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Chapter 1

GMS 401 Chapter Notes - Chapter 1: Total Quality Management, Lean Manufacturing, Quality Assurance

Global Management Studies
Course Code
GMS 401
Robert Meiklejohn

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GMS Chapter 1 – Introduction to Operations Management
Operations Management – the management of processes or systems that creates G and/or S
Process – a series of linked actions, changes or functions brining about a result
Three types of processes: Core (create G and S), support (support core processes), and
managerial (govern the system)
Efficiency – operating at minimum cost and time
Effectiveness – achieving quality and responsiveness
Three basic functions of a typical organization: operations, finance, and marketing
Value added – the difference between the cost on inputs and the value or price of outputs
Lead time – the time between ordering a G or S and receiving it
Other functions: Accounting, MIS, Purchasing, HR, Manufacturing, product design,
maintenance, logistics…
Operational activities involve management or personnel, inventory planning and control,
production planning, scheduling, project management, and quality assurance
System design essentially determines many of the parameters of operations
Production of G and S differ in
Customer contact, use of inventories and demand variability
Uniformity of input
Labour content of jobs
Uniformity of output
Measurement of productivity
Quality assurance
Model – an abstraction of reality; simplified representation of something (mathematical,
schematic, and statistical)
System – set of integrated parts that must work together
Pareto phenomenon – a few factors account for a high percentage of results achieved
Total quality management – involving every employee in a continual effort to improve quality
and satisfy the customers
Lean production – system that uses minimal amounts of resources to produce a high volume of
high quality goods with some variety
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