Operations Management- PRELIM continuous improvement, customer
satisfaction, and operational efficiency.
THE QUALITY PROFILE AND HISTORY OF
QUALITY MANAGEMENT HISTORY OF QUALITY MANAGEMENT
QUALITY MANAGEMENT EARLY CONCEPTS (Before 20th Century)
- plays a vital role in the success of - Quality control began as a form
organizations by ensuring that of craftsmanship, where skilled artisans
products and services meet or ensured product quality through personal
exceed customer expectations. oversight. Guilds and inspection practices
- It outlines the concept of a quality were used to maintain standards.
profile and traces the historical
INDUSTRIAL REVOLUTION (18th-19th Century)
development of quality management,
highlighting key figures, - Mass production introduced the need for
approaches, and systems that have standardized process and quality
shaped the discipline. inspections. Workers were separated from
quality assurance tasks, which were
QUALITY PROFILE
handled by inspectors.
QUALITY PROFILE- refers to the set of SCIENTIFIC MANAGEMENT (Early 1900s)
characteristics that define how an
- FREDERICK W. TAYLOR developed
organization approaches quality.
scientific management, promoting
QUALITY OBJECTIVES – The goals
standardization and efficiency in production
related to product and service quality.
processes.
QUALITY STANDARDS – Benchmarks
- HENRY FORD applies these principles in
or norms such as ISO 9001 or Six
assembly line manufacturing, focusing on
Sigma.
consistency and throughput.
CUSTOMER EXPECTATIONS – The level
of performance perceived as STATISTICAL QUALITY CONTROL (1920s-
acceptable by clients. 1940s)
EMPLOYEE INVOLVEMENT – The extent
- WALTER A. SHEWHART introduced
to which employees are trained
control charts and the concept of
and engaged in quality efforts.
STATISTICAL PROCESS CONTROL (SPC)
MEASUREMENT TOOLS – Methods
- W. EDWARDS DEMING and JOSEPH
used to assess quality, such as Key
JURAN later expanded on
Performance Indicators (KPIs) or
Shewhart’s work, emphasizing
audits.
quality improvement through
An effective QUALITY PROFILE aligns with an statistical methods and management
organization’s mission and fosters commitment.
POST-WAR QUALITY REVOLUTION(1950s- “QUALITY is the degree to which a set of
1970s) inherent characteristics fulfills
requirements.”
- In post-war Japan, Deming
and Juran's teachings transformed the QUALITY IN MANUFACTURING
manufacturing sector, leading to ORGANIZATIONS
the Total Quality Management
A. Characteristics
(TQM) movement.
Produces tangible products
- Japan’s quality revolution became a
QUALITY is often measurable and
global model, with companies like
inspectable
Toyota pioneering Kaizen (continuous
QUALITY CONTROL is applied before,
improvement).
during, and after production
QUALITY STANDARDS AND CERTIFICATIONS
B. Key Elements of Quality in
(1980s-1990s)
Manufacturing
- Introduction of ISO 9000 series of CONFORMANCE TO SPECIFICATIONS-
standards by the International Products must meet design and
Organization for Standardizations. technical standards
- Six Sigma methodology, developed RELIABILITY- Consistent
by Motorola and popularized by performance over time
General Electric, emphasized defect DURABILITY- Product lifespan before
reduction and process improvement. replacement
DEFECT RATE- Percentage of
MODERN QUALITY MANAGEMENT (2000s-
defective units per batch
Present)
STANDARDIZATION- Uniformity
- Emphasis on customer-centricity, across units to reduce variation.
sustainability, and innovation C. Tools and Techniques
- Integration of digital technologies,
STATISTICAL PROCESS CONTROL (SPC)
including AI, big data, and IoT in
- is a methodology that employs
quality monitoring and management
statistical techniques to monitor,
QUALITY IN MANUFACTURING AND SERVICE control, and enhance processes by
ORGANIZATIONS analyzing variations in performance
QUALITY- refers to the degree to which a data. Widely utilized in manufacturing
product or service meets or exceeds and service industries, SPC aims to
customer expectations ensure consistent product quality
and operational efficiency.
According to the ISO 9000 standards:
SIX SIGMA - is a disciplined, data-
driven methodology aimed at
improving business processes by SERVQUAL MODEL - (Service Quality)
reducing defects and minimizing is a research instrument developed in
variability. 1985 by A. Parasuraman, Valarie
LEAN MANUFACTURING - is a Zeithaml, and Leonard L. Berry. It
measures service quality by
production philosophy focused on
quantifying the gap between what
maximizing customer value while customers expect and what they
eliminating all types of waste (muda) perceive they receive.
in processes.
CUSTOMER FEEDBACK & SURVEYS
TOTAL QUALITY MANAGEMENT (TQM)
- refers to the opinions, comments,
- is a comprehensive management
suggestions, or ratings customers
framework grounded in the belief
share about their experiences with
that long-term success stems from
your product, service, or brand &
customer satisfaction, achieved structured tools for collecting feedback
through widespread involvement and in a systematic way.
continuous improvement across every SERVICE BLUEPRINTS - is a visual
level of the organization diagram that maps out the entire
QUALITY IN SERVICE ORGANIZATIONS service delivery process—from the
customer’s actions down to internal
A. Characteristics
support operations—while illustrating
Offers intangible services
how various components interconnect
QUALITY is subjective and based on
over time. It’s built from the
customer experience
customer’s perspective and reveals
Cannot be stored or inspected in
both front-stage and backstage
advance
activities, as well as supporting
B. Key Elements of Quality in Services
systems
RESPONSIVENESS- speed and
accuracy EMPLOYEE TRAINING &
RELIABILITY- consistent EMPOWERMENT - refers to structured
performance programs that improve employees
EMPATHY- personal care and ‘skills, knowledge, and job
attention to clients performance through organized
ASSURANCE- employee instruction—
knowledge and courtesy
BUSINESS SUPPORT refers to the internal
TANGIBLES- physical evidence
services and functions that help an
C. Tools and Techniques
organization operate effectively and
efficiently. Helps deliver better customer
Examples include: experiences indirectly.
Reduces operational risks,
Human Resources (HR)
Information Technology (IT)
delays, and costly mistakes.
Finance and Accounting
Enhance internal
Customer Service
Procurement and Supply Chain
communication and cross-
Administrative Services
functional collaboration.
Though not always customer-facing, these
departments directly influence the A COMPETITIVE ADVANTAGE is what sets a
organization’s ability to deliver value. company apart from its competitors in a
way that customers value.
UNDERSTANDING QUALITY IN BUSINESS
SUPORT A. OPERATIONAL EXCELLENCE
- Providing timely, reliable, and High-quality support leads to faster,
effective services to internal and smarter decisions.
external stakeholders that enable core
Streamlined internal processes
business operations to succeed.
reduce cost and time waste.
a. ACCURACY- Error-free outputs in
accounting, reports, etc. B. INNOVATION ENABLEMENT
b. EFFICIENCY- Time-saving processes Quality IT supports empower R&D and
and workplace and workflows marketing to deploy new ideas and
c. RESPONSIVENESS- quick resolution services efficiently.
of issues and support request
C. AGILITY AND RESPONSIVENESS
d. CONSISTENCY- standardized
procedures across departments Strong HR and admin support help the
e. COMPLIANCE- meeting legal and business adapt quickly to change,
regulatory requirements such as scaling operations or
managing a crisis.
WHY QUALITY IN SUPPORT MATTERS?
D. CUSTOMER SATISFACTION
Ensures smooth operations in
core departments. Even if customers don’t directly
Builds employee confidence and interact with support departments,
improves morale. their work affects order fulfillment,
technical service, or problem Discipline
resolution.
Honesty
How to Improve Quality in Business
The Link Between Quality and
Support
Personal Values
1. STANDARDIZE PROCESSES – "Quality begins with me. “
Document procedures to reduce This statement reflects the idea
variation and error. that quality is a reflection
of character. Even with systems and
2. INVEST IN TRAINING – Upskill staff to
standards in place, quality often depends
maintain high performance and
on individual choices.
professionalism.
3. USE TECHNOLOGY – Automate HOW PERSONAL VALUES INFLUENCE
repetitive tasks and improve data QUALITY?
accuracy.
INTEGRITY- doing the right thing
4. MONITOR KPIS – Measure service RESPONSIBILITY- taking ownership for
levels, turnaround times, and results
customer (internal or external) RESPECT- valuing people and
satisfaction. processes
5. ENCOURAGE FEEDBACK – Create a DISCIPLINE- consistent performance
system for internal clients to rate under pressure
the support they receive. EXCELLENCE- always striving to
improve or exceed
QUALITY IN PRACTICE means applying
standards, ethics, and best practices Examples of Quality Rooted in Values
consistently in your daily tasks—regardless 1. HEALTHCARE - A nurse ensures patient
of your role. safety not only becauseit's policy, but
Personal values are internal beliefs and because of a personal commitment
principles that guide your behavior and to care.
decision-making. 2. EDUCATION - A teacher updates
Common examples: lesson plans and provide feedback
because they value student growth,
Integrity
not just because it’s required.
Responsibility
3. CUSTOMER SERVICE - An employee
Respect patiently listens to complaints and
Excellence
resolves them sincerely out of a sense
of respect and empathy.
Barriers to Quality Practice
Even when people have good values, several INTERNATIONAL BUSINESS AND TRADE-
challenges canget in the way: PRELIM
Work pressure GLOBALIZATION- a powerful force that shapes
the modern world. It refers to the growing
Lack of motivation
connection and interdependence among
Poor leadership countries, businesses, and people.
Toxic culture WHO BENEFITS FROM GLOBALIZATION?
"Good enough" mentality 1. BUSINESSES AND
MULTINATIONAL
o Globalization allows businesses to
Overcoming these requires moral
operate across different
courage and a culture that supports values-
countries.
driven performance.
o Lower costs=Higher profit
Developing a Personal Quality Mindset o More customers=more sales
o Multinational corporations (MNCs)
REFLECT ON YOUR VALUES – What
2. CONSUMERS
do you believe in? What behaviors show
- Consumers can enjoy a wider variety of
those values?
goods from different countries
PRACTICE SELF-DISCIPLINE – Do
- International trade and fast shipping make
small tasks with care. How you do
global products more available
anything is how you do everything.
3. DEVELOPING COUNTRIES
SEEK FEEDBACK – Learn how your - Opening doors to foreign investments
work affects others. encourages international companies to
invest in local industries
LEAD BY EXAMPLE – Be the standard
4. SKILLED WORKERS
of quality you want to see.
- Globalization opens up international job
Align With Organizational Values – opportunities for skilled professionals such
Choose workplaces where your values as nurses, doctors
are respected and practiced. 5. GOVERNMENT
- Globalization encourages business growth,
foreign investment
- More business=more taxes collected
GLOBALIZATION interconnectedness and - Globalisation has increased reliance on
interdependence of the world's economies, each other, allowing businesses to import
Gained rapid momentum after the Cold War in the cheaper raw materials
early 1990s. F. CULTURAL EXCHANGE
- Globalization has fostered cultural
EVOLUTION OF GLOBALIZATION
exchange and intermingling, reducing
Globalization began with the SILK ROAD, G. URBANIZATION
an ancient trade route that connected - Globalization leads to the growth of urban
China, Central Asia, and the Mediterranean. centres, as foreign and local companies
It allowed the exchange of goods, culture, establish businesses in specific areas
and ideas between the East and West. H. STANDARD OF LIVING
- Increased economic activity and improved
New technologies like coins and
job opportunities
transportation systems made trading easier
I. PRODUCTION COST
and more efficient.
- Companies can establish operations in low-
cost areas
J. OUTSOURCING
The Age of Exploration increased global
- Outsource processes to third parties outside
exchange as European explorers
their country
discovered the Americas and opened new
trade routes. ECONOMICS AS A DRIVING FORCE FOR
GLOBALIZATION AND IT’S IMPLICATIONS
CHARACTERISTICS OF GLOBALIZATION
1. TRADE AND INVESTMENT
A. FREE TRADE
- The exchange of goods and services across
- Allowing governments to focus on fewer
borders is a cornerstone of economic
aspects of business transactions
globalization
B. LIBERALIZATION
- allow goods to freely flow between countries
- Enabling entrepreneurs to establish and
2. TECHNOLOGICAL ADVANCEMENT
trade both domestically and internationally
- Developed nations also innovate their
C. INCREASE EMPLOYMENT
means of communication and transportation
- aids companies in expanding their
3. ECONOMIC POLICIES
production capacity and operations globally
- National economies adjust and create
D. INCREASED CONNECTIVITY BETWEEN
agreements like free trade zones
NATION
4. ECONOMIC POLICIES
- Globalization enhances trade relations,
- Good government policies, trade deals also
increases interaction between people and
help globalization happen smoothly
businesses
E. INTERDEPENDENCE IMPLICATIONS
- Allows international markets to freely trade - CULTURAL HYBRIDIZATION- enabling
goods, services mixing and adaptation of multiple traditions
- TRANSFORMATION OF IDENTITIES AMD
DRIVING FORCE BEHIND GLOBALIZATION
VALUES- increased interaction between
- TECHNOLOGICAL ADVANCEMENT- distinct societies leads individuals and
Innovations in communication (internet, communities to reshape their cultural
telecommunications), transportation, and identities
information technology have dramatically - CHALLENGES TO CULTURAL
shortened distances, SUSTAINABILITY- cultural artifacts and
practices
- LIBERIZATION OF TRADE AND
ECONOMIC POLICIES- reduction of trade POLITICAL
barriers such as tariffs Positive Implications:
- POLITICAL INITIATIVES AMD - Greater global cooperation
INTERNATIONAL COOPERATION- foster - Shared standards I human rights
international agreements, established Negative implications:
supranational bodies - Erosion of sovereignty
- CULTURAL EXCHANGE AND GLOBAL - Political backflash
MEDIA- spread of virus and values through
mass media CULTURAL
- EROSION OF TRADITIONAL Positive implications:
SOVEREIGNTY- rise of international
- Cross- cultural dialogue and hybrid
organizations identities
- EMERGENCE OF SUPRANTIONAL - Preservation through digital platforms
INSTITUTIONS- adhere international norms Negative implications:
and standards at the expense of national - Homogenization and cultural erosion
autonomy - Commodification of traditions
- GLOBAL GOVERNANCE AND
ACCOUNTABILITY- hold nation-states
accountable to shared standards regarding
human rights
- POLITICAL BACKLASH AND POPULISM-
uneven distribution of benefits and its
perceived threat to jobs
- CULTURAL HOMOGENIZATION- global
spread of western norms and consumer
products named “MCDONALIZATION” or
“AMERICANIZATION”