STATISTICAL PROCESS
CONTROL
PRESENTATION BY: ALESSIAH PAGAYON
Guimaras State University
QUALITY MANAGEMENT
Presentation by: Alessiah S. Pagayon, MBA
WHAT IS QUALITY
MANAGEMENT?
Quality management is a
comprehensive approach that
ensures products and services
consistently meet or exceed
customer expectations through
continuous improvement and
process optimization.
WHY QUALITY
MANAGEMENT
REALLY MATTERS
Quality management provides a
framework for constant quality
improvement to ensure
companies build and launch the
best possible products and
services.
-Chuck Serrin
• Customer Focus
• Leadership
7 Principles of Quality • Engagement of People
Management • Process Approach
• Improvement
• Evidence-based decision making
• Relationship Management
1.Customer Focus
The primary goal of quality management
is to meet external customer
requirements and internal quality
standards while striving to exceed
customer expectations.
2. Leadership
The creation of conditions in which
people are actively engaged in
achieving organizational objectives
through the establishment of unity
across all levels.
3. Engagement of People
Nurture a work culture that
ensures all people are competent,
empowered, and engaged in
delivering quality across all aspects
of their work.
4. Process Approach
Quality standards are achieved
more effectively and efficiently
when activities are understood and
managed as interrelated processes
that function as a coherent system
working to complete a common
goal.
5. Improvement
Focusing on consistent, small improvements
is a proven pathway to success.
Risk management can also be helpful when
considering how to improve, as it analyzes
both internal and external factors to assess
the health of a business and what the most
appropriate action to take is.
6. Evidenced-based
decision making
Data is key to determining how successful
quality management has been for your
organization. Be sure to not only
constantly collect data about your
business processes but also evaluate it
and use what you discover to make
decisions that produce the results you
desire.
7. Relationship
Management
To sustain the success of high-quality
products, organizations put effort into
managing their relationships with external
vendors all along the supply chain, such
as shipping solutions providers. You
should also build rapport and trust with
your customers to build brand loyalty.
Quality management is important
Why is Quality because it provides a framework for
Management constant quality improvement. This
acts as an assurance that companies
Important? never settle on delivering anything less
than the best products and services
possible.
Quality is a very important attribute because it gives
Why is Quality us a measurable way of differentiating between
competitors in the marketplace. Consistency and
Management reliability are two key factors to consider when it
Important? comes to product quality. Quality management ends
up creating a strategic source of value for companies
across and even beyond the typical product life cycle.
It helps an organization to achieve greater
consistency in tasks and activities that are
involved in the production of products and
services.
It increases efficiency in processes, reduces
Benefits of wastage, and improves the use of time and other
resources.
Quality It helps improve customer satisfaction.
Management
It enables businesses to market their business
effectively and exploit new markets.
It makes it easier for businesses to integrate new
employees, and thus helps businesses manage
growth more seamlessly.
Quality management in businesses is
vital to ensure consistency in its
processes, as well as in its products and
services. In business, customer
satisfaction is key. As a customer’s main
BOTTOMLINE concern is the quality of the products or
services they purchase, the supplier’s
main goal should always be to ensure
that what they produce is of consistent
and fine quality.
TOTAL QUALITY MANAGEMENT
Key Takeaways
• Total quality management (TQM) is an ongoing process of detecting and
reducing or eliminating errors.
• TQM is used to streamline supply chain management, improve customer
service, and ensure that employees are properly trained.
• The focus is to improve the quality of an organization’s outputs, including
goods and services, through the continual improvement of internal
practices.
• Total quality management aims to hold all parties involved in the
production process accountable for the overall quality of the final product
or service.
• There are often eight guiding principles to TQM that range from focusing
on customers, to continually improving, and adhering to processes.
What Is Total Quality Management
(TQM)?
Total quality management is the management approach for long-
term success, which is done through consumer satisfaction. This
initially came out of manufacturing, but its acceptance saw it move
into nearly all sectors. TQM concentrated on enhancing the
processing to improve consumer satisfaction, often following the
cycle of Plan, Do, Check and Act known as (PDCA).
continuation......
It integrates quality principles throughout the entire business, from
top-level management to front-line employees. It contributes to the
culture of teamwork, collaboration, and accountability where all
professionals or individuals are responsible for delivering high-
quality services and products. With the help of embracing TQM,
businesses aim to optimize efficiency, decrease waste, improve
consumer experiences, etc.
continuation......
Most of the time, it is managed by individuals rather than developed
across entire businesses. Following are the different principles of TQM
and one thing you need to understand is they are similar to Total Quality
Control but with a few differences.
• Concentration on consumers
• Involve people
• Adopt a process-driven approach
• Integrate organizational systems
• Adopt a strategic and systematic methodology
• Adopt the factual method of decision-making
• Make sure communication with stakeholders goes well
• Commit to continual enhancement
IN SIMPLE LANGUAGE:
TOTAL - made up of the whole
QUALITY - degree of excellence a product or service
provides
MANAGEMENT - act, art or manner of planning,
controlling and directing...
Therefore, TQM is the art of managing the whole to
achieve excellence.
TOTAL
QUALITY Toyota’s implementation of Kanban System
MANAGEMENT
KEY CONCEPT OF KANBAN
To produce only what is needed, when it is
needed and in the amount needed.
-Taiichi Ōno
HOW DOES IT REALLY WORK?
Kanban is an inventory control system used in just-in-time (JIT)
manufacturing. It was developed by Taiichi Ohno, an industrial
engineer at Toyota, and takes its name from the colored cards
that track production and order new shipments of parts or
materials as they run out. Kanban is a Japanese word that directly
translates to "visual card," so the kanban system simply means to
use visual cues to prompt the action needed to keep a process
flowing.
KANBAN CORE PRACTICES:
1.Visualize Workflows
At the heart of kanban, the process must be visually depicted.
Whether by physical, tangible cards or leveraging technology
and software, the process must be shown step-by-step using
visual cues that make each task clearly identifiable. The idea is
to clearly show what each step is, what expectations are, and
who will take what tasks.
continuation.....
Old-fashioned (but still used today) methods included drafting
kanban tasks on sticky notes. Each sticky note could be colored
differently to signify different types of work items. These tasks
would then be placed into swim lanes, defined sections that
group related tasks to create a more organized project. Today,
inventory management software typically drives kanban
process.
KANBAN CORE PRACTICES:
2. Limit WIP
As kanban is rooted in efficiency, the goal of kanban is to
minimize the amount of work in progress. Teams are
encouraged to complete prior tasks before moving on to a new
one. This ensures that future dependencies can be started
earlier and that resources such as staff are not inefficiently
waiting to start their task while relying on others.
continuation.....
A company must internally assess the appropriate amount of
WIP to be carrying as it works through the kanban process. This
is often tied to the number of people along the process; as the
number of workers tied to a project decreases, so does the
allowed quantity of items being worked on. This limitation also
communicates to other teams or departments that they must
be considerate of their ask of other teams as each group of
individuals may be imposed a working limitation.
KANBAN CORE PRACTICES:
3. Manage Workflows
As a process is undertaken, a company will be able to identify
strengths and weaknesses along the workflow. Sometimes,
limitations are not met or goals not achieved; in this case, it is
up to the team to manage the workflow and better understand
the deficiencies that must be overcome.
continuation.....
A critical part of kanban is to observe and eliminate bottlenecks
prior to them occurring. This includes forecasting production
and resource utilization. As a process becomes more
predictable, a company will find it is easier to make
commitments to customers or make processes even more
efficient by fully scaling back additional unused resources.
KANBAN CORE PRACTICES:
4. Clearly Define Policies
As part of visually depicting workflows, processes are often
clearly defined. Departments can often easily understand the
expectations placed on their teams, and kanban cards assigned
to specific individuals clearly identify responsibilities for each
task. By very clearly defining policies, each worker will
understand what is expected of them, what checklist criteria
must be met before completion, and what occurs during the
transition between steps.
KANBAN CORE PRACTICES:
5. Implement Feedback Loops
When using the kanban method, companies often gather information,
analyze how processes are flowing, and implement changes to further
improve the process. This feedback loop allows employees to continuously
improve and make incremental changes that are easier to adapt to. The
feedback may be positive feedback or negative feedback. The kanban
approach enables workers to understand failures early in the process and
allows the company to adapt to a correct path before inefficiencies
become a larger issue.
KANBAN CORE PRACTICES:
6. Improve Collaboration
Because tasks are broken down into very small kanban cards, individuals
must often rely upon each other when using the kanban method.
Individuals, often on different teams, must collaborate and discuss
transitions between swim lanes, while other individuals must group to
identify and resolve issues quickly. Under kanban, changes to the process
must be broadly communicated as adjustments made in one area may
have a wider impact in other.
Thank You
Capacity planning of resource capacity
planning, is the process of ensuring an
organization has enough resources to
operate, excecute projects, andmeet
increasing customer demand.
Identifying capacity requirements
involves determining the resources (like
machines, labor, or systems) needed to
meet a company's production goals or
demands, ensuring efficient and timely
operations.
Here's a breakdown of the
process:
1. Understanding the Need:
Forecasting Demand:
Predict future demand for products, services, or projects by
analyzing historical data, market trends, and other relevant
factors.
Defining Scope and Requirements:
Clearly outline the project's or service's scope, objectives, and
specific requirements.
Identifying Bottlenecks:
Analyze current processes and workflows to pinpoint any
constraints or bottlenecks that limit capacity.
2. Assessing Current Capacity:
Evaluating Existing Resources:
Assess the capabilities and limitations of current resources,
including personnel, equipment, and facilities.
Calculating Resource Capacity:
Determine the maximum workload or output that each
resource can handle within a given timeframe.
Analyzing Utilization Rates:
Evaluate how effectively current resources are being utilized
to identify areas for improvement or potential shortages.
3. Determining Capacity Requirements:
Comparing Demand and Capacity:
Compare the anticipated demand with the available capacity
to identify any gaps or surpluses.
Calculating Required Capacity:
Determine the additional resources or capacity needed to
meet the projected demand.
Prioritizing Resources:
Identify which resources are most critical and prioritize their
allocation to ensure optimal performance.
4. Planning and Implementation:
Developing Capacity Plans:
Create plans to address identified capacity gaps, which may
involve hiring additional staff, investing in new equipment, or
optimizing existing processes.
Resource Allocation:
Allocate resources based on the capacity plan, ensuring that the
right resources are available at the right time.
Monitoring and Adjustments:
Continuously monitor capacity utilization and adjust plans as
needed to ensure that demand is met effectively.
Evaluating capacity plans involves
assessing an organization's ability to
meet future demands by analyzing
current capacity, forecasting future
needs, and identifying potential gaps and
solutions.
Here's a breakdown of the
process:
1. Assess Current Capacity:
Analyze current resources:
Evaluate existing machinery, staff, and work centers to
determine the organization's current production capabilities.
Measure capacity utilization:
Determine the current capacity utilization rate and identify
any bottlenecks or inefficiencies.
Identify capacity gaps:
Compare current capacity with projected future demand to
identify any potential shortfalls.
2. Forecast Future Demand:
Project future demand:
Estimate future customer demand based on historical data,
market trends, and other relevant factors.
Consider seasonal or cyclical patterns:
Account for any seasonal or cyclical patterns in demand that
may impact capacity requirements.
Assess potential risks and uncertainties:
Identify potential risks and uncertainties that could affect
demand forecasts and capacity planning.
3. Develop and Evaluate Capacity Plans:
Identify potential solutions:
Explore different options for addressing capacity gaps, such as adding
equipment, hiring staff, streamlining workflows, or outsourcing.
Conduct financial analysis:
Evaluate the costs and benefits of different capacity planning options.
Assess qualitative factors:
Consider qualitative factors, such as the impact on customer service
or employee morale, when evaluating capacity plans.
Select the optimal plan:
Choose the capacity plan that best meets the organization's needs
and objectives.
4. Implement and Monitor:
Implement the chosen plan:
Put the selected capacity plan into action.
Monitor results:
Track actual demand and resource utilization against the
initial forecasts and schedules.
Adjust as needed:
Continuously monitor and adjust the capacity plan as
needed to ensure it remains effective.
Facility location refers to the strategic
process of determining the optimal
placement of facilities, considering
factors like proximity to customers,
suppliers, and labor, as well as
environmental regulations and financial
incentives.
Cost Reduction:
Choosing the right location can significantly reduce transportation
costs, labor costs, and other operational expenses.
Operational Efficiency:
A well-chosen location can lead to streamlined logistics, faster delivery
times, and improved customer service.
Competitive Advantage:
A strategic location can help a company gain a competitive edge by
improving market access, attracting talent, and reducing costs.
Long-Term Strategy:
Facility location decisions are long-term investments, and a poor choice
can have lasting negative consequences.
Key Factors in Facility Location Decisions:
Proximity to Customers:
Being close to customers can reduce transportation costs, improve
delivery times, and enhance customer satisfaction.
Proximity to Suppliers:
Being near suppliers can reduce transportation costs, improve supply
chain reliability, and allow for better coordination.
Labor Availability:
Access to a skilled and affordable workforce is crucial for many
businesses.
Infrastructure:
Good transportation infrastructure (roads, railways, ports, etc.) is essential for
efficient logistics.
Regulatory Environment:
Local regulations, taxes, and incentives can significantly impact location
decisions.
Business Climate:
The overall economic and business environment in a region can influence
location decisions.
Cost of Land and Facilities:
The cost of land, construction, and operating facilities can vary significantly by
location.
Quality of Life:
For some businesses, the quality of life for employees in a particular location can
be a factor.
Cost-Volume-Profit Center of Gravity Factor Rating
Analysis: Method: Method:
This method helps This method uses a This method assigns
determine the total weights to different
weighted average of
costs associated with factors (e.g., cost,
customer locations
different locations labor, infrastructure)
to find the optimal
and identify the most and uses these
location for a weights to evaluate
cost-effective
option. facility. different locations.
Facility layout, is the process of
determining the best way to arrange
the physical elements of a production
or service facility to ensure smooth
workflow, efficient material handling,
and effective utilization of space.
Product Layout
Arranges workstations or departments in a
sequence to facilitate the assembly of a product.
Process Layout
Groups similar machines or processes together,
offering flexibility but potentially higher
material handling costs.
Fixed-Position Layout
The product remains stationary, and workers and
equipment move to it, suitable for large or
immovable projects.
Cellular Layout
Groups different machines and processes into
cells to produce a family of similar products .
INCREASED REDUCED COST IMPROVED
PRODUCTIVITY SAFETY
Optimized layout
Efficient layout minimizes material
A well-organized
reduces wasted handling, space layout can reduce
time and requirements, and hazards and
movement, leading potential improve employee
bottlenecks, leading
to higher output. safety.
to lower costs.
ENHANCED BETTER
FLEXIBILITY CUSTOMER
Some layouts are EXPERIENCE
In service facilities,
designed to
a well-designed
accommodate
layout can enhance
changes in
customer flow and
production volume or
interaction.
product variety.
PRODUCTION
Operation
Management
01
LEAN SYSTEM
➢ What is Lean Manufacturing
Topics
➢ 5 Principles of Lean manufacturing
➢ 8 Waste of Lean manufacturing
➢ Advantages of Lean manufacturing
➢ Dis-advantages of Lean manufacturing
JUST IN TIME (JIT) 02
SYSTEM
➢ What is JIT
➢ Benefits of JIT
➢ Disadvantages of JIT
What is Lean Manufacturing?
a production process based on an ideology of maximizing
productivity while simultaneously minimizing waste within a
manufacturing operation. Many companies are using Lean
manufacturing principles to reduce waste, improve processes, cut
costs, promote innovation, and reduce time to market in a fast-
paced, volatile, ever-changing global marketplace.
5 Principles of Lean manufacturing
Value
Map the Value Stream
Create flow
Establish a Pull System
Perfection
8 Waste of Lean manufacturing
“DOWNTIME”
Defects 01 05
Transportation
excess
Overproduction 02 06 Inventory excess
Waiting 03 07 Motion excess
04 08
Non-utilized Excess processing
talent
Advantages of Lean manufacturing
Environment Friendly
Saves Time and Money
Improve Quality
Eliminate waste
Improved Customer Satisfaction
Advantages of Lean manufacturing
Stops Future Development
Difficult to Standardize
Employee Safety
Example of Lean manufacturing
Intel is known for their computer processors; Intel
adopted the lean manufacturing approaches to give a
higher quality product to an industry that requires zero
bugs. This ideology has helped reduce the time to
bring a microprocessor to the factory from over three
months in the past to less than ten days.
Example of Lean manufacturing
Toyota is the first major company to use this lean
ideology in their manufacturing processes, initially
calling the method the Toyota Production System. Not
only have they reduced waste but they have also
mastered the skills required to minimize faulty
products that do not meet customer needs.
Example of Lean manufacturing
Toyota works with two primary processes that allow
these goals to be reached. The first is a process called
Jidoka, which translates roughly to “mechanization
with the help of humans.” This means although some
aspects of the work are automated, individuals are
regularly checking the quality of the product. There are
also programs developed into the process that allows
the machines to shut themselves down if someone
encounters a problem.
Example of Lean manufacturing
The second part is recognized as the Just In Time or
JIT model. This ensures that the next step of a
process is only started when the previous phase is
ended. This way, if there is a fault in the assembly line,
no extra and unnecessary work will be taking place.
What is Just-In-Time?
a production strategy aimed at reducing inventory
costs and improving efficiency by producing and delivering
products just at the moment they are needed in the
production process. The primary objective of JIT is to
minimize inventory levels and ensure that products are
made only when there is demand for them, thus reducing
waste and excess production.
Benefits of Just in Time (JIT)
Gives the
Manufacturer More
Control
Decrease
Warehouse Cost Local
Sourcing
Reduce Smaller
Inventory Waste Investments
Disadvantages of Just in Time (JIT)
Lack of Control Lack of
Over Time Frame Planning
Risk of Running Out Dependency
of Stock on Suppliers
Examples of companies using JIT
THANK YOU
SUPPLY CHAIN
MANAGEMENT
Presented by
KIMBERLY E. GUINEA
JONEREN G. DULLETIN
WHAT IS SUPPLY CHAIN
MANAGEMENT (SCM) ?
the coordination of a business's entire
production flow, from sourcing raw
materials to delivering a finished product to
the customer, aiming for efficiency, cost
reduction, and improved customer
satisfaction.
is a holistic approach to overseeing and managing
the flow of goods and services in a company.
FIVE STAGES OF SUPPLY
CHAIN MANAGEMENT
1.Plan stage - A strategy is devised to manage all the resources
necessary to meet customer demand.
2. Source stage - Choosing suppliers to provide the goods and
services necessary to create the product.
3. Make stage - The product is manufactured, tested, packaged,
and scheduled for delivery.
FIVE STAGES OF SUPPLY
CHAIN MANAGEMENT
4. Deliver stage - Often referred to as logistics, where customer orders are
processed and products are dispatched and delivered.
5. Return - Businesses manage customer feedback and handle returns or
product issues efficiently.
FLUCTUATIONS IN THE
SUPPLY CHAIN
also known as volatility, refers to the variability and uncertainty in the
flow of goods from suppliers to customers, encompassing factors like
raw material shortages, transportation disruptions, and changing
consumer demand.
often occurs when retailers become highly reactive to demand,
and in turn, amplify expectations around it, which causes a
domino effect along the supply chain.
BULLWHIP EFFECT
is a phenomenon that occurs in supply chain management.
Small changes in consumer demand at the retail level lead
to much more significant fluctuations in need at the
manufacturer and supplier levels. Orders placed by retailers
to suppliers fluctuate more extensively than the sales to
customers.
SUPPLY CHAIN
PROCUREMENT
is the process of sourcing and acquiring the goods and services
needed by an organization, encompassing activities like supplier
selection, contract negotiation, and ensuring timely delivery and
quality
acts as a bridge that connects the demand for goods and
services with the supply side.
SUPPLY CHAIN
DISTRIBUTION
the processes and networks involved in moving goods from the
manufacturer to the end consumer, ensuring they are available at the
right time, place, and price. acts as a bridge that connects the
demand for goods and services with the supply side.
the way in which businesses get their products to customers.
Thank You!
PRODUCTION
OPERATION
MANAGEMENT OVERVIEW
The goal of customer satisfaction is an important part of effective
production and operations. In the past, the manufacturing function in
most companies was inwardly focused.
INTRODUCTION TO
PRODUCTION
OPERATION
MANAGEMENT
Production/operations management is the process, which
combines and transforms various resources used in the
production/operations subsystem of the organization into value
added product/services in a controlled manner as per the policies
of the organization. Therefore, it is that part of an organization,
which is concerned with the transformation of a range of inputs
into the required (products/services) having the requisite quality
level
2
PRODUCTION FUNCTION IS THAT PART OF AN
ORGANIZATION, WHICH IS CONCERNED WITH THE
TRANSFORMATION OF A RANGE OF INPUTS INTO THE
REQUIRED OUTPUTS (PRODUCTS) HAVING THE
REQUISITE QUALITY LEVEL.
3
MANUFACTURING
VERSUS SERVICE
OPERATION
4
5
THE SYSTEMS VIEW OF
PRODUCTION OPERATION
MANAGEMENT
Operations management has undergone a significant shift, with a greater focus on
customer orientation. In the past, manufacturing facilities producing tangible goods
were distant from customers, which impacted their ability to cater to customer needs.
However, the emphasis on customer focus has led operations managers to rethink
and customize their processes. The process of converting raw materials into finished
products and providing services to meet customer needs is now seen as a crucial
part of an enterprise's value chain. Therefore, operations are viewed as a value-
adding transformation process, where inputs like materials, labor, and capital are
transformed into goods and services.
6
THE PROCESS
VIEW OF
ORGANIZATION
Operations management transforms inputs (labor, capital,
equipment, land, buildings, materials, and information)
into outputs (goods and services) that provide added
value to customers.
All organizations must strive to maximize the quality of
their transformation processes to meet customer needs
.
Controlling the transformation process makes it difficult
for competitors to manufacture products of the same
quality as the original producer. 7
REFERENCES:
higherEd, E. (2022, December 13). Introduction to Operations Management: meaning,
objectives & functions. Edureka. https://www.edureka.co/blog/introduction-to-
operations-management/
S, S. (2023, December 25). Difference Between Manufacturing and Service Operations (with
Comparison Chart) - Key Differences. Key Differences. https://keydifferences.com/difference-
between-manufacturing-and-service-operations.html
1.4: The Process View of Organizations | Saylor BUS300: Operations Management. (n.d.).
https://courses.lumenlearning.com/suny-opmanagement/chapter/1-4-the-process-view-of-
organizations/
8
THANK YOU.
