TOTAL QUALITY MANAGEMENT

TOTAL QUALITY MANAGEMENT is a

management philosophy that focuses on continual
improvements to Business Processes that encourage
developing better products and services while
lowering the cost of production.
 TQM’S Impact on Production
Planning And Inventory Control
 First, production planning and inventory control
professionals will be asked to serve on
improvement teams because many issues of
customer satisfaction involve inventory and
delivery.
 Second, action taken to improve customer
satisfaction in other areas of organization will
have an impact on planning and control activities
 INVENTORY
 The focus of TQM will continue to be reduction
in inventory levels and waste.JIT techniques
will be employed to assist in this area.
 Customers will demand faster delivery of more
customized products, which will force a change
in the location of important inventories.
 To speed the throughput of product, changes in
production planning methods will be needed.
 Organizations that determine how to speed the
flow of product through the production steps
will have a competitive advantage in the
marketplace.
 Internally, defects will decrease throughout
the production process, and less safety stock
would be required at each stage to cover these
defects.
SETUP TIME REDUCTION
 Shorter setup times allow smaller economic lot
sizes and reduced inventory and faster
throughput.
 Small lots will allow more flexibility in
scheduling and more variety in product
features.
 SMED is a method of setup time reduction.
 The goal of SMED is to reduce setup through
technology changes and rapid changeover
techniques.
 Material Requirement
Planning(MRP)
 As yields improve, the use of MRP as a tool will
become easier.
 Nervousness can be the result of changes in yields
in previous stages, thus changing the gross
requirements. As yield improve through the
quality improvement process, nervousness will be
reduced.
 In actual practice, lot-for-lot and other small lot
procedures will become more popular, a smaller
lot size can allow for more customer satisfaction
through small lot delivery and customization.
 Distribution Requirement
Planning(DRP)
 Faster delivery and DRP will become a key
customer requirements in some industries.
 DRP could also be used by companies as a
competitive advantage.
 Following issues are needed to be addressed to
ensure that customers receive product rapidly:
 Methods of Distribution
 Location of Inventory
 Transshipment Issues
 Capacity Planning
 Reduction in defects during the production
process means less rework and reduction in
capacity dedicated to rework.
 Because rework will not sporadically take
away the capacity, such reductions will free
capacity for first – time production and will
allow more accurate scheduling of capacity.