Operation Management Summary

Quality Management and international Standards

This chapter discuss the quality management quality is defined as the ability of product or service to meet customers’ needs

Implication of Quality

* Company reputation will improvised

* Product liability: will reduce the products liability as less customers will tend to sue the company

* Better global implications

Cost of quality is defined as the cost of doing things wrong i.e. the price of nonformance Categories of cost of quality are prevention cost, appraisal cost, internal failure, external cost.

ISO 9000: family of standards is related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders.

ISO 14000: ISO 14000 is a family of standards related to environmental management that exists to help organizations (a) minimize how their operations (processes etc.) negatively affect the environment (i.e. cause adverse changes to air, water, or land); (b) comply with applicable laws, regulations, and other environmentally oriented requirements, and (c) continually improve in the above.

Employee empowerment is enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the orgnazation

Benchmarking: selecting a demonstrated standard of performance that represent the very best performance for the for a process or an activity,

Steps are:

* Determine what to bench mark

* Form a benchmark team

* Identify benchmarking partners

* Collect analyses benchmarking information

* Take action to match or exceed the benchmark

Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban (看板, Kanban?) between different points in the process, which tell production when to make the next part. Kanban are usually...