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Study of Three Management Philosophies Using

Simulation
Chandra Pushpam#1 and D.Ganpathram Sharma*2
#
First-Third Department, First-Third University
Address, Including Country
1
first.author@first-third.edu
*
Second Company
Address, Including Country
2
second.author@second.com

Abstract— The three well known philosophies of modern pull from market forces rather than being pushed by the
management namely TQM, Lean Manufacturing, Theory of manufacturers. Subsequently the system came to be known
Constraints are presented and compared. Simulation of a by various names like Toyota way, Just in Time manufacturing
simple manufacturing situation using the software ARENA is and more commonly “Lean Manufacturing”
proposed.
Lean Manufacturing was very helpful to improve
Key words: TQM, Lean Manufacturing, Theory of Constraints,
profitability in large organizations which were meant for
Simulation
‘mass production’. However, there are a number of smaller
I. INTRODUCTION industries whose operations are of jobbing nature – to cater to
the needs of larger industries. One off jobs and orders of
To meet the challenges of modern competition, especially
small batches are the basis of survival for these small and
from the Japanese manufacturing industries in the automotive
medium industries. They cannot afford the luxury of a
and other sectors, all industries were forced to adopt special
specialized setup as demanded by lean manufacturing.
measures to improve quality and meet customer requirements.
Initially, Ford was a leader in automobile manufacturing and
Recently, Eliyahu Goldratt, an Israeli scientist proposed a
they adopted the same philosophy to assemble bombers during
manufacturing ideology which is now commonly called as
the second world war. However, when it came to consumer
“Theory of Constraints” or TOC. In this system, which is
requirements in the case of automobiles, Ford could not meet
primarily suitable for small and medium industries, the central
the customer requirements in terms of variety. Japanese
idea is as follows. Every system is constrained by a few
industries produced cars which were both economical and had
resources which limit the output of the system. In a
the variety which the customers expected.
manufacturing facility, the constraint may be a few operating
facilities whose capacity limits the total output of the system.
Management had to do serious rethinking and even went to
A manager who runs the unit needs to concentrate on the
the extent of visiting the industries in Japan. From these the
constraint in order to get the maximum profit from the
following concepts evolved and became the philosophies for
organization. He emphasizes the fact that business units are
management to be used as guidelines.
primarily for making a profit and losing sight of this can occur
due to faulty measurements in the organization –
The first of the management philosophies is based on the
measurements which are used as indicators of the profitability
principles developed by Edward Deming who implemented
of the individual departments.
his ideas at Toyota in Japan. Eventually it came to be
accepted all over the world and is now referred to as “Total
In this paper, the philosophies are explained and compared
Quality Management” or TQM. It is based on the concept of
in some detail. A proposal for simulating a typical facility
“customer satisfaction” but unlike the earlier concepts, each
using the simulation software ARENA is presented and
department became a supplier to other department(s) and in
discussed.
turn also became customer to other departments. TQM aims
.
at obtaining customer satisfaction at all levels. The ISO 9000
standards are devised around this concept of TQM. II. TQM, LEAN AND
TOC
Toyota independently developed a manufacturing system
based on the ideas found in the supermarkets in the west. It A. TQM
developed ideas like Just in Time, waste elimination and “pull Your paper should begin with an abstract, followed by
system” in which products flow through the lines due to the keywords, and then an introduction. At the end, there should
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Figure 1 - The Outline of TOC from (Mabin and 24 Title
Balderstone, 2000)

(Mabin, Victoria J., and Steven J. Balderstone. The F. Symbols


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ACKNOWLEDGMENTS
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December 1, 2008 via our web submission system. You
should prepare the PDF file that can be printed. To maintain REFERENCES
[1] R. Sato, “EMC – The past, present and future,” in Proc. Int. Symp. on [3] J. Wang, K. Sasabe, and O. Fujiwara, “A simple method for predicting
Electromagn. Compat., Nagoya, Japan, Sept. 1989, pp. 1-9. common-mode radiation from a cable attached to a conducting
[2] C. R. Paul, “Introduction to Electromagnetic Compatibility,” New enclosure,” IEICE Trans. Commun., vol. E85-B, no. 7, pp.1360-1367,
York: Wiley-Intersciences, 1992, pp. 402-428. July 2002.

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