UNIVERSITI TEKNOLOGI

MARA (UiTM)
THE TITLE

This report is submitted to the Lecturer; Puan Nurul Hayati Binti

Abdul Halim, Faculty of Mechanical Engineering, UiTM in the
fulfillment of the Group Assignment of Industrial Management
(MEM575) Course
[Submission date: 7TH NOVEMBER 2014]

Groups name
Leaders name
Members name

Lecturers Name

1)
2)
3)

Objective
To expose students to the practical applications of the operations management techniques
studied in class.

Introduction
American Society define quality by the quality of feature of characteristics of the product or
service that bear as on its ability to satisfy stated on implied needs. Quality also can be divided
in three categories which are user based, manufacturing based and product based. There are a lot
of things can be determined in the quality such the dimension responsibility cost and the
implication.
In order to have a continuing companywide drive toward excellent in all aspect of product and
services that is important to the customer. We need to encompass entire organization from
supplier to customer. We choose total quality management instead of traditional method.
Total quality management (TQM) is a new attitude that expands the traditional view of quality
beyond looking on the final product or service but to look at quality of every aspect of the
process. it is also can be define as a comprehensive and structured approach to organizational
management that seeks to improve the quality of products and services through ongoing
refinements in response to continuous feedback.
TQM requirements may be defined separately for a particular organization or may be in
adherence

to

established

standards,

such

as

the

International

Organization

for

Standardization's ISO 9000 series. TQM can be applied to any type of organization; it originated
in the manufacturing sector and has since been adapted for use in almost every type of
organization imaginable, including schools, highway maintenance, and hotel management.
The second operation management technique is Just-in-time (JIT). Just-in-time (JIT) is
an inventory strategy companies employ to increase efficiency and decrease waste by receiving
goods only as they are needed in the production process, thereby reducing inventory costs. This
method requires producers to forecast demand accurately.

Just-in-time (JIT) is an inventory strategy companies employ to increase efficiency and decrease
waste by receiving goods only as they are needed in the production process, thereby reducing
inventory costs. This method requires producers to forecast demand accurately. This inventory
supply system represents a shift away from the older just-in-case strategy, in which producers
carried large inventories in case higher demand had to be met.
Just-in-time inventory control has several advantages over traditional models. Production runs
remain short, which means manufacturers can move from one type of product to another very
easily. This method reduces costs by eliminating warehouse storage needs. Companies also
spend less money on raw materials because they buy just enough to make the products and no
more.
The disadvantages of just-in-time inventories involve disruptions in the supply chain. If a
supplier of raw materials has a breakdown and cannot deliver the goods on time, one supplier
can shut down the entire production process. A sudden order for goods that surpasses
expectations may delay delivery of finished products to clients.
A good example would be a car manufacturer that operates with very low inventory levels,
relying on its supply chain to deliver the parts it needs to build cars. The parts needed to
manufacture the cars do not arrive before or after they are needed; instead, they arrive just as
they are needed

Total Quality Management

Total Quality Management (TQM) is a key feature of Nissan's way of working. TQM involves
making customer satisfaction top priority. Given this goal, everything the organization and its
people do is focused on creating high quality. To achieve this, Nissan has to:

Understand customer requirements

Consider the processes involved in providing quality, not just the end result
Prioritize and standardize tasks to deliver quality
Educate all employees to work in this way. In practical terms TQM involves:
Identifying customers and their requirements
Establishing and using objectives (targets) for all areas of activity
Basing decisions on researched hard facts rather than on hunches
Identifying and eliminating the root causes of problems
Educating and training employees.

TQM is an ongoing process; a way of thinking and doing that requires an 'improvement culture'
in which everyone looks for ways of doing better. Building this culture involves making
everyone feel their contributions are valued and helping them to develop their capabilities. A
cycle of Plan, Do, Check, Action becomes part of every employee's thinking, because it
represents Nissan's way of working.

Just In Time

With a just-in-time approach, specific vehicles and their components are produced just-in-time to
meet the demand for them. Sub-assemblies move into the final assembly plant just as final
assemblers are ready to work on them, components arrive just in time to be installed, and so on.
In this way, the amount of cash tied up in stocks and in work-in-progress is kept to a minimum,
as is the amount of space devoted to costly warehousing rather than to revenue-generating
production. Nissan's just-in time process depends not on human frailty but on machine precision.
Every vehicle is monitored automatically throughout each stage of production. A transponder
attached to the chassis leg contains all of a vehicle's production data e.g. its required color,
specification and trim. This triggers sensors at various points along the production line thus
updating the records.
When, for example, the transponder sends a message to the production system at a supplying
company to produce a seat in a particular color and trim, this triggers the relevant response and a
seat to the required specification is produced. Further along the production line the specifically
produced seat arrives to meet the vehicle to which it belongs - just in time.

References
1. (n.d.). Retrieved June 9, 2016, from
http://www.infusedlearning.org.uk/media/files/Nissan Case Study TQM.pdf
2. Just In Time (JIT) Definition | Investopedia. (2003). Retrieved June 8, 2016, from
http://www.investopedia.com/terms/j/jit.asp