Operation Management and Quality Management Sample Essay

1. 0 Introduction

2. 1 Operations Management and Quality Management.

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Operationss direction ( OM ) is a series of activities that transform the inputs to make a goods or services as end products of organisation ( Heizer and Render. 2011. p. 36 ) . It mains purpose is to command the twenty-four hours to twenty-four hours procedure of production system. as a fundamental of organisation to implement it concern scheme successfully. Basically. there are 10 determinations countries in the operation scheme and quality planning and direction will be one of the most indispensable schemes in order to drive company toward success. Products and services quality provided by an organisation is a cardinal force to delighted clients. steadfast profitableness as all clients search for superior merchandises and services quality. therefore it could be one of the organisation competitory advantage if it is able to fulfill clients demands on quality
public presentation ( Deming. 1982 ; Kennedy. 1987 ; Rust. Zahorik and Keiningham. 1999 ) .

In operations. quality direction is defined as a criterion of merchandises design and specifically commanding the procedure of fabrication to guarantee the end products are superior and usefulness in public presentation. dependability and lastingness ( Garvin. 1986 ) . The construct is subdivided into two groups which are design to do merchandises fittingness to utilize by clients and conformity with it specifications required by design ( Clark. Chew. & A ; Fujimoto. 1990 ) . However. this study will merely concentrate on 2nd construct because of a merchandises quality design is much associate with the procedure of fabrication ( Fleischer & A ; liker. 1992 ) . and traditional theoretical accounts of literature sees quality as “conformance to requirements” ( Crosby. 1979 ) .

For an organisation. the ability to bring forth superior quality merchandises and services will besides enables it distinction from others merchandises as a selling scheme. attractive force of new clients. derive keeping of bing clients. and therefore heighten the gross revenues to maximise the net income of organisation ( Parasuraman et al. 1985 ) .

2. 2 Objective
In this study. ON Semiconductor had been chosen and interviewed by writer for the intent of accomplishing the aim of this study. which are: I. To place and analyse how this organization’s operation scheme in term of quality direction helps it to complements the concern scheme.

two. To place the construct of quality direction attack. comparison and measure how the organisation implementing these attacks.

three. To do recommendation what should organisation to be improved and necessary alteration in order to success in long term.

2. 0 Literature Review
Much organisation is viing in a manner to offer superior merchandises or services quality to guarantee their competitory advantage in the market. There have been tonss of surveies conducted about the quality direction. As Crosby ( 1979 ) mentioned. organisation that offer choice merchandise can assist organisation to avoid the internal and external failure costs. The cost of this quality confidence will come from bar and assessment related factors while the entire disbursement is valuable if the organisation can avoid the failure ( Superville. Jones. & A ; Boyd. 2003 ) .

To further apprehension. the word “quality” should be defined. Harmonizing to Wilkinson et Al. ( 1998. pp. 2-3 ) . he defined quality as “fitness for use” . organisation should plan their merchandises based on customer’s demands and translated into a set of specification criterion conformity. Quality direction attacks. on the other manus. is defined as a set of rules. patterns and proficient demands by an organisation to better it merchandise and services quality ( Dean and Bowen. 1994 ; Lakhal. Pasin and Limam. 2006 ) .

In short. quality direction constructs can be sum uping in three theories. They are competitory advantage where organisation should maintain upgrading their employee accomplishments and cognition ( Porter. 1985 ) . resource based where upgrading their engineerings that other rival can non make ( Prahalad and Hamel. 1990 ) . and work public presentation theory where organisation should concentrate on its customers’ demands. and partnering with their providers ( Waldman. 1994 ; Soltani. et Al. . 2008 ) .

Basically. there are several type of quality direction attacks has been deployed by most of the organisation today in order to keep and better their concern procedure and therefore able to offer higher quality of merchandises and services. The illustrations of these attacks are Entire Quality Management ( TQM ) . Baldrige Criteria. and the criterion ISO 9001 ( Deming. 1982 ; Powell. 1995 ) .

The nucleus constructs of TQM are pull offing the full concern procedure from supply concatenation to customers’ relationship ( Garrido et al. . 2007 ) . It doctrine is to uninterrupted betterment in quality with partnership with providers. velocity fabrication and failure bar. employee engagement. and therefore to construct up clients relationship and client keeping through client satisfaction ( Oakland. 1998 ) . This theoretical account provides an organisation model on the methods of how to heighten their concern procedure quality such as Phil Crosby’s system. and Six Sigma. TQM thoughts have divided into two dimensions. which is proficient and human. On proficient dimensions. it provides the techniques that organisation should implement in statistical methods such as quality review and procedure function control. Whereas on human dimensions. gurus of quality like Crosby. Deming. and Ishikawa mentioned that top direction committedness. inspirational. motive and employee engagement is really of import in order to continuously betterment in quality.

Another common theoretical account is ISO 9001 where focused on cardinal component including client focussing. engagement of people. procedure. system attack betterment. and relationship with providers ( Kenneth L. . 1994 ) .

Figure 1 — Model of a process-based quality direction system Besides the proficient focal points by theories. for case Six Sigma statistical control forestalling defects to 3. 4 defects per million production. the human dimension focal points can incur important different consequences when organisation implementing the attacks ( Sitkin. Sutcliffe. & A ; Schroeder. 1994 ) . As behaviour of participants in organisation will impact the results ( Merchant and Simons. 1986 ; Wiele et Al. . 2011 ) . this recommends control system should be implementing in order to direct the behaviour of participants ( Bryce. 1991 ; Wilkinson et Al. 1998 ) . Different type of control system is used by different organisations and this will make up one’s mind whether an organisation can accomplish it choice direction end. These systems include beliefs. boundary systems. diagnostic control systems and synergistic controls systems ( Simon. 2000 ) . In beliefs and synergistic controls system. person has given freedom to pass on with leaders. giving feedback. and free to garner information outside the everyday channels. whereas other two systems is much restrict. and everyone must follow the statement and regulations.

Furthermore. Kaizen besides provide another point of position that organisation should continuously betterment in quality based on thin production ( Bhasin. 2008. p. 8 ) . as one of its aim is to better quality with lower production costs. this recommend organisation to concentrate on thin production procedure to extinguishing defects as other manner to command the quality ( Arnheiter and Maleyeff. 2005. p. 9 ) .

Figure 2: Simons’ four levers of control theoretical account ( Simon. 2000 )

3. 3 Historical Positions
Today. about every organisation has their vision and mission statements. Harmonizing to Kumar ( 2012 ) . in order to accomplish it mission. different degree of scheme should be implementing as a fundamental of organisations to success. The highest degree of an organisation scheme is called as corporate scheme. It defines what and where is the concern that company is compete. intent and range of organisation. and apportioning the resources demands by assorted concerns. Second degree of scheme come from concern scheme. this degree of scheme focal point on how to viing in market and therefore aligned with corporate scheme. For case. Porter ( 1985 ) divided concern scheme into 3 class. therefore an organisation can either take to viing in distinction merchandises or services offering. cost leading scheme that lower their production and services cost. or to aim the niche market where functioning merely peculiar clients to avoid viing with large companies. Third degree of scheme will be operational scheme. which is besides the most of import scheme that identify how to run operational procedures. and therefore to back up both corporate and concern scheme.

Figure 3: Degrees of corporate scheme
2. 1. 1 Six Sigma Methodology
Six Sigma has traditionally gained broad compliment as a methodological analysis that enable an organisation to increase their fight ( Lee and Choi. 2006 ) . As a modern method. it combing porter’s cost leading and distinction schemes by enable a company to lowest their cost of production with least defects. and at the same clip place the demands of clients with DMAIC procedure. DMAIC here is base for define. step. analyze. better and control. Through DMAIC rhythm. six sigma can provides information what cognition and accomplishments demands to be train and present to staff. which portion of procedures should be redefine. in order to accomplish 99. 99 % free fabrication defects. Furthermore. Six Sigma offers the opportunity to complement other less proficient techniques and more toward on organisational motive which are required by operational procedures betterment ( Jeffery. 2005 ) .

Figure 4: Six Sigma Statistical Control with it command limits Basically. it offered broad scope of benefits to organisation with cost nest eggs. improved merchandise and services quality. cut downing the times of procedure rhythm and besides developing organisation staff accomplishments ( The Six Sigma Group ) .

Figure 5: Benefits of Sig Sigma methodological analysis toward Organizations

3. 0 Background of Organization

4. 4 ON Semiconductor Corporation
In this study. writer interview with the quality director. Mr Arran of ON Semiconductor ( Malaysia ) Sdn Bhd. located at Seremban. in order to further understand how their manage the merchandise quality in existent universe. ON Semiconductor Corporations is a company that supplies high public presentation Si solutions for energy efficient electronics. Company has wide semiconducting material constituents portfolio ( 40. 500 devices in catalog ) which include in automotive. calculating. LED lighting. medical. computer science. communications like wirelesss. and etc. As mentioned by Mr Arran. their company manufactures broad scope of merchandises requested by the universe category client such as Apple. Samsung. Sony. IBM. Amazon. ITACHI. Penasonic. BMW. Mercedes and etc.

ON Semiconductor do non bring forth any high terminal merchandises like computing machine and auto. but it produce merely the component french friess. automobile functional control constituent and etc. their clients for fabricating their merchandises. such as I pad. I Phone and etc. ON semiconducting material vision is to go prime providers that supply high public presentations energy efficient silicon solution to worldwide. Thus. the quality of merchandises is comparatively of import for them as their clients are fundamentally from other large companies ; the repute of ON semiconducting material is a serious affair to derive keeping of these large companies since they have high bargaining power to switch and order merchandises from other semiconducting material maker.

4. 0 ON Semiconductor Operations scheme on Quality Management

5. 5 ON Semiconductor Quality Statement
ON Semiconductor has clearly stated that “every ON employee is personally responsible for guaranting the merchandises and services that to be delivered to clients no affair internal or external must be achieve the highest quality criterion. In order to deriving client satisfaction. the procedure. merchandise. and services quality must better continuously. ” Furthermore. ON Semiconductor besides stated in their quality policy that they won’t allow employee make error and therefore enable us to transcend client outlooks with our superior merchandises and services.

5. 6 ON Semiconductor Quality Management Approaches
As answered by Mr Arran. their clients perceive their merchandises with high perceptual experience due to it holding an first-class quality merchandise by pull offing with the model of ISO quality criterion. Company acquire certification of ISO 9001 for it semiconducting material merchandises and ISO TS 16949 for it component merchandises for car. they besides looking for staying this enfranchisement place in future. ON Semiconductor quality tool POKAMISS stated their policy non allowed operator make error. and therefore enable them to stay high grade of merchandise quality in the scope of 97 % to 98 % assurance degree. which means there will merely hold 2 % to 3 % defect for their production. Since ON Semiconductor has purely following the ISO 9001 criterion. their besides utilizing the PDCA theoretical account. which stand for planning. making. look intoing. and action in term of continuously choice betterment of it day-to-day activities in the organisation. They repeat this theoretical account twenty-four hours by twenty-four hours for the intent of cut downing defect of production.

Furthermore. company besides promote zero defect constructs to all organisational participants. top direction meeting every hebdomad so called as “Quality week” merely to discourse the procedure function of production and therefore enable them to place the jobs in the procedure. It besides checks all the stock lists every hebdomad to do certain their french friess or other merchandises are still staying at highest quality degree. Furthermore. ON developing their employee to be external hearer. they go to their stuff provider and look into all their procedure of production. to do certain quality of stuff bought from providers. and besides double look into ( in-house review ) of stuff quality before they start fabricating their merchandises. For the intent of accomplishing nothing defects production. ON Semiconductor start to implement six sigma tool to developing their technology. technician to derive techniques accomplishments and cognition on production procedure late. Recently. it has more and more technician base on balls the six sigma trial of yellow to green belt. They believe that by developing employee on procedure direction accomplishments and tools. they would be able to better their production defects to 3. 4 per million as targeted by six sigma itself. faster fabricating procedure as they can halt mistake in the earlier phase. and would be able to salvage about 3 million dollar from the benefit of production fabrication procedure sweetening.

Figure 6: Business Process Map of ON Semiconductor

5. 0 Recommendation
By and large. ON semiconducting material has been following the TQM constructs that continuously betterment on their quality direction by implementing six sigma tool and purely command their production procedure in order to diminish the defects rate and enfranchisement place of ISO criterion. It bettering the quality direction by uniting three factors which including the people. procedures and engineering. However. it does hold the failings in their quality direction attack.

First of wholly. as it quality policy stated that they don’t let operator to do error. and besides the information from Mr Arron. ON Semiconductor will do chock off determination when person make large error. or if the error is smaller. operator will non hold any opportunity to acquire publicity in the hereafter. This type of direction attack really is implementing the control system based on boundary system to avoid the hazard of defects and make high force per unit area to the employee. and therefore increase their turnover rate. As TQM constructs besides focuses on employee engagement in operational scheme. merely developing employee accomplishments and cognition on day-to-day activities is non adequate since they have less motive when the work environment is high force per unit area but no wages when they are making right things. In this instance. ON Semiconductor was recommended to alter their control system from boundary system to belief or interactive control system where authorising the staff to giving feedback. actuating them with wages based on KPI for happening other manner to better operation procedure. or quality control attack alternatively of merely concentrating on certification control.

Second. ON semiconducting material carefully audit all the stuff bought from providers to guarantee the quality before fabrication. However. this type of quality checking is clip devouring and therefore decreases the velocity of fabrication. Cost of overtime has been increase so much with their hebdomadal checking regulations.

ON semiconducting material should heighten it supply concatenation public presentation in order to implement thin six sigma production method. Coordination with providers. learning providers how to bring forth choice stuff will be an indispensable factor to diminish the cost of scrutinizing and besides increase the velocity of fabrication ( Robinson and Malhotra. 2005 ; Das. 2010 ) . Furthermore. it should carefully choose trustable providers with first ranked based on quality of goods offering in the past supplies ( De Carvalho and Costa. 2007 ) . As provider relationship was formed. ON semiconducting material so will able to follow thin production doctrine to cut down the inefficiencies of look intoing every stuff before the fabrication procedure and combined with six sigma tool to accomplish higher quality public presentation in the long term. This is because that Six Sigma usually would merely describe fiscal sweetening in short term ( Thomas and Barton. 2009 ) . By uniting the thin and six sigma production tool. company so can continuously better in their merchandises quality in term of support the concern scheme ( Shah et al. . 2008 ) .

Furthermore. ON Semiconductor does non accept any client auditing. merchandises return and particular monitoring suggestions from its clients indicate that they does non value the suggestion of its clients. It was recommended listen to the suggestion from clients and accept client auditing as other manner to better their merchandise dependability.

6. 0 Organizational Barriers

There have some barriers when ON Semiconductor decided to implementing six sigma theoretical accounts as a manner to better it merchandise quality. Since it produces more than one merchandise. and it has so many workss all over the universe. six sigma will non be easy to implement as it request preparation of employees. and this addition the preparation cost where the benefit from betterment of merchandise quality might non able to cover the cost.

Despite. the betterment cost will reassign into their merchandises cost. as their concern clients has large bargaining power to switch from ON. the increasing production cost can’t be transfer to it merchandise monetary value. and this lessening the company net income.

Besides. the execution of six sigma tool may kill employee creativeness. As a solution provider. employee merely focal point on quality will lose their creativeness of believing advanced and new thoughts for the alteration of merchandises that may alter the whole semiconducting material industry if they manage to make new type of semiconducting material that can assist their clients enhance high terminal merchandises installations.

7. 0 Personal Contemplation
This is a fantastic experience when I working on the research of what so call quality. quality planning advancement. and choice direction attack. Besides. the interviews with existent universe companies besides increase my cognition of how the existent universe state of affairs is and how they manage their merchandise quality. In this procedure. I besides learnt that company ever miss out something of import no affair how good they are. For case. ON Semiconductor maintain mentioned that they purely follow the ISO 9001 criterion and implementing six sigma tool. nevertheless. it make lose out the human dimension of quality direction. High force per unit area of working environment addition turnover rate and therefore increase the preparation cost for new employees. In this procedure. I besides learnt how to do recommendation as antecedently I was ever has a perceptual experience that large company must be make so good plenty and hold nil to better. Last. extremely grasp to my lector. Mr Anthony for giving me such a practical assignment and this truly increase my cognition on this operation determination area—quality planning and direction.

8. 0 Decision

In this studies. quality direction has pointed out as a most of import scheme to complement the concern scheme because of the quality merchandise can be a merchandising points in selling scheme. This is besides the most indispensable point for ON Semiconductor as it concern clients perceive that high quality of french friess and other merchandises is the lone ground for them to retention and continuously buying their inputs from ON Semiconductor. the quality degree of their merchandises have large impact on their concern whether to last or fall in. Overall. ON Semiconductor is making rather good in order to bring forth high quality merchandises to their clients. nevertheless. there is still have some room for ON Semiconductor to better it choice direction by actuating their employee and edifice provider relationships with their providers. so that following clip can adopted thin production doctrine combined with six sigma quality confidence tool.


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