Operations Management PDF

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS TOTAL QUALITY MANAGEMENT SEPTEMBER 18, 2024 | 10:30 AM MS. JEMIMAH A. VELASCO, DBAc POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Students will be able to: Show interest and...

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS TOTAL QUALITY MANAGEMENT SEPTEMBER 18, 2024 | 10:30 AM MS. JEMIMAH A. VELASCO, DBAc POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Students will be able to: Show interest and appreciation of the importance of taking up the course. Appreciate and discuss the importance of TQM implementation in an organization Identify and contrast the different customers’ perception of quality Identify and discuss the TQM principles POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS What is Quality? Quality is the degree to which a product or service meets or exceeds customer expectations. It's about delivering a product or service that is free from defects, consistent, and satisfies the needs and desires of the customer.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Why is Quality Important? Customer Satisfaction: Quality ensures that customers receive products or services that meet their needs and expectations, leading to higher satisfaction. Competitive Advantage: High-quality products and services give organizations a competitive edge in the market. Cost Savings: Quality reduces rework, defects, and waste, which can lead to cost savings. Reputation: Quality builds a positive reputation for an organization, enhancing trust and credibility. POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Product Quality vs. Service Quality Product Quality: Pertains to the characteristics and attributes of a physical product (e.g., durability, reliability, aesthetics). POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Product Quality vs. Service Quality Service Quality: Focuses on the quality of interactions and experiences when customers receive a service (e.g., responsiveness, empathy, reliability).  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 8 Dimensions of Product Quality Performance: How well the product or service performs its intended function. Features: Additional attributes or characteristics that enhance the product or service. Reliability: Consistency in performance and the ability to operate without failures. Conformance: How well the product or service adheres to established standards and specifications.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 8 Dimensions of Product Quality Durability: The product's expected lifespan and resistance to wear and tear. Serviceability: Ease of maintenance and repair for products or responsiveness in services. Aesthetics: The visual appeal and design of the product or service. Perceived Quality: Customers' subjective perceptions and impressions of quality.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS SERVQUAL Coined by Valerie Zeithaml, A. Parasuraman, and Leonard Berry in the book Delivering Quality Service. SERVQUAL is a widely-used metric based on a set of five dimensions that customers have consistently ranked as the most important for service quality in any industry.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 5 Dimensions of Service Quality Reliability: Reliability refers to the ability of the service provider to deliver accurate, consistent, and dependable services. Service Quality Aspect: Responsiveness and reliability in addressing customer concerns.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 5 Dimensions of Service Quality Tangibles This dimension assesses the physical appearance of service facilities, equipment, personnel, and communication materials. Service Quality Aspect: Tangibles (well-maintained facilities), reliability, and responsiveness.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 5 Dimensions of Service Quality Responsiveness relates to the willingness and ability of service providers to help customers promptly. Service Quality Aspect: Responsiveness, reliability, and assurance.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 5 Dimensions of Service Quality Assurance pertains to the competence, courtesy, credibility, and professionalism of service personnel. Service Quality Aspect: Assurance, responsiveness, and reliability.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS 5 Dimensions of Service Quality Empathy measures the service provider's ability to understand, care for, and provide personalized attention to customers. Service Quality Aspect: Empathy is demonstrated through the bank's understanding of individual customer circumstances and its willingness to offer tailored solutions that address their specific needs and challenges. POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS TQM Wheel (PDCA) Plan - Setting quality objectives and planning for improvement. Do - Implementing the plan. Check - Measuring and monitoring performance. Act - Taking corrective actions and making improvements based on feedback. POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS CORE TQM PRINCIPLES:  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Core TQM Principles: Customer Satisfaction Meeting or exceeding customer expectations by delivering consistently high-quality products or services. Employee Involvement Engaging all employees in the quality improvement process to foster ownership and accountability. Continuous Improvement An ongoing effort to enhance products, services, and processes by making incremental improvements. Supplier Partnership Building strong relationships with suppliers to ensure they meet quality standards and contribute to overall product quality.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Core TQM Principles: Benchmarking Comparing organizational performance with industry leaders to identify best practices for improving quality. Process Design Creating efficient processes that minimize variability and errors to ensure consistent quality output. Product/Service Design Designing products or services to meet customer needs and expectations while ensuring reliability and functionality.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Questions?  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS END LESSON POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS CORE TQM PRINCIPLES: CUSTOMER SATISFACTION  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Features of services Intangibility Inseparability Perishability Variability Lack of Ownership  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Features of services Intangibility Services cannot be seen, touched, or stored. Unlike physical goods, they lack a physical presence, making them challenging to evaluate before purchase..  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Features of services Inseparability Services are produced and consumed simultaneously. The provider and consumer must often be present for the service to be delivered, such as in a hair salon or a consulting session.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Features of services Perishability Services cannot be stored for future use. Once the service is delivered, it cannot be reused, resold, or saved, making demand and capacity management crucial.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Features of services Variability The quality of services can vary depending on who provides them, when, where, and how. This variability means that standardization is often more challenging than with tangible products.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Features of services Lack of Ownership Unlike products, services do not result in ownership. Consumers experience or use the service but do not own anything afterward.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Customer Delight refers to exceeding customer expectations by delivering products or services that not only meet their needs but also provide unexpected value or satisfaction.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Key Aspects of Customer Delight in TQM Exceeding Expectations Emotional Connection Consistency in Quality Personalization Attention to Detail KANO MODEL KANO MODEL Must-Be (Basic Needs) These are the fundamental features that customers expect. If these are missing or poorly implemented, customers will be dissatisfied, but fulfilling them doesn't necessarily increase satisfaction significantly. Example: A car having brakes. KANO MODEL One-Dimensional (Performance Needs These features lead to increased customer satisfaction as they are improved. The better these features perform, the happier the customer is, and conversely, poor performance leads to dissatisfaction. Example: Fuel efficiency in a car.. KANO MODEL Attractive (Excitement Needs) These are features that customers do not expect but are delighted when they are present. Their absence doesn't cause dissatisfaction, but their presence significantly boosts satisfaction. Example: A built-in GPS in a rental car. KANO MODEL Indifferent These are features that customers don't feel strongly about, whether they are present or absent. They do not affect satisfaction or dissatisfaction. Example: The shape of a car’s gear knob. KANO MODEL Reverse These features can cause dissatisfaction if present and satisfaction if absent, usually because different customers have different preferences or expectations. Example: Touchscreen controls in a car's dashboard—some customers prefer physical buttons and find touchscreens distracting, while others appreciate the modern touch interface. Customer perceived quality is a central concept in Total Quality Management (TQM), reflecting how customers evaluate the quality of a product or service based on their experiences and expectations. organizations aim to enhance customer satisfaction by improving quality across all aspects of their operations.  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Questions? END LESSON POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS CORE TQM PRINCIPLES: Employee Involvement  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Learning Outcomes: Understand the Importance of Employee Involvement Identify Effective Strategies for Employee Involvement Evaluate the Impact of Employee Involvement on Organizational Success  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS What is employee involvement? refers to the active participation of employees in the decision- making processes and day-to- day activities that affect their work and the organization as a whole. WHAT EMPLOYEE WANTS? Research has shows employee wants as follows: Employee wants interesting works Appreciation Involvement in the work Job skills Good pay Promotion/chance of growth Good working condition Loyalty to employees Tactful discipline POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Theories of Motivation Maslow‘s theory of hierarchy of needs Herzberg two factor theory Maslow‘s Theory of Hierarchy of Needs Survival means in the work place lighting, air conditioning, ventilation and communication system. Security means safe place to work and job security. Maslow‘s Theory of Hierarchy of Needs Social it relates to the need to belong. Esteem it relates to self work, pride, ego, employee wants to be as a person of value to the organization. Maslow‘s Theory of Hierarchy of Needs Self actualization individual should be given opportunity to go as far as their ability will take them. Herzberg Two-Factor Theory Motivators (Intrinsic Factors) Achievement: The sense of accomplishment from completing meaningful work. Recognition: Being acknowledged and praised for good work. Work Itself: The actual tasks and responsibilities that provide interest and challenges. Responsibility: Having control and ownership over one's work and decisions. Advancement: Opportunities for promotion and growth within the company. Personal Growth: The chance to develop new skills and improve professionally Herzberg Two-Factor Theory Hygiene Factors (Extrinsic Factors) Salary: Fair and competitive pay. Company Policies - Clear and fair organizational policies. Working Conditions - A safe, comfortable, and supportive work environment. Supervision - The quality of supervision and managerial support. Interpersonal Relations - Healthy relationships with colleagues and supervisors. Job Security - Assurance of continued employment. Key Components of Employee Involvement: a. Employee Motivation b. Teamwork c. Effective Communications d. Training and Mentoring e. Recognition and Reward f. Feedback and Performance Appraisal g. Leadership for TQM Key Components of Employee Involvement: a. Employee Motivation Employee motivation refers to the level of commitment, energy, and creativity that employees bring to their work. Key Components of Employee Involvement: b. Teamwork Teamwork is the collaborative effort of a group to achieve a common goal or to complete a task in the most efficient and effective way. Key Components of Employee Involvement: c. Effective Communications Effective communication is the clear, concise, and accurate exchange of information between individuals or groups. It ensures that messages are understood as intended, minimizing misunderstandings and promoting efficiency in achieving goals. Key Components of Employee Involvement: d. Training and Mentoring Training is the process of teaching employees specific skills or knowledge to improve their performance in their current roles. Mentoring involves a more experienced individual guiding and supporting a less experienced employee to help them develop professionally, offering advice, knowledge, and encouragement.  Key Components of Employee Involvement: e. Recognition and Reward: Recognition and reward are practices used by organizations to acknowledge and compensate employees for their achievements, efforts, and contributions. Recognition can be formal or informal, while rewards can be monetary or non-monetary incentives designed to motivate and retain employees. Key Components of Employee Involvement: f. Feedback and Performance Appraisal Feedback is the information provided to employees about their performance, helping them understand what they are doing well and where they can improve. Performance appraisal is a formal, systematic evaluation of an employee’s work performance, typically involving a review process with specific criteria for measurement. Key Components of Employee Involvement: g. Leadership for TQM (Total Quality Management): Leadership for Total Quality Management involves guiding an organization’s vision and values toward continuous improvement in all processes and customer satisfaction. Leaders in TQM set the tone for a quality- focused culture, support employee involvement, and provide direction for achieving long-term organizational excellence.  DEMING’S 14 POINTS Dr. William Edwards Deming, a prominent quality management theorist, proposed a set of 14 key principles for top management to foster a culture of continuous improvement and quality excellence.  Empowerment Empowerment is an environment in which people have the ability, confidence & commitment to take responsibility & ownership to improve the process & initiate necessary steps to satisfy customer requirements within well defined boundaries in order to achieve an organizational values and goals.  Teams Team is a group of peoples who working together to achieve common objectives or goal. Benefits of Employee Involvement in TQM Enhanced employee morale and job satisfaction Increased productivity and efficiency Improved quality of products and services Higher levels of innovation and creativity Greater organizational commitment and loyalty  POLYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS Questions? END LESSON