Management Extra: Quality and Operations Management

Quality in Operations

What are Operations?

As far as organisations are concerned, operations are those transformation processes which convert inputs to outputs-see Figure 3.1.


Figure 3.1: The organisation as a transformation process: operations

The following definitions apply to the model:

  • Inputs-labour, materials, capital, data (resources)

  • Transformation processes-business operations and production processes

  • Outputs-goods, services, profits and wages, information (products).

High-quality operations do not waste time having to re-do things.

All organisations have operations of some sort or other. That is the purpose of the organisation-to use operations to produce goods and services. They don't have to be goods or manufacturing operations; they can be information or service operations-see Table 3.1.

Table 3.1: Different types of operations processes

Organisation

Inputs

Transformation processes

Outputs

Online insurance provider

IT staff, Web investment, insurance and risk assessment expertise

Selling insurance over Internet

Insurance policies

Microsoft plc

Code, data, IT skills, reinvesting, high-tech offices

Programming, Web development

Software, MSN (Web portal)

Local football team

Kit, players, equipment, pitch

Training, playing games, scoring goals

Goals, championship, cups

British Airways (BA)

Pilots, planes, groundcrew, passengers, freight, data

Selling tickets, flying people and materials from one place to another, processing schedule data

Tickets sent out, people/materials transported to destination, travel information

Tesco

Employees, wholesale goods, supermarkets, website

Selling retail goods and services, giving customer service

Products taken away by customers, customer queries answered

Figure 3.1 is a simple model. Of course, at any one time, an organisation may have hundreds or thousands of operations going on-large or small-from answering...

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