning business strategies that have become inappropriate
2. Performance or Competitive Benchmarking
Used when businesses wish consider their position in relation to performance
characteristics of key products and services
Benchmarking partners are drawn from the same sector
This type of analysis is often undertaken through trade associations or third parties to
protect confidentiality
Assessing the relative level of performance in key areas or activities in comparison with
others in the same sector, and finding ways of closing gaps in performance.
3. Process Benchmarking
Focuses on improving specific critical processes and operations
Benchmarking partners are sought from best practice organizations that perform similar
work or deliver similar services
Involves producing process maps to facilitate comparison and analysis
Often results in short term benefits

Achieving improvements in key processes to obtain quick benefits
4. Functional Benchmarking
Businesses look to benchmark with partners drawn from different business sectors or areas
of activity to find ways of improving similar functions or work processes
Can lead to innovation and dramatic improvements
Improving activities or services for which counterparts do not exist.
5. Internal Benchmarking
Involves benchmarking businesses or operations from within the same organization, for
example business units in different countries
Three main advantages of internal benchmarking are: (1) access to sensitive data and
information is easier (2) standardized data is often readily available and (3) usually, less
time and fewer resources are needed
Fewer barriers to implementation as practices may be relatively easy to transfer across the
same organization.
Real innovation may be lacking, and best in class performance is more likely to be found
through external benchmarking
Several business units within the same organization exemplify good practice, so
management want to spread this expertise throughout the organization, quickly.
6. External Benchmarking
Involves analyzing outside organizations that are known to be best in class
Provides opportunities of learning from those who are at the "leading edge"
Can take up significant time and resources to ensure the comparability of data and
information, the credibility of the findings and the development of sound recommendations
When examples of good practices can be found in other organizations, and there is a lack
of good practice within internal business units.
7. International Benchmarking
Best practitioners are identified and analyzed elsewhere in the world, perhaps because there
are too few benchmarking partners within the same country to produce valid results
Globalization and advances in information technology are increasing opportunities for
international projects. However, these can take more time and resources to set up and
implement, so the results may need careful analysis due to national differences
Where the aim is to achieve world class status, or simply because there are insufficient
"national" businesses against which to benchmark.
Statistical Quality Control (SQC) and TQM

Statistical quality control refers to the use of statistical methods in the monitoring and
maintaining of the quality of products and services. SPC can ensure that the product or
service is being produced as designed and intended. Thus, SPC will not improve a poorly
designed product's reliability, but can be used to maintain the consistency of how the
product is made and, therefore, of the manufactured product itself and its as-designed
reliability.
A primary tool used for SPC is the control chart, a graphical representation of certain
descriptive statistics for specific quantitative measurements of the manufacturing process.
These descriptive statistics are displayed in the control chart in comparison to their "in-
control" sampling distributions. The comparison detects any unusual variation in the
manufacturing process, which could indicate a problem with the process. Several different
descriptive statistics can be used in control charts and there are several different types of
control charts that can test for different causes, such as how quickly major vs. minor shifts
in process means are detected. Control charts are also used with product measurements to
analyze process capability and for continuous process improvement efforts.
Acceptance sampling refers to the process of randomly inspecting a certain number of
items from a lot or batch in order to decide whether to accept or reject the entire batch.
What makes acceptance sampling different from statistical process control is that
acceptance sampling is performed either before or after the process, rather than during the
process. Acceptance sampling before the process involves sampling materials received
from a supplier, such as randomly inspecting crates of fruit that will be used in a restaurant,
boxes of glass dishes that will be sold in a department store, or metal castings that will be
used in a machine shop. Sampling after the process involves sampling finished items that
are to be shipped either to a customer or to a distribution center. Examples include
randomly testing a certain number of computers from a batch to make sure they meet
operational requirements, and randomly inspecting snowboards to make sure that they are
not defective.
Quality Certification: International Organization for Standardization (ISO)
ISO is an independent, non-governmental international organization with a membership of

162 national standards bodies.
Through its members, it brings together experts to share knowledge and develop voluntary,
consensus-based, market relevant International Standards that support innovation and
provide solutions to global challenges.
International Standards make things work. They give world-class specifications for
products, services and systems, to ensure quality, safety and efficiency. They are
instrumental in facilitating international trade.
ISO has published 22004 International Standards and related documents, covering almost
every industry, from technology, to food safety, to agriculture and healthcare. ISO
International Standards impact everyone, everywhere.
Because 'International Organization for Standardization' would have different acronyms in
different languages (IOS in English, OIN in French for Organisation Internationale de
normalisation), founders decided to give it the short form ISO. ISO is derived from the
Greek isos, meaning equal. Whatever the country, whatever the language, it is called ISO.
ISO 9000 Family

The ISO 9000 series was created by the International Organization for Standardization
(ISO) as international requirements and guidelines for quality management systems. It was
originally introduced in 1987 and over the years has established itself in the global
economy having been adopted in over 178 countries with over one million registrations.
The phrase “ISO 9000 family” or “ISO 9000 series” refers to a group of quality
management standards which are process standards (not product standards). ISO 9001 lists
requirements, while the other standards in the 9000 family provide guidelines and
information. People often say “ISO 9000 certified“, but what they mean is they have met
the requirements of the ISO 9001 standard. The series is not industry specific and is
applicable to any manufacturing, distribution or service organization. It is managed by
Technical Committee (TC) 176, comprised of international members from many industries
and backgrounds.
ISO 9000 (1994) originally had three QMS models depending on the primary function:
 ISO 9001:1994 Model for quality assurance in design, development, production,
installation, and servicing was for companies and organizations whose activities
included the creation of new products.
 ISO 9002:1994 Model for quality assurance in production, installation, and
servicing had basically the same material as ISO 9001 but without covering the
creation of new products
 ISO 9003:1994 Model for quality assurance in final inspection and test covered only
the final inspection of finished product, with no concern for how the product was
produced.
All of these were combined into ISO 9001:2000, which was updated to ISO 9001:2008
and is now ISO 9001:2015.
Why is ISO 9000 important?
The importance of ISO 9000 is the importance of quality. Many companies offer products
and services, but it is those companies who put out the best products and services efficiently
that succeed. With ISO 9000, an organization can identify the root of the problem, and
therefore find a solution. By improving efficiency, profit can be maximized.
As a broad range of companies implement the ISO 9000 standards, a supply chain with
integrity is created. Each company that participates in the process of developing,
manufacturing, and marketing a product knows that it is part of an internationally known,
reliable system.
Not only do businesses recognize the importance of the ISO 9000, but also the customer
realizes the importance of quality. And because the consumer is most important to a
company, ISO 9000 makes the customer its focus.
https://standards-stores.com/
https://www.iso.org/home.html
http://www.iso9001.com/

Segment 6 Production Management

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Segment 6 Production Management

Uploaded by

Copyright:

Available Formats

Siddique Ahmed Industrial Management Autumn 2017

Asstt Prof. of Business Studies Segment 6 Dept of CSE

What is Production Management?

Optimum utilization of resources: Production management facilitates optimum utilization

Summary of Key Differences between Services and Products

Operation Manager’s Responsibilities and Duties:

Plant Layout: Meaning, Factors and Tools

vii. Material flow pattern.

Analytical Tools of Plant Layout:

It is the diagram of building plan representing graphically the movement of materials on

Advantages of Scientific Layout:

5. It reduces labor turn-over.

Inter-Relationship between Plant Layout and Material Handling:

Types of Plant Layout Problems:

4. Stock control difficulties.

Characteristics of Good Plant Layout:

14. Minimum re-handling.

Principles of Plant Layout:

Factors Influencing Plant Layout:

(a) Synthetic Process:

Types of Plant Layout:

(c) Fixed Position Layout.

Flexibility of Plant Layout:

(i) Keep enough unobstructed floor areas.

Total Quality Management

 Challenging quantified goals and benchmarking

The Concept of Continuous Improvement by TQM

Strategic Deployment: Six Sigma targets a small number of high-financial leveraged

TQM Six Sigma

A functional specialty within the An infrastructure of dedicated change

Focuses on quality. Focuses on strategic goals and applies them

Motivated by quality idealism. Driven by tangible benefit for a major

Emphasizes problem solving. Emphasizes breakthrough rates of

Focuses on standard performance, Focuses on world class performance, e.g.,

Quality is a permanent, full-time Six Sigma job is temporary. Six Sigma is a

Developed by technical personnel. Developed by CEOs.

Applications Where Six Sigma Is Better

DMAIC and TQM

DMAIC is an acronym for the five phases that make up the

DMAIC Phase Steps

Define Customers and Requirements (CTQs)

Define Defect, Opportunity, Unit and Metrics

Detailed Process Map of Appropriate Areas

Define Performance Objectives

I – Improve Phase: Improve the process by eliminating defects.

Perform Design of Experiments

C – Control Phase: Control future process performance.

Define and Validate Monitoring and Control System

Verify Benefits, Cost Savings/Avoidance, Profit Growth

Lean Manufacturing and TQM

PDCA Model and TQM

Stages in a PDCA cycle

Benchmarking and TQM

3. Compare own business performance with that of others analyzed

Often results in short term benefits

Statistical Quality Control (SQC) and TQM

Quality Certification: International Organization for Standardization (ISO)

ISO is an independent, non-governmental international organization with a membership of

ISO 9000 Family

You might also like