GUILLERMO, Noreen Ruth G.
BSA 1B
_____________________________________________
OM/TQM – Operations Management and
Total Quality Management
REVIEWER
_________________________________________
--------------------------------------------------------------------Chapter 4 – Plant Layout, Handling, Location
Decisions
--------------------------------------------------------------------What is Layout?
✓ The ‘layout’ of an operation or process
means how its transforming resources are
positioned relative to each other and
how its various tasks are allocated to
these transforming resources.
-
Arrangement of transforming resources
in a company
Example: Jollibee – hindi naman kung
saan tayo nagluluto ay dun tayo
kumakain.
What makes a good layout?
✓ Generally,
layout should
(usually)
minimize the length of flow through the
operation and preferably make the flow
clear.
- Kapag hindi maayos yung mga
transforming resources, it take time,
mapapahaba pa yung time para gawin
ang isnag production, 2nd, yung pagod
ng staff, masasayang lang effort ng staff
o Staff should be located away
from noisy or unpleasant parts of
the operation and all equipment
should be accessible.
Maayos
yung
mga
equipment or agamtan na
kakailanganin
Layouts should achieve an
appropriate use of space and
allow for flexibility in the longer
term.
▪ Para hindi sabog sabog
▪
o
What are the basic layout types?
✓ Fixed-Position Layout
- Fixed-position layout is in some ways a
contradiction in terms, since the
transformed resources do not move
between the transforming resources.
- Ang hindi nagmmove ay yung mga
transformed resources.
- For example, sa construction industries,
hindi naman lumilipat yung building.
Hindi naman pwedeng ilipat.
✓ Functional Layout
- In functional layout, similar resources or
processes are located together. This may
be because it is convenient to group
them together, or so that the utilization of
transforming resources is improved.
- Para mas convenient, mas okay na
resources are located together.
- For example. Sa TSU, iba ibang building.
Lahat ng unit or offices ay nasa
administration building, if for students
afffairs, may ibang building like student
center
✓ Cell Layout
- A cell layout is one where the
transformed resources entering the
operation are pre-selected (or pre-select
themselves) to move one part of the
operation (or cell) in which all the
transforming resources, to meet their
immediate processing needs, are
located.
- Example in supermarket, if guton, punta
sa food court, if grocery punta sa
supermarket, if need ng damit, punta sa
department store.
✓ Product (Line) Layout
- Product layout involves locating the
transforming resources entirely for the
convenience
of
the
transformed
-
-
resources. Each product, piece of
information or customer follows a
prearranged route in which the
sequence of activities that are required
matches the sequence in which the
processes have been located. The
transformed resources ‘flow’ along a
‘line’ or processes. This is why this type of
layout is sometimes called flow or line
layout. Flow is clear, predictable and
therefore relatively easy to control.
Usually,
it
is
the
standardized
requirements of the product or service
which lead to operations choosing
product layouts.
Example:
kapag
may
buffet
nakaarrange nay an, nakaline yung
mga kukuha ng pagkain, nakaarrange
na yung mga products, nakaarrange
yung mga kutsara, kanin, ulam, dessert.
Smooth na yung flow, nakaline na siya,
sunod sunod. Same sa functional layout
pero
hindi
lang
necessary
na
nakaarrange sa functional.
Additional:
✓ Mixed Layout
- Many
operations
either
design
themselves
hybrid
layouts
which
combine elements of some or all of the
basic layout types or use the ‘pure’ basic
layout types in different parts of the
operation.
- 2 or 3 kind of basic layout pwede
- If sobrang laki ng company, pwedeng
iba ibang layout
- For example sa restaurant, pwedeng
buffet and sa isang batch ay puro
dessert naman.
Manufacturing Processe Types
Project processes – these are project based
Example: construction type of business,
magkakaroon lang sila ng trabaho if
magkakaroon sila ng project
Jobbing processes – almost the same as project
processes, medyo madalas or mabilis lang
gawin or matapos
Batch processes – bagay na ginagawa kada
batch
Example: cindy’s, jelexie, per batch nila
ginagawa yung products nila
Mass Processes – sobrang maramihan
Example: business na nagfofocus sa isang
product lang, example ay processed food
industry like hotdog
Continuous Processes – ito yung tuloy tuloy na
process. Magpproduce ng magpproduce ng
magpproduce
Service Process Types
Professional Services – like accountant
Service Shops –
Mass Services – like news anchor, since hindi
lang naman isa ang binabalitaan. Maraming
nakakapanood sa balita ka mass. Pang masa
Inventory
✓ One of the most expensive assets of
many companies representing as much
as 50% of total invested capital
✓ Operations managers must balance
inventory investment and customer
service
Functions of Inventory
1. To decouple or separate various parts of
the production process
2. To decouple the firm from fluctuations in
demand and provide a stock of goods
that will provide a selection for customers
- Kapag alam mo yung mga needed
inventory, kahit na magbabago bago
yung demand, pwede natin imeet yung
customer demand
3. To make advantage of quantity
discounts
- Kapag mas maraming order, masa
Malaki yung discount
4. To hedge against inflation
- Hindi maaapektuhan ng inflation kahit
magtaas ng presyo or kahit magtaas ng
presyo ng product itself
Types of Inventory
✓ Raw Material
o Purchased but not processed
✓ Work-in-Process
o Undergone some change but not
completed
o A function of cycle time for a
product
✓ Maintenance/repair/operating (MRO)
o Necessary to keep machinery
and processes productive
- Hindi naman mafifinish yung process if
may nagmmalfunction na machines
✓ Finished Goods
o Completed product awaiting
shipment
The Material Flow Cycle
Inventory Management
✓ How inventory items can be classified
✓ How accurate inventory records can be
maintained
ABC Analysis
✓ Divides inventory into three classes
based on annual dollar volume
o Class A – high annual dollar
volume
o Class B – medium annual dollar
volume
o Class C – low annual dollar
volume
✓ Used to establish policies that focus on
the few critical parts and not the many
trivial ones
- Ang big sabihin ng ABC analysis ay
always better for growth/grow/role?
- Tinitignan yung worth or value ng
inventories
✓ Incoming and outgoing record keeping
must be accurate
✓ Stockrooms should be secure
Si company ang nagseset kung anong
percentage yung icclassify na class A B
and C.
✓ Other criteria than annual dollar volume
may be used
o Anticipated engineering changes
o Delivery problems
o Quality problems
o High unit cost
✓ Policies employed may include
o More emphasis on supplier
development for A items
o Tighter physical inventory control
for A items
o More care in forecasting A items
-
Record Accuracy
✓ Accurate records are a critical
ingredient in production and inventory
systems
✓ ✓ Allows organization to focus on what is
needed
✓ Necessary to make precise decisions
about
ordering,
scheduling,
and
shipping
Cycle Counting
✓ Items are counted and records updated
on a periodic basis
✓ Often used with ABC analysis to
determine cycle
✓ Has several advantages
o Eliminates
shutdowns
and
interruptions
- Kasi sa isang company, kapag may
isang kulang na inventory or material,
hindi siya magtituloy sa operation niya
o Eliminates
annual
inventory
adjustments
o Trained personnel audit inventory
accuracy
o Allows causes of errors to be
identified and corrected
o Maintains accurate inventory
records
- Tinitignan kung ilang inventories ang
kailanga mo daily or weekly
Cycle Counting Example
Control of Service Inventories
✓ Can be a critical component of
profitability
- We have to maintain our inventories
para alam natin kung ano yung mga
nawawala
✓ Losses may come from shrinkage or
pilferage
✓ Applicable techniques include
1. Good personnel selection, training,
and discipline
2. Tight control on incoming shipments
3. Effective control on all goods leaving
facility
Definition of Work Measurement
-
TAT – turn around time or standard time
Objectives and Uses of WM
OBJECTIVES AND USES OF WORK MEASUREMENT
The
main
objectives
of
work
measurement:
1. Manpower Planning
- Alamin natin kung gaano ba kadaming
employees or manpower ang kailangan.
- Example Jollibee, yung paghhire nila ay
nakadependa sa demand. Hindi naman
pwede na Sa isang branch na Jollibee
ay 250 employees na ang nagluluto lang
2. Production Planning and Scheduling
- Schedule ang manpower para sa
production
3. Estimating Productions Costs
4. Cost Reduction and Control
5. Rational Basis for Incentives
- bonus
6. Performance Appraisals
7. Training of Employees
8. Comparing Alternative Methods
9. Accepting New Orders
10. Fixing the Selling Cost
Techniques/Methods/Types of WM
Historical Data Method
- From previous performance
Time Study
- Suitable for short cycle repetitive
Work Sampling
- From the word sample
- Advantage: clerical works, nagkakaroon
ng random observation yung mga nasa
hr
- Makikita yung totoong performance ng
mga trabahador
- Disadvantage: kapag pagod yung
employee
Synthesis Method
- Divided into parts
Predetermined Motion Time System (PMTS)
- Predetermined na yung time
- Example bakery, iba iba yung time ng
pagluto sa mga tinapay
Methods of Measuring Time with a Stop Watch
There are two methds of timing using a stop
watch. They are
1. Fly back or Snap back method
2. Continuous or Cumulative method
Fly back method
✓ Here the stop watch is started at the
beginning of the first element. At the end
of the element the reading is noted in the
study sheet (in the WR column). AT the
same time, the stop watch hand is
snapped back to zero. This is done by
pressing down the knob, immediately the
knob is released. The hand starts moving
from zero for timing the next element. In
this way the timing for each element is
-
found out. This is called observed time
(O.T.)
Independent silang minemeasure
Continuous Method
✓ Here the stop watch is started at the
beginning of the first element. The watch
runs continuously throughout the study.
At the end of each element the watch
readings are recorded on the study
sheet. The time for each element is
calculated by successive subtraction.
The final reading of the stop watch gives
the total time.
✓ This is the observed time (O.T.)
- Parang lapse
Definitions of Standard Time
Standard time is the time allowed to an
operator to carry out the specified task under
specified conditions and defined level of
performance. The various allowances are
added to the normal time as applicable to get
the standard time as shown in the Fig. 7.6.
Standard time may be defined as the amount
of time required to complete a unit of work:
(a) Under existing working conditions,
(b) Using the specified method and
machinery,
(c) By an operator, able to the work in a
proper manner, and
(d) At a standard pace.
Thus, basic constituents of standard time are:
1. Elemental (observed time)
2. Performance rating to compensate for
different in pace of working (PRF)
3. Relaxation allowance
4. Interference
and
contingency
allowance
5. Policy allowance
TOTAL QUALITY MANAGEMENT
Quality – the standard of something measured
in other similar products. Gaano ito kagaling or
kaganda
What is TQM?
✓ Meeting quality expectations as defined
by the customer
✓ Integrated
organizational
effort
designed to improve quality of processes
at every business level.
- Pinagsama-sama, dapat maganda
lahat yung quality, the product, the
service, the price, dapat ahat maganda
or with quality
Manufacturing Quality VS. Service Quality
✓ Manufacturing quality focuses on
tangible product features
o Conformance,
performance,
reliability,
features, durability,
serviceability
✓ Service
Organizations
produce
intangible products that must be
experienced
o Quality
often
defined
by
perceptional factors like courtesy,
friendliness of staff, promptness in
resolving
complaints,
atmosphere,
waiting
time,
consistency
Conformance to specifications
- Conformance to standard
- Ano nga bang yung standard ng mga
bagay
- Example: compare branded bola ng
volleyball sa hindi branded
Performance
- Primary operating characteristics ng
isang product
- Pwedeng i-rate yung performance ng
isang product
Reliability
- Mapagkatiwalaan
- Hindi magffail yung product within
specific period of time
- Fro example, powerbank, if magandang
quality, mas tatagal, reliable yung
powerbank
Durability
- Matibay
- It can be measured by the length of its
product life
- Example, mga barbded na damit, mas
durable siya compared to not branded
na damit
- Hindi agad nasisira
Features
- Additional
characteristics
para
mapaganda yung appeal ng product
- Example; phone for online class, okay na
yung kahit di high quality yung camera,
basta mabilis yung operating system
Serviceability
- Gaano kabilis na pwedeng mapuput
service yung product
- Mabulis lang masosolusyonan
- Includes behavior namagseservice sa
products
Aesthetics
- Panlabas na kaanyuan
- Example, aparador, tinitignan yung itsura
Perceived Quality
- Kapag nalaman mo yung Brand, alam
mo na agad na maganda yung quality
nito.
High quality but pricey
Service
Tangible factors
- Tinitignan kasi natin kung Ano yung mga
gamit
na
ginagamit
ng
mga
magseservice
- Example, manicure pedicure, dapat
malinis naman yung gagamiting gamit
sayo
Consistency
- Pareparehas yung
- Consistent, hindi nagbabago yung
service mo
Responsiveness to customer needs
- Barber shop, responsiveness to customer.
Kahit anong request na gupit dapat
magresponse
Empathy/Courtesy
- Dapat ginagandahan yung pakikitungo
Reliability
- mapagkatiwalaan
Atmosphere
- comfortable, mej maganda yung music,
ambiance, mej tahimik
COST OF QUALITY
✓ 2 Classification of Quality
o Cost of Conformance
- Nagcoconform sa standard prev and
apprais. Before magproduce ng product
o Cost of non conformance
- Includes internal and external
✓ Quality effects all aspects of the
organization and have dramatic cost
implications
✓ Most obvious consequence of poor
quality is dissatisfied customer and
eventual loss of business
✓ Prevention costs – cost of preparing and
implementing a quality plan
- Mga bagay para mareduce or
maorevent yung
- Research, surveys, ano b ayung mga
hindi nila gusto
- Training nd education sa part ng
employees mo, if they are wll skilled and
weel traied mas maganda sercie
✓ Appraisal costs – cost of testing,
evaluating and inspecting quality
- Section cost, hindi pa nashiship yung
mga products sa customer
- Inspection cost
Example,
ausit,
machineries,
ciacalebrate yung mga equipment para
malaman
kung
magwowork
ng
maganda
✓ Internal failure costs – cost of scrap,
rework, and material losses
- Panloob
- May failure sa loob na need gawan
paraan
- Nadidiscover na defects before ideliver
sa mga customer
- Para hindi na umabot sa external failure
cost
✓ External failure costs – cost of failure at
customer site, including returns, repairs
and recalls
- Naship na
- Natanggap na ng customer
- Sales returns and allowances kasama
dito
- Warranty
- Ipapagawa or ibabalik nila sayo
- Customer dissatisfaction
QUALITY GURUS
Gurus- mga nagtuturoo or idol
✓ Walter A. Shewhart (1920s and 1930s)
o Grandfather of quality control
▪ Nagpioneer
ng
pagkakaroon ng quality
control ng isang company
o Contributed to understand the
process of variability
▪ Pagiiba iba ng time ng
pagprocess, kung ano
yung mga nagiging result
ng prpduction ng isang
company.
▪ Need
intindihin
yung
pagkakaib a
o Developed concept of statistical
control charts
▪ Chart ng mga result ng
proceese
ng
isang
company, nagkakroon ng
analysis para iimproe yung
analysis
✓ W. Edwards Deming (1940s and 1950s)
o Father of quality control
▪ Ginuide siya ni shewhart
Stressed
management’s
responsibility for quality
o Developed “14 points” to guide
companies
in
quality
improvement
o Japanese established “Deming
Prize” in his name
▪ Established
Japanese
quality si deming
o 15% of quality problems are
actually due to worker error
o 85% of quality problems are
caused by systems and errors
He also introduces:
1Better design for products to improve
the services
2Higher level of uniform product quality
3Research
4Marketers/global marketers
o
-
✓
✓
✓
✓
✓
✓ Joseph M. Juran (1950s)
o Defined quality as “fitness for use”
▪ Kailangan suitable kahit
kanino
▪ Example
gelatin
sa
mountaineers dapat pero
mas pumatok sa mga
bata, pero oks lang kasi
pwede pa rin naman sa
mga bata
o Developed concept of cost
quality
o Originated idea of quality trilogy
▪ Quality planning
• Start palanh plano
na
▪ Quality control
• Implement na yung
plano
▪ Quality improvement
• Or development
✓ Armand V. Feigenbaum (1960s)
o Introduces the concept of total
quality control
▪ Tqc daw ay sobrang
necessary
▪ Productivity
▪ Market Penetration – enter
sa market, ibig sabihin
sumikat or nakilala ka sa
market
▪ Competitive Advantage –
advantage toward your
competitor, may meron ka
na wala yung iba
✓ Philip B. Crosby (1970s)
o Coined phrase “quality is free”
▪ Even if nagkarron na=f
expenses, magpapayoff
parin
o Introduced concept of zero
defects
▪ Need eliminate all defects
o Developed the phrase “Do it right
the first time”
✓ Kaoru Ishikawa
o Developed
cause-and-effect
diagrams
▪ Parang fish bone diagram,
nandito yung mga cause
and effect
▪ Cause? Effect ay problem
▪ Alamin muna yung mga
cause ng problem
▪ Example;
measurement,
lab
errors
or
contaminations, materialskulang
sa
supplies,
methodnalampasan
yung
isang
process,
environment- nabaha
▪ Ishikawa diagram in other
reference, or fish bone
diagram
o Identified concept of “internal
customers”
▪ May customer within the
company, employees
▪ Ang ating most important
asset,
employees
nagccreate ng products
na bib=nebenta mo
o Introduced the concept of
“quality circles”
✓ Genichi Taguchi
o Focused on product design
quality
▪ Specification ng product
Developed Taguchi loss function
▪ Costs of quality increase as
a quadratic function as
conformance values move
away from target
▪ Imagine
quadratic,
Utarget 5.0, but result is 5.2 or
4.3, pero target lang is 5.
✓ Robust Design
o A design that results in a product
that can perform over a wide
range of conditions
▪ Flexible pa rin tayo
▪ Hindi naapektuhan yung
process natin sa variation
▪ Hindi maliking effect sa
company
o
TQM PHILOSOPHY – WHAT’S DIFFERENT?
✓ TQM attempts to embed quality in every
aspect of the organization
✓ Focus on Customer
o Identify and meet customer
needs
▪ Dahil
nakabase
sa
customer ang success ng
business
o Stay tuned to changing needs,
e.g. fashion styles
✓ Continuous Improvement
o Continuous learning and problem
solving e.g. Kaizen, 6 sigma
o Kaizen- improvement
o There is always space for
improvement
o PDSA – Plan Do Study Act – do
your plan, pag aaralan mo ulit
kung ano yung ginagawa mo
✓ Quality at the Source
o Product design in other references
o Inspection vs. Prevent & Problem
Solving
▪ The product meets the
needs of the customer,
may quality
✓ Employee Empowerment
o Empower all employees; external
and internal customers
▪ Pwedeng dumaaan sa
training or include sa iba
o
ibang decision making
para maempower yung
mga employees. Para
maggrow sila. Hindi na sila
nagiging voiceless lang
Team approach, quality circle