Management of Production and Operations - Essay Example

Running head: MANAGEMENT OF PRODUCTION AND OPERATIONS Management of Production and Operations 03 July Abstract Quality assurance in production and operations is one of the most popular topics of professional research. Dozens of books were written to explain the main standards and practices of quality assurance in manufacturing and operations management. This paper presents a brief overview of the history of quality assurance. The definitions of quality and their implications for production and operations are provided. The paper explores the main quality assurance practices and their relevance in contemporary manufacturing facilities. Controversies over using popular quality assurance systems are discussed. Keywords: production, manufacturing, operations, quality assurance, ISO. Management of Production and Operations Quality assurance remains one of the most popular topics in production and operations management research. Sophisticated standards of quality and increased complexity of manufacturing operations render scientific approach to quality assurance valid and justified. Much has been written and said about the best and most desired practices in quality assurance. Yet, despite recent advancements in quality assurance systems, their benefits are at best controversial. It is widely acknowledged that the use of ISO systems by manufacturing enterprises adds weight to their corporate image and reputation. Such production organizations are believed to provide better quality of products and services, than their industry competitors. Unfortunately, the use of ISO quality assurance systems in production and operations does not ensure their functionality in particular organizational environments; as a result, firms must pay particular attention to how broadly accepted quality assurance practices affect their production operations and whether they meet customer expectations in terms of the quality of the ultimate product. Quality Assurance: Why, When, and How? How to define quality assurance is a complex question. However, it would be fair to assume that quality assurance in production and operations will be mostly the same as in other fields of management. According to the EU guidelines, quality assurance is “a wide-ranging concept which covers all matters which individually or collectively influence the quality of a product” (McCormick, 2002, p.27). Simply put, quality assurance is essentially about ensuring that the product meets the basic standards of quality. Quality assurance in production and operations is an efficient management tool that enhances the quality of organizational decisions (McCormick, 2002). In contractual situations, quality assurance systems give customers “a feeling of confidence in the quality of the ultimate product” (McCormick, 2002). Quality assurance is impossible without the availability of the entire complex system of quality assurance operations, which describe all steps to be taken to achieve the desired quality standards (McCormick, 2002). More often than not, manufacturing organizations run their own departments of quality assurance and control. However, even then, quality assurance is the process that involves all organizational members and not the only unit of QA professionals. All members of the manufacturing organization can affect the quality of the ultimate product; as a result, the organization in its entirety is responsible for the quality of its operations, leading to the development of a superior quality product (McCormick, 2002). It should be noted, that the history of quality assurance dates back to the beginning of the 20th century. At that time, rapid industrialization and expansion of industrial enterprises required the development of new, more sophisticated quality procedures. At that time, quality of products was defined as their fitness for purpose (Chitale & Gupta, 2007). Most quality assurance procedures were limited to quality control at the beginning and the end of the manufacturing process. That is, quality assurance comprised the inspection of raw materials before they entered the manufacturing process and the inspection of whether the finished products attained the desired quality objectives (Chitale & Gupta, 2007). Standardized approaches to quality assurance were virtually non-existent. Standards of product and service quality were in the state of infancy. The main drawback of the quality assurance process at that time was that “it did not forewarn the operator before extraneous causes resulted in the production of a defective piece” (Chitale & Gupta, 2007, p.332). Fallacies and flaws in the quality assurance process required the development of more salient quality assurance frameworks. In response to the changing demands of the manufacturing sector, Shewhart developed a system of quality control charts to be used during the manufacturing process (Chitale & Gupta, 2007). That was one of the most reliable steps to developing today’s systems of quality assurance; yet, there was still a long way ahead of operations managers. It was not before 1935 that the first sampling charts and techniques for inspecting bulk goods were introduced (Chitale & Gupta, 2007). Even then, quality assurance was not assurance by itself but still resembled a dry set of quality control practices: quality was checked only at the initial and final stages of the manufacturing process, and even the scientific tools of operations management presented in 1940 could not help managers in manufacturing firms to monitor the manufacturing process in its entirety. The 1970s marked the turning point in the evolution of quality assurance systems. The concept of zero defects was introduced in 1970 (Chitale & Gupta, 2007). Japan was the first to adopt the zero defects concept , which relied on the principle and practice of mistake proofing (Chitale & Gupta, 2007). This is when the manufacturing and operations decisions were slowly approaching the creation of modern quality assurance frameworks. Actually, Japan used to be at the forefront of quality assurance evolution. This is probably why Japanese products are widely regarded as having superior quality and exemplify the triumph of quality assurance in manufacturing. In 1982, the Japanese introduced the loss-to-society concept, which denoted the loss caused to society by deviations from the basic standards of quality in manufacturing (Chitale & Gupta, 2007). Those concepts laid the foundation for the development of new, sound quality assurance frameworks to be used in manufacturing and operations. Those quality assurance practices would not merely ensure that the ultimate product met the basic quality standards but would also guarantee that the ultimate product was not vulnerable to environmental influences and defects (Chitale & Gupta, 2007). For example, the Japanese used their quality assurance practices to make sure that electronic circuits in the cars they were manufacturing were not subject to changes in environmental temperatures and humidity (Chitale & Gupta, 2007). The Six Sigma philosophy came to exemplify the ultimate and most sophisticated form of quality assurance to be used in manufacturing and operations. Six Sigma was initially originated in Japan but became an essential ingredient of quality assurance systems all over the world. Today, Six Sigma remains the basic component of quality assurance operations in the leading manufacturing enterprises, including General Electric. The latter was the pioneer and the basic proponent of Six Sigma mechanisms in manufacturing enterprises (Tennant, 2001). However, many organizations continue to lag behind their manufacturing competitors. They may lack a complete understanding of the quality assurance process and, for this reason, do not always manage to meet their quality assurance objectives. Quality Assurance Practices in Manufacturing and Operations What practices manufacturing companies use in their quality assurance decisions usually depends upon the industry they choose to work in. For example, businesses in medical and pharmaceutical industry embrace quality design from warehousing procedures to transportations, administration, wholesaling, and dispensing the product (Sharp, 2000). In pharmaceutical companies, quality assurance begins at the Research & Design stage of product development, when new active drug substances are created and dosages suitable for presentation to different groups of patients are determined (Sharp, 2000). The latter also contribute to the development of appropriate standards and consumer expectations related to pharmaceutical substances. Other manufacturing enterprises may apply to the benefits of statistical quality control or process capability analysis; the latter was developed to help manufacturing companies monitor their quality compliance at all stages of the manufacturing process (Rufe, 2002). Nevertheless, ISO systems of quality assurance remain the most popular form of quality assurance frameworks in manufacturing organizations. The ISO has already become the most relevant approach to developing quality management systems in manufacturing (Sroufe & Curkovic, 2008). In 2008, over 150 countries and more than 500,000 organizations had achieved the degree of quality assurance to qualify for ISO standards (Sroufe & Curkovic, 2008). In the United States alone, 50,000 organizations were able to obtain the required ISO 9000:2000 registration, which is considered as an essential element in manufacturing companies’ movement to quality excellence. In simple terms, the ISO status implies that the organization has quality assurance systems in place, to guarantee that “it consistently produces what it said it would produce” (Sroufe & Curkovic, 2008, p.505). ISO standards are constantly updated and revised. ISO 9000:2000 relied on an entirely new structure of quality assurance standards, which all manufacturing enterprises are bound to follow. As the ISO revises its quality requirements, so do manufacturing organizations, which invest considerable resources in the development of new quality assurance systems, to match revised standards of quality assurance performance. The most recent version of ISO 9000:2000 standards comprises four essential elements. These include management responsibilities, management of resources, realization and measurement of products, and quality analysis and improvement (Sroufe & Curkovic, 2008). The ISO 9000:2000 covers the elements and quality requirements that used to be omitted in ISO 9000:1994, including employee involvement, company operational results, customer relationship management, competitive comparisons, and product quality results (Sroufe & Curkovic, 2008). “The key quality management principles presented by ISO 9000:2000 include customer focus, leadership, involvement of people, process approach, system approach, continual improvement, factual decision-making, and mutually beneficial relationships between manufacturers and suppliers” (Sroufe & Curkovic, 2008). The ISO 9000:2000 actually reflects the complexity of global quality assurance philosophy, which is not limited to product management and operations but covers all aspects of organizational performance affecting the quality of product, from employee involvement to supplier relations. Quality Assurance: Current Controversies Despite recent advances in the quality assurance science, the current state of quality assurance in manufacturing organizations is not without controversy. The well-known system of ISO standards presents a serious quality challenge. It appears that ISO certification has little to do with quality assurance per se and merely fixes the presence or absence of the needed quality assurance systems in place (Sroufe & Curkovic, 2008). As a result, whether or not these systems are functional and can be easily integrated without breaking the continuity of companies’ manufacturing operations is a big question: according to Sroufe and Curkovic (2008), ISO does not ensure the functionality of quality assurance systems. Therefore, manufacturing organizations must embrace the challenge of functionality and appropriateness in the development of quality assurance systems. ISO certification must not become the end but just the means of achieving better quality of products and improved market competitiveness. Conclusion Quality assurance remains one of the most popular topics in production and operations management research. The use of ISO systems by manufacturing enterprises adds weight to their corporate image and reputation. Such production organizations are believed to provide better quality of products and services, than their industry competitors. ISO systems of quality assurance remain the most popular form of quality assurance frameworks in manufacturing organizations. The ISO has already become the most relevant approach to developing quality management systems in manufacturing. Despite recent advances in the quality assurance science, the current state of quality assurance in manufacturing organizations is not without controversy. The well-known system of ISO standards presents a serious quality challenge. ISO certification must not become the end but just the means of achieving better quality of products and improved market competitiveness. References Chitale, A.K. & Gupta, R.C. (2007). Product design and manufacturing. PHI Learning. McCormick, K. (2002). Quality. Butterworth-Heinemann. Rufe, P.D. (2002). Fundamentals of manufacturing. SME. Sharp, J. (2000). Quality in the manufacture of medicines and other healthcare products. Pharmaceutical Press. Sroufe, R. & Curkovic, S. (2008). An examination of ISO 9000:2000 and supply chain quality assurance. Journal of Operations Management, 26, 503-520. Tennant, G. (2001). Six Sigma: SPC and TQM in manufacturing and services. Gower Publishing. Read More