Operations Management and Its Importance

Introduction

Operations management is central to the seamless control of the organizational process. The purpose of operations management in the manufacturing sector is to guide quality control and production planning. Quality-control processes, from assurance to management, ensure process efficiency and consistency. Among this applicability are Lean Manufacturing and Six Sigma, which overlap and, thus, broadly referred to as Lean Six Sigma (LSS) (Kam et al., 2021). Kam et al. (2021) described LSS as a business strategy that analyzes constraints at each process level to identify and mitigate them for increased quality, reduced cost, and improved customer satisfaction. However, LSS can result in increased production costs since its implementation can be expensive (Albliwi et al., 2014). Companies using LSS should address the salient limitations of the method for optimal quality improvement.

Quality Control and Improvement

The emphasis on quality improvement and customer satisfaction necessitates a guideline and standard system that supports process control. Technological advances have made it feasible for timely and accurate problem-solving plus decision-making. For this reason, the contemporary marketplace will continue to experience significant improvements in production and service delivery globally. Quality control has particularly drawn the attention of scholars because of its substantive impact on brand image, organizational performance, and customer satisfaction. David Garvin proposed eight dimensions of quality: performance, durability, aesthetics, reliability, features, serviceability, conformance, and perceived quality (Abd-Elrahman, 2018). In this view, quality implies contrasting expectations for different organizations. Through quality control, managers can attain the desired quality level through the implementation of certain systems and procedures to counter deviation in operations. Quality control ensures companies maintain consistent product and service delivery.

Quality Control and Theory of Constraints

The theory of constraints (TOC) identifies limiting factors and systematically improves them to help achieve organizational goals. In manufacturing, every process has bottlenecks, and improving efforts on such constraints is an effective approach to increase profitability, improve capacity, plus reduce inventory and lead time (Patel et al., 2020; Puche et al., 2019). Therefore, TOC offers a methodology for improvement activities by generating a strong focus toward a specific goal. Eliyahu Goldratt conceived TOC based on the argument that constraints determine system output. He proposed five focusing steps: identify, exploit, subordinate, and elevate (Mishra, 2020). The first step entails identifying the constraints limiting goal achievement. Next, a company must exploit the constraints by making improvements to existing resources. Subsequently, it is crucial to subordinate by reviewing all activities to ensure they align with and support constraint needs. Thus, if the constraint remains unchanged, managers should elevate their actions like a capital investment until the constraints are resolved. Once one constraint has been eliminated, the process is repeated until other constraints are addressed.

Quality Management

Everyone involved either directly or indirectly in the manufacturing process is responsible for ensuring quality improvement. However, this work attitude might create ineffective systems or unsuccessful change implementations. Montgomery (2020) asserted that it is fundamental to have a system that ensures designed procedures and systems are planned and followed; the primary purpose of quality improvement. Therefore, the quality control team must have formal systems in place to continually survey the company’s processes, procedures, and overall operation. For example, an audit can be conducted to determine the information that the operations department should generate for use in product design. In case of any discrepancies or constraints, the quality control team accordingly advises the relevant department of the changes that need to be adopted. Therefore, quality improvement is essential in generating and implementing new ideas.

Quality improvement ensures the detection and elimination of constraints inherent to the system. Most importantly, it improves the rate of profitability by increasing productivity and reducing costs (Montgomery, 2020). In this context, quality improvement supports the principle that companies should expand their competitive edge. Central to identifying feasible solutions in meeting organizational needs is the quality management team. Furthermore, when resolving operational constraints, the feasibility of resources that match the new system must be assessed from the perspective of increasing profits while satisfying customer needs (Montgomery, 2020). Several factors influence the formation of a quality improvement team. Foremost, the selection of team members and delegation of roles and responsibilities is key. The objective is to cover an extensive base of organizational areas that impact operations. As such, team objectives must be succinctly defined during quality improvement to ensure every member focuses on the right problem. Efforts toward higher reliability and minimal process variability should be ongoing since quality improvement is a continuous process.

Quality Improvement and Lean Sean Sigma

The main objective of quality management is to create an organizational culture of quality initiatives and strategies. Lean Six Sigma (LSS) can assist managers or senior management in quality improvement efforts. In essence, LSS is a combination of two process improvement methods for operational efficiency; Lean and Six Sigma. Motorola developed Six Sigma in 1986 as a structured methodology for identifying and eliminating defects plus reducing process variation (Kam et al., 2021). The framework comprises five steps: define, measure, analyze, improve, and control (DMAIC). Processes are derived from customer and business perspectives and then broken down to identify the underlying cause of the problem. Solutions are then developed and implemented to address the issues. Kam et al. (2021) stated that ongoing monitoring and process control help sustain the solutions. Collectively, Six Sigma minimized variability to streamline operations and organizational processes. On the other hand, Lean focuses on improving efficiency by reducing waste (Albliwi et al., 2014). Examples of waste in lean manufacturing include waiting, rework, unnecessary transport, inventory, unnecessary human motion, overproduction, and over-processing (Kam et al., 2021). Given their interchanging meanings, Lean and Six Sigma are normally combined in the LSS approach.

Benefits of LLS

A manufacturing-based approach largely depends on sound process selection for quality improvement. With technological advancements and a changing economic and political landscape, organizations face new challenges daily. Thus, LSS can be utilized as a roadmap to effectively achieve company objectives. Incorporating LSS in existing processes and systems can help provide a competitive advantage in a number of ways. For one, LSS streamlines processes, in turn, improving customer experience, satisfaction, and loyalty. Additionally, LSS develops more efficient processes that improve bottom-line results, plus increase profitability and capacity. Through process standardization, the company can pivot operational challenges, accelerate research and development, and engage key stakeholders to improve morale. Given these advantages, LSS complements organizational management by improving operational processes.

Drawbacks of LLS

Despite the myriad of advantages of LSS in the manufacturing sector, a company can fail to achieve continuous quality improvement. Albliwi et al. (2014) identified poor project selection, lack of training and education, limited resources, resistance to change, wrong selection of LSS tools, weak infrastructure, high implementation cost, lack of team autonomy, poor execution, plus lack of top management involvement and commitment as a key failure factor of LSS. For instance, issues such as unaccountability and negligence often arise due to poor management. Repetitive customer complaints, compliance issues, stunted growth, and high waste levels further highlight the lack of strategic alignment (Albliwi et al., 2014). Among the responsibilities of senior leaders is to ensure the availability of required resources and that project deployment is free from any obstacles. The commitment and attitude of top management directly impact a company’s ability to conduct smooth operations. However, poor communication between business leaders and their subordinates can further affect the successful integration of LSS.

Moreover, most manufacturing companies rely on LSS to improve processes by reducing costs. However, this decision negatively affects their savings opportunities in purchasing and supplying services due to the practical limitations in applying the approach in every process and situation. The absence of comprehensive guidelines for LSS implementations during the early stages further affects its success. Additionally, LSS requires unlimited innovation and practical applications in integrated frameworks, which can potentially consume more resources. Likewise, statistical analysis demands a commitment to a good budget (Montgomery, 2020). Invariably, if a company commits to LSS, its products and services will likely become of higher quality, thus, increasing prices. However, customers may prefer lower prices over product quality. A strong LSS curriculum is crucial in leveraging the right tools and techniques for quality improvement.

Recommendations

LSS uses DMAIC as a step-by-step process for project improvement. Each step serves as an effective point for senior management to determine the readiness of a project to progress in the next phase. During the defining phase, the quality management team can function as unassigned support for top managers to help identify potential constraints and solutions (Montgomery, 2020). Management would further support the quality team by identifying improvement opportunities. Thus, LSS resources needed to support operations should be identified in the initial phase. Other factors can be approached as managerial assets crucial for project definition. Following Montgomery’s (2020) arguments, the next phase, measure, can be reduced or combined with the analysis stage to establish adequate knowledge supporting process improvement. Therefore, the company can consider data-driven systems to help understand process capabilities.

The analysis phase informs senior management of the need for quality improvement given sufficient and underlying reasons. Managers can present benefit analysis in this stage as an incentive to successfully integrate LSS into company operations. The recommendation following the analysis phase would be to have the managers present new processes as proposed changes with the desired result for implementation in the improvement stage. Albliwi et al. (2014) highlighted that LSS can fail due to change resistance or lack of awareness among staff members. Therefore, creating systems to effectively engage with employees and communicate effectively can help deal with resistance. Senior management handles the control phase and assumes complete operational authority over process implementation. During the fifth stage, they can create value stream mapping to optimize organizational workflow and eliminate waste for a successful LSS transition.

Conclusion

The success of a company relies on its operation management. Companies that successfully manage operations increase customer satisfaction, and profitability, and experience quality improvement. Manufacturing operations management is particularly crucial to quality control. Most companies use LSS as a business strategy for quality management. Apart from providing a competitive edge for companies, LSS increases capacity and improves bottom-line results. However, lack of commitment and involvement of top management, inadequate training, poor project selection, lack of resources, unawareness, and high implementation costs can adversely affect LSS implementation. Therefore, the company should follow the DMAIC (define, measure, analyze, improve, and control) framework to make the transition successful.

References

Abd-Elrahman, A. E. H. (2018). A review of telecommunications service quality dimensions. Scholar Journal of Applied Sciences and Research, 1(1), 10-18.

Albliwi, S., Antony, J., Lim, S. A. H., & van der Wiele, T. (2014). Critical failure factors of Lean Six Sigma: A systematic literature review. International Journal of Quality & Reliability Management, 13(9), 1012-1030. Web.

Kam, A.W., Collins, S., Park, T., Mihail, M., Stanaway, F.F., Lewis, N.L., Polya, D., Fraser-Bell, S., Roberts, T.V. and Smith, J.E. (2021). Using Lean Six Sigma techniques to improve efficiency in outpatient ophthalmology clinics. BMC Health Services Research, 21(1), 1-9. Web.

Mishra, A. K. (2020). Implication of theory of constraints in project management. International Journal of Advanced Trends in Engineering and Technology, 5(1), 1-13.

Montgomery, D. C. (2020). Introduction to statistical quality control. John Wiley & Sons.

Patel, P. C., Sahi, G. K., Gupta, M., & Jayaram, J. (2020). Service profit chain and throughput orientation: a manager-employee-customer triad perspective in services. International Journal of Production Research, 58(17), 5196-5217. Web.

Puche, J., Costas, J., Ponte, B., Pino, R., & de la Fuente, D. (2019). The effect of supply chain noise on the financial performance of Kanban and Drum-Buffer-Rope: An agent-based perspective. Expert Systems with Applications, 120, 87-102.

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