Portfolio

A Final Output Submitted to:

Seth Anthonette O. Manguilimotan, MBA

Negros Oriental State University Bayawan - Sta. Catalina Campus

In Partial Fulfillment for the Requirements of the course

MGNT 302 : OPERATIONS MANAGEMENT (TQM)

Leading to the Degree of

BACHELOR OF SCIENCE IN BUSINESS ADMINISTRATION

Major in Human Resource Management

Submitted by:

CASIPONG, ANTONETH A.

BSBA III A

Second Semester 2024-2025

MGNT 302 OPERATIONS MANAGEMENT (TQM)
1.4 Other Certificates
 Chapter IV: Lean Operation System
Case Study: Timken Company
Timken Company, a mid-sized enterprise specializing in automotive components, faced
operational inefficiencies, including excess inventory, production bottlenecks, and quality issues.
To address these challenges, the company implemented a Lean Operation System, integrating
strategies such as Just-in-Time (JIT) production, Kaizen (continuous improvement), standardized
workflows, the 5S methodology, and Kanban systems. These initiatives significantly reduced
inventory costs by 30%, improved production efficiency by 25%, and lowered defect rates by
40%. Additionally, employee engagement increased as workers actively contributed to process
enhancements. By focusing on lean principles, Timken Company streamlined operations,
minimized waste, and enhanced adaptability in a competitive market. The success of this
transformation underscores the importance of strategic lean implementation in optimizing
efficiency and fostering long-term growth.

Questions:
1. How did Just-in-Time (JIT) production contribute to cost reduction and efficiency
improvements?
2. Why is employee engagement crucial for the success of lean operations?
3. What strategies can companies use to overcome resistance to lean implementation?
REPORTERS:
Antonio, Mariavell T.
Babor, Marhielle J.
Bilar, Rezaline P.
Casipong, Antoneth A.
Emia, Michelle C.
Encepedo, Jannice G.
Fuentivella, Shielou C.
Gaviola, Virlyn D.
Pamilaga, Britny T.
Prac, Jeny A
Vasaya, Reca Mae J.
 CHAPTER VII

Case Study: Toyota’s Implementation of Kaizen and TQM

Toyota Motor Corporation, a leading automotive manufacturer, has long been recognized for its
commitment to quality and efficiency. Central to this success is the integration of Kaizen—a
philosophy of continuous, incremental improvement—and Total Quality Management (TQM),
which emphasizes quality in all organizational processes.
Implementation Highlights:
Employee Empowerment: Toyota encourages all employees, from assembly line workers to top
management, to identify areas for improvement. This inclusive approach ensures that insights
from all levels contribute to process enhancements.
Standardized Procedures: The company employs standardized work procedures to maintain
consistency and quality across its operations.
Just-In-Time Production: By producing only what is needed, when it is needed, Toyota
minimizes waste and reduces inventory costs.
Quality Circles: Small groups of employees regularly meet to discuss and solve workrelated
problems, fostering a culture of collective responsibility for quality.
Discussion Questions:
1.How does Toyota’s practice of Kaizen contribute to its overall quality management strategy?
2.In what ways does employee involvement impact the success of TQM initiatives at Toyota?
3.What challenges might a company face when implementing Kaizen and TQM, and how can
they
be addressed?

REPORTERS:
Antonio, Mariavell T.
Babor, Marhielle J.
Bilar, Rezaline P.
Casipong, Antoneth A.
Emia, Michelle C.
Encepedo, Jannice G.
Fuentivella, Shielou C.
Gaviola, Virlyn D.
Pamilaga, Britny T.
Prac, Jeny A
Vasaya, Reca Mae J.

CHAPTER VI: INTRODUCTION TO QUALITY

CASE STUDY
The "Mangoes of Mactan" farm on Mactan Island, Cebu, is renowned for its high-quality
mangoes. However, recent challenges have emerged. Increased demand has led to difficulties in
maintaining consistent fruit size and sweetness across their harvest. Additionally, some mangoes
are arriving at market with blemishes due to inconsistent handling during post-harvest
processing. The farm owner is concerned about maintaining their reputation for premium
mangoes while scaling their operations. They are also considering expanding into mango-based
products, such as jams and dried mangoes, which would require a different approach to quality
control.This expansion presents new quality challenges. Maintaining the quality of fresh
mangoes is different from ensuring the quality of processed products. The farm needs to establish
new quality standards for its processed goods, including shelf life, taste, and consistency. They
also need to consider the impact of scaling up production on their existing quality control
processes for fresh mangoes. The farm owner needs a comprehensive quality management
strategy to address these issues and ensure continued success.
Questions:
1. How can "Mangoes of Mactan" implement a Total Quality Management (TQM) system to
address both their current challenges with fresh mangoes and the new challenges posed by
expanding into processed products? What specific TQM tools or techniques would be most
beneficial?
2. How can "Mangoes of Mactan" use quality as a competitive advantage, both in the fresh
mango market and in the expanding processed mango product market? What strategies can they
use to differentiate their products and highlight their commitment to quality?
3. The farm owner prioritizes sustainable farming practices and fair treatment of workers. How
can these values be integrated into their quality management system? How can they use customer
feedback to improve both the quality of their products and their overall customer experience?
 CHAPTER VIII: ISHIKAWA & SIX SIGMA
Case Study: Improving Product Quality through Ishikawa and Six Sigma
Pacific Electronics Inc., a medium-scale electronics manufacturer in Cebu, had been receiving a
rising number of customer complaints due to defective products, particularly in their soldered
circuit components. Concerned about losing clients and damaging their reputation, the
management team decided to launch a quality improvement initiative by integrating two
powerful tools: the Ishikawa Diagram and Six Sigma’s DMAIC methodology. The first step
taken by the quality team was to identify the root causes of defects using the Ishikawa or
Fishbone Diagram. During a brainstorming session, they categorized potential causes into six
areas: Manpower, Methods, Machines, Materials, Measurement, and Environment. Under
Manpower, they discovered that many workers lacked proper training in soldering. Under
Methods, inconsistencies in the standard operating procedures were noted. Machines used for
soldering were also outdated, while the materials, particularly the solder, were found to be
substandard. Additionally, measurement tools were not calibrated regularly, and high humidity in
the work area further affected product quality. After mapping out these causes, the company
adopted the Six Sigma DMAIC process to address the issues. In the Define phase, the team set a
clear objective: to reduce product defects by at least 50% within three months. During the
Measure phase, they tracked defect frequency and types. The Analyze phase revealed that most
issues stemmed from poor soldering techniques and improper machine settings. For the Improve
stage, workers were retrained, and standard procedures were revised. Finally, in the Control
phase, the company introduced regular audits and quality checkpoints to sustain progress. After
three months, the company achieved a 65% reduction in defects and noticed a significant
improvement in customer satisfaction. The integration of Ishikawa and Six Sigma proved to be
an effective strategy for identifying, addressing, and preventing quality issues in their operations.
Reflection Questions:
1. In what ways did the Ishikawa Diagram contribute to identifying specific problem areas in the
production process?
2. Which phase of the DMAIC process do you think made the biggest impact on improving
product quality? Explain your reasoning.
3. What steps can Pacific Electronics take to ensure continuous improvement and avoid falling
back into old habits?
4. Create an Ishikawa Diagram based on this case study, identifying at least two causes under
each main category (Manpower, Methods, Machines, Materials, Measurement, and
Environment).
 CHAPTER IX

Case Study: Improving Customer Experience at BrewBean Café

BrewBean Café is a growing coffee shop chain in urban areas, known for its eco-friendly
practices and artisanal beverages. While the company has gained popularity among young
professionals, recent feedback suggests that customer satisfaction is declining. Complaints on
social media and review platforms highlight long wait times during peak hours, inconsistent
drink quality, and an impersonal ordering process. Management believes that while the café's
ambiance and eco-messaging are well received, the operational side especially service speed and
personalization is lagging behind customer expectations.
BrewBean Café faces a critical challenge: customers feel that the in-store experience doesn't
match the brand's premium, community-focused image. Many expect not only good coffee but
also friendly baristas, efficient service, and a sense of being recognized as regulars. However, the
current model treats all transactions generically. Although some customers appreciate unique
elements like reusable cup discounts and seasonal drink specials, these don't compensate for the
lack of personal interaction or long service times. If left unresolved, these issues could harm
BrewBean's reputation and stall its growth in a highly competitive market.

Questions
1. Based on the case, classify the following features into the Kano Model categories and then
draw a Kano diagram: fast service, barista personalization (remembering names), seasonal drink
specials, eco-friendly packaging, and in-store seating ambiance. Explain your classifications
briefly.
2. If you were BrewBean's operations manager, which method would you use to collect customer
feedback: comment cards, in-person interviews, or digital surveys? Justify your choice based on
the café environment.
3. Using the service quality framework SERVQUAL model, identify which dimensions are most
at risk (Reliability, Responsiveness, Assurance, Empathy, Tangibles) and propose one action for
each to address service quality gaps.
4. Propose two mass customization ideas BrewBean could implement to boost customer
satisfaction. How can these support customer retention in the long term?
 Chapter I: Operations Management & Value chain
Case study: Zappos
Zappos (www.zappos.com) is a Las Vegas-based online retailer that has been cited in Fortune’s
list of the Best Companies to Work For and Fast Company’s list of the world’s most innovative
companies. In fact, its remarkable success resulted in Zappos being bought by Amazon for $850
million in 2009. Zappos was founded in San Francisco in 1999 and moved to Las Vegas for the
cheap real estate and abundant call center workers. The company sells a large variety of shoes
from nearly every major manufacturer and has expanded its offerings to handbags, apparel,
sunglasses, watches, and electronics. Despite the crippling economic downturn, sales jumped
almost 20 percent in 2008, passing the $1 billion mark two years ahead of schedule. The
company's first core value is “Deliver WOW through service,” which is obvious if you’ve ever
ordered from Zappos. It provides free shipping in both directions on all purchases. It often gives
customers surprise upgrades for faster shipping. And it has a 365-day return policy. In 2003,
Zappos made a decision about customer service: It views any expense that enhances the
customer experience as a marketing cost because it generates more repeat customers through
word of mouth. CEO Tony Hsieh never outsourced his call center because he considers the
function too important to be sent to overseas. Job one for this frontline is to delight callers.
Unlike most inbound tele-marketers, they don't work from a script. They're trained to encourage
callers to order more than one size or color, because shipping is free in both directions, and to
refer shoppers to competitors when a product is out of stock. Most important, though, they're
implored to use their imaginations. This means that a customer having a tough day might find
flowers on his or her doorstep the next morning. One Minnesota customer complained that her
boots had begun leaking after almost a year of use. Not only did the Zappos customer service
representative send out a new pair-in spite of a policy that only unworn shoes are returnable-but
she also told the customer to keep the old ones, and mailed a hand-written thank-you. 12 Over 95
percent of Zappos transactions take place on the Web, so each actual customer phone call is a
special opportunity. "They may only call once in their life, but that is our chance to wow them,"
Hsieh says.
Zappos uses a sophisticated computer system known as Genghis to manage its operations. This
includes an order entry, purchasing, warehouse management, inventory, ship-ping, and
ecommerce system. Genghis tracks inventory closely that customers can check online how many
pairs of size 12 Clarks Desert boots are available in the color sand.
For employees, it automatically sends daily e-mail reminders to call a customer back,
coordinates the warehouse robot system, and produces reports that can specifically assess the
impact on margins of putting a particular item on sale. Free shipping has become a customer
expectation. Research has found that online customers abandon their virtual shopping carts up to
75 percent of the time at the end of their order entry process when they can't get free shipping.
Other online retailers have copied the free-shipping policies of Zappos. L.L. Bean, for example,
now provides free shipping and free returns with no minimum order amount.
 Chapter II: Operations strategy, technology & management
Case Study: Bracket International- The RFID Decision
Bracket International-The RFID Decision Case Study Jack Bracket, the CEO of Bracket
International (BI), has grown his business to sales last year of $78 million, with a cost of goods
sold of $61 million. Average inventory levels are about $14 million. As a small manufacturer of
steel shelving and brackets, the firm operates three small factories in Ohio, Kentucky, and South
Carolina. Bl's number one competitive priority is “service first," while high product quality and
low cost are the number two and three priorities. Service at Bl includes preproduction services
such as customized engineering design, production services such as meeting customer promise
dates and being flexible to customer-driven changes, and postproduction services such as
shipping, distribution, and field service.
The Ohio and Kentucky factories are automated flow shops, whereas the South Carolina factory
specializes in small custom orders and is more of a batch-processing job shop. All three factories
use bar coding labels and scanning equipment to monitor and control the flow of materials. BI
manually scans about 9,850 items per day at all three factories. An item may be an individual
part, a roll of sheet steel, a box of 1,000 rivets, a pallet load of brackets, a box of quart oil cans, a
finished shelf or bracket set ready for shipment, and so on. That is, whatever a bar code label can
be stuck on is bar coded. A factory year consists of 260 days. One full-time Bl employee works
2,000 hours per year with an average salary including benefits of $69,000.
Two recent sales calls have Mr. Bracket considering switching from the old barcoding system to
a radio-frequency identification device (RFID) system. The RFID vendors kept talking about
“on- demand" operational planning and control and how their RFID and software systems could
speed up the pace of Bl's workflows. One RFID vendor provided the
following information:
• Bar code scan times for the sheet metal business (similar to BI) average 10 seconds per
item and include employee time to find the bar code, pick up the item and/or position the
item or handheld bar code reader so it can read the bar code, and in some cases physically
reposition the item. Item orientation is a problem with manual bar coding. Additionally,
the cost of misreads would change with a switch to RFID. Replacing a damaged or
defective bar code label takes approximately 5 minutes, costing Bracket International
$2.88 per replacement.
• Misreads account for an estimates 2 percent of total yearly scans, or 51,220 scans. This
totals to a cost of $147,513.60 per year in misreads for the current barcode technology.
With RFID technology, a misread is uncommon, accounting for 0.2 percent of annual
scans, or 5,122 scans. At the given cost of $4 per misread, the total annual cost of
misreads on an RFID system is $20,488. By switching, the company would save
$127,025.60 on misreads each year.
• The initial investment of transitioning to an RFID system is $1,100,000 ($620,000 for
necessary hardware and software, plus $480,000 for new supply chain operating system
 software) (Collier and Evans, p. 80, 2017). By dividing the initial investment by the total
annual economic benefits ($1,100,000 / ($256,100 + $127,025.60)), it can be found that
the economic payback for the RFID system is 2.87 years.
• The 10-second bar code scan time does not include the employee walking to the
barcoding area or equipment. It is assumed that the employee is in position to scan the
item. The 10 seconds does not include the time to replace a scratched or defective bar
code label. Replacing a damaged bar code tag, including changes to the computer system,
may take up to five minutes.
• All three Bi factories can be fitted with RFID technology (readers, item tags, and
hardware- related software) for $620,000. In addition, new supply chain operating system
software that takes advantage of the faster pace of RFID information is priced for all
three factories at $480,000 and includes substantial training and debugging consulting
services.
 RFID scan time is estimated to be 2/100ths of a second, or basically instantaneous.
 For the sheet metal business, bar code misreads average 2 percent (i.e., 0.02) over the
year of total reads, and this is estimated to reduce to 0.2 percent (i.e., 0.002) for RFID
 technology. The 0.2 percent is due to damaged RFID tags or occasional radiofrequency
interference or transmission problems. Misreads are a problem because items are lost and
not recorded in BI's computer system. The vendor guessed that a single misread could
cost a manufacturer on average $4 but noted this estimate could vary quite a bit.
 According to the RFID vendors, other benefits of RFID systems include readily located
inventory, fewer required inventory audits, and reduced misplacements and theft.
However, they did not have any information quantifying these benefits.
Bracket International recently had problems adapting quickly to changing customer
requirements. Bl had to deny a Wolf Furniture job order request because it could not react
quickly enough to a change in job specifications and order size. Eventually, BI lost the Wolf
Furniture business, which averaged about $2 million per year. Another Bl customer, Home
Depot, keeps talking about Bl needing to be more flexible because Home Depot's on-demand
point-of-sale systems require frequent changes to Bl orders. Home Depot is Bl's top customer, so
every effort needs to be made to keep Home Depot happy.
Mr. Bracket doesn't think throwing away the bar-coding system that works is a good idea.
The BI employees are familiar with using bar coding technology, whereas the RFID technology
seems hidden from employees. He also doesn't think the return on investment (ROI) on an RFID
system is compelling. So why does he feel so guilty when the RFID vendors leave his office? Is
he doing the right thing or not? He has an obligation to his trusted employees to do the right
thing. Should he adopt RFID based purely on strategic and/or economic benefits? He writes
down several questions he needs to investigate.
Chapter III: Supply Chain Management and Logistics
Case study: Nokia’s Supply Chain Strategy: A Detailed Scenario
Nokia, a global technology leader connecting people and things, recognizes that a robust Supply
chain is essential for its success in the dynamic technology industry. The company places
Significant emphasis on cultivating strong relationships with both its suppliers and customers,
Understanding that these connections are pivotal to the supply chain’s overall effectiveness.
Nokia Prioritizes the seamless flow of information throughout its supply chain network, as this
facilitates Effective collaboration, coordination, and responsiveness.
A core element of Nokia’s supply chain strategy Is the establishment of “value-based
Partnerships” with suppliers. This approach involves grounding supplier relationships in factual
Information, ensuring transparency, and aligning goals to achieve mutual benefit. Nokia believes
In providing strong leadership within its supply chain, setting clear direction, and fostering a
shared Understanding of objectives. Recognizing the fast-paced nature of the technology sector,
Nokia Emphasizes flexibility as a key attribute of its supply chain, enabling it to adapt swiftly to
evolving Market demands, technological advancements, and unforeseen disruptions. Trust forms
a cornerstone of Nokia’s interactions with its supply chain partners. The Company is committed
to open and honest communication, fostering an environment of mutual Respect and reliability.
Nokia understands that building trust is crucial for long-term collaboration And for creating a
resilient supply chain that can withstand challenges. By focusing on these Principles, Nokia aims
to create a supply chain that not only optimizes efficiency and reduces costs But also drives
innovation, enhances customer satisfaction, and supports sustainable growth.
Questions:
1. How does Nokia’s emphasis on “value-based partnerships” with suppliers contribute to
its Overall supply chain performance and competitive advantage?
2. Why is trust considered a “cornerstone” of Nokia’s supply chain relationships, and what
Are the potential consequences of a lack of trust within the supply chain?
3. How might Nokia balance the goals of cost efficiency and innovation within its supply
Chain strategy, and are there potential trade-offs to consider?
4. Considering the increasing importance of sustainability, how could Nokia integrate
Environmental and social responsibility into its supply chain practices while maintaining
Its focus on the other strategic principles