OPMTQM - Lecture Notes: Operations Management and TQM No. 1

Operations Management Key Concepts

• Primary concern in operations departments is efficiently managing resources and processes to maximize productivity and quality.
• Strategic operations decisions include long-term planning on capacity, facilities, and design which directly influence the organizational structure and competitive advantage.

Goals and Purposes

• The primary goal of operations management is to produce goods and services efficiently while ensuring customer satisfaction and quality.
• Total Quality Management (TQM) aims to enhance organizational performance through continuous improvement in processes, products, and services by focusing on customer satisfaction and employee involvement.

Strategy and Tactics

• In operations management, strategy refers to the comprehensive plan that outlines how an organization will achieve its long-term goals and objectives, including resource allocation and process optimization.
• Tactical operations decisions are short-term actions that support strategic goals, such as scheduling, inventory management, and production planning.

Operations Management Function

• Operations management is a critical function within organizations that integrates various processes to achieve efficient production and service delivery.

Importance of Quality Management

• Quality management is crucial for organizations as it directly impacts customer satisfaction, operational efficiency, and the overall reputation of the company.

Understanding Tactics

• Tactics in operations management are defined as the specific actions and methods employed to execute the broader strategic plan, facilitating day-to-day operations.

Strategy vs. Tactics

• The difference between strategy and tactics in operations management lies in their scope; strategy involves long-term vision and planning, while tactics focus on immediate actions and methods to implement that vision effectively.