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.
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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
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
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
4Prof. Indrajit Mukherjee, School of Management, IIT Bombay
• jumping from “problem” to “solution” without clear understanding and analysis
Problem
Solution
5Prof. Indrajit Mukherjee, School of Management, IIT Bombay
Evolution of quality standards
BS 57501979
ISO 90001987
ISO 90001994
ISO 90002000
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
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
8Prof. Indrajit Mukherjee, School of Management, IIT Bombay
ProcessActivities
+Resources
Input Output
Controls(e.g. procedure)
9Prof. Indrajit Mukherjee, School of Management, IIT Bombay
ProcessA
ProcessD
ProcessC
ProcessB
InputOutputControls
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
11Prof. Indrajit Mukherjee, School of Management, IIT Bombay
3 Terms and definitions• Supply chain terminology
Supplier
Organization
Customer
12Prof. Indrajit Mukherjee, School of Management, IIT Bombay
5.2 Customer focus
Determine customerrequirements
Meet requirements
Customer satisfaction
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
14Prof. Indrajit Mukherjee, School of Management, IIT Bombay
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
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!
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
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
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
19Prof. Indrajit Mukherjee, School of Management, IIT Bombay
PDCA Cycle
DoTest workingthe plan
CheckIs the planTest working
1.PlanIdentify theimprovementand make aplan
ActImplementthe plan
20Prof. Indrajit Mukherjee, School of Management, IIT Bombay
Do
Check
Plan
Act
Continual improvement
Deming’s wheel(P.D.C.A.)
ISO9000
ContinualImprovement
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
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