Operations Management &TQM

EUGENIO, LADY MARIBETH G.

2.2BSA

1. Just-in-Time (JIT): Just-in-Time (JIT) is a production

strategy that emphasizes producing goods or services
exactly at the moment they are needed and in the
quantities needed. The goal of JIT is to minimize the
amount of inventory on hand, reduce carrying costs, and
streamline the production process to meet customer
demand more efficiently.

Example: Consider a car manufacturing plant that adopts a

JIT approach. Instead of stockpiling a large inventory of parts,
the plant orders components from suppliers as they are
needed. The components arrive just in time for assembly,
minimizing storage costs and reducing the risk of excess or
obsolete inventory.

2. Total Quality Management (TQM): Total Quality

Management (TQM) is a comprehensive management
philosophy that seeks to improve the quality of products
and services through continuous refinement of internal
processes. TQM involves the entire organization, from top
management to frontline employees, in a collaborative
effort to meet or exceed customer expectations.
Example:
A manufacturing company implementing TQM might
establish quality circles where employees from different
departments meet regularly to identify and solve quality-
related problems. These circles could use statistical process
control techniques to monitor and improve manufacturing
processes. Employees might also receive training in quality
principles to enhance their understanding and contribution.

3. Business Process Reengineering (BPR):

Meaning: Business Process Reengineering (BPR) is a
management approach that involves the radical
redesign of core business processes to achieve
substantial improvements in performance, efficiency,
and quality. The focus is on fundamentally rethinking
and restructuring processes rather than making
incremental changes.

Example: A company undergoing BPR might reevaluate its

order fulfillment process. Instead of a traditional, sequential
approach where each department handles a specific aspect
of the order, the company might opt for a more integrated,
cross-functional team-based approach where members
from sales, inventory, and distribution work together to
fulfill orders more efficiently.
4. Flexibility: Flexibility, in a general sense, refers to the
ability to adapt, change, or respond effectively to
different situations, requirements, or conditions. It
involves being open to new ideas, adjusting to changes,
and demonstrating versatility in various contexts.
Flexibility is a valuable trait in individuals, organizations,
and systems.

Examples of Flexibility:
1. Individual Flexibility:
An employee who can seamlessly transition
between different tasks or roles within a
company.
A person who is willing to learn new skills and
take on challenges outside their comfort zone.

2. Organizational Flexibility:

An organization that can quickly pivot its business

model to adapt to changes in the market.
A company with a flexible work culture that allows
employees to work remotely or have flexible hours.

3. Technological Flexibility:

Software systems that can be easily updated to

accommodate new features or address security
concerns.
Hardware that supports various applications and
can be reconfigured for different purposes.
 4. Decision-making Flexibility:
A leader who can adjust their leadership style
based on the needs of the team or the nature of
the project.
An organization that can modify its strategic
plans in response to shifts in the competitive
landscape.
5. Supply Chain Flexibility:
A supply chain that can quickly adjust
production levels in response to changes in
demand.
Suppliers that can adapt to sudden disruptions
and find alternative sources for key materials.

5. Time-based Competition: Time-based competition is a

strategy approach in which businesses strive to acquire a
competitive edge by minimizing the time it takes to
provide products or services to the market. The emphasis
is on expediting different company processes, from
product development and production to delivery and
customer service. This notion emphasizes that the speed
with which a corporation can bring a product or service to
market may be a critical component in its success in many
sectors.
Examples of Time-based Competition:
1. Fast Fashion Industry:
Companies in the fast fashion industry are known for
their ability to quickly design, produce, and bring
new clothing styles to market in response to the
latest trends.
2. Tech Product Launches:
Technology companies often engage in intense
competition to release the latest gadgets or software
updates ahead of competitors. The first-to-market
advantage can be substantial.
3. Automotive Industry:
The automotive sector is highly competitive in terms
of time. Companies aim to reduce the time it takes to
design, manufacture, and launch new vehicle
models.
4. E-commerce Delivery:
E-commerce companies compete on the speed of
order fulfillment and delivery. Those that can deliver
products quickly gain a competitive advantage.
5. Food Industry:
Fast-food chains and food delivery services focus on
minimizing the time it takes to prepare and deliver
food to customers, capitalizing on consumer
preferences for speed and convenience.
 6. Supply Chain Management (SCM):
Supply Chain Management (SCM) is the strategic coordination
and integration of all operations involved in the purchase,
manufacturing, and delivery of goods or services from the
supplier to the end user. It refers to the complete network of
organizations and procedures involved in the production and
delivery of goods or services.

Examples of Supply Chain Management:

1. Retail Industry:
Retailers work closely with suppliers to ensure a
steady supply of products, manage inventory levels,
and optimize the distribution network to deliver
products to stores or directly to customers.
2. Automotive Industry:
Automotive manufacturers coordinate with
suppliers of components to ensure that parts are
available just in time for assembly. They also
manage a complex network of distributors and
dealers.
3. Technology Industry:
Technology companies manage global supply
chains for components and products. They often
face challenges related to rapid technological
changes and product life cycles.
4. Food and Beverage Industry:
Companies in this industry focus on ensuring the
freshness of products, managing perishable
inventory, and optimizing transportation for timely
delivery.
 5. E-commerce:
E-commerce companies emphasize efficient
order fulfillment, last-mile delivery, and
managing returns. The supply chain plays a
crucial role in providing a seamless online
shopping experience.

7. Global Marketplace: The global marketplace refers to the

world's interconnected and integrated network of economic
activity, commerce, and communication. Goods, services,
information, and capital flow freely across national borders
in this scenario. The interconnectedness of economies, the
growing importance of multinational firms, and the use of
modern technology to enable international transactions
characterize the global marketplace.

Examples of the Global Marketplace:

1. International Trade:
Import and Export: Countries import goods and
services they don't produce efficiently and
export those they specialize in.
2. Multinational Corporations:
Apple Inc.: Headquartered in the U.S., Apple
designs its products in California, manufactures
them in various countries, and sells them
globally.
3. Global Supply Chains:
Automobile Industry: Car manufacturers source
components globally, with parts often
manufactured in different countries before final
assembly.
4. Technological Connectivity:
E-commerce Platforms: Companies like Amazon
and Alibaba enable businesses to reach
customers worldwide, and consumers can access
a vast array of products from different countries.
5. Cultural Exchange:
Film and Entertainment Industry: Hollywood
movies are watched globally, and diverse cultural
content from various countries is accessible
through streaming services.
6. Currency Markets:
Forex Trading: Investors engage in the foreign
exchange market to buy and sell currencies
based on economic conditions and geopolitical
factors.
7. Global Competition:
Automobile Manufacturers: Companies like
Toyota, Volkswagen, and General Motors
compete globally for market share, adapting
products to suit different regions.
 8. Environmental Issues: Environmental concerns
involve a wide variety of issues that have an impact on
the health of the planet, its ecosystems, and human
society. These difficulties develop as a result of human
activity, natural processes, and their interactions.

Example:
Plastic Pollution is a major environmental concern.
Plastic pollution is a widespread environmental problem
caused by improper disposal and over usage of plastic
materials. These compounds can be found in the
environment for hundreds of years, harming
ecosystems, animals, and even entering the human
food chain.