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Operations Management

1. Explain how the Theory of Constrains can be applied at an automobile repairing and service center. (10 Marks)

2. Your company has compiled the following data on the small set of products that comprise the specialty repair shop. Perform an ABC inventory classification for the data. Which product(s) do you suggest the firm keep the tightest control over?

Item code Annual demand Unit cost (INR.)
A1 3000 20
B3 4000 45
D2 3000 35
C2 2000 30
A5 500 50
C9 680 15
D1 460 40
D3 1000 20
C3 450 500
F1 520 400
K5 5000 50
M1 680 400
N2 900

According to Tarí and Sabater (2004), firms must develop both the hard and soft parts of TQM in order to succeed. While the hard elements are related to quality tools and techniques for continuous improvement, the soft side is associated with management concepts and principles such as team work, leadership, customer focus and culture (Fotopoulos and Psomas, 2009). In their study about quality management tools and techniques, Tarí and Sabater (2004) analyzed about 30 commonly used tools and techniques such as benchmarking, brainstorming, design of experiments (DOE), failure mode and effect analysis (FMEA), flow charts, poka yoke, quality function deployment (QFD), quality improvement teams and statistical process control (SPC). Soft elements indirectly affect performance, because they create an environment that facilitates the implementation of hard elements (Rahman and Bullock, 2005).
(Source: Gerolamo et al. (2014), Quality Management: How do Brazilian Companies use it?, Procedia - Social and Behavioral Sciences 143 ( 2014 ) 995 – 1000)

3a. Using examples from manufacturing industry, explain any two management concepts and principles (soft practices) related to TQM. (5 Marks)

3b. Using examples from manufacturing industry, explain any two tools or techniques for continuous improvement (hard elements) related to TQM.

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