BMIS – L1 – QE11 – Operations strategy

(a). Total quality management has gained attention in both manufacturing and service firms as a way of improving the firm’s operations, yet its implementation has met a lot of resistance from employees. You are required to:

(i) Explain total quality management.

(ii) Suggest FOUR guidelines that can be adopted to reduce such resistance.

(b) (i) Explain just-in-time inventory control.

(ii) State FOUR advantages of its use in a manufacturing company.

(ai). Total Quality Management (TQM) is a management philosophy that emphasizes managing the whole organisation in order for it to continuously excel in all dimensions of products and services that are important to the customer.

OR

Total quality management (TQM) is a philosophy involving all employees in an organisation in a continual effort to improve quality and achieve customer satisfaction.

(aii). (i) Management must demonstrate top-down commitment and involvement approach to get all employees participating in the implementation of TQM.

(ii) Training: Management must provide appropriate training, resources, and human resource back-up to facilitate the smooth implementation of TQM.

(iii) Measurement factors: Management must determine critical measurement factors that can be used to track the progress of TQM.

(iv) Cost of Quality: Management must identify the costs of quality and routes to improvement to enhance the successful implementation of TQM.

(v) Teamwork: Management must institute and emphasize teamwork to ensure successful implementation of TQM.

(vi) Time Span: Management must allow time to see progress of the implementation process and reward contributions for its success.

(vii) Management must also spread stories about the successful implementation of TQM to serve as a motivator to employees.

(bi). Just-In-Time (JIT) refers to an inventory control system that schedules materials to arrive just when they are required for use.

JIT refers to the production system in which processing and movement of materials and goods occur just as they are needed, usually in small batches.

(bii). (i) Lowers Cost: The use of JIT systems lowers the cost of investment required in all forms of inventory control.

(ii) Space Savings: JIT systems facilitate the saving of space that will be used to keep stock for long periods of time before they are used.

(iii) Customer Satisfaction: There is greater customer satisfaction resulting from higher quality and better state of parts and products for manufacturing.

(iv) Avoids waste: JIT Systems helps the company to reduce waste and inefficiency because materials are requested and delivered per usage.

(v) Quick response: The flexibility of JIT and the ability to supply materials in small batches enables companies to respond quickly to market changes.

(vi) Reduces obsolescence: JIT reduces inventory of materials because of reduced inventory.