TQM: Total Quality Management Review PDF

5. Irregular Variation: Forecasting and Demand Planning Explainable one-time deviations. Forecasting Forecast Error: The difference...

5. Irregular Variation: Forecasting and Demand Planning Explainable one-time deviations. Forecasting Forecast Error: The difference between observed and forecasted Definition: The process of values. projecting one or more variables into the future. Demand Planning Types: 1. Qualitative (Judgmental): Definition: The process of analyzing Relies on market research and managing demand forecasts to and customer feedback. optimize supply chains. 2. Quantitative (Statistical): Goals: Utilizes historical data, 1. Improve forecast accuracy. trends, and seasonal 2. Optimize inventory levels. patterns. 3. Reduce overstocking. 3. Time-Series Analysis: 4. Increase supply chain Focuses on patterns in efficiency. historical data. 5. Enhance customer 4. Causal Forecasting: satisfaction. Considers external factors Benefits: (e.g., economic conditions, 1. Improved forecast accuracy. cultural influences, 2. Lower inventory costs. manpower availability). 3. Flexible supply chains. Time Concepts: 4. Better decision-making. 1. Planning Horizon: The 5. Higher customer satisfaction. forecast’s timeframe. 2. Time Bucket: The unit of Enterprise Resource Planning (ERP) measure for the forecast Definition: Software systems for period. automating and integrating business 3. Time Series: Observations processes across functions. measured at successive Examples: Cogsy, Kinaxis Rapid points or periods. Response, Atlas Planning Platform, Time Series Characteristics: Oracle Cloud Supply Chain 1. Trend: Growth or decline Planning, and Pecan AI. patterns. 2. Seasonal: Repeatable ups and downs over short periods. Capacity Management 3. Cyclical: Long-term regular patterns. Definition: Planning, monitoring, 4. Random Variation: and controlling an organization's Unpredictable fluctuations resources to meet changing (noise). demands efficiently.  Objectives: Definition: Planning, coordinating, 1. Optimize resource utilization. and controlling the acquisition, 2. Ensure sufficient capacity to storage, and distribution of inventory meet demand. to meet customer needs. 3. Minimize waste and Key Aspects: underutilization. 1. Number of items and time 4. Enhance productivity and periods. efficiency. 2. Lead Time: Time between 5. Reduce costs and increase order placement and receipt. profitability. 3. Stockouts: Inability to satisfy Capacity Types: demand. 1. Design Capacity: The Key Activities: maximum theoretical output. 1. Forecasting demand. 2. Effective Capacity: The 2. Setting inventory levels (e.g., maximum output considering safety stock, reorder points). constraints. 3. Managing replenishment 3. Rated Capacity: The (e.g., JIT, EOQ). capacity an organization is 4. Tracking inventory expected to achieve. movement. 4. Actual Capacity: The 5. Optimizing inventory realized production or service allocation. level. 6. Monitoring levels and Factors Influencing Capacity: reporting. 1. Demand fluctuations. Types of Inventory: 2. Resource availability (labor, 1. Raw materials and materials, equipment). components. 3. Process efficiency and 2. Work-in-progress (WIP). productivity. 3. Finished goods. 4. Quality standards and 4. Maintenance, repair, and control. operations (MRO). 5. Supply chain reliability. 5. Seasonal inventory. Importance: 6. Safety stock. 1. Meet customer demand. Inventory Management 2. Optimize resources. Techniques: 3. Reduce costs and waste. 1. Just-in-Time (JIT). 4. Improve delivery 2. Economic Order Quantity performance. (EOQ). 5. Enhance competitiveness. 3. Reorder Point (ROP). 4. Material Requirements Planning (MRP). 5. Vendor-Managed Inventory Managing Inventories in the (VMI). Supply Chain 6. Drop Shipping.  7. Inventory Optimization Algorithms. Challenges: 1. Demand uncertainty. 2. Supply chain disruptions. 3. Obsolescence. 4. Warehouse management complexities. 5. Balancing inventory and service levels. Supply Chain Management and Logistics Supply Chain: A network for producing and delivering goods/services. Supply Chain Management: ○ Coordination of activities to fulfill orders while maintaining efficiency. Logistics: ○ Managing transportation, inventory, and customer service costs effectively. Purchasing (Procurement): ○ Sourcing materials and tools from suppliers. Supply Chain Integration: ○ Coordinating information, goods, and services to meet cost, quality, and timing objectives. Value Chain Integration: ○ Ensuring availability of goods/services at the right place, time, cost, and quality. Green Sustainable Supply Chain: ○ Using environmentally sustainable inputs and processes. Total Quality Management Organizational Functions in TQM (TQM) Reviewer These cover the product lifecycle: Definition of TQM 1. Design 2. Planning TQM integrates all organizational functions 3. Production and processes to ensure continuous 4. Distribution improvement in the quality of goods and 5. Field Service services, aiming for customer satisfaction. Key Features of TQM Quality Pioneers and Their 1. Cultural Change: Frameworks ○ Focus on meeting customer requirements. 1. Deming’s 14 Points for Management ○ Management philosophy Edward Deming introduced principles embracing continuous emphasizing consistent quality, continuous improvement. improvement, and fostering an open ○ Encouraging employee organizational culture. Key points: involvement and teamwork. 2. Enabling Mechanisms: Build constancy of purpose. ○ Training and education. Integrate quality into production from ○ Effective communication. the start, not just through ○ Recognition and feedback. inspections. ○ Supporting environment for Drive out fear and promote continuous quality collaboration across departments. improvements. Educate and retrain employees in 3. Implementation Steps: modern tools and methods. ○ Define the organization’s mission. 2. Juran’s 10 Steps to Quality ○ Identify customers and their Improvement needs. ○ Develop specifications to Joseph Juran introduced the "Juran meet objectives. Trilogy"—Quality Planning, Control, and ○ Establish activities to meet Improvement: customer goals. Set clear improvement goals. Provide training and resolve problems. Maintain momentum through regular progress assessments. 3. Crosby’s 14 Steps to Quality Philip Crosby highlighted the importance of "zero defects": Commit management to quality improvement. Focus on defect prevention rather than defect detection. Celebrate achievements and integrate quality improvement into daily practices. Cost of Quality TQM uses the cost of quality as a measure of: Non-quality (not meeting customer expectations). The efficiency of the implemented quality processes. Key TQM Principles Emphasis on customer-centric approaches. Continuous improvement through strategic planning and employee involvement. Structured methodologies such as Pareto Analysis (80/20 rule) and other statistical tools. This reviewer outlines TQM's fundamental ideas and the contributions of key figures, providing a clear guide to understanding and implementing quality management strategies.