BC 201
OPERATIONS
MANAGEMENT
OBJECTIVE
S
• To understand the difference between products and services.
• To evaluate the standards and criteria for assessing the quality of
products.
• To examine the elements that define and influence the quality of
services.
• To establish a comprehensive understanding of the concept of quality.
• To apply the principles and practices advocated by quality gurus to
real-world scenarios.
• To identify and describe the different dimensions of quality.
• To investigate strategies for enhancing productivity by focusing on
quality improvements.
CONCEPT OF QUALITY
QUALITY
The expected service being realized. It is the
effect of a certain customer’s view on
something as they receive it.
Marketing /Sales have a great impact
on opinions of customers and their
perception of quality.
Other factors that
affect quality
• Customers expectation
• Actual product/ services
received
PRODUCT FEATURE
The quality of the characteristics of product
corresponds to the expectations of the clients.
Quality of product
• The main characteristics of the product.
• All functions have specific properties that explain the quality of
the product and its services.
• Set of alternatives that are related to the existence of a set
functions and specified properties.
• The main feature of quality of the product.
• It’s measurement is done by finding the mean time
between failures (MTBF).
Example: A car should not break down often, so the MTBF
of a car can be specified as 1,000 running hours of
10,000 km.
Quality of product
• Hallmark of product quality.
• Clients ability to use the product without the
help of expertise.
Example: A car may need a mechanic to repair
it, but its owner can drive if it they are trained.
• Ease of a product being able to kept its original state
without creating problem.
• The ability to keep a product for a while makes it
expensive, but you may finally use a product for a long
time
Quality of product
• The relationship of production and input.
• The quality of the product must be
measureable by its effectiveness.
• The ability of the product that can be transfer to
another environment to other.
Service feature
Quality of service
• Meeting customers needs.
• Knowing customers implicit requirements.
• Formulating a plan to satisfy the specific need or problem.
• The service is design according to the qualification and
requirement of clients.
• Having a unique design.
Quality of service
• The service is the criteria of success.
• Example logistics company - transportation
• Quality is define as a degree of excellence.
• A quality process or product is fit for its purpose. Applicable to any
process, product or service.
• In manufacturing, a measure of excellence or a state of being free
from defects and deficiencies.
• Garvin (1984) divides the definition of quality into five categories,
including product-based, user-based, and value-based. He also gave
eight attributes to define quality: Performance, features, reliability,
conformance, durability, serviceability, aesthetics and perceived
quality.
• According to Crosby (1979) Quality is conformance to requirements
specifications, A quality control teams that need to validate process,
systems, services and product quality.
• According to Deming quality is meeting or exceeding customer
expectations.
• According to Juran (1979) Quality is measure of fitness for use.
• In mathematical method, quality is defined as the ratio of performance to
expectation.
Quality(Q)=Performance (P)/Expectation (E)
Case 1. If, P>E = Quality is best
Case 2. If, P=E = Quality is good
Case 3. If, P<E = Quality is worst
• QUALITY also stands for
Q=Quest for excellence
U= Understanding to achieve customers’ needs
A= Action to achieve customer appreciation
L = Leadership
I= Involving all people
T= Team spirit for common goal
Y= Yardstick to measure progress
• Quality is cost - the quality of the product was considered in terms of the
cost of the materials.
• Quality is price - The bigger the price of the product, the higer would be its
quality
.
Quality Gurus
The quality of Gurus who work on
quality and they define quality from
different viewpoints.
Dr. W. Eduards Deming
• Greater productivity leads to long-term
competitiveness in the market which is result of
achieving higher quality in all the processes.
The theory is that upgraded quality standards
leads to decrease in cost and enhance
productivity.
• Improve quality and productivity.
The four Deming’s Knowledge System Theory
Everything in the organization is interconnected - Understanding that an
organization functions as an interconnected whole, where changes or
problems in one area affect the entire system.
Recognizing and managing the differences in performance and
outcomes to ensure consistent quality and reduce unpredictability in
processes. Notice what’s normal and not.
Using data and evidence to guide decisions and improvements, ensuring
that actions are based on accurate and relevant information.
Understanding human behavior and motivation to foster
a positive work environment, improve employee
engagement, and enhance overall performance.
Dr. Joseph Juran
• The trilogy of quality focuses on the roles of
advanced quality planning, quality control and quality
improvement.
Think ahead and set up processes to ensure high quality.
Monitor ongoing activities to keep everything on track. Continuously look for ways to make things better.
Philip Crosby
Refers to the act of meeting or aligning with specific standards, rules, or requirements. Quality,
conformance means that a product, service, or process matches the established criteria or
specifications.
Preventing errors before it occurs. Rather than spending time and resources correcting mistakes after
been made..
Quality means doing things right the first time, every time, without any mistakes.
Genichi Taguchi
Taguchi product development includes three stages:
• System design - The non- statistical stage for
engineering, marketing, customer, and other
knowledge is determined.
• .Parameter Stage - How the product should be run
against the defined parameters.
• Tolerance design - The balance between
manufacturing cost and loss.
Armand V. Feigenbaum
- The man behind the concept of Total
Quality Control (TQC)
- Feigenbaum had warned against the
costly effects of not producing good
quality for the first time, an idea sharred
by all subsequent quality concepts.
Dr. Kaoru Ishikawa
Japanese professor best known for the Ishikawa
cause-and effect diagram(fishbone diagram).
He suggested guidelines and establishment of
quality circles.
He is very concerned about the concept of
quality across the organization.
Dr. Kaoru Ishikawa
A Fishbone Diagram, developed by Dr. Kaoru
Ishikawa, is a tool used to identify and
categorize the root causes of a problem.
Also known as the Ishikawa or Cause-and-
Effect Diagram, it visually resembles a fish
skeleton. Each "bone" represents a category
of potential causes, which branch out into
smaller bones to explore specific issues. This
method is commonly used in
troubleshooting and product development to
focus on and resolve the core problem.
Frederick Taylor (1856-1915)
• The father of scientific management.
• Taylor’s main concern was to increase production efficiency, not
only to reduce cost and increase profits, but also to increase
production worker’s wages through increased productivity.
• His fundamental principles presented below:
⚬ Replace the working methods of the golden rule with
methods based on scientific study of task.
⚬ Select and train each of the workers scientifically instead of
promoting passive training.
⚬ Coopeartion is required for ensuring the implementation of
scientifically developed methods.
⚬ Managers plan using scientific principles, while workers
execute tasks.
Dimensions of quality and their
measure
The fundamental dimension of product
quality
The quality of product based on reliability
Dimensions of quality and their
measure
The longevity of the product
Ability to provide good service to
customers.
Dimensions of quality and their
measure
The visual appearance of the
product
The additional or secondary attached
feature, and compliments the main
function of a product.
Dimensions of quality and their
measure
Reaction of the customers after using the product
Conformance to
standards
Improving productivity to quality
• Analysis process
• Align business process with other
companies in the sector
• Develop performance measures
• Build quality test in process
• Use business strategies to improve
productivity and quality management
• Pay attention to feedback
END
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