- Value Improvement
- Synergy of Teams
- Preventing rather than detecting defects
- Universal quality responsibility
- Statistical measurement
- Constant refinement and learning
- Training and Learning
When Did Total Quality Management Begin?
Total Quality Management (TQM) is a management theory developed following WWII during the reconstruction of Japan. Perhaps the best-known proponent of this school of management was W. Edwards Deming.
What are the Phases of Total Quality Management?
- Planning Phase: Employees discover the problems in regular operations and their root-causes. Employees conduct comprehensive research and collect relevant data. The objective is to identify potential solutions to their problems.
- Doing Phase: Employees develop and execute strategies and plan to address identified problems.
- Checking Phase: Data is collected to analyze performance to validate the effectiveness of the processes and measuring the outcome.
- Acting Phase: Outcomes are documents and employees begin addressing resulting challenges.
What is Lean Management?
- Value Identification - Focus on the customers point of view.
- Value Mapping - Eliminate all of the unnecessary steps in the value delivery process.
- Operational Mapping - Focus on sequencing value-providing activities.
- Value Pull - Identify the point at which customers pull value from the process.
- Efficiency - Continue to seek increased efficiency with less waste.
Lean management seeks to achieve an ideal state of operations known as single-piece flow. In product production, this means eliminating the wastes associated with batch production. Instead, it focuses on single-production production. In any process, this principle seeks to eliminate wastes from unnecessary human motion, inventory inefficiency, labor inefficiencies, space inefficiencies, product defects, and overproduction. The benefits of lean management are that it reduces defects and manufacturing flexibility. The downside is that it can result in lower productivity and longer process cycles. Lean management was made popular by Toyota Corporation as part of its production process.
What is Management Information Systems?
Information systems allow for more efficient creation, management, and communication of information across the organization as well as in the outside environment. The information allows for more efficient management decision making by providing information in a more timely manner and in a more useful format. Notably, Decision Support Systems (DSS) integrate decision models and data to this end.
What are the Positive Aspects of Quantitative Management Theory?
- It establishes relationships amongst quantifiable variables of decision-making situations and facilitates disciplined thinking.
- Mathematical models help to derive precise and accurate results by analyzing complex statistical data.
- It is useful in areas of planning and control where data is available in quantitative terms. Decisions are based on data and logic rather than intuition and judgment.
- Computer-based Statistical packages are available which facilitate analysis of qualitative data also (dummy variables are used to analyze the non-quantifiable data).
What are the Negative Aspects of Quantitative Management Theory?
- Mathematical models cannot fully account for individual behaviors and attitudes.
- The time needed to develop competence in quantitative techniques may delay the development of other managerial skills.
- Mathematical models typically require a set of assumptions that may not be realistic in an industrial setting.
- Among the different functions of management, its use is limited in organizing, staffing and directing. It applies more in planning and control functions.
- It does not eliminate risk but only attempts to reduce it.
- It assumes that all the variables affecting the problem can be quantified in numerical terms which is not always true.
- Decisions are often based on the availability of limited information.
Primary Contributors to Quantitative Management?
- Decision Theory - Determination of objectives of the firm, assessment of group conflicts and interaction, organization analysis. R.M. Thrall, C.I. Bernard, H.A. Simon, N. Weine. Decision theory looks at the various factor influences management decision making. It views decision making is a continuous process within the organization. The organizations success will depend upon the quality of the decisions made. This requires the use or quantitative methods in evaluating options. Communication plays an important role in efficient decision making. Decisions can be grouped into Programmed and Non-Programmed, Organizational and Personal, and Major and Minor Decisions.
- Inventory Theory - Economic lot size and inventory control. F.W. Harris, J.F. Magee
- Game Theory - Timing and pricing in a competitive market, military strategy. J. Von Newman, Shubik
- Queuing Theory - Inventory control, traffic control, radio communication, telephone trunking system. A.K. Erlang, L.C. Edie, P.M. Morse, M.G. Kendall.
- Linear Programming - Assignment of equipment and personnel scheduling, input-output analysis, product mix. W. Leontief, G.B. Dantzig, P.A. Samuelson
- Sampling Theory - Quality control, Simplified accounting and auditing, consumer surveys and product preferences in marketing research. E. Deming, H.F. Dodge
- Probability Theory - Almost all areas of application. R.A. Fisher, T.C. Fry, W. Feller
- Statistical Decision Theory - Estimation of model parameters in probabilistic models. A. Wald, E.D. Molina, W. Shewhart
- Symbolic Logic - Circuit design, legal inference. G. Boole, B. Russell, A.N. Whitehead.
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