Lecture 1

Operations andTotal Quality

Management
Course Description
• This course focuses on managing complex management
system and processes to produce and distribute products
and services efficiently and effectively thru the various
TQM frameworks, concepts and quality improvement tools
necessary for implementing the quality culture that
characterizes world-class organization of the 21st century. It
will introduce concepts around the ISO standards for
performance excellence and explore the key actions
necessary for transforming government and non-
governmental organizations into world-class organizations
that deliver ever-improving value to their customers, clients
and constituents. It emphasizes on the interplay between
financial effects of quality operations to financial
performance
Learning Objectives
• Define what is operations management
• Compare the difference between a good and a service
• Know the difference between manufacturing sector and
service sector
• Know how decisions are made in Operations Management
• Know the History of Operations Management
• Know how OM works
• Explain the difference between production and productivity
• Learn to compute for productivity
• List and define variables that affects productivity
What is Operations Management?

• Operations Management pertains to the application of

business practices within an organization in order to
develop the highest level of efficiency. It is about turning
raw materials and labor into goods and services as
effectively as possible in order to optimize an
organization's income.
 Always Remember…
Operations Management is VITAL to any
organization. A systematic management of all day
to day processes, practices and resources makes
the operations effective and efficient.

Take Away:
Know the process, the practice and utilize your
7M’S ( Man, Money, Materials, Machines,
Methods, Measurement, Marketing)
Please watch the video
What is operations
• Operations is responsible for producing goods and
services.

GOODS V.S SERVICES

Please watch
the video
 Always Remember…
Goods and Services are different in numerous
ways…
Goods are tangible and can be
transferred upon purchase. The quality is
quantifiable and can be directly seen in the
product, quality is uniform and goods can
be stored for the longest time (depends on
the product)
 Always Remember…
Service is intangible,
ownership cannot be
transferred and is
consumed
simultaneously upon
payment.

Service quality depends on

the person performing
the service.
Manufacturing vs. Service
• Tangibility and intangibility of output
• Consumption
• Customer Interaction
• Customer Performance
• Performance Measurement
Relationships of O.M to other functions

• Human Resource Development

• Marketing
• Research and Development
• Logistics
• Finance
Importance of O.M.
• Operations Management helps in achieving
organizational objectives
• It helps in improving the productivity of employees
• It helps optimize the use of resources
• It helps in motivating employees to perform their roles
Operations Management Decision

• Strategic Decision Making

This is characterized as long term decisions that affect the

organization in the long run.
Operations Management Decision
• Tactical Decisions- This is characterized as a short term
decision and is focused on the day to day problems of the
organization such as issues with production quantities and
delivery of goods.
Role of Operations Manager

The role of an operations manager is to take full

responsibility for the manufacturing of goods or services at
a corporation and to supervise all the work done in the
creation of goods or services.
What Operations Managers Do?
• Planning
• Organizing
• Staffing
• Leading
• Controlling
10 Critical Decisions in O.M.
• Goods and service design
• Managing Quality
• Process and capacity design
• Location strategy
• Layout strategy
• Human resource and job design
• Supply chain management
• Scheduling
• Maintenance
Challenges for O.M
• Global Focus
• Supply Chain partnering
• Sustainability
• Rapid Product development
• Mass customization
• Just in time performance
• Empowered employees
 Lecture References:

• https://keydifferences.com/difference-between-goods-and-services.html
• R. Dan Reid, Nada R. Sanders(2019). Operations Management: An Integrated Approach. Wiley and Sons
• Heizer J., Barry R., Munson C,. (2019). Operations Management: Sustainability and Supply Chain Management
13th Edition. Pearson
• https://www.investopedia.com/terms/o/operations-management.asp
• https://managementstudyguide.com/theory-x-y-motivation.htm
• https://courses.lumenlearning.com/baycollege-introbusiness/chapter/video-hawthorne-studies-at-att/
• file:///C:/Users/Belle/Downloads/Production_and_Operations_Management_Wit.pdf
• https://www.slideshare.net

Disclaimer: I do not own the videos in this lecture. This is used for
lecture purposes only. Credits to the respective owners of the
video.