Fqm chapter 1-2-7

© Oxford University Press 2008. All rights reserved.

1

Introduction to Quality Management


2 Quality has a longer history in out lives

than both cost and productivity. It is regarded as more ‘human’ concept

than either cost or productivity. The problem of the producer is that the

number of customer may be too large, each one may have a different perception of quality.

If third party such as quality certification agency has to decide about the quality of product or service , its perception may be different from customer and the producer.

Definitions


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According to the Oxford Dictionary for the Business World:

Quality is defined as the degree of excellence.

Quality Guru J M Juran defined Quality as:

“Fitness for Purpose.”

Quality Guru Philip Crosby defined Quality as:

“Conformance to Specifications.”


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‘fitness for the purpose’ means the expectation or requirement of the customer.

In all subsequent stages such as development, engineering, production , distribution, and after sales service, quality is measured in terms of ‘conformance to specifications’.


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According to Garvin(1984,1988), quality should have different meanings in different context as follows. Transcendent or innate excellence. Product –based or the quantity of a

desirable attribute which is present. User-based in the context of fitness for

use. Manufacturing –based or conformance to

specification Value-based or satisfaction relative to

price.

Definitions


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Quality Control is defined as maintaining of requisite standards in products or services.

ISO 8402 defines Quality Control as: “The operational techniques and activities

that are used to fulfill requirements for Quality.”

ISO 8402 defines Quality Assurance as:“All those planned and systematic actions

necessary to provide adequate confidence that a product or service will satisfy given requirements for Quality.”


7The documented quality system is sets out, in a formal

framework, the basis of control for the critical activities of an organization, which requires a systematic approach, that is,

quality management.

Definitions


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Quality Guru A. V. Feigenbaum defines Total Quality Control (TQC) as:

“Total Quality Control is an effective system for integrating the quality-development, quality-maintenance, and quality-improvement efforts of the various groups in an organization so as to enable marketing, engineering, production, and service at the most economical levels which allow for full customer satisfaction.”

Tata Motors Crash test facility


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Various Aspects of Quality Management


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Various techniques such as quality function deployment, acceptance sampling, statistical process control(SPC), Taguchi methods, and service quality management have to be used to control quality in every sphere of organizational activity.

Total Quality Management (TQM) principles is thee reason why Japanese co’s became world leaders in quality products.

Six Sigma is the quality philosophy to ensure a reduction of the numbers of the defective products to Zero.

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It is requirement of ISO 9000 that an org. seeking ISO certification has to conduct internal quality audit on a regular basis which is called as first party audit and can be conducted by the trained employees of ISO.

Second –party audit may be conducted by an institutional customer of the org to ensure quality standard mentioned in their contract .

Two new international quality standard are gaining ground. One is Capability Maturity Model (CMM) developed by Carnegie Mellon University, USA, for the software industry, and other is COPC-2000 developed by a consortium of major multinational companies.

Various Dimensions of Quality13

PerformanceFeatureReliabilityServiceabilityDurabilityAppearanceCustomer ServiceSafety.


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Costs of Quality


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Five stages of quality culture16

Dormant stage: No evident Interest, profitability accepted, No external Threat

Awakening stage: Competition increased, loss mkt share, Japanese co’s woo the customers

Groping stage: Started to follow seminar, conference, magazines

Action stage: Input of above trendy method developed only marginal result.

Maturity stage: Quality has become complete natural as finance has been for years

TQM in India and Projection for the Future


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Strategic Quality Management (SQM)


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Tummala & Tang (1996) define strategic quality management as “a comprehensive and strategic framework linking profitability, business objectives, and competitiveness to quality improvement efforts with the aim of harnessing the human, material and information resources organization-wide in continuously improving products or services that will allow the delivery of customer satisfaction.”

Strategic Quality Management


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Juran’s 1991 lessons for developing strategies for world-class quality are: Implementation of Stretch goals and benchmarking Development of Necessary infrastructure Implementation of multifunctional process Demonstated leadership Incorporation of qulaity plans into corporate business

palns


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Joseph in 1999 developed an empirical survey based 10 factor instruments for measuring TQM implementation in manufacturing unit Organizational Commitment Human Resource Management Supplier Integration Quality Policy Product Design Role of Quality Department Quality Information system Technology Utilization Operating Procedure Training

Phases of SQM


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Hoshin Kanri, the Japanese SQM Model


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ho - methodshin - shiny metal showing direction

kanri - planning

Hoshin Kanri is a methodology for setting strategic direction.

Benchmarking


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"Benchmarking is systematic and continuous measurement process: a process of continuously measuring and comparing an organization’s business processes against process leaders anywhere in the world to gain information which will help the organization to take action to improve its performance"

The Benchmarking Triangle


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Varieties of Banchmarking


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InternalExternalCompetitiveIndustryGenericProcessPerformanceStrategic

The Benchmarking Template


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Xerox’s Benchmarking Process Steps


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The European Quality Model


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The Balanced Scorecard


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Gap Analysis


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© Oxford University Press 2008. Allrights reserved.

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Total Quality Management

TQM Defined


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The Japanese Union of Scientists & Engineers (JUSE) defines TQM as:-

Total Quality Management (TQM) is a set of systematic activities carried out by the entire organization to effectively and efficiently achieve company objectives so as to provide products and services with a level of quality that satisfies customers, at the appropriate time and price

Overview of Total Quality Management (TQM)


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W. Edwards Deming’s Contribution


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After the destructed in WW-II, Japanese needed new technique to build devastated country and economy fast.

They invited Deming for his lecture on Statistical Quality Control to Japanese Engineers and Senior managers.

His lectures principle now regarded as part of TQM or Company-wide quality.

Deming’s PDCA Cycle


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Plan what is needed

Do itCheck that it

worksAct to correct

any problems or improve performance


36The idea is to reduce the difference between the requirement of the customer and the performance of the process.

It’s a learning cycle for the constant improvement

Deming’s 14 Points


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1. Consistency of Purpose is a must for continual improvement of the product

2. Continuous change and innovation is a must for survival

3. Quality cannot be achieved only by inspection

4. Lowest Price should not be the criteria for selecting a supplier

5. Eliminate wastes in every functional area, not only production

6. On the job training of employees 7. Attitude of supervisors & managers

towards workers should be that of a facilitator

Deming’s 14 Points


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8. Encourage workers to give quality improvement ideas without fear

9. Remove the barriers between departments & individuals

10. Posters and slogans should be eliminated 11. Numerical targets and work standards may

affect quality 12. Remove obstacles in the good

workmanship of hourly workers to instill a sense of pride in them.

13. Vigorous programs of retraining and education of employees are must.

14. Top Management’s commitment for ever-improving quality is a must

Deming’s 7 Deadly Diseases


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1. Lack of constancy of purpose to plan product and service that will have a market and keep the company in business, and provide jobs.

2. Emphasis on short term profits. 3. Evaluation of performance, merit rating, or

annual review. 4. Mobility of management; job hopping. 5. Management by use only of visible figures,

with little or no consideration of figures that are unknown or unknowable.

6. Excessive medical costs. 7. Excessive costs of liability.

Juran’s ‘Quality Planning Road Map’


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1. Identify who are the customers.2. Determine the needs of those customers.3. Translate those needs into our language.4. Develop a product that can respond to those

needs.5. Optimize the product features so as to meet

our needs as well as customer needs.6. Develop a process which is able to produce

the product.7. Optimize the process.8. Prove that the process can produce the

product under operating conditions.9. Transfer the process to Operations.

The Juran Triology Diagram


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The Spiral of Progress in Quality


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Philip B Crosby’s Contribution to TQM

Crosby’s name is perhaps best known in relation to the concepts of ‘do it right first time’ and ‘zero defects’.

Zero defects does not mean that people never make mistake, but company does not start out expecting them to make mistake.

His goal is to give all staff the training and the tool of quality improvement , to apply basic percept of prevention management .

Four Absolutes of Quality Management


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1. Quality is defined as conformance to requirements, not as 'goodness' nor 'elegance'.

2. The system for causing quality is prevention, not appraisal.

3. The performance standard must be Zero Defects, not 'that's close enough'.

4. The measurement of quality is the Price of Non-conformance, not indices.

Crosby’s 14 Steps to Quality Improvement


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1. Make it clear that management is committed to quality.

2. Form quality improvement teams with senior representatives from each department.

3. Measure processes to determine where current and potential quality problems lie.

4. Evaluate the cost of quality and explain its use as a management tool.

5. Raise the quality awareness and personal concern of all employees.

6. Take actions to correct problems identified through previous steps.



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7. Establish progress monitoring for the improvement process.

8. Train supervisors to actively carry out their part of the quality improvement programme.

9. Hold a Zero Defects Day to let everyone realize that there has been a change and to reaffirm management commitment.

10. Encourage individuals to establish improvement goals for themselves and their groups.



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11. Encourage employees to communicate to management the obstacles they face in attaining their improvement goals.

12. Recognize and appreciate those who participate.

13. Establish quality councils to communicate on a regular basis.

14. Do it all over again to emphasize that the quality improvement programme never ends

5 Characteristics to become an entirely successful organization


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People routinely do things right the first time.Change is anticipated and used to advantageGrowth is consistent and profitableNew products and services appear when

neededEveryone is happy to work there.

“Quality Management Maturity Grid”


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Maturity Stage 1: UncertaintyMaturity Stage 2: AwakeningMaturity Stage 3: EnlightenmentMaturity Stage 4: WisdomMaturity Stage 5: Certainty

Six Quality Measurement Categories in “Quality Management Maturity Grid”


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• Management understanding and attitude

• Quality organization status• Problem handling• Cost of quality as percentage of sales• Quality improvement actions• Summation of company quality

posture

Aims of Quality Circles


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1. To contribute to the improvement and development of the enterprise.

2. To respect human relations and build a happy workshop offering job satisfaction.

3. To deploy human capabilities fully and draw out infinite potential.

Comparing the Quality Gurus


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Kaizen Defined


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“Kai” in the Japanese means change, while “Zen” means good (for the better), so that Kaizen means “improvement”. Kaizen is a sub-system of JIT and implies continuous improvement in every sphere of activity.

Comparing the Quality Gurus


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Savings through Kaizen


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Benefits of Maintenance Management


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Types of Maintenance Costs


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The Eight Pillars of Total Productive Maintenance (TPM)


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1. Jishu Hozen (JH) or autonomous maintenance

2. Kobetsu Kaizen (KK) or individual improvement

3. Planned maintenance (PM)4. Hinshitsu Hozen or quality

maintenance5. Early management or development

management6. Education & training7. Safety, health & environment (SHE)8. Office TPM

Five S


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1. seiri (sorting out)2. seiton (systematic arrangement)3. seiso (spic-n-span)4. seiketsu (standardise)5. shitsuke (self-discipline)

Ishikawa’s Contribution to TQM


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Professor Kaoru Ishikawa was the originator of Quality Circle.

He has authored two book i.e. Guide to Quality Control and What is Total Quality Control: The Japanese Way

Ishikawa’s Message and Techniques


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Ishikawa sees the cause and effect diagram as a device to assist group or quality circles to the construction of the diagrams.

Other techniques Ishikawa has emphasized include control charts, scatter diagrams, Binomial probability paper, and sampling inspection

Company-wide-quality control


62Ishikawa sees the company wide quality

control movement as implying that quality does no mean only product but also post sales service and quality of management, the company and the human being. It has following effect. Product quality is improved and become uniform.

Defects are reduced. Reliability of goods is improved. Cost is reduced.


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Quality of production is increased and it becomes possible to make rational production schedules.

Wasteful work and rework are reduced. Technique is established and improved. Expenses for inspection and testing are reduced. Contracts between vendor and vendee are

rationalized The sales market is enlarged. Better relationship are established between

departments.


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False data reports are reduced. Discussion are carried out more freely and

democratically. Meetings are operated more smoothly. Repairs and installation of equipments and facilities

are done more rationally. Human relations are improved.

Quality Circle65It is typically a voluntarily group of some 5-

10 workers from the same workshops who meet regularly and are led by a foreman, assistant foreman, work leader, or one of the worker.

The members off the circle have mastered statistical quality control and related methods and utilized them to achieve significant results in quality improvement, cost reduction, productivity and safety.

The Aim of Quality Circle


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To contribute to the improvement and development of the enterprise.

To respect human relation and build a happy workshop offering job satisfaction.

To deploy human capabilities fully and draw out infinite potential.

Six Sigma

SARVESH SONI/FQM/IE1/CH-7

Six Sigma toolkit is composed of the DMAIC process , the Six Sigma training hierarchy, and poka-yoke. The DMAIC process in fact refers to the steps involved in the implementation of Six Sigma project define, measure, analyse , improve and control.

Poka-yoke are simple and inexpensive device used in order to ensure that zero defects are produced by the organisation.


The DMAIC process in six sigma is aid by the seven magnificent quality tools-Ishikawa’s fishbone diagram, flowcharts, checklists, control charts, histogram, pareto chart and scatter diagram


Overview of Total Quality Management (TQM)

The Six Sigma Toolkit


Meaning of Six Sigma

Let us assume the for the process of manufacturing pencils the natural tolerance limits that is, (µ±3s), as given in next figure.

Thus, 99.73% of the pencil will have their diameter within the specification limits, while the remaining 0.27% or 27 per 100 or 270000 per million pencils will be defective. The standard deviation of the population is ‘s’.


Therefore it gives training to every employee regarding statistical techniques to measure every critical factor responsible for variation.

Then , steps are taken to improve the process and reduce variation in the process.

For example, workers are trained to reduce the mistakes on their parts, processes are redesigned for better performance, and maintenance of machine is improved.


Note that in below figure , there are 6 standard deviation between the CL and USL or LSL. The value(µ±6s) are now at the specification limits. Now out of every 1 million pencils produced , only 0.002 pencils.

This is Six Sigma quality level, meaning zero defective per million opportunities. (DPMO).


Meaning of Six Sigma


Sigma/ Quality Level viz. Off-Centering


Steps in Implementing Six Sigma

Step 1 – Define: Define the priorities of the customers with respect to quality

Those attributes of the product are identified that are considered most important by the customers in evaluation the quality off the product. These attributes are called critical to quality characteristics. (CTQ).

The customer's perception about the quality attributes are updated from time to time by conducting customer surveys.


Step 2 – Measure : Measure the processes and the defects arising in the product due to the process- The important processes influencing the CTQs are identified and performance measurement techniques are established for these processes.


Step 3 – Analyze: Analyze the process to determine the most likely causes of defects The key variables most likely to be responsible

for variation in the process are identified to find the reason for generation of defects.


Step 4 – Improve : Improve the performance of the process and remove the causes of the defects The specification limits of the key variable are

fixed and the system established for measuring the deviation of the variable is validated.

Improvisation in the process are done in order to keep the variable within the specification limits.


Step 5 – Control : Ensure that the improvements are maintained over time

The modified process is subjected to vigil at regular intervals of times to ensure that the key variables do not show any unacceptable variation (beyond the specification limits)

There are certain situation where the project team members may feel that a process needs to be replaced by a new process rather than improving the exiting process.

The demand of the customer with regard to quality cannot satisfied by the existing process.


At times , an organization may decide to launch a new product or service to grab a new business opportunity offered by the environment.

In all such situation last two steps in the DMAIC, namely, ‘improve’, ‘ control’ have to be replaced by ‘design’ and ‘verify’ so that it becomes DMADV.


Final and First-Pass Yield


Cost of Poor Quality (COPQ)

COPQ will generally include the following cost components:

1) Cost of labor to fix the problem.2) Cost of extra material used.3) Cost of extra utilities4) Cost of lost opportunity a) Loss of sales/revenue (profit

margin) b) Potential loss of market share c) Lower service level to

customers


Defects per Million Opportunities (DPMO)


Contrasting Six Sigma and TQM

Six SigmaExecutive ownershipBusiness strategy execution systemTruly cross functionalFocused training with verifiable return on

investmentBusiness results oriented

TQMSelf-directed work teamsQuality initiative Largely within a single functionNo mass training in statistics and quality

with return on investmentQuality oriented


Six Sigma Training Hierarchies

Green beltHe is trained and experienced in

using Six Sigma tools and techniques.

Black beltHe is a specialist in the use of Six

Sigma problem solving and prevention tools and techniques. These techniques are usually, but not necessarily, statistical or numerical.

They are having extensive experience in their domain.SARVESH SONI/FQM/IE1/CH-

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Master black beltHe has practiced as a Black Belt for

at least five years. He used to be full time practitioner

in Six-Sigma tools and has been mentor to at least five successful black belt candidates.


The Seven Magnificent Quality Tools

1. Ishikawa’s fish bone diagram2. Flowcharts3. Checklists4. Pareto charts5. Histogram6. Scatter diagrams7. Control Charts


1. Ishikawa’s fish bone diagram

Japanese quality GURU Kaoru Ishikawa is the inventor of the diagram.

It is used to represent the various causes of an effect, a problem, or quality characteristics.

This is useful to find out the root cause of a problem.


There are two sets of general categories of main causes used in the fish bone diagrams.

3Ms and 1p, that is Methods, Machinery, Material, People.

4Ps that is, Policies, Procedures, People, and Plant. For each main cause , various sub-causes are

identified and represented .


Ishikawa’s Fish Bone Diagram


Pareto chart

Pareto Charts have been named after Alfred Pareto (1848-1923).

It is based upon 80:20 principle. It means 80% of the quality problem caused by 20% of the causes.

In the preparation of this charts, various causes resulting in quality problem are identified and arranged in the descending order of the magnitude of defects they produce


Histogram

This tool is often used during the ‘analyze’ phase of the DMAIC process.

This shows the before and after situation of implementing quality improvement measures.


Scatter Diagram

It used to find out relationship between a cause and effect.

Ishikawa’s Fishbone helps to find thee root cause of an effect while scatter diagram help to identify the kind and level of relationship. For ex…..


Poka-Yoke

The Japanese word Poka-Yoke has been derived from Yokeru (to avoid) Poka (inadvertent errors).

Shigeo Shingo propounded the concept of “Zero Quality Control” using Poka-Yoke devices leading to “Defects = Zero”. This concept is synonymous with terms like “Fail-safing”, “Fail-proofing”, “Fool-proofing”, “Error-proofing” and “100% inspection”.


Three Major Inspection Methods

1. Judgment Inspection- This is the inspection of finished products

so that the defective products can be separated from good ones before deliveries are made to the customer.

2. Informative inspection- here, the root cause of defects are

investigated and this information is passed to the relevant processes for corrective action.

3. Source inspection


Zero Quality Control (ZQC)

1. Source Inspection: In this form of inspection, factors causing defects are inspected rather than the resulting defects. If 100% inspection is adapted at the source, the mistake can be avoided completely before it becomes a defect.

2. Immediate action: Whenever a mistake is detected, operations are stopped immediately and resumed only upon corrective action.


Quality Function Deployment


Quality Function Deployment (QFD) has its origins at Bridgestone Tire Kurume plant, where the Quality Chart was used for the first time in 1966.

In 1972, Mitsubishi applied the QFD technique developed to its present form by Dr. Yogi Akao, a professor at Asahi University, Tokyo.

Origin of QFD


The American Society for Quality Control defines quality function deployment as a "structured method in which customer requirements are translated into appropriate technical requirements for each stage of product development and production.

The QFD process is often referred to as listening to the voice of the customer" (Bemowski, 1992).

QFD Defined


QFD is a method that determines customer requirements, deploys quality improvement resources to meet those requirements, and measure customer satisfaction to determine success.

QFD is not only suitable for designing products but for services as well.

The word ‘function’ in QFD refers to a function analysis of the business process phases in order to improve the quality of the product development process itself


Application of QFD(By Japanese Society of Quality

Control)

Seting design quality and planned qualityBenchmarking competitive productsNew produt development that sets the

company apart from competitorsAnalyzing and accumulating market quality

informationCommunicating quality –related information

to later proceess


Deploying design intent into manufacturingIdentifying control points for the gemba(a

Japanese word that refers to the place where source information can be learned)


Tangible & Intangible Benefits of QFD


Steps in designing the QFD house of quality SARVESH

SONI/FQM/IE1/CH-7

STEP A: Conduct marketing research to determine the ‘VOCs’ i.e. customer’s preference and then, place the voices in part A of the house of Quality.

By- Focus group, Personal-Telephonic Interview, mail questionnaire.


Kano’s Model It is possible the some of the root need of

the customer may not get revealed.Kano(1984) diagram useful to characterized

customer needs, which can help us gain profound understanding of customer satisfaction.

The X-axis represent the performance of the product and Y-axis represent the level of satisfaction attained by the customer.

Each product feature affects customer satisfaction in a different way.


Kano’s Model


Must be attribute(basic Quality): Customer take these for granted when fulfilled. However, if the product does not meet this basic need sufficiently, the customer may become very dissatisfied.

One dimensional attribute (expected quality): These attributes result in customer satisfaction when fulfilled and dissatisfaction when not fulfilled in equal proportion with respect to the performance of the product. The better these attributes are the more customer likes the product


Attractive attributes (exciting quality): The absence of attractive attributes does not cause

dissatisfaction because they are not expected. But presence of these attributes delights customer For example LG Golden Eye Television, which adjust

the brightness according to the light in the room so that harm to the eyes can be prevented.


STEP-B: Involves determination of the various technical

equipments with respect to the various ‘voices of customer’ and placing these in part B of the house of Quality.

• STEP-C: It involves the determination of the

relationship values between various ‘VOCs’ and the technical requirement, and representing these in part C of Quality House


• STEP-D: This step involves the

determination of the correlation values between various technical requirement and placing these in part D of the quality house.

• STEP-E: Involves survey of the customer to

determine the importance rating of various ‘VOCs’ and placing these in part E of quality house.


• STEP-F: This step involves survey of the

customer to determine the rating of the company and its main competitors with respect to the various VOCs and placing them in part F of quality house.

• STEP-G: Involves determining the rating of

the company and its main competitors with respect to the various technical requirements and placing them in Part G of the quality House.


• STEP-H: This step involves finding the

absolute and relative weights of the various technical requirements and selecting the technical requirements with high weights.


Fqm chapter 1-2-7

Documents

quality of product

quality products

quality improvementefforts

quality maintenance

costs of quality

quality philosophy

quality assurance

service quality management