Page 101 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes Figure 5.3: Network of Processes

The ISO 9001: 20005 quality management system is made up of processes and input-output
relationships. The input-output relationships join the processes together. This turns a loose
network of processes into an integrated system. At an abstract level, these processes can be
visualized as shown in Figure above. The figure shows several processes interconnected using
many lines. These lines represent inputs and outputs.

Self Assessment

Fill in the blanks:
4. TQM is a ……………… approach and it is a management strategy.
5. Total Quality Management looked at entire organization as the ……………… for
implementing quality.

5.3 Systems Approach to Management

In the late 1980s, Russi Mody, the Chairman, and Dr. J.J. Irani, the Managing Director, of Tata
Steel set out on a global search for quality know how. In those days, Tata Steel, a blue chip
company, could sell any grade of steel it produced. The marketing function was one of rationing,
and consequently quality was not a major issue. Mody and Irani, however, resolved to make
better products. They anticipated a change in the business environment and proactively set a
strategic goal to make superior quality products.
They contacted the Juran Institute, and through them, their Indian affiliate, Qimpro Consultants.
After examining the costs of poor quality, Russi Mody articulated a strategic quality goal:
Reduce by half the cost of poor quality in five years. The Juran Institute took up the challenge
and with some bellwether projects demonstrated the dramatic results possible with a systemic
approach to quality management.

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