Unit 5: Productivity and Quality

Productivity and Quality in Operations Management

Productivity

Productivity refers to the efficiency with which inputs (like labor, materials, and capital) are converted into outputs (goods and services).

Quality

Quality means meeting or exceeding customer expectations. It includes:

• Conformance to standards
• Reliability
• Durability
• Customer satisfaction

Total Quality Management (TQM)

TQM is a continuous improvement approach focused on customer satisfaction, employee involvement, and process excellence.

🛠️ Key Elements:

• Customer-focused
• Total employee involvement
• Process-centered
• Integrated system
• Strategic and systematic approach
• Continuous improvement
• Fact-based decision making
• Effective communication

🎯 Goal: To achieve long-term success by delivering high-quality products and services through continuous improvement at all organizational levels.

Deming’s 14 Principles of TQM

Dr. W. Edwards Deming, a pioneer in quality management, developed 14 principles to transform business effectiveness.

Summary

• TQM focuses on quality across the organization.
• Deming’s principles provide a roadmap for implementing TQM.
• Both aim to enhance productivity, reduce waste, and improve customer satisfaction.

Juran’s Quality Trilogy

• Proposed by: Dr. Joseph M. Juran
• Purpose: To manage quality in a structured way across all levels of an organization.

Quality Planning

• Identify who the customers are.
• Determine their needs.
• Develop product features that respond to customer needs.
• Design processes that can produce these features.

📌 Example: Planning to make a smartphone that meets customer demand for battery life, design, and performance.

Quality Control

• Evaluate actual performance.
• Compare it with quality goals.
• Act on the difference.

📌 Example: Checking each smartphone for battery backup, screen quality, and software performance.

Quality Improvement

• Develop processes that are better than existing ones.
• Eliminate root causes of defects and errors.
• Aim for continuous improvement.

📌 Example: Upgrading battery technology to extend life and reduce heating issues.

PDCA Cycle (Plan-Do-Check-Act)

Also known as the Deming Cycle, it is a continuous improvement model.

1. Plan

• Identify the problem or area for improvement.
• Develop a plan for change.

📌 Example: Sales have dropped — plan to introduce new marketing strategy.

2. Do

• Implement the change on a small scale.

📌 Example: Run the new marketing campaign in one region.

3. Check

• Measure the results of the change.
• Compare it with expected outcomes.

📌 Example: Did sales increase in that region?

4. Act

• If successful, implement the change across all areas.
• If not, modify the plan and repeat the cycle.

📌 Example: Expand the strategy nationwide if successful, or revise it and try again.

📘 Summary Table

Kaizen (Continuous Improvement)

Kaizen is a Japanese word meaning “change for better” or continuous improvement. It focuses on making small, incremental improvements regularly, involving everyone from top management to frontline workers.

🔧 Key Features:

• Employee involvement
• Small changes done continuously
• Low-cost and sustainable
• Reduces waste and improves productivity

🧠 Example: In a factory, workers suggest rearranging tools to reduce movement and save time. This small improvement increases efficiency.

Quality Circles

A Quality Circle is a small group of employees who meet regularly to identify, analyze, and solve work-related problems.

🔧 Key Features:

• Voluntary participation
• Cross-functional teamwork
• Problem-solving approach
• Focus on quality improvement

🧠 Example: A team of machine operators forms a circle to reduce machine breakdowns by analyzing root causes and suggesting preventive maintenance.

7 QC Tools (Basic Quality Tools)

These are tools used to identify and solve quality problems systematically.

7 New Management Tools

These tools focus on planning, decision-making, and problem-solving in management.

Summary Table

ISO 9000:2000 Clauses

ISO 9000 Series:

A set of international standards for quality management systems (QMS). ISO 9001:2000 was a major version focusing on process-based approaches.

🔸 Key Clauses of ISO 9001:2000:

Six Sigma

Six Sigma is a data-driven quality management technique aimed at reducing defects to 3.4 per million opportunities.

🔸 Key Concepts:

• DMAIC Cycle: Define, Measure, Analyze, Improve, Control (used for existing processes)
• DMADV Cycle: Define, Measure, Analyze, Design, Verify (used for new processes)

🎯 Goal: Achieve near perfection, improve customer satisfaction, and reduce process variation.

🧠 Example: A company uses Six Sigma to reduce billing errors in its system by identifying root causes and applying corrective measures.

Total Productive Maintenance (TPM)

TPM is a maintenance program to maximize equipment effectiveness, involving all employees, not just the maintenance team.

8 Pillars of TPM:

• Focused Improvement
• Autonomous Maintenance
• Planned Maintenance
• Quality Maintenance
• Early Equipment Management
• Training & Education
• Safety, Health, and Environment
• TPM in Office

🎯 Goals:

• Zero breakdowns
• Zero defects
• Zero accidents

5S System

A workplace organization method from Japan, focusing on efficiency and cleanliness.

5S Elements

Benefits

• Improved productivity
• Better safety
• Waste reduction