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Unit 11: Production Management
Notes
Figure 11.1: Pareto Curve
Source: Lall Madhurima and Sahai Shikha (2008), “Entrepreneurship”, Excel Books Pvt. Ltd.
Self Assessment
Fill in the blanks:
1. ……………………..Management is the process of converting the input into output through
a conversion process.
2. ……………………..takes place through machinery in manufacturing enterprises and
through employee’s skills in a service enterprise.
3. ……………………….planning is the productive capability of a facility.
4. Capacity planning from day-to-day, month-to-month up to a year is called ……………….
capacity planning.
5. ……………………. capacity planning is planning operation above five years. Major changes
in capacity planning can be introduced.
11.2 Quality Management System
“Quality comes first,” is the motto of highly competitive and growth oriented companies.
Quality is an important function of production/operation management. The importance of
quality has improved today. With the rising-competition and wide variety of products/services
the consumers have become quality conscious and in the present times quality can decide the
fortune of the enterprise.
Quality is to be maintained at all the stages of production. Quality is conformance to requirements
(Crosby). Quality is product’s or service’s nature or feature that reflects capacity to satisfy,
express or imply statement of need (Deming) or quality is product and service characteristics as
offered by design, marketing, manufacturing, maintenance and service that meet customers’
expectations (Fiegenbaum).
All the above definitions reflect that the quality is the perceived standard of the product or
service. It is the performance of the product as per the commitment made by the producer to the
consumer.
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