TOPIC 3: QMS should be influenced by the organization’s varying objectives, needs,

and products and services provided. This structure is based largely on

A quality management system (QMS) is defined as a formalized the plan-do-check-act (PDCA) cycle and allows for continuous
system that documents processes, procedures, and responsibilities for improvement to both the product and the QMS. The basic steps to
achieving quality policies and objectives. A QMS helps coordinate implementing a quality management system are as follows:
and direct an organization’s activities to meet customer and
regulatory requirements and improve its effectiveness and efficiency 1. Design
on a continuous basis.
2. Build
Benefits of quality management systems
3. Deploy
Implementing a quality management system affects every aspect of
an organization's performance. Benefits of a documented quality 4. Control
management system include:
5. Measure
 Meeting the customer’s requirements, which helps to
6. Review
instill confidence in the organization, in turn leading to
more customers, more sales, and more repeat business 7. Improve
 Meeting the organization's requirements, which ensures Design and Build
compliance with regulations and provision of products and
services in the most cost- and resource-efficient manner, The design and build portions serve to develop the structure of a
creating room for expansion, growth, and profit QMS, its processes, and plans for implementation. Senior
management should oversee this portion to ensure the needs of the
These benefits offer additional advantages, including: organization and the needs of its customers are a driving force behind
the systems development.
 Defining, improving, and controlling processes
Deploy
 Reducing waste
Deployment is best served in a granular fashion by breaking each
 Preventing mistakes process down into subprocesses and educating staff on
 Lowering costs documentation, education, training tools, and metrics. Company
intranets are increasingly being used to assist in the deployment of
 Facilitating and identifying training opportunities quality management systems.

 Engaging staff Control and Measure

 Setting organization-wide direction Control and measurement are two areas of establishing a QMS that
are largely accomplished through routine, systematic audits of the
 Communicating a readiness to produce consistent results quality management system. The specifics vary greatly from
organization to organization depending on size, potential risk, and
Elements and requirements of a QMS environmental impact.
Each element of a quality management system helps achieve the Review and Improve
overall goals of meeting the customers’ and organization’s
requirements. Quality management systems should address an Review and improve detail how the results of an audit are handled.
organization’s unique needs; however, the elements all systems have The goals are to determine the effectiveness and efficiency of each
in common include: process toward its objectives, to communicate these findings to the
employees, and to develop new best practices and processes based on
 The organization’s quality policy and quality objectives the data collected during the audit.
 Quality manual QMS REQUIREMENTS - HANDWRITTEN
 Procedures, instructions, and records The seven principles of quality management
 Data management Developed and updated by ISO/TC 176, ISO’s dedicated group of
quality experts, the following core principles of quality management
 Internal processes
are designed to be used as a guiding foundation to support
 Customer satisfaction from product quality performance improvement for all organizations.

 Improvement opportunities It is important to note that there is no priority order to the following
list. The relevance of each quality principle will vary from one
 Quality analysis organization to another and can be expected to change or adjust over
time, as the journey of an organization evolves.
Establishing and implementing a QMS
 Customer focus: At the heart of quality management is the
Before establishing a quality management system, your organization core aim of meeting customer requirements and striving to
must identify and manage various connected, multi-functional exceed the public’s expectations.
processes to help ensure customer satisfaction. The QMS design
 Leadership: Successful leaders establish a unified sense of
purpose and direction. They continuously create the optimal
conditions in which employees flourish, gaining motivation
and professional satisfaction in the pursuit of quality
objectives.

 Engagement: Inspiring and empowering people at all

levels is essential to the value delivery process.

 Process approach: A well-structured, coherent system is an

effective container in which consistent and predictable
results can be effectively and efficiently achieved.

 Improvement: A hallmark of successful organizations is a

continuous dedication to improvement, from product or
service quality to meeting or exceeding customers’
expectations. Such a commitment is an important driver of
sustained growth.

 Evidence-based decision making: Reliable data analysis

and informed, strategic decision making enhance the
chances of achieving desired outcomes.

 Relationship management: The process of building

strong, clear and mutually beneficial relationships with all
stakeholders and interested parties lays the foundations of
sustained success.

Industrial Revolution (1st – Present)

1. First Industrial Revolution (Late 18th to Early 19th Century)

  Key Features: This period marked the transition from hand Tim Berners-Lee: Invented the World Wide Web, which transformed
production methods to machines. It began in Britain and communication and information sharing globally.
was characterized by the use of water and steam power.
4. Fourth Industrial Revolution (21st Century)
 Technological Innovations: The steam engine, spinning
jenny, and power loom were pivotal inventions that  Key Features: This current phase is characterized by the
increased production capacity and efficiency. fusion of advanced technologies, blurring the lines between
physical, digital, and biological worlds.
 Impact: It led to the growth of factories, urbanization, and
significant changes in labor patterns, with many people  Technological Innovations: Key technologies include
moving from rural areas to cities for work. artificial intelligence, robotics, the Internet of Things (IoT),
and biotechnology.
James Watt: Improved the steam engine, which became a key driver
of industrialization.  Impact: The Fourth Industrial Revolution is reshaping
industries, creating new opportunities and challenges, and
Richard Arkwright: Developed the water frame, a spinning machine raising questions about the future of work, privacy, and
that revolutionized the textile industry. ethical considerations in technology.

Eli Whitney: Invented the cotton gin, which greatly increased the Elon Musk: Known for his work with Tesla and SpaceX, he is a
efficiency of cotton processing. pioneer in electric vehicles and space exploration, pushing the
boundaries of technology.
2. Second Industrial Revolution (Late 19th to Early 20th
Century) Jeff Bezos: Founder of Amazon, he revolutionized e-commerce and
cloud computing, impacting retail and logistics industries.
 Key Features: Also known as the Technological
Revolution, this phase saw the expansion of electricity, Mark Zuckerberg: Co-founder of Facebook, he has significantly
steel production, and the introduction of assembly lines. influenced social media and digital communication.

 Technological Innovations: Innovations included the Frank and Lillian Gilbreth

internal combustion engine, telegraph, and telephone,
which revolutionized communication and transportation.  Motion Study: They developed techniques to analyze and
improve work processes, which led to increased
 Impact: This era facilitated mass production and productivity and reduced fatigue for workers.
consumption, leading to the rise of consumer culture and
significant economic growth.  Therbligs: They created a system of 18 elemental motions
(termed "therbligs") to categorize and analyze the motions
Henry Ford: Introduced the assembly line technique in involved in tasks, helping to identify inefficiencies.
manufacturing, which transformed production efficiency and made
automobiles affordable.  Human Factors: Lillian Gilbreth was particularly
interested in the human aspect of work, advocating for
Thomas Edison: Developed the electric light bulb and established better working conditions and the importance of worker
the first industrial research laboratory, significantly impacting energy satisfaction.
use and technology.
Henry Laurence Gantt
Andrew Carnegie: Led the expansion of the steel industry in the
United States, promoting the use of steel in construction and  Contributions: Gantt is best known for developing the
manufacturing. Gantt chart, a visual project management tool that helps in
planning and scheduling tasks.
3. Third Industrial Revolution (Late 20th Century)
 Key Concepts:
 Key Features: Often referred to as the Digital Revolution,
this phase was characterized by the shift from mechanical o Gantt Chart: This chart provides a graphical
and analog technology to digital technology. representation of a project schedule, showing the
start and finish dates of various elements of a
 Technological Innovations: The development of project. It is widely used in project management
computers, the internet, and information technology to track progress and manage resources.
transformed industries and created new business models.
o Task and Bonus System: Gantt also advocated
 Impact: It enabled globalization, increased efficiency, and for a system where workers could receive
changed the nature of work, with a focus on information bonuses for completing tasks ahead of schedule,
and knowledge-based economies. promoting productivity and efficiency.
Bill Gates: Co-founder of Microsoft, he played a crucial role in the Main Functions of an Organization
personal computer revolution and software development.
1. Operations Management:
Steve Jobs: Co-founder of Apple Inc., he was instrumental in the
development of personal computing and consumer electronics. o Focuses on the processes involved in producing
goods and services.
 o Responsible for managing the production products and services effectively. OM encompasses various activities,
process, quality control, inventory management, including planning, organizing, directing, and controlling resources
and supply chain management. such as materials, labor, and technology to achieve organizational
goals.
2. Finance:
Supply Chain Management (SCM)
o Manages the organization’s financial resources,
including budgeting, forecasting, and financial refers to the management of the flow of goods and services, including
reporting. all processes that transform raw materials into final products. It
involves the coordination and integration of these flows both within
o Responsible for securing funding, managing and among companies. SCM encompasses the planning and
investments, and ensuring the organization management of all activities involved in sourcing, procurement,
remains financially viable. conversion, and logistics management. It also includes the
collaboration with channel partners, which can be suppliers,
3. Marketing: intermediaries, third-party service providers, and customers.
o Involves promoting and selling products or TIMWOODS
services to customers.
1. T - Transportation: Unnecessary movement of products or
o Responsible for market research, advertising, materials between processes. This can lead to increased
sales strategies, and customer relationship lead times and costs.
management.
2. I - Inventory: Excess inventory that is not being processed.
4. Human Resources (HR): This ties up capital and can lead to obsolescence or
spoilage.
o Manages the organization’s workforce, including
recruitment, training, performance management, 3. M - Motion: Unnecessary movements by people, such as
and employee relations. walking or reaching for tools. This can lead to fatigue and
inefficiency.
o Ensures that the organization has the right talent
to meet its operational needs. 4. W - Waiting: Time spent waiting for materials,
information, or equipment. This can cause delays in the
5. Research and Development (R&D): production process.
o Focuses on innovation and the development of 5. O - Overproduction: Producing more than what is needed
new products or services. or producing too early. This can lead to excess inventory
and increased costs.
o Responsible for conducting research to improve
existing offerings and create new solutions. 6. O - Overprocessing: Doing more work or using more
resources than necessary to produce a product or service.
6. Information Technology (IT): This can result in wasted time and materials.
o Manages the organization’s technology 7. D - Defects: Errors or defects in products or services that
infrastructure and systems. require rework or result in scrap. This leads to wasted
resources and time.
o Responsible for ensuring that technology
supports business operations and enhances 8. S - Skills: Underutilizing employees' skills and talents. This
efficiency. can lead to a lack of engagement and missed opportunities
for improvement.
Interrelationship of Functions
By identifying and addressing these types of waste, organizations can
These functions are interrelated and must work collaboratively to streamline their processes, reduce costs, and improve overall
achieve the organization’s objectives. For example: efficiency. Lean methodologies encourage continuous improvement
 Operations relies on finance for budgeting and resource and the pursuit of operational excellence by focusing on eliminating
allocation. waste.

 Marketing needs input from operations to understand Goods vs. Services

product availability and production capabilities. 1. Goods vs. Services
 HR supports operations by ensuring that the workforce is Goods are tangible products that can be seen, touched, and stored.
adequately trained and staffed. They are physical items that are produced, sold, and consumed.
Examples include cars, clothing, electronics, and food.
Operations Management (OM)
Services, on the other hand, are intangible activities or benefits that
is the field of management that focuses on the design, execution, and
one party provides to another. They cannot be touched or stored and
control of operations that convert resources into desired goods and
are often consumed at the point of delivery. Examples include
services. It involves overseeing the production process, ensuring that
healthcare, education, consulting, and entertainment.
operations are efficient, and managing the supply chain to deliver
2. Goods vs. Services - Typical Differences 1. Process Design: Developing efficient processes for
producing goods and services, including workflow design
Aspect Goods Services and layout planning.

Tangible; physical Intangible; cannot be 2. Capacity Planning: Determining the production capacity
Tangibility
items touched needed to meet changing demands for products and
services.
Cannot be stored; produced
Can be stored in
Storage and consumed 3. Inventory Management: Managing inventory levels to
inventory
simultaneously balance supply and demand while minimizing costs.

Produced before Produced and consumed 4. Quality Management: Ensuring that products and services
Production meet quality standards and customer expectations through
consumption simultaneously
quality control and improvement practices.
Easier to measure and Quality is often subjective
Quality Control 5. Supply Chain Management: Overseeing the flow of
control quality and harder to measure
materials, information, and finances as products move from
Limited customer suppliers to manufacturers to customers.
Customer High customer involvement
involvement in
Involvement in service delivery 6. Production Planning and Control: Scheduling production
production
activities, managing resources, and ensuring that
production targets are met.
Standardized; less Highly variable; can differ
Variability
variability from one service to another 7. Facility Management: Managing the physical facilities
where production occurs, including maintenance and layout
Ownership is No ownership transfer;
Ownership optimization.
transferred upon sale service is experienced
8. Process Improvement: Continuously seeking ways to
3. Goods vs. Services - Similarities in Management improve processes, reduce waste, and enhance efficiency.
Despite their differences, goods and services share several similarities Key Metrics
in management:
Operations management relies on various key metrics to assess
1. Customer Focus: Both require a strong focus on customer performance and drive improvements. Some common metrics
needs and preferences. Understanding customer include:
expectations is crucial for both goods and services to ensure
satisfaction and loyalty. 1. Efficiency: Measures how well resources are utilized in the
production process (e.g., output per labor hour).
2. Quality Management: Both require quality management
practices to ensure that the final product (goods) or service 2. Quality: Assesses the number of defects or errors in
meets established standards and customer expectations. products or services (e.g., defect rate, customer
complaints).
3. Supply Chain Management: Both involve supply chain
management to ensure that resources, whether materials for 3. Lead Time: The time taken from the initiation of a process
goods or personnel for services, are available when needed. to its completion (e.g., order fulfillment time).

4. Process Improvement: Continuous improvement 4. Inventory Turnover: Indicates how often inventory is sold
methodologies, such as Lean and Six Sigma, can be applied and replaced over a period (e.g., cost of goods sold /
to both goods and services to enhance efficiency and reduce average inventory).
waste.
5. Capacity Utilization: Measures the extent to which an
5. Marketing Strategies: Both require effective marketing organization uses its production capacity (e.g., actual output
strategies to promote and sell the offerings. Understanding / maximum possible output).
the target market and positioning the product or service
effectively is essential. 6. Customer Satisfaction: Assesses how well products or
services meet customer expectations (e.g., customer
6. Resource Management: Both require effective feedback scores).
management of resources, including human resources,
technology, and finances, to achieve operational goals. Roles of Operations Management

7. Innovation: Both goods and services benefit from Operations management plays several critical roles within an
innovation to meet changing customer demands and stay organization:
competitive in the market.
1. Strategic Role: Aligning operations strategy with overall
Scope of Operations Management business strategy to achieve competitive advantage.

Operations management encompasses a wide range of activities and 2. Tactical Role: Implementing plans and policies to optimize
responsibilities aimed at efficiently producing goods and services. operations and improve efficiency.
The scope includes:
 3. Operational Role: Managing day-to-day operations to 4. Inability to Adapt: Companies that cannot adapt to
ensure smooth production and service delivery. changes in the market or technology may fall behind
competitors.
4. Cross-Functional Role: Collaborating with other
departments (e.g., marketing, finance, HR) to ensure that 5. Financial Mismanagement: Poor financial planning and
operations support overall business objectives. management can lead to cash flow issues and insolvency.

5. Change Management: Leading initiatives for process 6. Weak Leadership: Ineffective leadership can result in poor
improvements and adapting to changes in the market or decision-making and a lack of employee motivation.
technology.
7. Neglecting Innovation: Companies that do not invest in
Production Supervisor: innovation may struggle to keep up with competitors who
do.
 Manages daily production operations and oversees
production workers. Mission and Strategies

 Ensures quality control and meets production targets.  Mission Statement: A clear mission statement defines a
company's purpose and guides its strategic decisions. It
 Develops production schedules and addresses operational serves as a foundation for setting goals and aligning
issues. resources.
 Reports on production metrics to upper management.  Strategic Planning: Companies must develop strategies
that align with their mission and respond to market
Supply Chain Manager:
conditions. This includes identifying competitive
 Develops and implements supply chain strategies for advantages, setting objectives, and determining the best
sourcing, procurement, and logistics. course of action to achieve those objectives.

 Manages supplier relationships and monitors inventory Mission The reason for the existence of an organization.
levels.
Mission statement States the purpose of an organization.
 Oversees transportation and distribution of goods.
Goals Provide detail and scope of the mission.
 Analyzes costs and collaborates with other departments to
Strategies Plans for achieving organizational goals.
align supply chain activities with business goals.

Social Media Product Manager:

 Defines the vision and strategy for social media products.

 Conducts market research to understand user needs and

trends.

 Collaborates with cross-functional teams to develop and

launch products.

 Analyzes user engagement and performance metrics to

improve products and drive growth.

SIPOC is a tool used in process management to identify the key

elements of a process. It stands for Suppliers, Inputs, Process,
Outputs, and Customers.

Competitiveness refers to a company's ability to maintain and gain

market share in its industry. It is influenced by various factors,
including marketing, operations, and strategic planning.

Why Do Companies Fail?

1. Lack of Clear Vision: Companies often fail due to a lack

of a clear mission or strategic direction.

2. Poor Market Understanding: Failing to understand

customer needs and market trends can lead to product
mismatches.

3. Ineffective Operations: Inefficient operations can result in

high costs and poor quality, driving customers away.