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1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better quality and lower price Stay in business Provide jobs and more jobs Cost decrease because of less rework, fewer mistakes, fewer delays and snags, and better use of time and materials
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1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

Jan 19, 2016

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Page 1: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

1Prof. Indrajit Mukherjee, School of Management, IIT Bombay

The DemingChain Reaction

Improve quality

Productivity improves

Capture the market with better quality and lower price

Stay in business

Provide jobs and more jobs

Cost decrease because of less rework, fewer mistakes, fewer delays and snags, and better

use of time and materials

Page 2: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

2Prof. Indrajit Mukherjee, School of Management, IIT Bombay

•Plan: Study current situation•Do: Implement plan on trial basis•Study: Determines if trial is working correctly•Act: Standardize improvements

Page 3: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

3Prof. Indrajit Mukherjee, School of Management, IIT Bombay

The Shewhart cycle

DoCheck

PlanAct

Carry out the change (often a plot study)

Plan a change or an experiment aimed at system improvement

Study and analyze the results obtained. What was learned?

Adobe the change or abandon it . If adopted, make sure that is leads to permanent improvement

Page 4: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

4Prof. Indrajit Mukherjee, School of Management, IIT Bombay

• jumping from “problem” to “solution” without clear understanding and analysis

Problem

Solution

Page 5: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

5Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Evolution of quality standards

BS 57501979

ISO 90001987

ISO 90001994

ISO 90002000

Page 6: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

6Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Background

MILStd

BS5750

1987

1994

ISO9000:2000

CANADAFRANCEGERMANYSPAINJAPANUSAUK+ others

US Military & NATO StandardsInternational Standards Organization

(ISO) Committee

InternationalStandard

National Standards

Page 7: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

7Prof. Indrajit Mukherjee, School of Management, IIT Bombay

What Is ISO 9000?• ISO 9000 Series

ISO 9000 : 2000QUALITY MANAGEMENT SYSTEMS - Fundamentals and

vocabulary- supersedes ISO 8402 and ISO 9000-1:1994

ISO 9001: 2000QUALITY MANAGEMENT SYSTEMS - Requirements

- supersedes ISO 9001/2/3:1994

ISO 9004 : 2000QUALITY MANAGEMENT SYSTEMS - Guidelines for

improvement- supersedes ISO 9004-1

Page 8: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

8Prof. Indrajit Mukherjee, School of Management, IIT Bombay

ProcessActivities

+Resources

Input Output

Controls(e.g. procedure)

Page 9: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

9Prof. Indrajit Mukherjee, School of Management, IIT Bombay

ProcessA

ProcessD

ProcessC

ProcessB

InputOutputControls

Page 10: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

10Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Managementresponsibility

Measurement,analysis,improvement

Resourcemanagement

Product(and/or service)realization

Plan

Act

Check Do

CUSTOMER

REQUIREMENTS

SATISFACTIONS

CUSTOMER

Output Product/ Service

Systemic Approach: Quality ManagementSystem for Continual Improvement

Page 11: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

11Prof. Indrajit Mukherjee, School of Management, IIT Bombay

3 Terms and definitions• Supply chain terminology

Supplier

Organization

Customer

Page 12: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

12Prof. Indrajit Mukherjee, School of Management, IIT Bombay

5.2 Customer focus

Determine customerrequirements

Meet requirements

Customer satisfaction

Page 13: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

13Prof. Indrajit Mukherjee, School of Management, IIT Bombay

LRQA DNVSFK

Certif..BMGTrada

…BVQISemkoCertif.

SP

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

SWEDAC Accreditation body

Certified organizations

Page 14: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

14Prof. Indrajit Mukherjee, School of Management, IIT Bombay

1. Brief management team

2. Prepare quality manual, policy, processes, planning

3. Prepare procedures, work instructions & records

4. Implement procedures

5. Train internal auditors

6. Conduct internal audits

7. Conduct management review

8. Preliminary assessment

9. External assessment

10. Certification

QualityPolicy

QualityManual

QMS processes Quality

Policy

Procedures

WorkInstructs

QualityRecords

Certification Milestones

Page 15: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

15Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Actions Months1 2 3 4 5 6 7 8 9 10 11 12

Prepare & approve Quality Manual

Prepare &approve Procedures

Prepare Documentation

Implement procedures

Conduct internal audit training

Conduct internal audits

Conduct Management Review

Apply for Certification

Conduct staff awareness training

Receive external assessmentReceive Certification

How long will it take?• It has been done in less than 6 months…• It has taken longer than 18 months…• It can normally be done COMFORTABLY within 12 months

SET YOUR OWN SCHEDULE - AND HOLD IT!

Page 16: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

16Prof. Indrajit Mukherjee, School of Management, IIT Bombay

A Typical Audit Schedule for a Plant

PLANT TOUR 7 1 REALISATION 7.4 PURCHASING 8.3CONTROL OF

NONCONFORMITY

PRESENTATIONS,QUESTIONS &ASSIGNMENTS 7.2 CUSTOMER

RELATED PROCESSES7.5 PRODUCTION

& SERVICEOPERATIONS

8.4 ANALYSISOF DATA

4. QUALITYMANAGEMENT

SYSTEMS

8.5 IMPROVEMENT

LUNCH LUNCH LUNCH LUNCH

5. MANAGEMENTRESPONSIBILITY

7 .3 DESIGNAND OR

DEVELOPMENT

7.6 CONTROL OFMEASURING &MONITORING

DEVICES

DOCUMENTPREPARATION

8.2 MEASURING& MONITORING

REVIEW & ACTIONPLANNING

CONSULTING

DAY1 DAY2 DAY3 DAY40830

1000

1100

1230

1430

1330

1530

1700

0830

1000

1100

1230

1430

1330

1530

1700

Page 17: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

17Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Specific to:3 CompaniesAutomotive Focus

ISOA tool for any type of business

QSA tool for doing business with:

FordGM

Chrysler

QS 9000Non-Specific:

Any IndustryAny Product

Page 18: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

18Prof. Indrajit Mukherjee, School of Management, IIT Bombay

List of Main QS 9000 Elements

4.1 Management Responsibility4.2 Quality System4.3 Contract Review4.4 Design Control4.5 Document and Data Control4.6 Purchasing4.7 Control of Customer-Supplied Product4.8 Product Identification and Traceability4.9 Process Control

4.10 Inspection and Testing4.11 Control of Inspection, Measuring and Test Equipment4.12 Inspection and Test Status4.13 Control of Non-Conforming Product4.14 Corrective and Preventive Action4.15 Handling Storage Packaging Preservation and Delivery4.16 Control of Quality Records4.17 Internal Quality Audits4.18 Training4.19 Servicing4.20 Statistical Techniques

Page 19: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

19Prof. Indrajit Mukherjee, School of Management, IIT Bombay

PDCA Cycle

DoTest workingthe plan

CheckIs the planTest working

1.PlanIdentify theimprovementand make aplan

ActImplementthe plan

Page 20: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

20Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Do

Check

Plan

Act

Continual improvement

Deming’s wheel(P.D.C.A.)

ISO9000

ContinualImprovement

Page 21: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

21Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Customer driven master

plan

DC

PA

P=Plan D=Do C=Check A=Act

Time

Cont

inuo

us im

prov

emen

t

Standardize (ISO 9000)

The potential role and real position of ISO in TQM continual improvement processes

Page 22: 1 Prof. Indrajit Mukherjee, School of Management, IIT Bombay The Deming Chain Reaction Improve quality Productivity improves Capture the market with better.

22Prof. Indrajit Mukherjee, School of Management, IIT Bombay

Managementresponsibility

Measurement,analysis,improvement

Resourcemanagement

Product(and/or service)realization

Plan

Act

Check Do

CLIENT

REQUIREMENTS

SATISFACTIONS

CLIENT

Output Product/ Service

Systemic approach The 8 principles of TQM …Continual improvement of theQuality Management System