Quality Management and Six

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All SessionsAll Sessions

Quality Management and six isigma

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Session 1Session 1

Introduction, Philosophies and P i i lPrinciples

ofofTotal Quality ManagementTotal Quality Management

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Session Objecti esSession Objectives

• At the end of the session the students ld h d t dwould have understood:

– Definition and Evolution of QualityDefinition and Evolution of Quality– Constituents of Total Quality Management– Benefits of TQM Implementation

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Session Topics

Concepts of quality and total quality C t f litCosts of quality Organizing for quality control g g q yStatistical quality control Concepts of quality assuranceConcepts of quality assurance Total quality control & management Benefits of TQM

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Quality is an endless journeyPEMP EMM502

Quality is an endless journey...

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Why is Quality so important?Why is Quality so important?• Customers are becoming more intolerant of

poor service, unreliable goods, shoddy workmanship, late deliveries etcp,They exert control over suppliers by switching themswitching themSo all organisations are growing increasingly conscious of the competitive potential of Quality.yAlso the Quality parameters are contractually defineddefined.In view of resource constraints in all spheres facing the world, these quality stds will only become more stricter

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TQM—A response to changing p g gmarkets

• Through the last quarter of the last century there was a shift from a ‘sellers market’ to a ‘buyers market’

• Some organisations responded well to this shift g pand some did not

• The organisational world is a rough one with aThe organisational world is a rough one with a variety of stakeholders demanding Continuous Improvement within the context of GlobalImprovement within the context of Global competitionThe healthiest fittest and fastest will win• The healthiest, fittest and fastest will win

• One of the ways to develop competitiveness is to develop a Quality organisation supplying Quality products and /or services

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TQM is notTQM is not--

• A luxuryS thi t fit i d i i t i d• Something to fit in during quiet periods

• Just meeting internal stdsg• Just cutting costs

Th j b f th lit d t• The job of the quality dept• CUSTOMERS DECIDE WHAT QUALITYCUSTOMERS DECIDE WHAT QUALITY

IS AND WHICH ARE QUALITY COMPANIESCOMPANIES

• They do this based on quality varietyThey do this based on quality, variety, timeliness, competitive price, service etc 8PEMP EMM502

Road to TQMRoad to TQM• Progress----------• I ,C ,A, M ---Model

• Whole operation involved• Quality as strategy (to be competitive)• Teamworkea o• Staff empowerment (involvement)• Involves cust and suppliers• Zero Defect programs• Zero Defect programs

• Quality systemsQuality costing

TQM

• Quality costing• Problem solving• Quality planningQC

QA

• Statistical methods• Process perfinspection p• Quality stds

• Error detectionError detection• Rectification 9

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Right first timeRight first time

• If you don’t do things right first time ,you are—– Wasting timeg– Causing problem to others– Putting customer satisfaction at riskPutting customer satisfaction at risk– Putting yourself under pressure

DEFECTS ARE NOT FREE QUALITY IS FREE– DEFECTS ARE NOT FREE.QUALITY IS FREE. (Requires EFFORT!!)

– SOMEONE MAKES THEM AND GETS PAID

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E l ti f TQMEvolution of TQM

• First we will understand the evolution of TQC d l t th t f TQMTQC and later on that of TQM

• Organisation- wide efforts to improveOrganisation wide efforts to improve quality is termed TQC

• The underlying principle is to produce products of high quality rather thanproducts of high quality rather than detecting defective products thru inspection.

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P i i l f TQCPrinciples of TQC

• Top mgt policy---Defect free, -Do-it-right first time---Kaizentime Kaizen

• A belief that Quality is the most cost-effective way to increase productivityway to increase productivity

• QC Training for ALL. Herein is the belief that i t d t t ib t teveryone is expected to contribute to

product/process quality—Marketing thru design th d th ithru prodn thru service

• Product/service Designg• Quality material from suppliers• Control in production• Control in production• Customer care thru excellent after- sales service12

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TQMTQM

• With more competition, customer ti f ti i t t bsatisfaction in customer terms became

a goal of business orgn.g g• The Quality revolution had started. Began in

JapanJapan• TQM was born with three key philosophies---

Never ending push for improvement and goal of customer satisfaction involving everybody incustomer satisfaction involving everybody in the orgn.

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Philosoph of TQPhilosophy of TQ

• Guided by foll basic mgt concepts– Customer and stakeholder focus– Process orientation– Process orientation– Learning and CI– Empowerment and team work

Mgt by facts– Mgt by facts– Visionary leadership which sees TQ as a

strategic organisational asset

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C tdContd---• It’s characteristics are:

– Intense focus on CUSTOMERS---both internal &Intense focus on CUSTOMERS both internal & external

– Concern for CI—Quality can always be improvedQ y y p– Improvement in Quality of everything that the orgn

does—not only related to final product, but also y p ,services, response to complaints etc

– Accurate measurement of every critical perf variable in the company’s operations

– Empowerment of employees—people on the line, teams are formed and empowered to find and solve problems.

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Elements of TQM RECAPElements of TQM--RECAP

• TQM

Managing so that customer is delighted

philosophy tools

Customer driven qualityLeadership

CI

SPC14 TOOLS SamplingCI

Employee participationQuick responseDesign quality

PreventionM t b f t

14 TOOLSOF PROBLEM

SOLVING AND

SamplingTaguchiMethods

Process capMgt by fact

Partnership devCSR

AND PLANNING

p

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ContdContd----

–SO THE ESSENCE OF TQM IS STRESS ON THREE PRINCIPLESSTRESS ON THREE PRINCIPLES

»CUSTOMER SATISFACTION»CUSTOMER SATISFACTION»EMPLOYEE INVOLVEMENT»CONTINUOUS IMPROVEMENT

IN QUALITYIN QUALITY

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Benefits of TQMBenefits of TQM

• Tangible Better product quality

• Intangible Effective team workBetter product quality

• Productivity improvesEffective team work

• Enhanced job interest• Reduces quality costs• Increased market

• Participative culture• Customer satisfaction• Increased market

• Increased profits• Customer satisfaction• Better company

• Reduced grievances image• Enhanced problemEnhanced problem

solving ability

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Quality mgtQuality mgt

Performance MeasureAdditional Reading Material—Ref

will be providedwill be provided

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D fi iti f Q litDefinitions of Quality

• Ability of Product or Service to meet customer needsneeds

• The totality of features and characteristics of a product/service that bears on its ability to satisfy stated and implied needs p

• Fitness for useQ lit i f h l l d• Quality is a measure of how closely a goods or service conforms to specified standards or specifications

• Quality is what is in the eye of the customer• Quality is what is in the eye of the customer20PEMP EMM502

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Fi i f Q litFive views of Quality• Transcendental view Quality is synonymous• Transcendental view---Quality is synonymous

with innate excellence. Can be recognised /felt thru experience

• Product-Based view—Quality is a precise andProduct Based view Quality is a precise and measurable ingredient of the product. Bit difficult when aesthetic issues creep inwhen aesthetic issues creep in.

• User-Based view---Which best satisfies the customer. Highly subjective. Fitness for use

• Manufacturing –Based view----Conformance toManufacturing Based view Conformance to design/spec

• Value-Based view-Price paid VS value felt bycustomer

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Dimension of Prod ct Q alitDimension of Product Quality• As customers evaluate quality they assess

several different aspects of itseveral different aspects of it– Performance---How good in intended use.(Speed of laser printer?)

Features Special ch’s (Power steering Anti skid brakes?)– Features---Special ch s (Power steering, Anti-skid brakes?)

– Reliability— Likelihood of breakdown/malfunction

Serviceability S d t i f i– Serviceability--- Speed, cost, convenience of repair

– Durability---- Length of time before it has to be replaced

A– Appearance---- Effect on human senses

– Customer service----- Treatment recd before and after sales

– Safety---- How well it protects users during use

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Dimensions of ser ice q alitDimensions of service quality• Reliability• Responsiveness---- Willingness, timelinessResponsiveness Willingness, timeliness• Competence---- possession of skills• Access----- ease of contactAccess----- ease of contact• Courtesy --- politeness• Communication Inform in language that customer can• Communication--- Inform in language that customer can

understand• Credibility --- Trustworthiness— Do they have customers• Credibility --- Trustworthiness— Do they have customers

best interest at heart• Understanding----Make effort to understand needsUnderstanding Make effort to understand needs,

rapport with regular customers• Security--- freedom from danger, risk, doubtSecurity freedom from danger, risk, doubt• Tangibles--- Physical evidence of services 23

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Shiba’s ie pointShiba’s view point

• Level 1 ---Fitness to standard• Level 2---Fitness to needs• Level 3 Fitness to costs• Level 3---Fitness to costs• Level 4---Fitness to perceived /hidden p

needs

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Benefits of q alitBenefits of qualityIt i titi bilit• It improves competitive capability

• It gives a positive company image• It increases market share and thus profits• Overall it reduces costs ----COQ DOWN• Overall, it reduces costs ----COQ DOWN• It improves morale by creating a sense of pride

and so improves productivityand so improves productivity• Quality gives competitive advantage• Quality improves profitability• Quality is a source of value—Corporate andQuality is a source of value Corporate and

personal• Quality has a positive impact on long term• Quality has a positive impact on long term

business results 25

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ContdContd

QUALITY DRIVES THE PRODUCTIVITY• QUALITY DRIVES THE PRODUCTIVITY MACHINEMACHINE

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Q alit mo ement in IndiaQuality movement in India• Walter shewart visited India in 1948• Walter shewart visited India in 1948• Dr Deming in 1950• CII initiated some QC techniques in psu’s

CII formed a TQM division in 1987• CII formed a TQM division in 1987• QCFI was formed and Prof.Ishikawa was invited

in 1986• Industries started setting up quality improvement• Industries started setting up quality improvement

teams• In manu Maruthi set up its plant and changed

the rules of the auto game in manu, quality, g q yservice etc helping lot of ancillaries to get a close look at Japanese manu practices

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ContdContd• CII had its first major seminar with juran in 1987• Mid 80’s saw the beginning of social and• Mid 80 s saw the beginning of social and

economic reforms which set the trend for competition and liberalisationcompetition and liberalisation.

• National committee on quality, quality month t t b b dd dconcept etc became embedded

• 1987 brought in ISO 9000 STDSg• Visible strategies emerged from the european

mkt to set a global trend towards standardisingmkt to set a global trend towards standardising and certifying quality systems.

• In 1991 the first company in india got certified• In 1991 the first company in india got certified. Today more than 1000 are certified 28

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ContdContd

• Realisation slowly came that only certification wd not make a co world classnot make a co world-class.

• Many chief executives and missions thru trade bodies gave the impetus to industries to become market leaders by applying TQM concepts and y pp y g pJapanese manu concepts in India.

• CII developed 9 modules on trg on TQM• CII developed 9 modules on trg on TQM• Quality summit and national quality campaign

have become annual features

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ContdContd

• Global cos in all sectors set up shop in INDIA –IT TELECOM TEXTILES AUTO BPO STEELIT, TELECOM,TEXTILES AUTO, BPO, STEEL ,CEMENT, AVIATION and drove relentlessly th i t f i ti littheir customer focus, innovation, quality concepts which had become second nature to them

• This drive for quality customer focus and CIThis drive for quality, customer focus and CI spread to govt institutions also---Railways, psu’s etcetc

• INDIA IS SEEN AS A COUNTRY CAPABLE OF MAKING QUALITY GOODS AND SERVICES 30

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Small q and BIG QSmall q and BIG Q

• q= a symbol for a firm’s approach to quality where emphasis is just on product quality.– Emphasis on product alone to make sure that goods p p g

produced are fit for customer– Method to prevent recurrence of defects not prime p p

focus– Segregation of good and badSegregation of good and bad– Approach exists where demand>supply and less

competitioncompetition

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Big QBig Q

• Q=Firm’s focus is product + process and tcustomer

– Starting point is customer needsg p– Converted to product features which are produced at

lowest cost/max qualityq y– Right first time is the basic approach

Zero defects prevention rather than correction– Zero defects, prevention rather than correction– Continuous feedback and improvement– Employee trg, involvement

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Q alit in prod ction s stemsQuality in production systems• Production is the process of converting

resources into products/servicesresources into products/services• The collection of activities and operations

involved in producing is referred to as productioninvolved in producing is referred to as production system.C tit t• Constituents are– Input—physical facilities, materials, capital, people, energy etc

Outputs products or services– Outputs—products or services– Processes—means of transformationMost imp is that above prodn system has to keep on interactingMost imp is that above prodn system has to keep on interacting

with the customers and suppliers for ensuring CI of products and processes

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Quality in prodn systemPEMP EMM502

Quality in prodn system

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Three le els of Q alitThree levels of Quality

• An orgn that is committed to quality t i lit t th l lmust examine quality at three levels

– Organisational---Quality concerns of external g ycustomer

– Process---- Which process is most significant. Internal p gcustomer satisfaction.Inputs.Systems.

– Performer/job---Stds Measures etc to meet abovePerformer/job Stds, Measures etc to meet above two reqmts. Improvements.Timeliness.

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Determinants of q alitDeterminants of quality

• Several activities are necessary to achieve litquality:

– Quality of design —market research,qfd,dfmay g q– Capability of prodn processes —cp and cpk– Conformance —must meet specsConformance must meet specs– Customer service ---fair, courteous, prompt treatment

O lt i lit t t– Orgn culture —no compromise on quality,teams etc

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Understanding Competiti enessUnderstanding Competitiveness

– --

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Contd Competiti e adContd---Competitive adv• Each of these chs relate to quality of that

function and so quality is an imp source offunction and so quality is an imp source of competitive adv.

• Quality is as perceived by customer• Quality is as perceived by customer• Japanes auto makers---High reliabilty• Rolex provides highest quality• Apple provides innovative productsApple provides innovative products• Maruthi provides cheap reliable cars

M i l t b k t l d i• Many companies plan to be market leaders in one or two dimensions of quality whereas a

ld l i ALL di iworld class co in ALL dimensions38

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TQM & Competitiveness

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TQM and ProfitabilityTQM and Profitability

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I d Q lit i S f lImproved Quality is a Source of value

• Improved quality results in– Improved reputation– Improved reputation– Easier selling

Reduced lead times/Enhanced flexibility– Reduced lead times/Enhanced flexibility– Improved productivity

E l id– Employee pride– Reduced costs

It k i t t l l l l k– It makes impact at personal level also as orgn know that unless people internalise quality at their own level it can never get spread into orgnit can never get spread into orgn.

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Improved Quality and Business p yresults

• There is a clear correlation between t t di b i lt d i ioutstanding business results and winning

quality awardsq y• They achieve better employee

l ti hi hi h d ti it trelationships, higher productivity, greater customer satisfaction, increased marketcustomer satisfaction, increased market share and improved profits

• Study???• Ref:• Ref:

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Important concl sionImportant conclusion• Traditional view of quality control was that it

costs more to get a higher product quality. In fact g g p q yquality is now reckoned to drive the productivity machine.

• It means that if production does it right first time, p g ,waste is eliminated and costs are reduced. So quality improvement results in productivity i timprovement.

• Poor quality will mean re-work, at all stages including assembly. Poor tools could lead to i j i b dinjuries, bad output etc.

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ContdContd

• QUALITY IS A VERY GOOD WEAPON TO BECOME MORE COMPETITIVE AND THIS ISBECOME MORE COMPETITIVE AND THIS IS KNOWN AS STRATEGIC QUALITY MGT

• WHICH ASPECT OF QUALITY TO COMPETEWHICH ASPECT OF QUALITY TO COMPETE ON?

• Speed? Reliability?Service?Technology?Highest p y gy gquality?

• Mgt has to decide.44PEMP EMM502

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S mmar / Concl sionsSummary / Conclusions

• The following concepts have been i t d dintroduced– Quality as Conformance to specificationsQuality as Conformance to specifications– Customer focus, CI and TEI as cornerstones

of TQMof TQM– Tangible and Intangible benefits of TQM in g g

the form of better profits and competitiveness

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Session 2Session 2

Concepts ofQ C QInspection,Quality Control, Quality

Assurance and TQM and

Case Studies46

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Session Objecti esSession Objectives

• At the end of the session the students ld h d t dwould have understood

– Evolution of Quality concepts through differentEvolution of Quality concepts through different stages and timesModern approach to Quality mgt– Modern approach to Quality mgt

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Session TopicsSession Topics

• Traditional Quality Mgt vs TQMWh lit i t ff t f il?• Why some quality improvement efforts fail?

• Quality in manufacturing and service systemsy g y• Quality control

St t d li f lit t lStrategy and policy of quality control Quality assurance Q y

• Quality improvement

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ContdContd---

• Total qualityE l ti f TQC• Evolution of TQC

• TQM• Why some TQM efforts fail?

S f TQM• Scope of TQM• Cost of QualityQ y

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T diti l T t l Q lit M tTraditional vs Total Quality Mgt

• Traditional: Rigorous inspection ensures that customers receive quality productscustomers receive quality products.

• What is fundamentally wrong in this approach is that it implies quality can be inspected into products. But what is true is that manufacturers pmust have a look at the processes of design and prodn and do it right first timeprodn and do it right first time.

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ContdContd

• Modern quality mgt: Quality is achieved by prevention of defects As we will know in otherprevention of defects. As we will know in other chapters, modern era was heralded by a few

thi k k litnew thinkers known as quality gurus.• They taught the concepts of Statistical Quality y g p y

control, Cost of quality, Quality assurance, Quality circles Total quality control Quality mgtQuality circles,Total quality control, Quality mgt etc

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Quality planning, Control & y p g,Improvement

• This process requires a continuous interaction between the customer operations and otherbetween the customer, operations, and other parts of the orgn.

• These interactions occur thru a QUALITY CYCLE

• See next slide

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The Q alit C cle pg 31PEMP EMM502

The Quality Cycle---pg 31

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Road map of Quality planning

• Pg 30

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ImplementationImplementation• Foll sequence of steps---

– Define quality attributes important to customer---– Define quality attributes important to customer---Dimension, Appearance, Perf etc

– Define how to measure---Method to test eachDefine how to measure Method to test each attribute

– Set quality stds—Tolerances, etcSet quality stds Tolerances, etc– Set up a testing program—Sampling, etc– Find and correct causes for poor quality GraduallyFind and correct causes for poor quality.Gradually

prevent those by fool proofing and improving capabilities.p

– Continuously improve based on internal and external feedbacks

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Why some quality improvement y q y pefforts fail?

• It fails due to Mgt approach and inadequacy of leadershipleadership.

• Short term focus VS system improvementT i i i fit d t t• Training in fits and starts

• Blaming cultureg• Not understanding Cost of quality and belief that higher quality will

lead to schedule disturbance and too expensive. (Actually better and consistent quality gives better schedule adherence flexibility andconsistent quality gives better schedule adherence, flexibility and cost)

• Sloppy procedures and processes• Quality improvement needs—customer need focus, system

approach, cultural change , education and constant leadership at all levels of mgtlevels of mgt.

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Q alit in Man and Ser icesQuality in Manu and Services• Well developed QA systems have existed in

manu for sometime These were focused onmanu for sometime. These were focused on technical issues. Manu orgns have transformed themselves into customer driven mode So therethemselves into customer driven mode. So there is a new way of handling product design, team working in whole orgn etcworking in whole orgn etc.

• A Manufacturing system showing key relatioships between its various functions isrelatioships between its various functions is shown in next slide---Th l ti hi b t lit d h• The relationship between quality and each function is explained later

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Pg 38

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Relationship between Quality and p yfunctions

• Marketing and sales—Needs, Expectations-Service feedbackService, feedback

• Product design and engg----Product and process specs are determined by this dept overprocess specs are determined by this dept.overdesign—profit?Under design—quality issuesP h i d i i S l ti f d• Purchasing and receiving---Selection of good suppliers, trg them, developing them, proper and i ht t t b t d d i th t tlright amount to be stored and ensuring that matl

available is of right quality• PPS---Proper planning ensures timel

delivery.JIT planning methods improve quality y p g p q yand cost 59

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ContdContd• Manufacturing and assembly---Process capabilities• Tool Engg---Productivity and accuracyTool Engg Productivity and accuracy• Industrial engg and process design---Job design,

Appropriate technology, Equipt,Work methods etcpp p gy, q p ,• Finished goods-- inspection, testing• Packaging shipping and Warehousing---Protect qualityPackaging , shipping and Warehousing Protect quality

after goods are produced, ensure timely delivery and prevents damage in transit

• Installation and service----Proper instructions for installation, commissioning are vital for getting quality by customer. Customer service after sales is one of the most imp factors for repeat orders and satisfaction perception of quality and so loyaltyperception of quality ,and so, loyalty

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Q alit ControlQuality Control

• Quality Control -----Denotes all those activities which are directed to maintaining and improvingwhich are directed to maintaining and improving Quality. Quality control involves ,– Setting quality targets– Appraisal of conformance– Taking corrective action– Planning improvement in qualityPlanning improvement in quality

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ContdContd• So QC refers to all those functions or activities that must

be performed to fulfill the company’s quality objectives.p p y q y j• Quality control begins long before products/services are

delivered to customer• Begins with designing in accordance with customer

specs• Then raw materials, parts, supplies must be of a

specified quality• System of conversion needs to be monitored to ensure

that it is making sub-units, semi-finished parts as intendedintended

• Finally parts are to be checked for acceptability

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ContdContd• So QC involves establishing quality standards,

Use of proper materials selection of rightUse of proper materials, selection of right processes, right tooling, performance of manufacturing operations under controlledmanufacturing operations under controlled conditions, and finally inspection and testing to “conformance to specs”conformance to specs .

• So QC is a preventive method to avoid/minimise defects by controlling variability in materialsdefects by controlling variability in materials, bought-out items, manufactured parts, and sub units by taking timely preventive measuresunits, by taking timely preventive measures.

• QC extends from beginning to end.63

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Benefits of Q alit controlBenefits of Quality control

• Reduction of cost thru less scrap• Product more acceptable to customer• To understand variation in process• To understand variation in process• Increase productivityp y• Improves /assures delivery time

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Do e need Q alit Control?Do we need Quality Control?

• Absence of QC will lead to:No yardstick to compare quality of goods/services– No yardstick to compare quality of goods/services

– Difficulty in maintaining consistency of quality – Dis-satisfied customers– Increased rework– Reduced lifetime of product/services– Reduced flexibility in usage of spare partsReduced flexibility in usage of spare parts– Hence controlling Quality is vital

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Organising for Q alit ControlOrganising for Quality Control

• Traditionally QC was organised like a staff function and acted as a watchdog over thefunction and acted as a watchdog over the production dept.Such a relation is not the best f l Thi i t kl d b d i i j b ffor morale.This is tackled by redesigning jobs of workers to include primary QC responsibility. This approach is quality at source

• It puts the prodn worker in the driver’s seat inIt puts the prodn worker in the driver s seat in controlling process and thus product quality. This is also called process focus to QualityThis is also called process focus to Quality

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More details about Quality at ySource

• Worker has responsibility for product quality• Enlarges job scope which is first step to• Enlarges job scope which is first step to

empowermentQC t t k th ti iti lik• QC experts can now take on other activities like continuous improvement, training, supplier i timprovement,

• Company-wide quality planning, • Clear accountability and responsibility for quality• Enables wide spread use of SQC ---both SPC and

Acceptance sampling by ALL• Enables problem solving skills to get dispersed

throughout the plant67

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QC Strateg and PolicQC Strategy and Policy• The modern approach to QC is to adopt a strategy of

prevention of defects leading to quality right first time.Thi d lit li t b f l t d hi h• This needs a quality policy to be formulated which requires top mgt to:– Establish an orgn for QCEstablish an orgn for QC– Capture customer’s needs– Assess ability of orgn to meet these needs

E th t t i l d i li bl t th t t d– Ensure that material and services reliably meet the stated need of quality

– Concentrate on prevention of defects rather than on pdetection of defects

– Educate and train all relevant employees– Review QMS and bring in a CUlture of KAIZENReview QMS and bring in a CUlture of KAIZEN

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Compan ide Q alit ControlCompany wide Quality Control

• CWQC activities involve market research, R& D design purchasing production inspectionD, design, purchasing, production, inspection, and sales as well as all other related activities i id d t id thinside and outside the company.

• “Through everyone in the co understanding both g y gstatistical concepts and methods,and applying them in all areas relating to product/processthem in all areas relating to product/process quality variation, and repeated cycle of PDCA”---

CWQC accomplishes business objectives- CWQC accomplishes business objectives

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Q alit Ass ranceQuality Assurance• QA refers to systems designed and implemented

by a firm which Assures the supplier andby a firm which Assures the supplier and customer that the product and service coming as output would meet the customers specifiedoutput would meet the customers specified needs/specification

• Some activities are• Some activities are – Reliability engg

V l– Value engg– Process control– Inspection– feedback

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QA S stemsQA Systems• A QA system is an assembly of elements such

as orgn structure responsibilities proceduresas orgn structure, responsibilities, procedures, processes, and resources to manage quality. Such a system must be documented in the formSuch a system must be documented in the form of a Manual covering the foll areas (a few)

Quality planning– Quality planning– Training

Provisioning of good supplies– Provisioning of good supplies– Analysis of returns---etc

ALL DEPTS ARE RESPONSIBLE AND WILL WRITE DOWN– ALL DEPTS ARE RESPONSIBLE AND WILL WRITE DOWN THEIR PROCEDURES AS PART OF THE MANUAL

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Q alit Impro ementQuality Improvement• Means better ways of doing things better than

std and thus improving product/process qualitystd and thus improving product/process quality.• Quality planning and Quality control leads to

Quality improvement WHY??Quality improvement---WHY??• Good quality planning results in processes

bl f ti lit l d t icapable of meeting quality goals under certain operating conditions.QC consists of measuring

t l lit f i ith th td dactual quality perf,comparing with the std, and acting on any difference or variances.Then

lit i t i i d QCquality improvement is imposed on QC.• Quality improvement in action is the std PDCA y p

Deming cycle 72

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PDCA C clePDCA Cycle

1. PLAN 1. PLAN 4. ACT4. ACTIdentify imIdentify im--

provements andprovements andPermanentlyPermanentlyimplementimplement pp

develop plandevelop planpp

improvementsimprovements

2. DO2. DOTry plan onTry plan on

3. CHECK3. CHECKEvaluate planEvaluate plan y py p

a test basisa test basispp

to see if itto see if itworksworks

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Concept of Total Q alitConcept of Total Quality• When an orgn has a severe quality problem

major quality improvements are reqd ACROSS,major quality improvements are reqd ACROSS the company from shop floor to board rooms.

• “Total quality control is an effective system for• Total quality control is an effective system for integrating quality-dev, quality maint, and quality improvement efforts of the various groups in animprovement efforts of the various groups in an organisation so as to enable marketing, engg, production and service at the most economicproduction, and service at the most economic levels which allow for full customer satisfaction”--DEFINITION-DEFINITION

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Principles of TQCPrinciples of TQC• Top mgt policy----These are statements reg how

the quality of products/services fits into thethe quality of products/services fits into the business strategies of the orgn.Mgt must talk of and support philosophy of defect-freeand support philosophy of defect free production, do it right first time and kaizen which are fundamental to TQCare fundamental to TQC

• Quality control trg for everyoneP d t i d i P d t d i• Product or service design—Product design should enable product quality.Standardisation of

t f f t bilit d blparts, ease of manufacturability and assembly etc need to be looked into in great detail.

• Quality material from suppliers 75

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ContdContd

• Control in production---Total commitment t d d t d i fto produce products and services of perfect quality, a commitment to strive p q y,relentlessly for improvement in product quality and the constant vigilance appliedquality and the constant vigilance applied to improving every detail of manu processes is at the core of TQCDi t ib ti i t ll ti i• Distribution, installation, use, service

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TQM o er ieTQM--overview• The most usual approach is to define Total,

Quality and Management separately and thenQuality and Management separately and then together.

• Though definitions may vary inherent are• Though definitions may vary, inherent are certain key featuresTQM tl fl t th t f T t l Q lit• TQM partly reflects the concept of Total Quality as originally developed in japan---– TQM primarily seen as a Mgt-led approach – Emphasis is on quality in all aspects and functions of

the co operation, company-wide, not just the manufacturing function or a major service to the external customerexternal customer

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Contd o er ieContd-overview– Employee awareness and motivation are essential– ALL are responsible for ensuring quality in terms ofALL are responsible for ensuring quality in terms of

‘Satisfying the customer’,in what they do ,and the approach is one of prevention of errors rather than of detection and correction

– Organisational and cultural changes will be needed– Identifying internal customers and emphasis on

partnering with suppliers will also be needed– Data acquisition ,problem solving capabilities also

need to be built– Team work is vital

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Contd B llet pointsPEMP EMM502

Contd—Bullet points

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ContdContd• “TQM IS A PHILOSOPHY THAT INVOLVES

EVERYONE IN AN ORGN IN A CONTINUALEVERYONE IN AN ORGN IN A CONTINUAL EFFORT TP IMPROVE QUALITY AND ACHIEVE CUSTOMER SATISFACTION”ACHIEVE CUSTOMER SATISFACTION

• One is the never-ending push to improve and the other is a goal of customer satisfactionthe other is a goal of customer satisfaction

• So TQM stresses on three principles;– Customer satisfaction– Employee involvement– Continuous improvement in Quality

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ContdContd• Customer satisfaction---Today’s satisfied

customer may become tomorrows dissatisfiedcustomer may become tomorrows dissatisfied one. Also each person defines quality as per his own needs and means at that particular timeown needs and means at that particular time

• Employee involvement—Crucial in achieving and sustaining high levels of quality Employees must getsustaining high levels of quality.Employees must get involved in quality mgt by encouraging them to use quality tools and techniques, track perf, and identify areas needing improvement.So employee trg and motivation are vital.CI i d i b k l d d bl l i kill• CI is driven by knowledge and problem solving skills.New products, Reduction of variation in quality attributes must go on regularlyregularly

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Necessit for TQMNecessity for TQM

• TQM adds value to services offered to tcustomers

• All persons get involvedAll persons get involved• In the bargain performance and processes

are well understoodTQM is economically sound strategy to• TQM is economically sound strategy to follow in long rung

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A iomsPEMP EMM502

AxiomsEveryone

MustCommit

To produce

MembersMust Have

Customer

TopMgt

commitment

ExtensiveUse

Of scientificT l th d

Team workempowerment

CITo produce

qualityCustomer

commitmentcommitment Tools,methods

Sustained Mgt commitment to QualityCustomer focusE

L Prevention cultureCI culture

Root cause corrective action

LEME

Synergy of team workThinking statistically

Benchmarking

NTS OF Benchmarking

Supplier partneringTraining

Employee involvement

OFTQM

Employee involvementProcess focus 83

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Wh TQM programs FAIL?Why TQM programs FAIL?

• Lack of commitment from Top mgtF ifi t h i th th t• Focus on specific techniques rather than system

• Not getting employee buy-ing g p y y• Program stops with trg.

E ti lt i di t l t l t• Expecting results immediately, not a long term pay-off

• Compatibility of methods chosen with the prodn system and personnel Balanced system is vitalsystem and personnel.Balanced system is vital

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Session 3Session 3

Cost of QualityT l T h i &S tTools,Techniques, &Systems

for TQMQCase studies

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Q alit and financial perfQuality and financial perf• They are closely related.• Let us first understand relation between quality• Let us first understand relation between quality

and cost.A f l id i COST OF QUALITY d• A powerful idea is COST OF QUALITY---- made up of prevention, appraisal, external and i t l f il t PAF M d linternal failure costs—PAF Model

• Please observe that apart from prevention costsp p, the rest are costs incurred of not doing things right the first time.g

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Cost of q alitPEMP EMM502

Cost of quality

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Q alit and financial perfQuality and financial perf• By calculating this cost , it can also be managed

like any other costlike any other cost.• Fair/good cos running their processes at 2 to 3

sigma capabilities would be spending anythingsigma capabilities would be spending anything up to 25% of sales as cost of quality and in a normal manu business this wd be 3 to 4 timenormal manu business this wd be 3 to 4 time their profit margins.H hi h h t t d• Hence cos which have concentrated on continuously improving quality have seen their

t f lit d t 3 t 6 %cost of quality down to 3 to 6 %

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Ho to red ce cost of q alitHow to reduce cost of quality• There is a relationship between cost of quality and

degree of conformance—see next slideg• There is an optimum quality level between the extremes

which minimises quality• The reduction in cost of quality is done by revising

quality systems, trg, attitude of CI and proper leadership.• However presently it is being recognised that

with better technology and trg the increase in gy gcost of prevention is not so steep and so the optimum quality tends to zero defects and this is p q ythe basis for six sigma programs

• Improved and outstanding quality also increasesImproved and outstanding quality also increases revenue and market share by delighting the customers 89

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90

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Why is COQ Important?•Quality processes cannot be justified simply because "everyone else is doing them" - but return on quality y g q y(ROQ) has dramatic impacts as companies mature.

• Cost of Quality ("COQ") can be used to identify the global optimum for a process, and monitor that process' g p p , pprogress towards its global optimum. Global optimum is defined as the best possible outcome from all physicallydefined as the best possible outcome from all physically possible operating modes, combinations, and permutations of the current processof the current process.

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Different Cost of QualityCost of Quality Comprises of four parts:

•External Failure Cost.

•Internal Failure Cost.

A i l C t•Appraisal Cost.

•Prevention CostPrevention Cost.

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ContdContd4 Segments of quality costs:PAF

• a. Prevention. This area covers avoiding defects (pokayoke), planning, preparation, training, preventative maintenance and evaluation.

• b. Appraisal. This area covers finding defects by inspection (poka yoke) audit calibration test and measurement(poka yoke), audit, calibration, test and measurement.

• c. Internal Failure. This area covers the costs that are borne by the organisation itself such as scrap, rework, redesign, modifications, corrective action, down time, concessions and overtime.

• d External Failure This area covers the costs that are• d. External Failure. This area covers the costs that are borne by the customer such as equipment failure, down time, warranty, administrative cost in dealing with failure

MSRSAS 63

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External Failure CostPEMP EMM502

External Failure Cost.Fail re costs occ rring after deli er or shipment of theFailure costs occurring after delivery or shipment of the product and during or after furnishing of a service to the customer.

Examples of External Failure CostExamples of External Failure Cost

• Complaints. Complaints.

• Warranty Claims.

• Product Reject and Return.

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External Failure Cost Contd..• Concessions.

L f S l• Loss of Sales.

• Recall Costs Recall Costs.

• Product Liability.y

• Other External Failure.

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Elements E ternal fail reElements—External failure

– Complaint investigationR t d d– Returned goods

– Retrofit and recall– Warranty claims

Li bilit t– Liability costs– Penaltyy– Loss of goodwill

L t l– Lost sales

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I t l F il C tInternal Failure Cost.Failure costs occurring prior to delivery or shipment of theFailure costs occurring prior to delivery or shipment of the product, or the furnishing of a service, to the customer.

Examples of Internal Failure CostExamples of Internal Failure Cost• Scrap.

R k• Rework .• Re-inspection.

R t ti• Re-testing. • Material review.• Downgrading .

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Elements Internal fail reElements—Internal failure

– Design corrective actions,Rework due to design changes Scrap due to design changesdesign changes,Scrap due to design changes

– Purchased material rejn costs,Supplier corrective actions

– Material scrap costs labour costs for makingMaterial scrap costs,labour costs for making up rework/rejn,Corrective action costs

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Appraisal Costh i d i h i l iThe costs associated with measuring, evaluating or

auditing products or services to assure conformance to quality standards and performance requirements.

A i l C t I l dAppraisal Cost Includes:

•Incoming and source inspection/test of purchased material•Incoming and source inspection/test of purchased material

•In-process and final inspection/test p p

•Calibration of measuring and test equipment

•Associated supplies and materials

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Elements AppraisalElements--Appraisal

• Defined as costs incurred in the planned d ti f d t iconducting of product or service

appraisals to determine compliance to pp prequirements. An orgn wd never want the customer to be the only inspector!customer to be the only inspector!

• Unless perfect control can beUnless perfect control can be exercised,some appraisal cost will always

i texist

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Elements AppraisalElements--Appraisal

– Receiving inspn,Stage Inspn,Sampling inspn for chartingfor charting,

– Set-up inspection,outside certifications, Chemical tests,

– Field perf evaluation Test bed evaluationField perf evaluation,Test bed evaluation– Review of test and inspn data

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Prevention CostThe costs of all activities specifically designed to prevent poor quality in products or servicespoor quality in products or services.

Examples of Prevention Cost:Examples of Prevention Cost:

• New product review.

•Quality planning.

•Supplier capability surveys.

•Process capability evaluations.

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Elements Pre entionElements---Prevention

• Experience gained from elimination of specific causes of failure is used forspecific causes of failure is used for prevention/recurrence.So such activities h t b b ilt i t th b i t thave to be built into the basic mgt system.– Marketing---Research,surveys,contract review all

linked to costs incurred in the accumalation and continued evaluation of customer and user quality needsneeds

– Product/service Dev---Design reviews,design qualification tests field trialsqualification tests,field trials

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Elements Pre entionElements--Prevention– Purchasing—Supplier selection

process/review,rating,technical data review in p gpurchase orders,Supplier Quality improvement program support

– Operations—Manu/service—Process validation,APQP,Training,Quality planning,Design and dev of special measuring equipmentand dev of special measuring equipment

– Quality Admin---Salaries,perf reporting and prior activities quality audits calculating quality costsactivities,quality audits,calculating quality costs

– Other prevention costs—Rent,travel etc connected with the planning implementing and maintaining thewith the planning,implementing and maintaining the Quality system

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Prevention Costs ContdPEMP EMM502

Prevention Costs Contd

• Quality improvement team meetings.

•Quality improvement projects.

•Quality education and training.

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Economic models for QAEconomic models for QA• The traditional model ignores the reality that

quality degradation could significantly alter thequality degradation could significantly alter the demand for the product.

• As prevention becomes the focus new• As prevention becomes the focus,new technologies and automation eliminating the human element would allow cos to producehuman element, would allow cos to produce perfect quality at a finite costS th COQ ill h it i i t 100%• So the COQ will reach its minimum at 100% conformance , justifying the philosophy of CI f i i i tfrom an economic viewpoint

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Contd---

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Implementing Cost of QualityPEMP EMM502

Implementing Cost of Qualityhi id b f i l i COQThings to consider before implementing COQ:

• Is the management team committed to making rapid• Is the management team committed to making rapid changes for maximum profitability, within the imposed

t i t ( C ' Mi i l & l ticonstraints (eg. Company's Mission, laws & regulations, stakeholder satisfaction, etc.)?

A th " d " l t d t t l• Are there "sacred cows", legacy systems, departmental silos, and empire building that are exempt from re-evaluation?

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Implementing Cost of Quality Contd….

• Will people be receiving mixed messages and fli ti i l b t C t f Q litconflicting signals between Cost of Quality

("COQ") and the traditional management measurements?

• Is there management commitment to doIs there management commitment to do something about the Cost of Quality ("COQ") d t ti l b i ?data on a timely basis?

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ContdContd

• The PAF ModelIncreased awareness of the cost of quality first leads– Increased awareness of the cost of quality, first leads to an increase in appraisal costsA i l t th ith i ti ti d– Appraisal together with investigation and improvements in product/design/process/systems will l d t d tilead to more spend on prevention

– Finally as preventive action takes effect the i i l d f il li d ALLprevention,appraisal and failure costs realign and ALL

costs reduce

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ContdContdQuality costs are incurred in ALL deptsHowever major portion of Products total cost is fixed atHowever major portion of Products total cost is fixed at

design stage itselfMany Quality problems get designed into the productMany Quality problems get designed into the productCompanies must have a good feedback loop into the

CFT f d i t d t hi f tCFT of design to ensure good matching of customer reqmt,process cap, resources etc so that Quality is not a major issuenot a major issue

DFM,DFA,DFSS are the new methodologies

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ContdContd

• Change the product?Diffi lt

high

OpportunityTo

change

DifficultyTo

changeg change

Low

concept design prototype prodn In service

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The breakdo n of costThe breakdown of cost• COQ can help focus on the overall cost of doing

business by dividing into:– The normal cost of business---Std matl,labour, energy,and other

costs to make the product– Prevention costs—associated with ensuring by planning,that g y p g,

things will meet customer needs– Appraisal-associated with checking that they do meet customer

needsneeds– Failure to do with failing to satisfy customer needs

• Normal costs of business together with prevention costs dd ladd value

• Appraisal and failure activities add cost

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ContdContd

• TCOQ=COC +CONC (cost of conformance +cost of nonconformance)+cost of nonconformance)

• Six key areas to address when improving TCOQ– Basic organisational capabilities– Industrial process variationIndustrial process variation– Business process variation

Engineering/design process and documentation– Engineering/design process and documentation– Quality of specification– Supplier capabilities

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Management Techniq eManagement Technique• Quality costs are too great is a sign of mgt ineffectiveness and

thus affects organization's competitiveness• It quantifies the magnitude of the Quality program in the

language mgt knows best---money.• 20% could be in manu companies20% could be in manu companies• Arguments are stronger and funding is easier and very imp---

effectiveness of action can be measured comprehensively –h t f Q lit t i i t d dwhen concept of Quality cost is introduced

• QUALITY IMPROVEMENT WILL MEAN REDUCTION OF COST OF POOR QUALITY AND WILL IMPACT PROFITABILTYOF POOR QUALITY AND WILL IMPACT PROFITABILTY POSITIVELY

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Q alit cost BasesQuality cost Bases• Quality costs have to be expressed in relation to

some baseline costsome baseline cost– Quality cost/Hr of direct labour cost

Quality cost/Rupee of production cost– Quality cost/Rupee of production cost– Quality cost/Rupee of net sales

Quality cost/unit when lines are similar– Quality cost/unit –when lines are similarBecause each has certain shortcomings all three can be

trackedtracked.In instances of improvements planned in specific areas

other ratios like—Design quality cost as% of designother ratios like—Design quality cost as% of design costs;Purchasing Quality costs as% of material costs can be used

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Collection and reportingCollection and reporting• Measurement of actual quality costs is an

accounting fn.g• As deptl cost codes form the basis for cost data,a

significant amount of quality cost can be got from this source.

• Some quality costs cross dept lines and wd require f ?deeper analysis before allocation:ex scrap?

• Another case may be market research---only that ti f th ti it t i i t t litportion of the activity pertaining to customer quality

needs shd be charged to Quality costIncoming inspn d be appraisal hereas s pplier• Incoming inspn wd be appraisal,whereas supplier certification wd be prevention

• Cost of a team meeting might be due to failure but• Cost of a team meeting might be due to failure,butcost of solution might be prevention

• ABC Costing implementation wd help greatly118

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Q lit C t R tQuality Cost Report

• See Next Slide

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Anal sisAnalysis• The most common techniques are

Trend analysis– Trend analysis– Pareto chartM t lik t k th ti t Q it diffi ltMgt may like to know the optimum costs. Quite difficult

Comparison with similar organisationsPAF model –tend to zero of failure cost

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ImplementationImplementation• Choose a single product line• Training—Identify opportunities forTraining Identify opportunities for

improvement, Justification of CI, measurement of results

• Measurement of Quality costs,determination of proper indexes and ratios,establish a trend-p p ,analysis chart,identification of opportunities,assignment of project teams,

ti f ltreporting of results• Caution—Assess benefit---Small orgns may find

it diffi lt t i l t &b tt t t tit difficult to implement &better to concentrate on Scrap and easily measured external failures

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ContdContd

• Basic accounting procedures are to be difi d if dmodified,if reqd

• Each cost element is described how toEach cost element is described,how to collect data,method to treat fringe b fit tbenefits,etc

• After pilot extend to whole orgn• After pilot,extend to whole orgn

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Session 4Session 4

Tools,Techniques, &Systems for TQMandand

Strategic mgt for Total qualityCase StudyCase Study

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Session Objecti esSession Objectives

• At the end of the session the students ld h d t dwould have understood:

– Definition of Process MgtDefinition of Process Mgt– Tools and Techniques used in different

processesprocesses

Overview of major elements of total quality infrastructureq yBenefits, Axioms,Elementsof TQM

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Session TopicsSession Topics

• Definition of different Processes• What is Process Mgt• Problem solving tools• Problem solving tools• Organisational infrastructureg• Leadership and Mgt styles• Enablers like Quality circles,Self

empowermentempowerment

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R C f d t i t f Q litRe-Cap of determinants of Quality

• Several activities are necessary to achieve qualityquality--------– Quality of Design– Quality Capability of production process– Quality of conformancey– Quality of customer services– Organisation Quality cultureOrganisation Quality culture

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C tdContd------

• Quality of design is determined before the product is produced Co must determine whatproduct is produced. Co must determine what it’s customers want. Then the product and services can be designed to exhibit the attributesservices can be designed to exhibit the attributes necessary to meet customer expectation. CFT’S are involvedare involved

• Quality of prodn process means that prodn processes must be designed and built that haveprocesses must be designed and built that have capability for producing attributes named aboveQ lit f f• Quality of conformance

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C tdContd

• Quality of customer service---customers must be so managed that they have been treated fairlyso managed that they have been treated fairly and attended to promptly

• Lastly, entire orgn must become energised to doing above activities to meet customers gexpectations.Mechanism must be in place to CI every fact of the orgn towards the objective ofevery fact of the orgn towards the objective of ever increasing levels of customer satisfaction.

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C tdContd

• Quality leads to C titi d t– Competitive advantage

– Profitabilityy– Source of value

P l l– Personal values

Quality drives the Productivity Machine

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Tools for TQM O er ieTools for TQM-Overview• Tools for Quality planning

– QFD---Translating customer voice into a competitive Q a s at g custo e o ce to a co pet t eproduct at best value and cost.

– Concurrent Engg---It is a product development h h ll i lik d i Pil tapproach where all agencies like design, Pilot

dev,production and sales are linked in real time to the dev process to avoid conflicts and crash the dev time.dev process to avoid conflicts and crash the dev time.

– FMEA—A structured approach to find out and minimise the RISK of different modes of failure of a

d t/ i i t th t t it lfproduct/process in service ,at the start itself.– New MP methods—Used to structure random ideas,

to organise projects to make strategic plansto organise projects, to make strategic plans

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Tools for CITools for CITools for Continuous Improvement

– Strategic Nature ToolsBasic general Tools– Basic general Tools

• Strategic Tools– Selected based on strategic needs in deciding what products to

l h h t t i d h t i t LIKElaunch,what to improve and how to improve,etc—LIKE– BMo Kaizen o PDCA– BPR– JIT/KANBAN– Taguchi loss function/DOE– COQ Analysis– Six Sigma PracticeSix Sigma Practice– Tools in RED are Radical improvement tools

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ContdContd

• Basic tools– 7 Simple QC Tools

• Collection of data &process mapping—-Flow chart, p pp g ,Check sheets

• Presentation/Display—Run,Bar,piecharts;Presentation/Display Run,Bar,piecharts; Histograms,Scatter diagram,Pareto diagram

• Data analysis/Conclusion—C&E diagramData analysis/Conclusion C&E diagram, • Understand variation type,Control &improve—

Control charts Capability studies Poka yokeControl charts, Capability studies,Poka-yoke

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P M tProcess Management

• We will Understand the foll:– What is a process? What are common

business processes?p– What is process mgt?

I t t b i th t ff t– Important business processes that affect customer satisfaction

– Process improvement

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Wh t i PWhat is a Process

• A Process is a sequence of activities that is intended to achieve some result,typically to create value for customers

• The components of a process are 7 M’S:– Materials– ManpowerManpower – Methods– Machines– Measurement– Maintenance– ManagementManagement

Process components change over time.Process performance depends on how the process has been designed,built,operated and maintained

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C b iCommon business processes

• Launching new products• Recruiting new employeesRecruiting new employees• Fulfilling customer orders• Producing goods• Producing goods• Providing customer service

M i t i i t l• Maintaining control• Research and dev• Distribution• Payroll calculationy• Purchasing• Planning• Planning

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P M tProcess Management

• Process mgt involves planning and administering the activities necessary to achieveadministering the activities necessary to achieve a high level of perf in a process and identifying

t iti f i i lit dopportunities for improving quality and operational perf and ultimately customer satisfaction

• PROCESS MGT IS THE DESIGN CONTROLPROCESS MGT IS THE DESIGN, CONTROL, and IMPROVEMENT of KEY BUSINESS PROCESSESPROCESSES

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C tdContd-----

• Design: Ensures that products meet customer reqmts;and that prodn/delivery processes are capable ofreqmts;and that prodn/delivery processes are capable of achieving high levels of perf

• Control: Any process perf measure naturally fluctuates• Control: Any process perf measure naturally fluctuates around some average level.Abnormal conditions cause an unusual deviation from this pattern.Removal of these pcauses and thus enabling to maintain the perf level is the essence of control

• Improvement: Involves changing the perf to a new level which is better than the existing level

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C tdContd----

• So we can conclude:– Process mgt helps to prevent defects and– Process mgt helps to prevent defects and

errors,eliminate waste,and thereby leads to better quality and improved company perf through shorter q y p p y p gcycle times,improved flexibility,and customer responsiveness

• We need to understand 4 important business processes:

• Design process, Production/delivery process, Support process. Supplier process

W ill d d h b i f h• We will understand the basics of each process

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D i PDesign Process

• New product dev is a crucial part of business• Product designers face a hard challenge• Product designers face a hard challenge

because changes in technology, consumer preferences and competitive conditions forcepreferences and competitive conditions force them to aim at target/potential customers.Th t diti l f d l i d t i• The traditional way of developing products is a sequential one-----:

• Marketing /R&D are sources of a new product dev

• Product designers convert the concepts into a set of functional characteristics (ie how productset of functional characteristics (ie how product should work, features, cost etc) 140

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C tdContd---------

• Product engineering converts the functional specs to product specs(detailed drg of product/parts/matls etc)p p ( g p p )

• Process engineering converts above into process specs(how to make/which machine etc)

• This is also called ‘over the wall’ approach.This tends to be long and costlier

• THE ALTERNATE MODERN APPROACH IS CALLED CONCURRENT/SIMULTANEOUS DESIGN.

• As the name suggests Concurrent engg brings together reps from various depts together into a TEAM to sim ltaneo sl design the prod ct and process Also thesimultaneously design the product and process.Also the key suppliers may be included

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C tdContd----

• This method drastically reduces ‘Time to market’ and so is very powerful. Real life examples are y p pour own Scorpio which took just 18 mths to develop against 2-3 yrs earlier.

• Of course one must admit that new tools like CAD,CAM,FMS,CIM have made the D l t l f t d t bDevelopment cycle fast and accurate by removing/reducing human errorH ld h bit f• However old habits of :– Not delegating authority to dept rep on team– Adversarial relation between depts– Reward systems of individuals needs to be e a d sys e s o d dua s eeds o be

altered 142

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P d t d i t h iProduct design techniques

• Design for Manufacture (DFM)D i f A bl ( DFA)• Design for Assembly( DFA)

• Failure Mode effect analysis (FMEA)y ( )• Value engineering

D i f R li /L l/E i t• Design for Recycling/Legal/Environment• Design for Serviceabilityg y• Design for Ergonomics

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St i D l i N P d tSteps in Developing New Products

1. Technical and economic feasibility studies2 Prototype design2. Prototype design3. Performance testing of prototype4. Market sensing/evaluation and economic

evaluation of the prototypep yp5. Design of production model6 Market/performance/process testing and6. Market/performance/process testing and

economic evaluation of production model7 C ti difi ti f d ti d l7. Continuous modification of production model

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P d ti /d li PProduction/delivery Process

• The goal of Process Planning is to develop an efficient procedure to satisfy both internal and p yexternal customers

• Process planning---Process Design,Operation Design

• Actual Process design is the choice of process and Odetailing the Process parameters .Operation design

is about the specific station.A fl h t i f l t l i d i thi• A flow chart is a very useful tool in doing this

• Service processes also need same care BUT we m st nderstand that ser ices req ire differentmust understand that services require different degree of customer contact, labour intensity and customisation---EX---Railways Fast food Restaurantcustomisation EX Railways, Fast food Restaurant, Interior design

• Understand above and design the process of giving145

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S li PSupplier Process

• We have seen that suppliers need to be treated as partners.p

• Suppliers have to be Quality vendors, Certified vendors and Excellent vendors

• As businesses get dispersed globally one must manage a complex network of suppliers.

• Also the trend is to outsource all work except CORE work. So One must develop :– A Strategic long term relationship with suppliers– It has to be a Win-Win relationship

It has to based on trust– It has to based on trust

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P I tProcess Improvement

• TQM rests on a foundation of CI.• It needs a continuous effort to Reduce• It needs a continuous effort to Reduce

rejections, cycle time, inventory ,waste and idle time etc)time etc)

• Process improvement is at the heart of CI.• Certain proven methods are:

– 5W and 1/2H Method----Ex A– Work simplification– Kaizen methodology (Quality circles, Suggestion scheme, TPM

etc)etc)– Benchmarking– Business process reengineeringBusiness process reengineering

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Contd

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T l f P M tTools for Process Mgt

• For Design Process– Design of Experiments– Design of Experiments– Taguchi’s Methods

Taguchi Loss function Sandeep– Taguchi Loss function– QFD

P k Y k (F il fi )

Sandeep

Poka-Yoke (Fail safing) For Problem SolvingD i l– Deming cycle

– Breakthrough– Crosby program

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St f P bl l i & T lStages of Problem solving & Tools

• There are four stages of Problem solving– Define and analyse problems– Define and analyse problems– Generate ideas for solutions

Evaluate and select ideas– Evaluate and select ideas– Implement ideasThThere are 7 Simple QC Tools7 M & P T l7 M & P ToolsWe can in general associate the specific stages of

bl l i t ifi t l D t il l tproblem solving to specific tools. Details later on

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Q lit f ti d l t QFDQuality function deployment--QFD

• QFD is an excellent way for firms to capture “Voice of customer”Voice of customerIt helps to determine what will satisfy the customer and also where to deploy Quality efforts.QFD technique claims to reduce design cycle time and engineering changes and to meettime and engineering changes and to meet better the customer demands.QFD is diagramatically represented by a house

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Ad antages of QFDAdvantages of QFD• QFD is an effective management tool in

which customer expectations are used towhich customer expectations are used to drive the design process

• Advantages are• Advantages are– An orderly way of obtaining and presenting info

Sh t d t d l– Shorter product dev cycle– Considerable reduced start-up costs– Fewer engg changes– Reduced chances of oversights during design– An env of team work– Consensus decisions

Exhibit 2 depicts how to draw a QFD for dev of a camera

– Preserves everything in writing 152

Steps given in next slide

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Steps in building a House of p gQuality

• Step1—List Customer Reqmts—WHATs• Step2---List Technical descriptors—HOWs• Step3---Develop a relationship matrix between WHATs and HOWs• Step4---Develop an inter-relationship matrix between HOWs

St 5 C titi t b th C t d T h i l• Step5---Competitive assessments—both Customer and Technical assessments

• Step6—Develop prioritised customer reqmts----importance toStep6 Develop prioritised customer reqmts importance to customer,Target value,Scale-up factor,sales point,Absoluteweight

• Step 7---Develop Prioritised Technical descriptors—Degree of difficulty Target value Absolute weight Relative Weightdifficulty,Target value,Absolute weight,Relative Weight

• EXAMPLE OF HANDLEBAR FOR MOUNTAIN BIKE----------

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List cust reqmts and TechDescriptors\p

What’s & How’s155

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DevelopRelation matrix betw

how and whathow and what

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Worst=1Best=5

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Conclude--

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A simpler QFDA simpler QFD

• Refer Hand-out

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P k Y k (f il fi /Mi t k fi )Poka-Yoke (failsafing/Mistake proofing)

• A Good process design prevents defects from occurring at all• Poka-yoke is an approach for mistake-proofing processes using

automatic methods to avoid simple human errorsautomatic methods to avoid simple human errors• Developed by shigeo shingo• Examples:

– Floppy disc cannot be loaded reverse due to bevelled edge,Same for Thumb drive

– Software in M.S will automatically check for any unsaved files before closingLi it it h hi t d t li ht th t t f– Limit switches on machines connected to lights that warn operators of wrong loading.

– Self-addressed stamped envelopes– Diameter of filler hole for petrol ---leaded/unleadedDiameter of filler hole for petrol leaded/unleaded– Different plug fittings for 110 v and 220 v– Manhole covers are round not square ,Microwave ON only if door is closed– Device /counter to count number of holes drilled and a buzzer to warn ifDevice /counter to count number of holes drilled and a buzzer to warn if

ALL holes are not drilled.Machines will start ONLY if Shield is closed,/Both buttons operated together,g ,

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M t d l f bl l iMgt model for problem solving

• Problem solvingSuccessful quality improvement depends on ability to– Successful quality improvement depends on ability to identify and solve problems.What is a problem?– What is a problem?

– It is a deviation between what should be happening and what actually is happeningand what actually is happening.

– A problem has symptoms and causes.Many problems require a systematic process to– Many problems require a systematic process to develop and implement solutions

– Leaders of quality have proposed some– Leaders of quality have proposed some methodologies and we will study a few.

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D i l PDCA C lDeming cycle----PDCA Cycle

• PLAN• DO• CHECK• CHECK• ACT• This cycle is basis for Kaizen or Continuous

improvementimprovement

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M d t ilMore details

pa Never ending improvement

dc

Plan-Select a process for improvement ,set goals, discuss and develop plan for improvementDo—Team implements the plan, monitors the progress.

Check—Analyses data and checks that results correspond to goals set in plan stageAct If results are ok team documents the revised process and makes it the STD and deploysAct---If results are ok,team documents the revised process and makes it the STD and deploys

Wherever applicable

Normally start with a PILOT PROJECT AND THEN APPLY TO WHOLE COMPANY

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PDCA c clePDCA cycle

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SDCA cycle

Act

Know the ACT to improve Standard

STANDARDthe standard or its use

DO the work according to th t d d

CHECK the work against the

the standardg

standard

DoCheck

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PDCA cycle

Determine l & PlanAct goals &

targets1) Standardise

PlanAct

Determine methods of

2) Take countermeasures for gap or side

ff t reaching goals

Engage in 1) Check the

effects

education and training

1) Check the effects of implementation against target

Implement

g g2) Analyse gap3) Check for side

effects DoCheck p

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DO CHECKSDCA – PDCA cycle

Improvement ti iti

DOimprovement

D C

CHECKimprovement results

activities PLAN improvement

D C

P A ACT to standardize tostandardize to results or plan for next improvement cycle

Focus on vital view

y

StandardisationInitiate improvementimprovement

Know the

A S

ACT to improve the standard or its use

Routine

Know theSTANDARD

DO the workDC

CHECK the work against the standard

Routine work

DO the work according to the standard

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J st in Time (JIT)Just in Time (JIT)• JIT is a technique ,where products/services are made

exactly as per reqmts of customer---both quantity andexactly as per reqmts of customer both quantity and timing without excessive inventory.

• The above concept requiresThe above concept requires– Supplies have to be perfect quality

A i t i l th hi d– As inventories are low, the machines and processes MUST produce zero defects as otherwise the lines will come to a stop This encourages problem solvingwill come to a stop. This encourages problem solving and CI which is basis for TQM

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jit componentsjit components

• Jit now constitutes:Fl ibl• Flexible resources

• Cellular layouts• Pull prodn system• Kanban prodn control• Small-lot prodn• Quick setups• Uniform prodn levels• Quality at sourcey• Tpm• Supplier network reliability.Supplier network reliability.

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Problem vs tools

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T l f i tTools for process improvement

• Primary application of each tool in the problem solving process----Ex 3solving process Ex 3

• Understanding the issues• Flow chart :Helps to understand how a process works It is a team• Flow chart :Helps to understand how a process works.It is a team

effort and the first step to understand the present problem--------------------------Ex 4

• Run chart: Gives the general idea of variability at present.It is a chart or a line graph in which data is plotted over time.-------------------------Ex 5Ex 5

• Control charts: Enable operators to identify problems as they occur.(Already covered in great depth earlier)

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Flowchart

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R n chartPEMP EMM502

Run-chart

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Contd

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C tdContd----

• Fact Finding• Check sheet : It is a special type of data collection form• Check sheet : It is a special type of data collection form.

Facilitates systematic record keeping or data collection and observations are recorded as they happen and canand observations are recorded as they happen and can be interpreted without additional processing-----Ex 6

• Problem FindingProblem Finding• Histogram :Provides visual summary of data.It shows

whether a process is centred degree of variation andwhether a process is centred, degree of variation,and whether data meets specs.This helps a deeper insight into the pattern of data associated with the activity---Ex 7

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Check sheet----Ex 6Computer related problems

Problems Week 1 Wk 2 Wk 3 Wk 4 totalSoftware access 1111 1 11 1 8Network issues

111 11 1111 111 13Memory 11 11 111 11 9Memory issues 11 11 111 11 9E-mail 1111 1111 1 1111 1111 1111 1111 271 27Server problems

1 11 1problems179

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Histogram

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C tdContd----

• Pareto diagram :Based on principle of Vital few Trivial many.Called 80-20 rule.ie 20% of items causes 80% of inventory and so on.So this helps to Focus efforts Ex 8this helps to Focus efforts---Ex 8

• Idea FindingB i t i h l ti it d hidd i G• Brainstorming: helps creativity and uncovers hidden issues.Group based ,non-critical, round robin concept.

• Cause and effect diagram: Pictorial representation between a qualityCause and effect diagram: Pictorial representation between a quality characteristic and its causing factors.

• Also known as Fish bone/Ishikawa diagram• A problem can be due to many reasons and becomes simpler and

easier to solve only if true causes can be identified.Four M’S are listed as main reasons and the diagram is built. Use 5 W’s and 1 H--g-------Ex 9

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Pareto diagram

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Ca se and effect diagramPEMP EMM502

Cause and effect diagram

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C tdContd----

• Solution finding—Evaluate ideas that have been proposed and select the right oneproposed and select the right one.

• Scatter diagram :Determines whether a relation really exists between two process characteristics and theexists between two process characteristics and the direction.Actually these are graphical formats of regression analysis eqn---Y=f(X) +c-----------Ex 10

• Implementation: Responsibility must be assigned to a group/Leader.Here the 7 Management planning tools are useful (Affinity diagram, Inter-relationship diagram, Tree diagram, Matrix data analysis & diagrams, Process decision diagram charts Arrow diagrams)decision diagram charts, Arrow diagrams)

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Scatter diagram

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P bl S l i & QC T lProblem Solving & QC ToolsPROBLEM PROBLEM ANALYSISPROBLEM IDENTIFICATION

PROBLEM ANALYSIS

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Mgt and planning toolsMgt and planning tools• Affinity diagrams— Organising data in natural groups

• Inter relationship diagrams Identify central problem• Inter-relationship diagrams– Identify central problem• Tree diagrams--- Sequential dev of activity from base

blproblem

• Matrix diagrams-- Relationship between ch’s,fns and tasks

• Matrix data analysis--- Input from matrix diagram and arrange to find quantitative link between variables

P d i i h t E h• Process decision program charts--- Each branch of tree is taken and analysed foer possible problems and countermeasures

• Arrow diagrams--- Activities from start to finish of a gproject are listed out 187

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Introd ctionIntroduction

• These had their roots in post-war OR dev i USin US

• These tools can be used to addressThese tools can be used to address problems typically faced by mgrs who are

ll d t t t t t dcalled upon to structure unstructured ideas,make strategic plans and organiseideas,make strategic plans and organise and control large projects

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Affinit DiagramAffinity Diagram

• Allows the team to creatively generate a l b f id d th l i lllarge number of ideas and then logically group them for problem understanding and g p p gsolution.

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One more e amplePEMP EMM502

One more example

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Interrelationship diagramInterrelationship diagram• Clarifies the interrelationship of many factors• Allows the team to classify the cause and effect amongAllows the team to classify the cause and effect among

all the factors so that key drivers and outcomes can be used to solve the problem

• Steps are– Agree on issue– All ideas from other techniques/brainstorming should be laid

out—as at ‘a’Each issue is compared with ‘a’ and arrows are drawn in the– Each issue is compared with a and arrows are drawn in the stronger direction.First iteration is over

– Further iterations compare b with c,d,e,f;;;issue c with d,e,f;;;d with e,f and finally e with f

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Contd IDContd--ID

– Entire diagram reviewed and revised after involving upstream and downstreaminvolving upstream and downstream processes

– The diagram is completed by tallying incoming and outgoing arrows and placing g g g p gthis info in a boxISSUE B is the driver as it has zero incoming– ISSUE B is the driver as it has zero incoming arrows and five outgoing arrows.It isusually th tthe root cause

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I t l ti hi diInter-relationship diagram—one more ex

• Strategic factors Which one to dd FIRST?address FIRST?

Customerl

ROI

Customer

value

ProductInnovationCustomer

serviceInnovation

Workenv Technologye

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Tree DiagramTree Diagram

• Used to reduce any broad objective into increasing levels of detail in order to achieve theincreasing levels of detail in order to achieve the objective– Choose an action oriented objective statement from

ID,Affinity,Brainstorming etc– Using brainstorming choose the major headings ,as

shown, under means– Generate next level by analysing major headings– Generally 3 levels ok to complete diagram and makeGenerally 3 levels ok to complete diagram and make

assignments

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One more exPEMP EMM502

One more ex

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Matri DiagramMatrix Diagram

• Aids in analysis and rating the relationship t i blamong two or more variables

• QFD is a very good ex of Matrix diagramQFD is a very good ex of Matrix diagram• Symbols or numericals can be used

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One more eOne more exSt l ti hi di

Improve workenvironm

Improve manutech

Develop new products

Strong relationship medium

environment tech

goalsactions

Costeffectiveness

goals

Highquality

Share holdervalue

weakweak204

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Process Decision Program gChart

• This avoids surprises and identifies tcountermeasures

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One more ex

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Acti it net ork diagramActivity network diagram

• Allows team to sch a project efficiently

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Arro DiagramsArrow Diagrams• For project planning—install a new computer system

334

8

1 2 6 7 8

5Needs analysisConfigure sysTrg prepareg p p

Req bidsSch trg

Purchase equiptInstallInstall

Train users 209

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Integration of toolsIntegration of tools

• Although the MP tools can be used i di id ll th t ff ti hindividually,they are most effective when used as a system to implement an y pimprovement progam.

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Activity Vs Cost RelationshipActivity Vs Cost Relationship

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Responsiveness Rulesp

• 0 05 TO 5 RULE• 0.05 TO 5 RULEOnly 0.05 to 5% of the total time adds value

• 3/3 RULE• 3/3 RULETime Lost In A Process Is Equally Attributable To 3 Factors3 Factors

Waiting for the completion of workWaiting for physical or intellectual workWaiting for decisiong

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Responsiveness RulesResponsiveness Rules

• ¼ - 2 – 20 RULEIf time is compressed in a process by one-If time is compressed in a process by one-quarter, labour productivity doubles and costs are reduced by 20%are reduced by 20%

3 2 RULE• 3 x 2 RULEIf any process is faster than competition by 50%, growth will be 3 times industry average & profits will be 2 times industry average

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Time Compression - BenefitsTime Compression Benefits

• Increased productivity• Price premiumPrice premium• Reduced risk• Increased market share

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S mmar and Concl sionsSummary and Conclusions

• The following concepts have been introducedintroduced– The progress of Quality movement from

I i TQM d h d iInspection stage to TQM and the drivers at each stage

• The three foundations of the TQM movement • Continuous Improvementp• Customer focus• Total Employee InvolvementTotal Employee Involvement

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Session 4Session 4

Strategic Mgt for QualityLeadership styles

Cultural and structural issuesCultural and structural issues

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Strategic Management for TotalStrategic Management for Total QualityQ y

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B ilding OrganisationsBuilding Organisations

---Organisational Infrastructure Leadership styles most suitable for TQM---Leadership styles most suitable for TQM

environment---Building a Quality culture with customer

focus

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Scope of TQMScope of TQM

• Three core principles of TQM------Focus on customer– Focus on customer

– Participation and team work– Continuous Improvement– SUPPORTED BY

– Organisational infrastructure– Set of mgt practiceSet of mgt practice– Wide variety of tools and techniques

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Organisational Infrastr ct reOrganisational Infrastructure

• Leadership• Strategic planning• HRM• HRM• Process mgtg• Data and info mgt

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Set of Mgt PracticesSet of Mgt Practices• Refers to those activities that occur within a mgt

sys to achieve high perf objectivessys to achieve high perf objectives• Examples

R i i f• Reviewing co perf• Determining employee satisfaction

C di i d i d d /d l• Co-ordinating design and prodn/dely process to ensure trouble-free introduction and dely of products and servicesproducts and services

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ToolsTools

• Includes various graphical and statistical th d t l k ti iti ll tmethods to plan work activities, collect

data ,analyse results, monitor progress , y , p gand solve problems Tools help to achieve /graduate to QM from QC/graduate to QM from QC

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ComparisonComparison

Quality control Quality mgtInspn after fact Design quality into

product and processproduct and processFocus on effects of poor

litFocus on identifying and

ti fquality prevention of causesCustomer is purchaser Customer is userp

Some defects is normal Zero defects is goalQuality improvement is costly Pays for itselfOf inspn or of some individual Responsibility of producer 224

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Overview of major elements of Total quality j q yOrganisational infrastructure

• LeadershipAll d t t l lit l d hi h– All mgrs need to create clear quality values and high expectations and then build these into the operation strategiesstrategies

– Senior mgt personnel must regularly and personally get involved in Quality---- planning reviewing perf--get involved in Quality planning, reviewing perfserving on quality teams, interacting with customers, rewarding employees for quality achievement g p y q y

– Above will create systems and methods to achieve excellence

– So they must be role models and place quality very high on all meeting agendas

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ContdContd-----

• Strategic planningAchieving Quality is a means to market leadership– Achieving Quality is a means to market leadership and long term survival of coMgt must address long term issues– Mgt must address long term issues

• Who are our customers• What is our missionWhat is our mission• What principles do we value• What are our short term and long term goals• How do we achieve these goalsStrategic planning drives the qualty impovement throughout the

orgn it helps in anticipating changes and allocating resourcesorgn.it helps in anticipating changes and allocating resources accordingly

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ContdContd--------

• Human resource mgtMeeting the company’s quality an perf goals needs– Meeting the company s quality an perf goals needs committed, trained and involved work force

• Involves education training reward and• Involves education, training, reward and recognition to motivate

• Taking care of safety health etc• Taking care of safety, health etc• Aligning the entire co human resource towards

customer satisfactioncustomer satisfaction• Challenges of extreme competition and change in

work culturework culture

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ContdContd----

• Process mgtf– Involves design and control of conversion activities

– Well designed processes lead to better quality products

– Strong emphasis on preventiong– Developing good suppliers– Good internal relationshipsGood internal relationships

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ContdContd---• Data and info mgt

– Many types of data and info needed for quality– Many types of data and info needed for quality assessment and improvement

• Customer needs• Product and service perf• Operation perf• Market assessments• Competitive comparisons

S li f• Supplier perf• Employee perf• Cost and financial perfCost and financial perf

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TQM demandsTQM demands• New style of managing and new skill sets

– Think in terms of systemsy– Define customer reqmts– Planning for quality improvement with each customer– Life long learning attitude– Team Building

Encouraging openness– Encouraging openness– Creating trust– Leading and participationLeading and participation– Solving problem with data– Delegating and coaching– Implementing change– CI

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Leadership and TQMLeadership and TQM

• In firms committed to TQC, various common traits are visible:traits are visible:– They create a clear strategic vision and values based on quality

which serve as a basis for business decisions a all levelswhich serve as a basis for business decisions a all levels– They set high expectations– They demonstrate personal commitment and involvement inThey demonstrate personal commitment and involvement in

quality issues– They integrate quality into daily leadership and mgt– They also integrate social values into business practicesHOW IS IT TO BE DONE

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G id li f ff ti l d hiGuidelines for effective leadership

• Give attention to both external and internal customers• Empower subordinates after mentoringEmpower subordinates after mentoring• Emphasise improvement rather than maint• Emphasise prevention rather than cureEmphasise prevention rather than cure• Encourage team work, collaboration• Train and coach rather than supervise• Train and coach rather than supervise• Learn from problems

Continually improve communications• Continually improve communications• Continually demonstrate commitment to quality

Ch li lit b i th th i• Choose suppliers on quality basis rather than price

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Q alit and orgn str ct reQuality and orgn structure

• Effectiveness of any leader will depend on the co’s orgn structure ie authoritythe co s orgn structure---ie authority, responsibility,reporting lines,perf stds.T diti l b ild t t t• Traditional cos build orgn structure to maintain status quo.

• So there will be lot of rules and regulations and more levels of hierarchy.y

• Although many diff structures exist all are variations of LINE,LINE and STAFF,MATRIXvariations of LINE,LINE and STAFF,MATRIX orgn

• In a line orgn quality dept is distinct from• In a line orgn quality dept is distinct from other deptsI li d t ff lit d t d th

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ContdContd

• In a matrix orgn ,a quality expert wd be assigned administratively to the quality dept but wd beadministratively to the quality dept but wd be attached to the functional dept for daily

i tassignments• Now-a-days with customer focus and y

heightened competition quality orgn is being structured around cross functional teamsstructured around cross functional teams dedicated to customers for fast resolution

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St t i lit tStrategic quality mgt

• This is a structured process for establishing long range quality goals at the highest levels of therange quality goals,at the highest levels of the orgn and defining the means to achieve these goalsgoals

• It comprises of quality planning control improvement all helping theplanning,control,improvement—all helping the orgn achieve its business goals of roi, profits, growthgrowth

• SQM is a process of:– Establishing quality council– Quality policies– Quality Goals– Deployment of goals to all levels—Hoshin kanri

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M t d St t i I f t f TQMMeasurement and Strategic Infom mgt for TQM

• Succesful companies recognise the need of reliable data and information in achieving TQM.

• Info is the driving force to satisfy customers thru quality excellence and improved operational competitive perf

• Cos have toCos have to– Develop a set of perf indicators that reflect internal and external

customer reqmts and the key factors that drive business.Exs cd be Customer satisfaction indices defect rates profits etcCustomer satisfaction indices,defect rates,profits etc

– Continuously benchmark for improvement– Involve all concerned in measurement,analysis and actions—Not only

quality inspectors– Data shd be reliable,accessible and visible throughout– Logical link between external indicators to internal ones.Logical link between external indicators to internal ones.– Improve data collection and analysis methods to shorten cycle

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Typical business perf measures and indicators—

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Organising for TQMg g

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RolesRoles

• Top mgt---Establishing Quality councils ,Policies, Goals Then to provide resources trainingGoals.Then to provide resources, training, stimulation to improve, rewards/recognitions

• Quality council—Group of top mgrs who develop the quality strategy, and then guide and supportq y gy, g ppEstimate major dimension of quality issues, roles and responsibilities plan for trg establishroles and responsibilities, plan for trg, establish support for teams, new measures for progress

i it ti d i f l f dreview, merit rating,design of plan for reward

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ContdContd

• Middle mgt—specific quality problems, customer supplier interactionsupplier interaction

• Work force—self control, know customer needs• Teams---quality circles, specific quality project

teams NCR resolution teamteams, NCR resolution team

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Total Emplo ee In ol ementTotal Employee Involvement

• In organising for total quality, the most imp factor is employee involvement around which the mgtis employee involvement around which the mgt sys of TQM should be based.

• 10 % is visible part of orgn---top mgt• As in an iceberg 90% is hidden---front lineAs in an iceberg 90% is hidden front line

supervisors, employees etc.To tap into their creativity and problem solving abilities Variouscreativity and problem solving abilities, Various teams need to be built

• QUALITY CIRCLES• SELF-MANAGED TEAMS• SELF-MANAGED TEAMS• CROSS-FUNCTIONAL TEAMS 243

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Q alit CirclesQuality Circles• A Quality Circle is a group of employees that

voluntarily meets at scheduled intervals tovoluntarily meets at scheduled intervals to identify problems and formulate solutions to present them to mgt with suggestions forpresent them to mgt with suggestions for implementation.

• It is called a Small group activity Started first in• It is called a Small group activity.Started first in Japan and these have now become a strategic global phenomenonglobal phenomenon

• Generally the group members are from a ifi f ti it Th dd l lspecific area of activity.They address local

Quality and any other improvement issues in a h di lmethodical manner.

• By doing this, they gain valuable experience in 244

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Self managed teamsSelf-managed teams

• Defined as a highly trained group of employees from 6 to 18 on anemployees ,from 6 to 18 on an average,fully responsible for turning out a

ll d i d t f fi i h d kwell-designed segment of finished work.– SMT’S are empowered to take corrective actions and

resolve day-to-day problems. They have access to info that allows them to plan ,control and improve their operations SMT’S offer a way to put thetheir operations. SMT’S offer a way to put the concepts of job enrichment and job enlargement into active operationactive operation

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Contd E amplesContd---Examples• In an electronic plant, an assly team handles all aspects

of a customer order viz., receiving order,making g gcomponents, assembling and soldering the circuit boards, testing, packing and shipping, monitoring the inv

d i ll kand processing all paper work.• At an ins co , work was organised into three areas—life,

health and support like billing Now 20 employees inhealth and support like billing. Now 20 employees in SMT perform all the 167 tasks .So the field agents have to deal with one SMT and so processing time is reducedto deal with one SMT and so processing time is reduced

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B ildi Q lit ltBuilding a Quality culture

• ‘Technology touches the head, Culture touches the heart’touches the heart

• Quality culture is defined as a pattern of y phuman habits, beliefs and behaviour

• So it provides a framework to explain “the• So it provides a framework to explain the way things are done around here”

• So a change in culture is a very imp part of improving Qualityimproving Quality

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R i t t ChResistance to Change

• Any change is resisted by people for a number of reasonsreasons– Will affect their usual way of working and also mean

more workmore work– May lose control over things

U t i h th th t th ’– Uncertain whether they can come upto other’s expectation

– Past resentment towards mgt– TQM will fade away if ignored– Attitude of “First you change ,then I will”

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Wh t tl h t h ?What exactly has to change?

• Many cos are not geared for TQM—both reg technology and human skillstechnology and human skills

• Poor lay-out, Shabby work-place, Uncared service facility,Poor lighting ,Poor product quality, Mgt behaviour erratic and depends on q y, g psituation and is short-term based. Ends are much more imp than meansmuch more imp than means.

• HOW DO WE CHANGE THIS TO TQM• This is known as change mgt

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ContdContd• Mgt must repeatedly stress customers delight as

the goal-----Each issue should be seen as anthe goal Each issue should be seen as an opportunity for improvement.– Start with spreading info about present level of quality This infoStart with spreading info about present level of quality. This info

has to be given in appropriate terms/combination of money +products ,to the different levelsM t t li d b th lit Th t t t ll ti i t i– Mgtmust live and breathe quality. They must totally participate in Quality issues and help in Setting up quality councils, policies ,Goals, resources, Training,participate in teams,Encourage improvement

– Most important is Internal customer ie Each person is a supplier processor and customersupplier,processor and customer

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ContdContd--• Mgt must provide feedback reg perf and stds.• Job design,must encourage that there is self-control andJob design,must encourage that there is self control and

give more and more responsibility and authority to front line employees .THIS IS CALLED OWNERSHIP CONCEPT.

• Obviously reward and recognition must match above desired behaviour.

• Remove orgn boundaries and reward TEAMS.• Always insist on Fact-based decision making• Customer contacts, visits.• KAIZEN Concepts

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D l i Q lit ltDeveloping a Quality culture• Organisational culture is the pattern of shared beliefs

that provides the members of the orgn rules of behaviour t d f d ti tior accepted norms for conducting operations

• In simple words , culture provides a framework to explain the way things are done around herethe way things are done around here

• A Change in culture is VITAL for improving quality• IBM says---respect for individual best customer serviceIBM says respect for individual, best customer service,

pursuit of exllence—These become core guidelines in planning, decision making etc.

• Very vital reg issues relating to quality. Employees generally think differently than mgrs.So to improve quality core value like COMMITMENT TO QUALITYquality, core value like COMMITMENT TO QUALITY has to be embedded in the orgn

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Creating and maintaining awareness of g gquality

• Create and spread info about quality– Top mgt----moneyp g y– Middle mgt—Money and product– Front line-----Products/job securityMaintaining awareness

Sustain the msg of quality thru reinforcement which can be done by measurementby measurementQuality measurement must be done for all major functions—Product dev, Purchase, Manu, Customer service etcQuality news letter, Quality items first on all meeting agendas, announcement reg quality by TOP mgt, company conferences on quality etcon quality etc

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P idi id f t l d hiProviding evidence of mgt leadership

• Top mgt must spend time on the activities connected to qualityconnected to quality

• Must not make decisions which vary from the stated commitment to quality

• Must provide vision set clear stds and goalsMust provide vision, set clear stds and goals, enable and let employees do their job, give feedback with rewardsfeedback with rewards.

• Be persistent even when faced with failures

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P ti i ti i i tiParticipation as an inspiration

• Personal participation in quality activities gives more knowledge helps them to see benefits ofmore knowledge, helps them to see benefits of quality disciplines and a sense of

li h t b l i bl d thaccomplishment by solving problems and then a change in attitude and behaviour

• Recognition and rewards are vital in people getting positive feelings on quality—getting positive feelings on qualityappreciation, modest token awards, deputation to trg/seminars bonus holidays etcto trg/seminars, bonus, holidays etc

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Change mgtChange mgt

• For orgns committed to TQM, change is a f lifway of life.

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Strategic Quality Mgt(f id )(few more ideas)

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DefinitionDefinition

• Outline of a strategic planning process for TQM can be expressed as:be expressed as:

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Val es Vision MissionValues,Vision,Mission• Values

– Basic beliefs of Co—Excellence Integrity TeamworkBasic beliefs of Co Excellence,Integrity,Teamwork etc

• Vision– Dream of the future—ex: We want to offer world class

goods by anticipating and exceeding expectations• Mission

– Purpose of business—To participate in economic development of country by contributing to making competitive Auto components in line with global stds of performance and environment impactof performance and environment impact

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More detailsMore details

• Strategic Goalsf f– Targets to be achieved to fulfill vision—ex-Total

customer satisfaction,Industry leadership,cost titi t t ti f icompetitiveness etc—qty+time frame imp

• Leadership– This is the driver of the strategic plan.It brings togeher

People,Processes and Resources in a co.Must be in p ,constant touch with ALL stakeholders.Must be deeply involved in development of workforce,setting and p gmonitoring targets,recognising,rewarding and building a new Quality culture

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ContdContd

• Critical success factors +Key business processes Leversprocesses—Levers

• Four Principles Recap– Customer focus– Customer focus– Strategic planning and leadership

CI &L i– CI &Learning– Empowerment and Teamwork

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Cultural changes needed to gachieve success of four principles

• Culture of communication within the organisation– Clear view of NEED and ROLES.Very important.Should not

l f t bl /t bl igloss over uncomfortable/troublesome issues.• ‘Customer first’ attitude

– Each person shd know and commit to fulfill what the next-in-Each person shd know and commit to fulfill what the next inprocess-customer wants---- is a big attitudinal change

• Transparency– Decisions must be based on Values,vision and customer

expectations.Mgts motives,ethics or practices should not be against spoken norms.This will ensure credibility and thus

ti timotivation• Empowerment of people [Trg+encouragemen+trust]• Continuous improvement +learning [Routine+improve]• Continuous improvement +learning [Routine+improve]• Customer focussed horizontal process

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Strateg for gro thStrategy for growth

• Strategy can be defined as– ‘a set of major policies (plans of action) to

cope with market and competition to ensure p pthe organisation’s future success.Made up of:GOALS– GOALS

– POLICIES– ACTIONS

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ContdContd• Earlier Cost and Product differentiation were

major strategies With TOTAL QUALITY whichmajor strategies. With TOTAL QUALITY which has delivered lower cost,value addition,product quality superiority Quality of people customerquality ,superiority, Quality of people,customer retention,employee satisfaction and corporate image issue TQ deserves to be a very importantimage issue,TQ deserves to be a very important STRATEGY for growth.

• Also TQM has the three elements of• Also TQM has the three elements of STRATEGY and when pursued not only addresses Q C D but also strengthensaddresses Q,C,D but also strengthens organisation culture,attitude,and orientation These traits are important to buildorientation.These traits are important to build internal capability to meet adverse circumstances in business in the future See the

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ContdContd• There are many examples of cos like TISCO, TVS,

MOTOROLA, XEROX,TOYOTA which use TQ as aMOTOROLA, XEROX,TOYOTA which use TQ as a ‘conditioning’ strategy for the internal health of the organisation to ATEMPT BIGGER CHANGES.g

• TQM is about managing in a changed context----To become responsive flexible nimblebecome responsive,flexible,nimble.

• Merely managing well is not TQM.So issues of transformation that need to be addressed are:need to be addressed are:– Pro-active and outstanding leadership---Inspirational– Strong customer orientation and market focus—Internal and g

external customer concept– Thrust and Trust in people---Involvement and people

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ContdContd– Continuous learning and improvement as a new way

of life---Belief of Always a better way is there.y y– Mgt by facts and data---Information and analysis is a

key issue for setting and measuring goals– Process of strategic planning---Key customer and

business issues improvement– Customer-supplier relationship---Win-Win relation

• ALL SHOULD BE INTEGRATED COLLECTIVELY• REFER MALCOLM BALDRIDGE SLIDE

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g ( yperspective)

Customer and market focussedStrategy and action plansStrategy and action plans

2Strategic planning

5HR Focus

1leadership

7Business

resultsleadership3

Customerfocus

6Process mgt

results

focus g

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St t d i ti f TQMStructure and organisation for TQM

• Functional structure is the traditional structure. This is bureaucratic and slows down actions at interface.No onebureaucratic and slows down actions at interface.No onesingle function has control over the whole process of design to delivery g y

• With emergence of customer power,alternate structures were looked at that would allow smooth flow of activitieswere looked at that would allow smooth flow of activities relating to delivery and service.

• Customer call centres cost reduction teams etc were the• Customer call centres,cost reduction teams etc were the beginning and so regular activities +special activities spread throughout the orgn These had to be aligned forspread throughout the orgn.These had to be aligned for ONE result and should not cancel each other.

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ContdContd

• So Process approach (cft);Internal customer concept Flatter organisaions were the resultconcept,Flatter organisaions were the result

• However companies prefer to maintain the functional structure and superimpose a cross-functional process focusssed structure(matrix)p ( )

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Horizontal customer-focussed process

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Horizontal customer focussed process

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ContdContd• To make this work TQM needs a organisational structure

within the company.this is now standard an is made upwithin the company.this is now standard an is made up of– Apex quality councilApex quality council– Quality council

Q lit b il– Quality sub-council– Quality co-ordinator

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S mmar and Concl sionsSummary and Conclusions

• The following concepts have been introducedintroduced– The need for building an ownership culture

l hi TQMamong employees to achieve TQM– Need for a Supportive and mentoring style of pp g y

leadership to enable participation and empowermentp

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Session 5Session 5

Quality Gurus -- their Influence and Contribution

Excellence AwardsModels for TQMModels for TQM

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4 1 S i Obj ti4.1 Session Objectives4.1 Session Objectives

– At the end of this session the student would have– At the end of this session the student would have understood

• The quality movement over a period of time• The quality movement over a period of time• The various persons and institutions who/which

d l d k i th J t E ll imade land mark in the Journey to Excellence in Quality.Th i t ib ti t Q lit• Their contributions to Quality

• Awards of Excellence in Quality

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Session TopicsSession Topics

• Quality Gurus and their teachings• Excellence awards and their details• Generic TQM Model• Generic TQM Model

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Q lit t hil hiQuality management philosophies

*Quality philosophies,----Gurus Q y p p ,*Deming philosophies, Deming cycle, Deming’s 14 points,14 points, *Juran philosophy, quality trilogy & universal break through sequence,break through sequence, *Steps for quality improvement, *Philips Crosby’s tenets, quality is free,Philips Crosby s tenets, quality is free, absolutes of quality, 14 steps for quality improvement,improvement, *Taguchi’s quality loss functions, *Feigenbaum’s philosophyFeigenbaum s philosophy

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Who is a q alit G r ?Who is a quality Guru?• If Quality is important ,so are the people who propound it• Quality is motivational; and concerns all of usQuality is motivational; and concerns all of us• A guru is a path-breaker---a good, wise ,teacher who

should be charismatic, and whose approach to quality in , pp q ybusiness and life ,has made a lasting impact

• Gurus have given us Philosophies and Toolsg p• Early Americans

– W.Edwards DemingW.Edwards Deming– Joseph.M.Juran– Armand V FiegenbaumArmand V Fiegenbaum– Walter Shewart

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Con tdCon td• The Japanese

– Dr Kaoru Ishikawa– Dr Genichi Taguchi– Shigeo Shingo– Taichi Ohno– Masaki-Imai

• The New Western Wave– Philip Crosby– Tom Peters– Claus Moller

G ld t E– Goldrat.E

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G r s and TQMGurus and TQM

• When considering introduction of TQM into an organisation it is advisable to take note of theorganisation it is advisable to take note of the unique messages of all Quality Gurus.

• Between them they have influenced most areas of TQM

• A Seven point summary is given in next slide

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Se en point s mmarSeven point summary• Management commitment and employee awareness are essential

from the early stages for implementing TQM.Deming’s philosophy, Peters Top twelve traits Crosby’s zero defects are possibly the mostPeters Top twelve traits, Crosby’s zero defects are possibly the most useful for encouraging such attitudes

• Awareness must be backed by figures.Cost of quality measurement y g q yby Juran and crosby are relevant here

• TQM programs employ team work to facilitate improved communication and problem solving CFT’S Quality circlescommunication and problem solving.CFT S,Quality circles advocated by Ishikawa, Peters etc are useful

• Simple tools for problem solving are to be used by all employees—Ishikawa advocated this

• Culture of Continuous Improvement must be fostered in all areas as taught by Imaitaught by Imai

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ContdContd• Tools also include methods to reduce prototyping and

introduction of JIT as advocated by Taguchi and Shingointroduction of JIT as advocated by Taguchi and Shingo• Management tools should be studied to achieve

quality Crosby’s zero defect program CWQC and TQCquality.Crosby s zero defect program, CWQC and TQC by ishikawa and Feigenbaum are needed

• We need to move from inspection culture to• We need to move from inspection culture to prevention.This will need to understand internal and external customers This customer focus is stronglyexternal customers.This customer focus is strongly emphasized by Juran, Crosby and Peters,Deming

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Q lit Phil hiQuality Philosophies

• We will read about Quality Gurus who led the QM revolutionrevolution

• We refer to:Dr W Edward Deming– Dr W. Edward Deming

– Dr Joseph Juran– Philip B.Crosby– Ishikawa– Taguchi– FeigenbaumFeigenbaum

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Dr Ed ard DemingDr Edward Deming• Has had maximum influence on QM. Was awarded by

the emperor of japan for the dev of quality in japanp j p q y j p• Thousands of Japanese mgrs attended Deming’s

courses in SPC .• He made the initial insight that a firm could never inspect

quality into a product. A good quality is due to good ffdesign and effective prodn methods.

• Five major contributions are:F t i t f t– Fourteen points for mgt

– Seven deadly diseases and sins– PDCAPDCA– Triangle– Chain reaction

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Ch i R tiChain Reaction

• Deming chain reaction is given below:Improve qualityImprove quality

Costs decrease due to less reworkFewer mistakes,delays,snagsResulting in better utilisation

Of time and materialsOf time and materials

Productivity UP

Capture more market with Better quality and priceq y p

Stay in business

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D i ’ 14 i t f tDeming’s 14 points for mgt

• Deming summarised his views on mgt and its relationship with quality in his 14 points for mgt:– 1)Create constancy of purpose for CI of product and service– 2)Adopt the new philosophy for economic stability

3)Cease dependency on inspn to achieve quality– 3)Cease dependency on inspn to achieve quality– 4)End the practice of awarding business on price tag alone.

Reduce no of vendors for better control and consistency– 5)Improve constantly the system of prodn and

service(Differentiate between faults due to mgt and systems and Workers )Workers )

– 6)Institute training on the job– 7)Adopt modern methods of supervision and leadership) p p p

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ContdContd-----– 8)Drive out fear– 9)Breakdown barriers between departments9)Breakdown barriers between departments– 10)Eliminate use of slogans, posters– 11)Eliminate work stds and numerical quotas See11)Eliminate work stds and numerical quotas– 12)Remove barriers that rob hrly workers of the right

to pride in workmanship

Seehandout

to pride in workmanship.• !3) Institute a vigorous program of education and

retraining (Statistical methods,new skills)retraining (Statistical methods,new skills)• 14)Define top mgts permanent commitment to ever-

improving quality and productivity.p g q y p y

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Deming’s Triangleg gRepresents the AXIOMS OF TQM CULTURE

• Axiom=PrincipleMgt commitmentgTo improvement

Points 1,2,14commitment

involvement Scientificknowledge

ImproveInterrelationships

Points 4,7,8,9,10,11,12

ApplyStatistical

MethodologyPoints 3,5,6,13, , ,

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S d dl iSeven deadly sins

• Deming listed ‘Seven deadly’ sins that obstruct the quest for qualitythe quest for quality– Lack of constancy of purpose– Emphasis on short-term profits– Over reliance on perf appraisals– Mobility of mgt– Overemphasis on visible figuresOveremphasis on visible figures– Excessive costs of warranty

E i di l t– Excessive medical costs

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S mmar of DemingSummary of Deming• Main strengths are

Mgt comes before technology– Mgt comes before technology– Leadership and motivation are very important– Strong on statistical and quantitative methods

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D i P iDeming Prize

• Recognising Deming’s imp effect on perf of japanese firms,the japanese govt instituted the Deming prize in j p g g p1951.This annual award recognises a co or individual for active contributions to the dev of QM tools or to the

d d i l t ti f lit i tspread and implementation of quality improvement prpgrams.JUSE awards this prize based on perf improvements achieved by a co thru route of TQCimprovements achieved by a co thru route of TQC

• The checklist addresses issues like:– Policies– The orgn and its operations– Education and dissemination– Information gathering, communication and it utilisationg g,

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ContdContd---• Analysis• Standardisation• Standardisation• Control systems

Q lit A• Quality Assurance• Effects• Future plans

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J Phil hJuran Philosophy

• After Deming,Dr Joseph Juran has had the greatest impact on the theory and practice of QM.Juran alsoimpact on the theory and practice of QM.Juran also taught quality principles to japanese in 1950 and was a principal force in their quality reorgn.p p q y g

• Juran’s contribution was on four themes:Compelling definition of quality and the cost of quality– Compelling definition of quality and the cost of quality

– Quality habit– Quality trilogy– Universal breakthrough sequence

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ContdContd----• Quality defined --as fitness for use made up of five product traits—

quality of design, quality of conformance, availability, safety, field useuse

• Concept of cost of quality---Prevention costs, Appraisal costs, Failure costs

• Quality habit---Establish goals, plans, assign clear responsibility, link rewards to results. So that focus on quality should become second nature or HABITnature or HABIT

• Quality trilogy----Quality planning, control, improvement are the three requirements for successful TQM

• Universal breakthrough seq---identifies a set of actions directed towards achieving major leaps in quality

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4.2.3 Joseph M. JuranJuranJuran’s Triology of Quality Management

Q lit Pl i Q lit C t l Q litQuality Planning Quality Control Quality Improvement

Determine who the customers are

Evaluate actual product performance

Establish the infrastructure

Determine the needs of Compare actual Identify the improvementDetermine the needs of the customer

Compare actual performance to Product Goals

Identify the improvement projects

Develop product features that respond to customer’s needs

Act on the difference Establish project teams

Develop processes able to produce the product f t

Provide the teams with resources: training and

ti ti tfeatures motivation to:Transfer the plans to the operating forces

Diagnose the causes, Stimulate remediesthe operating forces Stimulate remedies. Establish controls to hold the gains

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J ran’s Breakthro gh seq enceJuran’s Breakthrough sequence

• To reach and maintain minimum cost of lit j d th dquality,juran proposed a three pronged

approachpp– Breakthrough projects

C t l– Control sequence– Annual quality programmesq y p g

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C b Phil hCrosby Philosophy

• Philip Crosby contribute three ideas to TQM:– Absolutes of quality mgtq y g– 14 Steps for quality improvement– Quality vaccine– His 6C’s

Absolutes of Quality Mgt:Quality is defined as conformance to reqmtsThe system for achieving quality is preventionThe system for achieving quality is prevention ,not appraisal.The perf std is Zero defect, not “that is” close p ,enoughThe measurement of quality is the price of non-q y pconformances and not some indexes 297

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ContdContd--

• The Absolutes include the foll points:Crosby recognizes only one sensible definition of– Crosby recognizes only one sensible definition of quality based on exactly what the customer wants. So it is a very vital starting point for everybody in theit is a very vital starting point for everybody in the company understands these reqmts and that they are provided with tools o achieve these reqmts.

– Quality problems originate in the functional dept ,not in the quality dept.

– Crosby says quality is free. what really costs money are all actions that involve not doing the job right the fi t tifirst time.

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ContdContd---– Most cos spend 15% of their sales on quality

costs.This must be reducedcosts.This must be reduced– Quality systems encourage prevention,as the

beginning is an evaluation of current processesbeginning is an evaluation of current processes – Crosby says that zero defect is not a slogan.There

must be a continuous effort to define produce andmust be a continuous effort to define,produce and deliver products that eliminates any possible defects.

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14 St f C b Q lit M t14 Steps of Crosby---Quality Mgt• Management commitment• Quality mgt team• Cost of quality• Quality awareness

C ti ti• Corrective action• Zero defect planning• Supervisor planning

See handout• Supervisor planning• Zero defects day• Goal settingg• Error cause removal• Recognition• Quality councils• Do it all over again

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Mgt Mat rit grid on q alitMgt Maturity grid on quality

• This is very useful in understanding the C iti lit ttit d ORCos position reg quality attitude OR FIRM’S CURRENT QUALITY CULTURE

• The five states of quality awareness and quality culture are:are:– UNCERTAINITY– AWAKENINGAWAKENING– ENLIGHTENMENT– WISDOM– CERTAINITY

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Q alit VaccineQuality Vaccine• Quality vaccine describes a corporate QM regimen that improves

the overall health of the firm and corrects many of its pressing problemsproblems.

• Three major components of the quality vaccine are:– Integrity----honest attempt to eliminate bureaucracy improve perfIntegrity honest attempt to eliminate bureaucracy,improve perf

and satisfy customers– Communications—internal and external.regular exchange of info

b t lit bl f lit h’about quality problems ,performances on quality ch’s,progress towards quality goals and opportunities for quality improvement

– Systems and operations---designed to maintain the firm’s newSystems and operations designed to maintain the firm s new quality env are vital

DETERMINATION EDUCATION IMPLEMENTATION BASIS OFDETERMINATION,EDUCATION,IMPLEMENTATION---BASIS OF CROSBY PHILOSOPHY.

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Crosb ’s 6 C’sCrosby’s 6 C’s

• Comprehension• Commitment• Competence• Competence• Correction• Communication• Continuance

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Masaaki Imai and TQMMasaaki Imai and TQM• Brought together various philosophies,tools etc into a

single concept called KAIZENg p• Kaizen is a japanese name of a formal sys to promote

CI

• CI begins with the notion that an orgn can assure it’s g glong term survival and success only when every member actively pursues opportunities to identify and implement i t dimprovements, everyday.

• Improvements wd be,by and large incremental and so d not req ire great in estmentswd not require great investments.

• Every day in every way, we are getting better

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Kai en ContdKaizen Contd-----

• Kaizen recommends for it’s success– A process view of the system– Based on people’s knowledgeBased on people s knowledge– Constant sense of urgency and feel a need to

i i tlimprove incessantly.

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A V Fiegenba m and TQMA.V.Fiegenbaum and TQM

• Originated concept of TQC 9 M’S ?H i d Q lit t l t b d l• He viewed Quality as a tool to be used as a long term strategic weapon for competing in business

• His three steps to quality are– Quality leadership– Quality leadership– Modern quality technology

O i ti l it t– Organisational commitmentAbove formed basis for CWQC movement in japan

which was the forerunner of TQM and many Awards

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ContdContd

• Key elements---TQC is a sys to integrate quality dev maintenance– TQC is a sys to integrate quality dev,maintenance and improvement efforts in an orgn which will enable Engg,marketing,prodn,and service to function atEngg,marketing,prodn,and service to function at optimum economic levels while achieving customer satisfaction

– Control aspect should involve setting quality stds, appraising perf relative to above, taking corrective action,and planning for improvement of stds

– Quality is affected by both technological and human f tfactors

– It is very imp to control quality at source

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Kaor Ishika a and TQMKaoru Ishikawa and TQM• He was the person who developed the cause

and effect charts or fish-bone diagramsand effect charts or fish bone diagrams.• He was also in the forefront of japanese quality

strategy in later yearsstrategy in later years• He emphasised quality as a way of mgt and

i fl d th d f ti i ti b tinfluenced the dev of participative,botom-up view of quality,which became the trade mark of th j h t lit t Hthe japanese approach to quality mgt.He was responsible for initial deploymentof quality i lcircles.

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ContdContd----

• Some key elements----Quality begins with education– Quality begins with education

– First step is to know your customers requirementsId l t t f lit t l h i ti i– Ideal state of quality control occurs when inspection is no longer necessaryRemove the root cause not the symptoms– Remove the root cause ,not the symptoms

– Put quality first and set ur sights on long term profitT t t t h h f t / bl– Top mgt must not show anger when facts/problems are presented95% of problems in a compan can be sol ed b– 95% of problems in a company can be solved by simple tools

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Shigeo Shingo and TQMShigeo Shingo and TQM• He realised that statistical methods detect errors

too late in the manu process What is needed istoo late in the manu process.What is needed is to identify errors as they happen and to deal with them right awaythem right away

• This is termed as poka-yoke or fool proofing (error proofing)proofing.(error proofing)

• The processes must be so designed that they k th d i d lt i it blmake the desired result inevitable

• Round manhole covers, bevelled diskettes, car wont start till seat belt is tightened, pen drive cannot be inserted reverse etc

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Dr She art and TQMDr Shewart and TQM• He was a mathematician at bell laboratories, specialising

in statistics.• He found that variability associated with manufactured

component dimensions followed a ‘normal distbn’• He discovered that ‘chance’ and ‘assignable’ causes

determined the shape of this curve.• He developed a simple tool called control chart to

understand these variations and control the process• Thinking statistically is a basic part of the TQM

philosophy.Much of the challenge in CI is to control the process b statistical methods b detecting thethe process by statistical methods by detecting the assignable cause of variation and eliminating these

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ContdContd----

• Advantages of SPC are---– It places responsibilty and gives gives help for

quality improvement in the hands of the q y pworkerIt is therefore a great prevention tool– It is therefore a great prevention tool

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Tag chi and TQMTaguchi and TQM• He said that it is very imp to look at design stage and

design quality into the product/processdesign quality into the product/process• One method of doing this is to experiment on variables

that contribute to a product’s perf This is calledthat contribute to a product s perf. This is called DOE.This is based on statistics to minimise the number of experimentsof experiments

• He also believed that design should be ROBUST –ie withstand the hard-to-eliminate variabilities that occur inwithstand the hard-to-eliminate variabilities that occur in the conversion process or in customer use

• He called this approach as ’Quality engineering as it• He called this approach as Quality engineering as it helps to design quality into product and process.

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Q alit Loss f nctionQuality Loss function• Taguchi’s loss function estimates loss to societynfrom

the failure of a product to meet it’s target value for a p gparticular perf ch .

• This is shared both by consumers ,producers an society at large.

• Consumers incur loss due to shorter product life, increased maint etc, producers incur loss due to scrap, warranty,damage to reputation,loss in mkt share etc, society due to safety and pollution issuessociety due to safety and pollution issues

• Mathematically---L=(X-T)2

L Total loss C constant X a al e T target al e• L=Total loss,C=constant, X=av value, T=target value

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Tag chi’s se en pointsTaguchi’s seven points• Product quality is measured by total loss to society• Continuous quality improvement and cost redn are necessary to q y p y

survive in world competition• Quality improvement means continuous redn of variation in product

perf around the nominal value• Quality loss is proportional to square of deviation of perf from

nominal valuenominal value• Product and process design are vital for product design an cost• Perf variation can be reduced by suitable adjustment to product• Perf variation can be reduced by suitable adjustment to product

and process` parameters• The above setting of parameters can be identified by g p y

statistically designed experiments

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O er ie of q alit philosophiesOverview of quality philosophies

o There are two main factors of all quality hil hiphilosophies

o Technical Needso Technical Needs o Human dimension of quality mgt

• Technical needs are met by statistical and quantitative• Technical needs are met by statistical and quantitative methods. They cover technical needs right from design to inspn of final product

• Human needs are not so widely addressed except Quality circles.

• We now use job enrichment and suggestion schemes also

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List of A ardsList of Awards

• Malcolm Baldridge award• Deming award• RGNQA• RGNQA• CII-NQAQ• EFQM

319

PEMP EMM502

Malcolm Balridge a ardMalcolm Balridge award

• Established by US congress in 1987P f th d• Purpose of the award are:– Help stimulate American cos to attain excellence in

quality and productivity for the pride and to obtain a competitive edge

– Recognise the achievements of outstanding cos that improve the quality of their goods and services and disseminate the experience of these firms to teach others about quality and its impact on perf.

320

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ContdContd• Establish guidelines that can be used to evaluate

quality improvement efforts q y pGather info from award winners about how to manage for superior quality by changing corporate cultures

d id ifi id li f thand provide specific guidelines for others• Above objectives are to support two result-

foriented goals: Delivery of ever improving value to customers and improvement of overall corporate perf

• Details of criteria for the award are shown in next slide

321

PEMP EMM502

Criteria for malcolm baldrige award• Leadership 110

– Leadership system 80– Co responsibility and citizenship 30

• Strategic planning 80– Strategy dev process 40gy p– Co strategy 40

• Customer and market focus 80Customer and market focus 80– Customer and mkt knowledge 40

Cust sat and relationship enhancement 40– Cust sat and relationship enhancement 40• Information and analysis 80

– Selection of info and data 25– Selection and use of comparative info 15– Analysis and review of co perf 40 322

PEMP EMM502

contd• Human resource focus 100

– Work systems 40– Work systems 40– Employee education,trg 30– Employee well being and sat 30Employee well being and sat 30

• Process mgt 100– Mgt of product and service processes 60– Mgt of product and service processes 60– Mgt of support processes 20– Mgt and support of supplier process 20Mgt and support of supplier process 20

• Business results 450– Customer sat results 125– Customer sat results 125– Financial and mkt results 125– Human resource results 50Human resource results 50– supplier and partner results 25– Co—specific results 125Co specific results 125

• TOTAL 1000323

PEMP EMM502

Se en categories form a s stemSeven categories form a system• Leadership, strategic planning, and customer

and market focus represent the“leadership triad”and market focus represent the leadership triadand suggest the importance of integrating these three functionsthree functions.

• Human resource focus and process mgt t h th k i i d drepresent how the work in an orgn is done and

leads to business results. These fns are linked to th l d hi t i dthe leadership triad

• Information and analysis supports the entire y ppframework by providing the foundation for perf assessment and mgt by factsg y

324

Baldrige criteria (system PEMP EMM502

g ( yperspective)

Customer and market focussedStrategy and action plansStrategy and action plans

2Strategic planning

5HR Focus

1leadership

7Business

resultsleadership3

Customerfocus

6Process mgt

results

focus g

44Information and analysis 325

PEMP EMM502

E al ation processEvaluation process• It is very rigorous• Each application is reviewed by 15 examiners chosen from among

leading quality professionals. Each item is evaluated on approach, deployment, results

• The entire review and evaluation process is driven by the follThe entire review and evaluation process is driven by the foll fundamental beliefs about TQM

• Customers define quality• Senior corporate leaders must create clear quality values and

build them into company operations• Excellent quality evolves from well-designed and well• Excellent quality evolves from well-designed and well

executed systems and processes• Firms must integrate CI into daily mgt of all systems and

processes

326

PEMP EMM502

ContdContd• Cos must develop detailed goals and strategic and

operational plans to achieve quality leadershipp p q y p• Time based competition is vital• Operation and decisions of co must be based on p

facts• All employees must be appropriately trained, p y pp p y ,

developed and involved in quality improvement activities

• Quality systems must emphasise design quality and error prevention as key elements

• Cos must develop their suppliers on similar lines

327

PEMP EMM502

List of companies who have won pthe award

• TVS• LUCAS TVS• M&M• M&M• BRAKES INDIA• SUNDARAM CLAYTON• SONA-KOYO

RANE GROUP• RANE GROUP

328

PEMP EMM502

European quality awardEuropean quality awardInstituted by European foundation for quality mgt(EFQM)

• This was designed to increase awareness throughout Europe of the growing importance ofthroughout Europe ,of the growing importance of quality to their competitiveness in the global mkt.

• The enablers and results are shown in the next• The enablers and results are shown in the next slideSi il d• Similar awards are– Canadian award for business excellence– Australian quality awardEverywhere the holistic and interconnected nature

of the mgt process is highlighted

329

E ropean q alit a ardPEMP EMM502

European quality award

LE

PeopleMgt

PR

PeopleSatisfaction

9 % BUE

ADE Policy and

Mgt9% O

CE Customer

USI

ERS

Policy andStrategy

8%SSE

CustomerSat20%

NES

HIP

Resources9%

ES

14%Impact

On

SS

Results15%

10%9% 14% On

Society6%

15%

Results—50%Enablers 50%330

PEMP EMM502

CII-EXIM Award for business excellence

• The nine categories are sequenced to show that all actions of an orgn must lead to exllence inall actions of an orgn must lead to exllence in orgn results:– Leadership– Leadership– Policy and strategy

People mgt– People mgt– Resources

P– Processes– Customer results

P l l– People results– Society results– Key perf results 331

PEMP EMM502

CriticismCriticism

• Companies need at least four years to persuade employees to buy into the quality philosophy andemployees to buy into the quality philosophy and eight years to fully establish a quality culture.

• SO IF ANY TQM EFFORT FAILS IT IS LARGELY DUE TO ORGANISATIONAL APPROACHES AND MGT SYSTEMS ISSUES AND NOT THE RELEVANCE OF THEAND NOT THE RELEVANCE OF THE CONCEPT

332

PEMP EMM502

A Generic TQM model for Excellence

• To achieve excellence, companies must develop a corporate culture of treating people as their most imp p g p p passet and provide a consistent level of high quality products .relation with customers and role of quality is

i i h f llvery imp in search for excellence• TQM needs changes in people, technology and structure

Q• In order to have a systematic approach to TQM ,it is necessary to develop a conceptual model.A model is a sequence of steps arranged logically to serve as asequence of steps arranged logically to serve as a guideline for implementation of a process in order to achieve the ultimate goalachieve the ultimate goal

• TQMEX IS A TQM PLUS` EXCELLENCE MODEL

333

PEMP EMM502

Objecti es of e cellenceObjectives of excellence• Profits• Recession proof

M i t i t fid• Maintain customer confidence• Maintain corporate vitality• To develop a good reputationTo develop a good reputation• To use employees creative energies• To lower costs

T t i l t h d t k• To retain employees, to have good team work• To increase productivity• To contribute to societyTo contribute to society• To have a clear vision of the orgn• To improve technology

T l bl ff ti l• To solve problems effectively• To increase competitiveness

334

PEMP EMM502

ContdContd

• The three requisites of TQMEX are:• The ten commandments –• Four pillars• Four pillars• Four “C”s

335

Ten commandments and 4 pillars

• Approach—mgt lead• Method—prevention

• Satisfying customersreqmts+implied needsMethod prevention

• Objective—total cust sat• Measure---COQ

reqmts+implied needs• Systems/processeslik t 16949Measure---COQ

• Standard—right first time• Scope ownership commit

like ts 16949 • People

• Scope-ownership,commit• Theme----CI

Ability trg education

mgt commitment, trg, teamwork,leadership,moti

• Ability---trg,education• Communication—co-

op team work

vatin,empowerment• Improvement tools

op,team work• Reward—

recognition priderecognition,pride336

PEMP EMM502

Fo r CsFour Cs

• Commitment---decisive personal and organisational choice to follow on anorganisational choice to follow on an agreed-upon plan of action

• Competence—skills, education, judgement, problem solving ability,judgement, problem solving ability, responsible attitudeC i ti t l• Communication—mutual understanding.clear goal conveyingg g y g

• Continuous improvement337

PEMP EMM502

HRD and Mgt for TQMHRD and Mgt for TQM• HRM seeks to build and maintain an environment for

quality excellence to better enable the workforce toquality excellence to better enable the workforce to achieve the cos quality and operational perf objectives

• All mgrs (being responsible for quality) need to coachAll mgrs (being responsible for quality) need to coach, mentor, train,motivate,recognise their employees if quality culture has to be built Even if a HR dep is therequality culture has to be built. Even if a HR dep is there all managers must embrace the new HRM practices

• Excellent cos have revolutionized all their HR policies• Excellent cos have revolutionized all their HR policies and procedures

• New paradigm of HR SEE THE NEXT SLIDE• New paradigm of HR----SEE THE NEXT SLIDE

338

204PEMP EMM502

--204

339

PEMP EMM502

Designing high perf ork teamsDesigning high perf work teams• Work design• Employee involvement• Employee involvement• Suggestion systems• Empowerment• Training and EducationTraining and Education• Team work and co-operation

D l i f l t• Developing successful teams– Overcoming resistance to change– Compensation and recognition

340PEMP EMM502

PEMP EMM502

ContdContd

• Health, safety and employee support servicesservices

• Recruitment and career developmentp• Labour relation issues

M ti ti• Motivation• Performance appraisalPerformance appraisal• Measuring employee satisfaction and

HRM ff tiHRM effectiveness

341

PEMP EMM502Kaizen—Continuous Improvement

342

343

344

345

346

347

PEMP EMM502

What to impro eWhat to improve

• We have to reduce waste .• 7 types of waste in industry

348

PEMP EMM502

W t MUDAWaste---MUDA

• Definition.Any activity that consumes resources yet addsAny activity that consumes resources yet adds no value.

S t i f tSeven categories of waste:Over production,waiting,transportation.p g pOver processing,inventories,movement,makingdefective productsdefective products.(Idle time, idle cash, too much paper work,

b kd )breakdown)

349

350

PEMP EMM502

Simple General TQM Modelp Q

• See hand out materialSee hand out material

351

PEMP EMM502

XEROX CASE STUDYXEROX CASE STUDY

• See Hand out—Ron basu book

352

PEMP EMM502

S mmar and Concl sionSummary and Conclusion

• The following concepts have been i t d dintroduced– The thinking of the various Gurus and theThe thinking of the various Gurus and the

impact on the Quality movementAwards of excellence in quality and the– Awards of excellence in quality and the criteria for awarding have been understood

– Basic concepts in creation of a generic TQM ModelModel

353

Basic Statistics

Session Speaker

Sandeep N

© M.S Ramaiah School of Advanced Studies - Bangalore 354

Learning Objecti esLearning Objectives

• Describe the range of applications of t ti tistatistics

• Identify situations in which statistics canIdentify situations in which statistics can be misleading

• Define "Statistics"

355

Statistics definedStatistics defined

• Include numerical facts and figures

Earth quake

Male Prisoners Elderly Population 356

StatisticsStatistics

• Relay upon data• Relay upon how data are selected/chosen

and statistics are interpretedand statistics are interpreted • Sometime have problematic

interpretations Consider some examples• Consider some examples…

357

Ice cream SalesIce-cream Sales

358

Temples and crimeTemples and crime

359

Statistics definedStatistics defined

• In total , statistics are not just facts and fifigures .

They are techniques and procedures for analyzing , interpreting , displaying , and making decisions based on datamaking decisions based on data.

360

Q estionQuestion

You hear a commercial that 80% of children f t t t i ki d f dl fprefer to eat a certain kind of noodles for

breakfast . What do you conclude ?y1. This noodles is superior to all others. at

l t di t kidleast according to kids . 2 You need to know about where these2. You need to know about where these

data come from before making any conclusion

3 20% of children prefer other brand3. 20% of children prefer other brand 361

Piece of ca tion abo t statsPiece of caution about stats

What should one take into consideration h l ti t ti ti l l iwhen evaluating statistical claims .

1. The source of the data 2. How the data is presented 3. The procedure used to generate the

claimsclaims

362

Importance of StatisticsImportance of Statistics

C l t i f ti b t bj t• Complete information about any subject matter may not be always available y y

It b th i l t i t t• It may be the single most important subject matter one can study.

H l t t k d i i b d f t t• Helps to take decision based on facts not on opinions

363

E amplesExamples

• A surprising study shows that eating egg whites can increase one’s lifespanwhites can increase one s lifespan

• There is a 80% chance that in a room full of 30 people that at least two people will share the same birthdayshare the same birthday

• Increase in Harder percentage above 50 % ill t ff t i t lif% will not any effect on resin pot life .

• There is less than 10% every tiger in theThere is less than 10% every tiger in the wild will live for more than 10 years

364

Some statistics are not tr eSome statistics are not true

• But they are universal

• They seem to add credibility y y

• Helps to justify a opinion or finding with facts and figuresfacts and figures

365

First step Q estion statisticsFirst step : Question statistics

“Th th ki d f li

Benjamin DisraeliFormer British Prime Minister

“There are three kinds of lies–lies , Damned lies and Statistics ”lies , Damned lies and Statistics

366

Descripti e StatisticsDescriptive Statistics

• Uses for organizing , summarizing , and describing datadescribing data.

• Examples: Percentage, graph , tables frequencies.Mostly concerned with the population or• Mostly concerned with the population or complete data set.p

367PEMP EMM502

E amplesExamples

368

Inferential StatisticsInferential Statistics

• More concerned with the sample data rather populationrather population

• Used to draw inferences about the population as a whole based on samplepopulation as a whole based on sample statistics

369

E ample 1Example 1

Pre poll opinion

370

E ample 2Example 2 :

Cooking Rice

371

Simple Random SamplingSimple Random Sampling

• This occurs when every member of the l ti h l h f b ipopulation has an equal chance of being

selected into the sample p• And this occurs when the selection of one

b i i d d t f th l timember is independent form the selection of another memberof another member

• Thus , it is selection by pure chance

372

Simple Random SamplingSimple Random Sampling

• If we do not sample by pure chance , bl ltproblems can result

• Consider the following can result

373

Sampling Problem E ampleSampling Problem : Example

Sample ? Population ? Problem ?Sa p e opu a o ob e374

Simple Random samplingSimple Random sampling

• Sometimes difficult to obtain • Random samples are not necessarily

representative of the entire populationrepresentative of the entire population • But a large sample size with a random

sample will ensure a representative samplesample .

• And inferential statistics uses mathematical models to take sample size into account when generalizing from ainto account when generalizing from a sample to a population 375

Q estionQuestion

Random sampling ensures that theiti f th l t h thcomposition of the sample matches the

composition of the population.p p p

1. True2 False2. False

376

VariablesVariables

• Variables are properties or characteristic f t bj t th tof some event , object , or person that can

take on different values or amounts • Constants do not vary

377

Identif VariablesIdentify Variables

378

E amples of VariablesExamples of Variables

• Dogs of different breeds vary in

– Height– Height – Weight – Color

Length– Length – Body shape – Purpose

379

Ho do these fish arHow do these fish vary

380

Independent VariablesIndependent Variables

A variable the experimenter manipulates

Example : type of tablet , type of fuel, type of p yp , yp , yproad condition .,etc

381

Dependent VariablesDependent Variables

The variable the experimenter measures

Example : Temperature after medication p pChange in mileage after fuel change

382

Independent and Dependent p pvariables

• Identify Independent variable (IV) and D d t (DV) i i t t d iDependent (DV) is important and requires practice.p

• Comfort level expressed after a travel in th f ll i t f bthe following type of buses

383

Q alitati e VariablesQualitative Variables• Qualitative variable express a quality

– GoodGood – Not so good – Satisfactory – Needs improvementNeeds improvement

384

Q antitati eQuantitative

Quantitative variables are measured i llnumerically

• Length or diameter of a shaft • All measured data can be termed as

quantitative dataquantitative data

385

Basics of data collectionBasics of data collection

• Data must be in numerical form• Data must be in numerical form

V b l d t t b d d i t b• Verbal data must be coded into numbers

386

E ampleExample

387

Basics of data collectionBasics of data collection

388

Basics of data collectionBasics of data collection

Computer Experience

• What is the mean amount of computer pexperience ?

• Convert the verbal descriptions to numbersnumbers

389

Basics of data collectionBasics of data collection

390

E ampleExample

• To prove children that studying more leads t b tt dto better grades

• Develop a questionnaire to collect dataDevelop a questionnaire to collect data

391

E ampleExample

392

E ample contin edExample continued

393

Distrib tionsDistributions

• Frequency table

394

Graph of freq enc distrib tionGraph of frequency distribution

395

Response time after medicationResponse time after medication

• In micro seconds

396

Gro ped freq enc distrib tionsGrouped frequency distributions

397

E lExample

The thickness of a particular metal part of an optical instrument was measured on121 successive items as they came off a production line under what was believed tobe normal conditions. The results are shown in Table

398

Decide n mber of classesDecide number of classes • The largest item in the table is 3.57, and the

smallest is 3.21, so the range is 0.36, g

• The number of class intervals according to Sturges’ g gRule should be approximately

number of class intervals ≈ 1 + 3.3 log10 N≈ 1 + (3.3) (log10121) = 7.87

( here N = 121 )

Class width = Range / Number of classes = 0.36/ 7.87= 0.0457

= 0.05 399

Class bo ndariesClass boundaries

• Let us chose the smallest data i.e. 3.195 d dd th l idth 05 th fi tand add the class width = .05, so the first

class is given by g y• 3.195+0.05 =3.245 ( upper boundary )

The first class is given by 3 195 to 3 2453.195 to 3.245 similarly ,remaining classes are obtainedNext count the number of data points which fall

under every class . u de e e y c ass400

Classes and Bo ndarClasses and Boundary

401

HistogramsHistograms

402

Class width of 0.03 and 0.10 mm histograms

403

Notations for s mmationsNotations for summations

Label grape 1’s weight XLabel grape 1 s weight X1Label grape 2’s weight X2

404

Notations for s mmationsNotations for summations

405

Notations for s mmationsNotations for summations

406

E ercisesExercises

• A teacher wishes to know whether the l i hi /h l hmales in his/her class have more

conservative attitudes than the females. A questionnaire is distributed assessing

ttit d d th l d th f lattitudes and the males and the females are compared.are compared. Is this an example of descriptive or inferential statistics?

407

E ercisesExercises

• A cognitive psychologist is interested in i t f ti ti licomparing two ways of presenting stimuli

on subsequent memory. Twelve subjects q y jare presented with each method and a memory test is givenmemory test is given. What would be the roles of descriptive andWhat would be the roles of descriptive and inferential statistics in the analysis of these d t ?data?

408

E ercisesExercises1. Give an example of an independent and a

dependent variable. p

2 Categorize the following variables as being2. Categorize the following variables as being qualitative or quantitative

• Country you were born in • Favorite ColorFavorite Color• Time to respond to a question• AgeAge• Rating of the quality of a movie on a 7-point scale

409

Graphing distrib tionGraphing distribution

• Bar charts are useful for portraying f i f lit ti i blfrequencies of qualitative variables.

• Effective for illustrating the frequencies of different categories

410

E ample c rrent stateExample: current state

411

E ample Share priceExample : Share price

412

Example : Showing change over p g gtime

413

Line graphsLine graphs

• Correct only when both the x – and Y axes tit tiare quantitative

• Better than bar graphs comparing changeBetter than bar graphs comparing change over time

414

Line graphsLine graphs

415

PEMP EMM502

Scatter Diagram• This is a diagram, used to

t d d id tif thstudy and identify the possible relationship b i blbetween two variables.

• Also, it can used to establishestablish – Existence of Correlation

T f C l ti– Type of Correlation– Strength of the relation

416

PEMP EMM502Scatter diagram interpretation guide

417

Correlation and RegressionCorrelation and Regression

• Is there a relationship between speed at which a car travels and rate at which it consumes fuelcar travels and rate at which it consumes fuel

Car Speed and Fuel ConsumptionConsumption

Speed 20 25 30 35 40 45 50 55 60

Cons.. 22 21 20 23 19 18 16 14 11

418

PEMP EMM502

Plotting the dataPlotting the data

25s

20

25

Mill

lite

rs

10

15

tion

in M

5

10

onsu

mpt

00 10 20 30 40 50 60 70

Co

Speed in Km/hr

419

PEMP EMM502

Linear Correlation co efficientLinear Correlation co-efficient

Where n is the number of data points

420

Speed Conx y xy x2 y2x y xy x2 y2

20 22 440 400 48425 21 525 625 441Computing 25 21 525 625 44130 20 600 900 400

Computing

Linear Correlation co-efficient 35 23 805 1225 529

40 19 760 1600 361

co-efficient

r = - 0 906 45 18 810 2025 32450 16 800 2500 256

r = - 0. 906

55 14 770 3025 19660 11 660 3600 121

Totals 360 164 6170 15,900 3112

421

PEMP EMM502

Interpretation of r If th t d i h l t th +1• If the computed r is has a value greater than +1 or less than -1 then error must be present in the

t ticomputations. • Strong positive correlation is indicted by r near to g p y

+ 1• Strong negative correlation is indicted by r near• Strong negative correlation is indicted by r near

to – 1If i t 0 i di t l i ifi t• If r is near to 0 indicates less or no significant correlation

• In general, correlation greater than 0.8 is generally described as strong, whereas a g y g,correlation less than 0.5 is generally described as weak.

422

PEMP EMM502

E ercisesExercises

What type of Correlation you think the f ll i it ti hfollowing situation may have

• People’s ages and blood pressuresPeople s ages and blood pressures.• The amount of rainfall and vegetation

growth The weight of cars and fuel consumption• The weight of cars and fuel consumption

• The diameter and circumferences ofThe diameter and circumferences of circles

423

E erciseExercise

In each of the following , a sample of paired data products a linear

x 1 3 3 4 5

g , p p pcorrelation r. What do you conclude in each case ?

x 1 3 3 4 5

y 3 3 4 5 6

x 1 3 3 4 5 5

y 5 3 2 2 0 1

424

PEMP EMM502

Correlation GameCorrelation Game

425

PEMP EMM502

RegressionRegression

Regression helps derive a relation between two sets of databetween two sets of data.Understanding equation for straight line g q g

y = mx + b

m= slope of the linem slope of the line

b = y intercept

426

PEMP EMM502

Finding slope (m) & Intercept (b) g p ( ) p ( )for given line

427

PEMP EMM502

Finding equation between data points

y = mx + b

428

PEMP EMM502

The Method of Least Sq aresThe Method of Least Squares

429

PEMP EMM502

Y= a+ b x

Table shows the respective heights x and y of a sample of 12 fathers and their oldest sons. Find the least-squares regression line of y on x.

430

PEMP EMM502

Regression game

431

E amplesExamples

432

Central TendencCentral Tendency

• Imagine that your are given a test in the l d i 3/5class and your score is 3/5..

• How do you feel about the score ?• You may calculate the percentage

3/5 accounts to 60 % … so happy • Ask your friends• Ask your friends

433

Central tendenc meas resCentral tendency measures

L tiLocation• Mean MedianMean Median Spread • Variance Sigma

434

Arithmetic MeanArithmetic Mean

Mean: It is the arithmetic average.

Consider a list x1, x2 , . . . . , xn of n data values. Then

∑ xiMean =N

Mean is calculated for sample and / or population. N

P l ti M & S l MPopulation Mean & Sample Mean

μ x

435

Arithmetic MeanArithmetic Mean

∑ xiM iMean =N

Where N is number of data points

Find the sample mean of 10,20,30 and 40

Here N = 4

10 + 20 + 30 + 40 = 100 / 4 = 25 Examples

436

MedianMedian

Median:Median:Is the middle value denoted by when the x~ydata is arranged in ascending.

x

12, 13, 21, 27, and 31.

Then, Median, = 21x~

437

Example :Example :

12, 13, 21 , 27, 31, 55

( 21 +27 ) 242

Median = = 24

Problems : 25,36,52,85,96,100,56,59,960

= 59x~ 59x438

Variability or Spread Consider the following data

S tSets

Group A: 2, 3, 4, 8Group B: 1, 2, 4, 10Group C: 0 1 5 11Group C: 0, 1, 5, 11

Find Mean= 4.25439

RRange O i l f i bili i hOne simple measure of variability is thesample range, the difference between thesample range, the difference between thesmallest item and the largest item in each

lsample.

Find the range for previous example

440

Total Deviation from Mean is always zero

Find the Mean Deviation for followingDeviation From

10,20,30,40 Mean

10 25 15Number of data points = 4

10 - 25 -15

20 - 25 -05Sum of the data =10+20+30+40 = 100

30 - 25 +05Mean = 100/ 4 =25

40 -25 +15Deviation from Mean = 25

Total Deviation 0

441

The solution for this situation is to squareThe solution for this situation is to square deviation and then find the mean

deviation

DeviationFrom Mean Deviation SquareFrom Mean Deviation

10 - 25 -15

Square

(-15)2

20 - 25 -05 (-05)2

30 - 25 +05

40 -25 +15

(+05)2

(+15)240 -25 +15

Total Deviation 0

(+15)

500442

So the Mean Deviation is given gby

T t l D i tiNumber of Data Points

Total DeviationMean Deviation =

500(Mean Deviation)2

=4

= 125

443

Variance

Where ,µ is the population mean , σ2 is the

I d i i h f h f h

population variance and N is number of data points

In words it is the mean of the squares of the deviations of each measurement from the mean of h l ithe population.

* Variance has units of quantity squared like m2 or s2 Variance has units of quantity squared like m or s444

Standard De iationStandard Deviation

• It is just the square root of VarianceIt is just the square root of Variance

445

E ampleExample

• Find the Variance and Standard Deviation f th l ti b lfor the population below

• 10, 20, 30, 40Solution

No of data points = 4– No. of data points = 4 – Sum of Data Points = 10+20+30+40 = 100– Mean of the Population = 100/4 = 25.

446

Estimate of Variance and Standard deviation

T t l D i tiTotal DeviationMean Deviation =

No . of Data Points

500(M D i ti )2

(Mean Deviation) =4

= 125 units2

Variance ( )

447

Standard Deviation of Population

Standard Deviation = Sqrt of VarianceStandard Deviation = Sqrt of Variance.

= Sqrt ( 125 )

= 11 18 units= 11.18 units

448

E ercisesExercises

• Find variance and standard deviation and i t tinterpret

Group A: 2, 3, 4, 8

Group B: 1, 2, 4, 10

Group C: 0, 1, 5, 11

449

Estimate of Sample Variance and pStandard Deviation

V iVariance =

Standard Deviation = S =

450

E ercisesExercises

Find sample standard deviation form the f ll i l ti l t t 5 dfollowing population , select ant 5 random numbers.

10, 20 , 30 , 40 , 50, 60, 70, 80, 90 and 100100

22, 22, 22, 22, 22, 22, and 22 451

Central Limit TheoremCentral Limit Theorem

• As the sample size increases the sampling di t ib ti f th ldistribution of the sample mean approaches the normal distribution with ppmean μ and variance σ2/n

• Animation to Demonstrate• Animation to Demonstrate

© M.S Ramaiah School of Advanced Studies - BangalorePEP’S EMM502 � M.S Ramaiah School of Advanced Studies - Bangalore

452

Animation Game CLTAnimation Game : CLT

© M.S Ramaiah School of Advanced Studies - BangalorePEP’S EMM502 � M.S Ramaiah School of Advanced Studies - Bangalore

453

Q estionQuestion

• How many ways can we have 1st , and 2nd

l fi i h if 4 thl t iplace finish , if 4 athletes are running a marathon .

• Construct a tree diagram and find out ……

454

Basic counting principle g p p

Let E1 E2 E3 E be aLet E1 , E2 , E3 , ………….Ek be a sequence of events. If first event E1 can occur in m1 different ways , E2 can occur in m2 different ways and so on up toin m2 different ways and so on up to ……

mk ways .

Then the total number of ways that all kThen the total number of ways that all k events occur is given by g ym1*m2*m3*m4*………………*mk ways 455

Perm tationsPermutations

• A permutations of n elements is an d i f l t h th tordering of n elements such that one

element is first , one is second one is ,third,.etc

OOr • Used to find out how many different ways• Used to find out how many different ways

events can occur, given that the order of the matters

456

ProblemsProblems

1 List all permutations of the letters in1. List all permutations of the letters in the word CAT

1 Twenty students are running elections1. Twenty students are running elections how many ways ways you can those y y y yPresident, Vice President and Secretary ?Secretary ?

2. 7 digit phone number in a city all have g p y661 as the first three digit . How many different phone number are possible?

457

CombinationsCombinations

Here the order doesn’t matter :

How many ways can we get first andHow many ways can we get first and second place if we have three runners running a race …

How many ways can we pick twoHow many ways can we pick two employees out of the best three for a t i itraining ..

***** combinations are usually is less than the permutations

458

Form laFormula

• The number of combination of ‘n’elements t k ‘ ’ t ti itaken ‘r’ at time is

459

E ercisesExercises

• On an election ballot you select three ffi i l f f i did tofficials from a group of six candidates .

How many ways can you do this y y y

460

E ercisesExercises1 T i h l i k 61. To win the lottery you must pick 6

number from 49 ball numbered 1 to 49number from 49 ball numbered 1 to 49 . The order you pick number does not

tt H l timatter . How many selections are possible?p

2. How many ways can manufacturer h t h f 20chooses two warehouses from 20

choices ..3. A manufacturer has 8 motors and 5

switches. In how many ways can you select 2 motors and 2 switches to build

461

Probabilit ConceptsProbability Concepts

• What is probability of u getting president of Indian in the next one minute?Indian in the next one minute?

• What is the probability of you being alive p y y gafter one minute ?

• Probability of an event lies between 1 and• Probability of an event lies between 1 and zero

• Sum total of all probable expected events equals to unity, example tossing as coin,equals to unity, example tossing as coin, growing dice , etc .

462

Random VariablesRandom Variables

• Discreet Random Variable – Tossing a coin– Tossing a coin , – Rolling a dice

• Continues Random VariableH i ht f l– Height of people

– Weight of people g p p– Rainfall in mm

463

Probabilit distrib tionsProbability distributions

• Consider that you are rolling two fair dices d t t t dd th b f t diand start to add the number of two dices,

find the probability of each event (like 2, 3 p y ( ,,4 ..etc., ) .Hi t th t t l l i 36• Hint the total sample space is 36..

464

Finding probabilitiesFinding probabilities

P b bilit f t O t f 36 ibilit /36Probability of a event Out of 36 possibilites /36P(2) 1 0.027778P(3) 2 0.055556P(4) 3 0 083333P(4) 3 0.083333P(5) 4 0.111111P(6) 5 0.138889P(7) 6 0 166667P(7) 6 0.166667P(8) 5 0.138889P(9) 4 0.111111

P(10) 3 0.083333( )P(11) 2 0.055556P(12) 1 0.027778

465

Discrete probabilit distrib tionDiscrete probability distribution

Discrete ProbablityDiscrete Probablity

P(7)0.2

P(5)P(6)

P(7)P(8)

P(9)0.15

bilit

y

P(2)P(3)

P(4) P(10)

P(11)P(12)0.05

0.1

Prob

ab

P(2) P(12)

0

I di id l E tIndividual Event

466

Normal Distrib tion of heightNormal Distribution of height

467

Eq ationEquation

468

Example 1p

The masses of packages from a particularhi ll di t ib t d ithmachine are normally distributed with a

mean of 200 g and a standard deviation ofg2 g. Find the probability that a randomlyselected package from the machineselected package from the machineweighs:

Less than 197 gMore than 200.5 gBetween 198 5 g and 199 5 gBetween 198.5 g and 199.5 g

469

S mmar ISummary I

• Basic concepts about statistics and b bilit di dprobability discussed

• Different methods of representing dataDifferent methods of representing data are discussed

• Probability , probability distributions are discusseddiscussed

• Stat games and Exercises are performed g pfor better understanding of statistics .

470

Session IISession II

Objectives U d t d th l f t t• Understand the role of measurement systems analysis

• To understand Taguchi Loss Function • To compute loss due to deviation from target• To compute loss due to deviation from target • Concept of Robust Design • Case Study on Taguchi Parameter Design • Exposure to hypothesis testing• Exposure to hypothesis testing

© M.S Ramaiah School of Advanced Studies - Bangalore 471

Gage VariationGage Variation

• Variation introduced into productt b th tmeasurements by the measurement

process itself.p

472

Reprod cibilitReproducibility

• The variation due to different operators t ki ttaking measurements.

OrOr • The ability of different operators to

produce the same measurement results on the same part using the same gageon the same part using the same gage

473

RepeatabilitRepeatability

• The variation due to the gage itself.or

• an operator’s ability to repeat• an operator s ability to repeat measurements on the same part using the same gage

474

Meas rement ariationMeasurement variation

Measurement variation or gage capability is the combination of reproducibility and repeatabilitycombination of reproducibility and repeatability.

• Total variation : measurement variation + product variationproduct variation.

• Measurement variation :reproducibility + repeatability.p y

475

Gage Variation st dGage Variation study

• A study to determine the amount of i ti i t d d i t d tvariation introduced into product

measurements by the measurement yprocess itself.

• This analysis is used to calculate the• This analysis is used to calculate the percent of engineering specification consumed by measurement variability.

476

Wh to st d gagesWhy to study gages

1. To evaluate the amount of variation due t th tto the measurement process.

2 To identify whether measurement2. To identify whether measurement variation is a significant problem so

ti b t kaction can be taken.3 Reduce total variation and improve Cpk3. Reduce total variation and improve Cpk

by improving the measurement process..

477

When to startWhen to start

1. A key characteristic or process is not blcapable.

2 The suitability of a gage for use in control2. The suitability of a gage for use in control charting a process must be determined

3. Preparations are being made to conduct a designed experimenta designed experiment.

478

Seven basic types of measurement ypvariation

• Bias — The difference between the f t f t daverage of a set of repeated

measurements with a single device, and g ,the accepted true value of what is being measuredmeasured

479

Reprod cibilitReproducibility

• A value describing the component of i ti d tvariation due to

• measurements made by differentmeasurements made by different appraisers, using the same gage

480

Gage capabilitGage capability

• The combined variation of reproducibility d t bilit Thi i ti t f thand repeatability This is an estimate of the

total variation present in the measurementpprocess.

481

StabilitStability

• The difference in the average of at least t t f t bt i d ithtwo sets of measurements obtained with a gage, over timeg g ,

482

Acc rac and Resol tionAccuracy and Resolution

• Accuracy — The degree of agreement of t ith th t d tmeasurements with the accepted true

value of what is being measured. This is gtypically determined by calibration in lab.R l ti Th bilit f• Resolution — The ability of a measurement device to differentiatemeasurement device to differentiate between values of a measurable h t i ticharacteristic

483

Ho to Cond ctHow to Conduct

Step 1: Choose parts to be testedS t id fi t t t d l tSet aside five to ten parts and select a single characteristic on each part. Obtaing pthe engineering specifications and tolerances for the selected characteristictolerances for the selected characteristic.

Step 2: Select gage• Choose a gage to measure the part

characteristic It should be the gage usedcharacteristic. It should be the gage used during production on the factory floor.

484

Ho to Cond ctHow to Conduct• Step 3: Select people to take measurements• Step 4: Obtain measurements :• Step 4: Obtain measurements : • Step 5: Determine reproducibility, repeatability,

d bilitand gage capability• Step 6: Determine percentage of tolerance p p g

consumed (PTC)

485

E ampleExample

486

Percentage of tolerance gconsumed

487

Gage R & R Res ltsGage R & R Results

488

InterpretationInterpretation

Reproducibility > Repeatability

1 Different operators are using different1. Different operators are using different measurement methods.

2. Scale markings on the gage are not legible to the degree requiredlegible to the degree required.

3. Training on proper use of the gage may3. Training on proper use of the gage may be required.

489

InterpretationInterpretation

Repeatability > Reproducibility

1 Gage maintenance (refurbishment) is1. Gage maintenance (refurbishment) is necessary.

2. The gage is inconsistent or degrades with use or timewith use or time.

3. Setup or fixtures need improvement.3. Setup or fixtures need improvement.

490

HintsHints :

• It is recommended that the gages use nomore than 10% of the engineering tolerancetolerance.

• Acceptable Measurement variation that consumes values approaching 30% of the engineering tolerance should beengineering tolerance should be considered only marginally acceptable.

• Above 30% PTC : Not acceptable

491

H pothesis TestingHypothesis Testing

• Hypothesis: A theory/postulate/statement d b t A h th i imade about a process. A hypothesis is an

assumption made about a population p p pparameter

© M.S Ramaiah School of Advanced Studies - Bangalore 492

Basic ConceptsBasic Concepts

• Null and Alternative hypothesis.• Type I and Type II error.• Parameter• Parameter• One tail and two tail test.• Level of significance and power.• Critical Values

© M.S Ramaiah School of Advanced Studies - Bangalore 493

N ll and Alternati e h pothesisNull and Alternative hypothesis

• Null hypothesis denotes a sign H0, which always deals positive attitudesalways deals positive attitudes.

• Alternative hypothesis denotes a sign H1, which always deals negative attitudeswhich always deals negative attitudes.

© M.S Ramaiah School of Advanced Studies - Bangalore 494

T pe I and T pe II ErrorsType I and Type II Errors

Type I Error: Rejecting the null hypothesis when it is in fact true.

Type II Error: Not rejecting the null hypothesis when it is in fact false.

© M.S Ramaiah School of Advanced Studies - Bangalore 495

ParameterParameter

• Statistical parameter are

1. Mean and2. Standard deviation

© M.S Ramaiah School of Advanced Studies - Bangalore 496

Normal Distrib tionNormal Distribution

α/2

© M.S Ramaiah School of Advanced Studies - Bangalore 497

Significance Level

Th b bilit f ki T I th t iThe probability of making a Type I error, that is, of rejecting a true null hypothesis, is called the j g yp ,significance level, α, of a hypothesis test.1% 5% etc1%, 5% etc.

© M.S Ramaiah School of Advanced Studies - Bangalore 498

Two tail test

© M.S Ramaiah School of Advanced Studies - Bangalore 499

One tail testOne tail test

© M.S Ramaiah School of Advanced Studies - Bangalore 500

One tail test

© M.S Ramaiah School of Advanced Studies - Bangalore 501

Critical Val esCritical Values

Critical values are the values of the testCritical values are the values of the test statistic that separate the rejection and non rejection regions.

Critical values are the table value.

© M.S Ramaiah School of Advanced Studies - Bangalore 502

Fi e steps of h pothesis testFive steps of hypothesis test

1. Stating of hypothesis(H0 and H1).2. Formula and explanation.3 Calculation of test value3. Calculation of test value.4. Comparison between test value and p

table value5. Selection and conclusion.

© M.S Ramaiah School of Advanced Studies - Bangalore 503

An introduction to taguchiAn introduction to taguchi techniques for qualitytechniques for quality

improvement p

© M.S Ramaiah School of Advanced Studies - Bangalore© M.S Rmaiah School of Advanced Studies - Bangalore504

Perception of q alit• The traditional model for quality losses

Perception of quality The traditional model for quality losses– No losses within the specification limits!

Scrap Cost

LSL USL

Cost

• The Taguchi loss function

LSL USLTarget

The Taguchi loss function – the quality loss is zero only if we are on target

© M.S Ramaiah School of Advanced Studies - Bangalore 505505

Loss f nctionLoss function

Loss function : Is a function that can• Loss function : Is a function that can relate cost, target and variation. g

© M.S Ramaiah School of Advanced Studies - Bangalore 506

E ampleExample

© M.S Ramaiah School of Advanced Studies - Bangalore 507

Loss f nctionLoss function

The concept underlying the approach can beThe concept underlying the approach can be summed up in two statements:

(1) Quality should be measured by the deviation from a specified target value, rather p g ,than by conformance to preset tolerance limitslimits.

(2) Quality cannot be ensured through inspection and rework, but must be built in through the appropriate design of the

© M.S Ramaiah School of Advanced Studies - Bangalore

g pp p gprocess and product. 508

Understanding loss f nctionUnderstanding loss function

Taguchi divide disturbances into three categories

External disturbances: variations in the environment where th d t i dthe product is used

Internal disturbances: wear and tear inside a specific unit

Disturbances in the production process: deviation from targetDisturbances in the production process: deviation from target values

© M.S Ramaiah School of Advanced Studies - Bangalore 509

Problems

© M.S Ramaiah School of Advanced Studies - Bangalore 510

© M.S Ramaiah School of Advanced Studies - Bangalore 511

Other loss f nctionsOther loss functions

© M.S Ramaiah School of Advanced Studies - Bangalore 512

R b t D iRobust Design

• A three step method for achieving robust design (Taguchi)(Taguchi)

1.Concept design2.Parameter design2.Parameter design3.Tolerance design

• The focus of Taguchi is on Parameter designg g

© M.S Ramaiah School of Advanced Studies - Bangalore 513

Th T hi PThe Taguchi Process

© M.S Ramaiah School of Advanced Studies - Bangalore 514

Case st dCase study

In this study, the Taguchi method is used y, gto find the optimal cutting parameters for surface roughness in turningsurface roughness in turning.

© M.S Ramaiah School of Advanced Studies - Bangalore 515

Control factorsControl factors Three cutting parameters 1 feed rate1. feed rate2. depth of cutp3. insert radius must be

© M.S Ramaiah School of Advanced Studies - Bangalore 516

Initial settingsInitial settings

© M.S Ramaiah School of Advanced Studies - Bangalore 517

E perimental la o tExperimental layout

© M.S Ramaiah School of Advanced Studies - Bangalore 518

Res lts Optimal le elsResults :Optimal levels

© M.S Ramaiah School of Advanced Studies - Bangalore 519

Anal sis of S/NAnalysis of S/N

© M.S Ramaiah School of Advanced Studies - Bangalore 520

Res lts from S/N ratio Anal sisResults from S/N ratio Analysis

• Optimal level which yielded minimum hroughness

© M.S Ramaiah School of Advanced Studies - Bangalore 521

Anal sis of Variance ANOVA)Analysis of Variance ANOVA)

• Separating the sources of variation • Find the total variation • Find out individual variation• Find out individual variation • Take the ratio of individual to total

variation and multiply by 100 to get percentage contributionpercentage contribution

© M.S Ramaiah School of Advanced Studies - Bangalore 522

Total VariationTotal Variation

where m is the number of experiments in the orthogonal array, e.g., m = 9 and gi is the mean S/N ratio for the ith experiment

where p represent one of the experiment parameters j the level number of thiswhere p represent one of the experiment parameters, j the level number of this parameter p, t the repetition of each level of the parameter p, sgj the sum of the S/N ratio involving this parameter p and level j.

© M.S Ramaiah School of Advanced Studies - Bangalore 523

ANOVA TableANOVA Table

© M.S Ramaiah School of Advanced Studies - Bangalore 524

Confirmation testsConfirmation tests

© M.S Ramaiah School of Advanced Studies - Bangalore 525PEMP EMM502

S mmar IISummary II

• Taguchi loss function is described • Parameter design procedure discussed • Exposure to hypothesis testing• Exposure to hypothesis testing • Measurement systems analysis is y y

explained

© M.S Ramaiah School of Advanced Studies - Bangalore 526

PEMP EMM502

Session 7Session 7

Guest Lecture

527

PEMP EMM502

Session 8Session 8

VariationSPC

Six SigmaSix Sigma

528

PEMP EMM502

5 1 S i Obj ti5.1 Session Objectives5.1 Session Objectives– At the end of this session the student would haveAt the end of this session the student would have

understood• The concept of variation and its analysis as an p y

aid to continuous improvement, SPC and process A h t i iApproach to six sigma

• Implementation of Six Sigma programmes• Real life situations of application of six sigma by• Real life situations of application of six sigma by

review of Case studies in six sigma

529

PEMP EMM502

Session TopicsSession Topics

• Chance and Special causes• Measures of variation• Control charts• Control charts• Methodology of Six sigmagy g• Tools of six sigma

530

PEMP EMM502

Understanding VariationgAn Introduction

Action onAction onproductprocess

I f

Info onproduct

Info onprocess

Process ProductProcess Product

PreventionSystem QC

DetectionSystem--INSPN

531

Understanding VariationUnderstanding Variation

• Nothing in the world is identical Each Person Total effect in Nothing in the world is identical to the other

• What variations do we accept?

% perfect a chain of 10 persons

99% %• Chain effect of variations can be bad and disastrous, consider performance of each

99% 90.4%75% 5.6%consider performance of each

department compounded 10 times. That is if you are x% perfect and pass on your

Distinction5.6%

60% First Cl

0.6%perfect and pass on your product to nex man, then he to next man, like that 10 times, the final result is 90% only even if

Class50% II Class 0.09%

final result is 90% only even if each person is 99% perfect 35% Just Pass 0.003%

532

In swipe time of an employee

8:52 Unstable P

8:24

8:38 Process

8:09

7:40

7:55

Tim

e

Trainee

7 12

7:26

6:57

7:12

6:431 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Week No.533

In swipe time of an employee

Well Managed

Unstable P

8:38

8:52Managed Process

Improved, W ll

Process

8:09

8:24Well

Managed Process

7:55

8:09

Tim

e

Process

7:26

7:40T

6:57

7:12 A responsible employee

6:43

6:57

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Week No. 534

In swipe time of an employee

8:52 Well Managed

Unstable P

8:24

8:38Managed Process

Process

8:09

7:40

7:55

Tim

e

7 12

7:26A committed

senior employee

6:57

7:12

Improved, Well

6:431 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

Managed Process

Week No.535

8:38

8:52

Process Characteristics

8:24No. of errors(l th b tt )

7:55

8:09Output

(lower the better)

Input

7:40Process

7:12

7:26

6:57

6:431 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

536

No. of errors(l h b )

Input

(lower the better)

Process

Unstable process Well managed process

Improved and well managed process

•Instability•Type A•% Defects

•Variability•Type B•1000 - 5000 ppm

•Off the target •Type C•0 – 100 ppm•% Defects

•Low hanging fruits

•Sporadic•Assignable cause

•1000 5000 ppm•Medium hangingfruits

•Chronic•Random cause

•High hanging fruits

•Redefining problemN i bl

ss g able cause a do cause•Non assignable random cause 537

Why control ?

Why Consistency ?

“Consistency and Uniformity are the foundations of economy prosperity and peace”economy, prosperity and peace

- Dr. Edward Deming

“D i d thi i t tl i ll d ll ”“Doing mundane things consistently is called excellence”- Unknown

538

We have…..Various tools to control various processes !!processes !!

At the end of the session, you will be able to…

•Select an appropriate control chart for a given process

•Plot the control chart

•List the guidelines on taking actions when process is out of control

•Improve the process over a period of ti b d i i titime by reducing variation

539

PEMP EMM502

SQCSQC

• Statistical Quality Control is the application of Statistical techniques to accept or rejectStatistical techniques to accept or reject products already produced or to control the

f f t hil th d t iprocess of manufacture while the product is being made

• The latter is called Process Control and the former as Acceptance Samplingformer as Acceptance Sampling

• SQC is based on Probability theory and i l t d th C t l Ch timplemented thru Control Charts

540

PEMP EMM502

V i bilitVariability

• Nothing happens exactly the same again and againagain.

• Thus there is a continuous variation in output which has two basic causes:two basic causes:Common causes(Chance) Special causes(Assignable)Special causes(Assignable)

The variation in the quality of the product in any manufacturing process is broadlyThe variation in the quality of the product in any manufacturing process is broadlyThe variation in the quality of the product in any manufacturing process is broadly The variation in the quality of the product in any manufacturing process is broadly classified into two;classified into two;Chance Causes; Causes which are inherent in manufacturing process by virtue of Chance Causes; Causes which are inherent in manufacturing process by virtue of operational and constructional features of equipments involved in the processoperational and constructional features of equipments involved in the processoperational and constructional features of equipments involved in the process.operational and constructional features of equipments involved in the process.These causes are very difficult to trace out. Magnitude can be reduced.These causes are very difficult to trace out. Magnitude can be reduced.Chance Causes result in only a minute amount of variation in the process. The process Chance Causes result in only a minute amount of variation in the process. The process will be stable and predictable The degree of variability is consistent over a period ofwill be stable and predictable The degree of variability is consistent over a period ofwill be stable and predictable. The degree of variability is consistent over a period of will be stable and predictable. The degree of variability is consistent over a period of timetime 541

PEMP EMM502

ContdContd

• Assignable Causes; Causes which create an extraordinary variation in product qualityextraordinary variation in product quality.

• Assignable causes can be traced to a specific source.

• Ex: Lack of skill in operation wrongEx: Lack of skill in operation, wrong maintenance practices, raw material defect etc…V i ti d t th b t ll d• Variation due to these causes can be controlled

542

PEMP EMM502

ContdContd

• A process which is running only under common cause variability is said to be under statisticalcause variability is said to be under statistical control (NORMAL DISTRIBUTION).Here when i b i l tt d N l B llsize vs number is plotted ,a Normal or Bell

shaped curve will result• Where special causes are present the process

is said to be out of control(Skewed Distribution)is said to be out of control(Skewed Distribution)

543

PEMP EMM502

Q alit at So rceQuality at Source• Inspection is a Post Mortem.• If the worker is made to Inspect while the• If the worker is made to Inspect while the

product is being made and held responsible for Quality this can be termed as In processQuality this can be termed as In-process Inspection and we are trying to achieve Quality at Sourceat Source

• So Worker is responsible for his Quality,Simple h t d SQC t h i d fcharts and SQC techniques are used for

monitoring,Worker can stop prodn to stop d i d f ti tproducing defective parts

• A culture of Quality Circles is built to enable ysolving quality related issues 544

PEMP EMM502

Standard DeviationStandard DeviationMMean

Deviation

MSE=(av-indi result)*2

N-1Std deviation=sigma= √ mseStd deviation=sigma= √ mse

Mean squared error

No of casesNo of casessize

• Deviation is the distance from the mean• Deviation score=observation-mean• Variance is mean of square of deviation score.σ2 is

symbol of variance• Standard deviation or sigma is the square root of variance

IS THE MOST WIDELY USED SYMBOL FOR VARIANCEWhole struggle is to reduce Process tolerancetolerance

545

PEMP EMM502

Normal distrib tionNormal distribution

• Properties of this Normal distribution form th b i f SPCthe basis for SPC.

NoOf

cases

3σ size

Std deviation σ,(sigma)68.26% = +/-1σ99 73%= +/- 3σ99.73%= +/- 3σ

Area under Bell shaped curve=100%

546

PEMP EMM502

Standard Deviation… ContdIf we superimpose the customer derived spec limits on top of two distributions with

different std deviations WE CONCLUDE THAT VARIATION IS THE MAIN PROBLEM.REDUCE IT!!!

• It’s relation to specificationsProcess 1Process 1

Standard Deviation 0.5

rejections rejections

Process 1

rejections j

Tolerance given by Specification

Standard Deviation 0.05

Lower the Std Deviation of process –it is better547

PEMP EMM502

The Normal Distrib tionThe Normal Distribution1st distribution

2nd distributionLTL HTL

3rd distribution

Defects

Mean is same in all casesWhich process is better?Which process is better?

548

Random causecause

-3 +3

Assignable Assignable Assignable cause

Assignable cause

This is the basis of control chart549

PEMP EMM502

Variation—Self studyy-Next 8 slides

• So a process improvement plan will normally involve• Removing the special causes• Progressively reducing the effects of Common causes

• It is very imp to correctly identify which is a special cause and which is a common cause

• If faults of the system(common) are treated asIf faults of the system(common) are treated as special causes and continual tampering with the process is done ,it will result in increasedprocess is done ,it will result in increased variability

• Special causes will not be really identified and• Special causes will not be really identified and so ,never removed and so the process will never achieve stability and consistencyachieve stability and consistency

550

PEMP EMM502

Analysing Variationy g

• To analyse the variation in any set of data one must examinemust examine– The shape of the distribution curve

The location or centre– The location or centre– The spread about the centre

Pl tti th f i i t l lt i• Plotting the frequencies against values results in a distribution curve

• If the curve is bell shaped and symmetric it is known as normal distribution and is most frequent in industrial processes

551

PEMP EMM502

ContdContd

• This is very useful since the known ti f th l di tb th tproperties of the normal distbn mean that

predictions can be made about process p pperformance from the value of its standard deviationstandard deviation

• The standard deviation is a measure ofThe standard deviation is a measure of spread or scatter about the mean

552

PEMP EMM502

Normal Distribution—Analysing i ti Mvariation Mean=µ

• 68.26% of all datawill be within +/- 1sig

• 99 74% within +/ 3 sig• 99.74% within +/-3 sig• Above can be pre dicted

if process is stable anddistbn curve is normal

• ONLY 2600 PARTSPER MILLION WILL BE

95%99.74%

PER MILLION WILL BEOUTSIDE +/- 3SD’S μμ=0=0 11σσ 22σσ 33σσ--

11σσ--22σσ--33σσ

LTL UTLLTL UTL553

PEMP EMM502

Predicted Defect level as Process capability increases

sigma ppm defective2 308 5372 308,5373 66,807,4 6,2105 2336 3 46 3.4

554

PEMP EMM502

Anal sing ariationAnalysing variation

• A much easier to calculate, but less meaningful measure of spread is the Range Rmeasure of spread is the Range R

• R=Largest value in data-Smallest value in data• The std deviation can be approximated from

Range using a simple formulaRange using a simple formula• Lastly, the distbn curves are a static picture or

h t f i bilit i tisnapshots of variability in time

555

PEMP EMM502

Reduction in Variation (From control to continuous improvement)• Recap very imp

– Processes left to their own devices are likely to be out of control and unstable------ie unpredictable in theirof control and unstable------ie unpredictable in their behaviour influenced by special causes

– Removing these special causes puts the process in g p p pcontrol, makes it stable and predictable. This is the single biggest improvement that can be made without redesign of processredesign of process.

– Then the process will still be subject to the chance/common causes of variation inherent in it.

556

PEMP EMM502

ContdContd----

• Further CI comes from reducing the ff t f theffects of the common causes

• Seven basic tools are used for this andSeven basic tools are used for this and these are known as SPC .Tools or 7 QC T lTools

557

PEMP EMM502

Learning?Learning?

• SO BOTH MEAN AND VARIATION HAVE TO BE STABLETO BE STABLE.

• THIS IS THE KEY TO SPCTHIS IS THE KEY TO SPC

558

PEMP EMM502

T pes of DataTypes of Data• Control charts can be used to monitor both

attribute and variable dataattribute and variable data• Attribute data describes the presence of some

feature characteristic or condition ie number offeature,characteristic or condition---ie number of scratches on a surface, number of errors in an invoice etc (discrete data)invoice etc.(discrete data)

• Variable data are recorded measurements of h t i ti i l th di t tsome characteristic –ie length, diameter, tempr,

time etc(Continuous data)

559

PEMP EMM502

E amples of a fe chartsExamples of a few charts

• Mean and range charts—(X Bar—R Ch t )Charts)– These are the simplest of the variable control charts.p– The calculation for the positions of the control limit

lines are less complex than those involving the mean p gor std deviation

– The average and range of small samples of constantThe average and range of small samples of constant size are plotted as a pair of charts.

– The data gathering must take into account the size– The data gathering must take into account the size and the frequency of the sample

560

PEMP EMM502

ContdContd---

• How to draw a chartGather data in sub groups of n observations each in– Gather data in sub-groups of n observations each , in time orderFor each subgroup find X BAR and R– For each subgroup find X BAR and R

– Plot the means and ranges on separate chartsCalculate the grand mean– Calculate the grand mean and plot this mean of subgroup means ,as the centerline of the mean chart

X

centerline of the mean chart• Calculate the mean of the subgroup ranges R bar and

plot as the centerline of the range chartplot as the centerline of the range chart

561

ContdContd

• Calculate and plot the control limits for the mean chart UCL and LCLchart---UCL and LCL

• In the formula there will be a constant A2 which depends on value of n

• Calculate and plot the control limits for the rangeCalculate and plot the control limits for the range chart. Here there will be constants D3 and D4 based on values of nbased on values of n

• Interpret the results in terms of system stability

562

PEMP EMM502

ControlControl• The purpose of control charts is to detect out of

control conditions which are commonlycontrol conditions, which are commonly thought to be occurring if data points fall outside the control limits and are also present ifoutside the control limits and are also present if certain patterns occur within the control limitsO i t b d t l li it• One point or more beyond control limits, seven consecutive points above or below the

i i i imean,seven consecutive points increasing or decreasing

563

PEMP EMM502

X bar Chart e ampleX-bar Chart example

OBSERVATIONS (SLIP- RING DIAMETER, CM)SAMPLE k 1 2 3 4 5 x R

1 5.02 5.01 4.94 4.99 4.96 4.98 0.082 5 01 5 03 5 07 4 95 4 96 5 00 0 122 5.01 5.03 5.07 4.95 4.96 5.00 0.123 4.99 5.00 4.93 4.92 4.99 4.97 0.084 5.03 4.91 5.01 4.98 4.89 4.96 0.145 4.95 4.92 5.03 5.05 5.01 4.99 0.136 4.97 5.06 5.06 4.96 5.03 5.01 0.107 5 05 5 01 5 10 4 96 4 99 5 02 0 147 5.05 5.01 5.10 4.96 4.99 5.02 0.148 5.09 5.10 5.00 4.99 5.08 5.05 0.119 5.14 5.10 4.99 5.08 5.09 5.08 0.1510 5.01 4.98 5.08 5.07 4.99 5.03 0.10

50.09 1.15

564

PEMP EMM502

X bar Chart e ample contdX-bar Chart example contd..

x = = = 5.01 cm= ∑xk

50.0910k 10

UCL = x + A2R = 5.01 + (0.58)(0.115) = 5.08

LCL A R 5 01 (0 58)(0 115) 4 94

=

=LCL = x - A2R = 5.01 - (0.58)(0.115) = 4.94=

Retrieve Factor Value A22565

PEMP EMM502

X-bar Chart example contdX bar Chart example contd..

UCL = 5.08

5.10 –

5.08 –

5.06 –

Mea

n 5.04 –

5.02 –x = 5.01=

5.00 –

4 98 – LCL = 4.944.98 –

4.96 –

Sample number

|1

|2

|3

|4

|5

|6

|7

|8

|9

|10

4.94 –

4.92 –

566

PEMP EMM502

R bar chart e ampleR-bar chart example

UCL =UCL = DD RR LCL =LCL = DD RRUCL = UCL = DD44RR LCL = LCL = DD33RR

RR = = ∑∑RRkkkk

wherewherewherewhereRR = range of each sample= range of each sampleRR range of each sample range of each samplekk = number of samples= number of samples

567

PEMP EMM502

R bar chart e ample contdR-bar chart example contd..

OBSERVATIONS (SLIPOBSERVATIONS (SLIP--RING DIAMETER, CM)RING DIAMETER, CM)OBSERVATIONS (SLIPOBSERVATIONS (SLIP RING DIAMETER, CM)RING DIAMETER, CM)SAMPLE SAMPLE kk 11 22 33 44 55 xx RR

11 5.025.02 5.015.01 4.944.94 4.994.99 4.964.96 4.984.98 0.080.0822 5.015.01 5.035.03 5.075.07 4.954.95 4.964.96 5.005.00 0.120.1233 4.994.99 5.005.00 4.934.93 4.924.92 4.994.99 4.974.97 0.080.0844 5 035 03 4 914 91 5 015 01 4 984 98 4 894 89 4 964 96 0 140 1444 5.035.03 4.914.91 5.015.01 4.984.98 4.894.89 4.964.96 0.140.1455 4.954.95 4.924.92 5.035.03 5.055.05 5.015.01 4.994.99 0.130.1366 4.974.97 5.065.06 5.065.06 4.964.96 5.035.03 5.015.01 0.100.1077 5.055.05 5.015.01 5.105.10 4.964.96 4.994.99 5.025.02 0.140.1488 5.095.09 5.105.10 5.005.00 4.994.99 5.085.08 5.055.05 0.110.1199 5 145 14 5 105 10 4 994 99 5 085 08 5 095 09 5 085 08 0 150 1599 5.145.14 5.105.10 4.994.99 5.085.08 5.095.09 5.085.08 0.150.151010 5.015.01 4.984.98 5.085.08 5.075.07 4.994.99 5.035.03 0.100.10

50.0950.09 1.151.1550.0950.09 1.151.15568

PEMP EMM502

R bar chart e ample contdR-bar chart example contd..

∑RkR = = = 0.115

1.1510

UCL = D4R = 2.11(0.115) = 0.243LCL = D R = 0(0 115) = 0k 10 LCL = D3R = 0(0.115) = 0

Retrieve Factor Values DRetrieve Factor Values D33 and Dand D4433 44

569

PEMP EMM502

R bar chart e ample contdR-bar chart example contd..

0.28 –

UCL = 0.2430.24 –

0 20 –

nge

R = 0.115

0.20 –

0.16 –

Ra 0.12 –

0.08 –

LCL = 0| | | | | | | | | |

0.04 –

0 –

Sample number

|1

|2

|3

|4

|5

|6

|7

|8

|9

|10

0 –

570

Variable chart one more eVariable chart—one more ex

• Construct a control chart for foll datachart for foll data

• Take A2=0.73 for sample i 4

sub gro

mm Cal Calculat

⎯Xsize=4 up R ed X1 20 22 25 24 5 22.752 18 23 20 26 8 21.753 24 25 22 20 5 22.754 23 21 26 24 5 23 5

UCL=22.85+.73*5.4=26.794 23 21 26 24 5 23.55 24 25 24 21 4 23.5

4055/)45585( =++++=R

LCL=18.91

85.225/)5.235.2375.2275.2175.22(/ =++++==∑ KXX40.55/)45585( =++++=R

571

PEMP EMM502

Appendix: Value of constants Determining Control Limits for x-bar and R-

Charts

n A2 D3 D4

SAMPLE SIZE FACTOR FOR x-CHART FACTORS FOR R-CHART

2 1.88 0.00 3.272 1.88 0.00 3.273 1.02 0.00 2.574 0.73 0.00 2.285 0.58 0.00 2.116 0.48 0.00 2.007 0.42 0.08 1.928 0.37 0.14 1.869 0.44 0.18 1.82

10 0.11 0.22 1.7811 0.99 0.26 1.7412 0.77 0.28 1.7213 0.55 0.31 1.6914 0.44 0.33 1.6715 0 22 0 35 1 6515 0.22 0.35 1.6516 0.11 0.36 1.6417 0.00 0.38 1.62

572

PEMP EMM502

Using x- bar and R-Charts Together

P d i bilit• Process average and process variability must be in control.

• It is possible for samples to have very narrow ranges but their averages isnarrow ranges, but their averages is beyond control limits.

• It is possible for sample averages to be in control, but ranges might be veryin control, but ranges might be very large.

573

PEMP EMM502

Control Chart PatternsControl Chart Patterns

UCLUCL

UCLUCLUCLUCL

LCLLCL

Sample observationsSample observationsLCLLCL

ppconsistently below theconsistently below thecenter linecenter line

Sample observationsSample observationsconsistently above theconsistently above thecenter linecenter linecenter linecenter line

574

PEMP EMM502

Control Chart PatternsControl Chart Patterns

UCLUCL

UCLUCL

LCLLCL

UCLUCL

Sample observationsSample observationsSample observationsSample observationsconsistently increasingconsistently increasing LCLLCL

Sample observationsSample observationsconsistently decreasingconsistently decreasing

575

PEMP EMM502

P f i P tt T tPerforming a Pattern Test

SAMPLESAMPLE xx ABOVE/BELOWABOVE/BELOW UP/DOWNUP/DOWN ZONEZONE

11 4.984.98 BB —— BB22 5 005 00 BB UU CC22 5.005.00 BB UU CC33 4.954.95 BB DD AA44 4.964.96 BB DD AA44 4.964.96 BB DD AA55 4.994.99 BB UU CC66 5.015.01 —— UU CC77 5.025.02 AA UU CC88 5.055.05 AA UU BB99 5.085.08 AA UU AA

1010 5.035.03 AA DD BB

576

PEMP EMM502

Attrib te data control chartsAttribute data control charts

• Defectives p charts• Defects c charts• P chart(proportion defective chart)

– Used when data recorded relates to theUsed when data recorded relates to the fraction or portion of defectives (rejects) in a sample to check the output for a level ofsample.to check the output for a level of defects

577PEMP EMM502

PEMP EMM502

ContdContd

• C charts( number of defects charts)– Data are actual defects rather than defectives,

eg the no of errors on a sales form rather than gthe no of sales forms rejected..—no of scratches on a polished surface no ofscratches on a polished surface,no of accidents in a shop,no of defects in each assembly coming off the lineassembly coming off the line,

578

PEMP EMM502

Attribute Control ChartsAttribute Control Charts-summary

Types of Attribute Control Charts:summary

Control Charts for Defectives: p-chart, np-chart.‘np’ chart is called No of defectives chartnp chart is called No of defectives chart‘p’ chart is called fraction defective chart

Control Charts for Defects: c-chart, u-chart.c chart is called No of defects chartu chart is called no of defects/unit chart

SEE HAND OUT FOR EXAMPLES FOR ATTRIBUTESEE HAND OUT FOR EXAMPLES FOR ATTRIBUTE CHARTS

579

P bilitProcess capability

580

PEMP EMM502

Process CapabilityDesign Design

SpecificationSpecificationss

(a) Natural variation (a) Natural variation exceeds design exceeds design specifications;specifications;

ss

specifications; specifications; process is not process is not capable of meeting capable of meeting specifications all the specifications all the ProcessProcess

Design Design SpecificationSpecification

ss

time.time. ProcessProcess

(b) Design (b) Design specifications and specifications and natural variation the natural variation the same; process issame; process issame; process is same; process is capable of meeting capable of meeting specifications most of specifications most of the time.the time. ProcessProcess

581

PEMP EMM502

P C bilitProcess CapabilityDesign Design

SpecificationSpecificationss

(c) Design (c) Design specifications greater specifications greater than natural variation;than natural variation;

ss

than natural variation; than natural variation; process is capable of process is capable of always conforming to always conforming to specifications.specifications. ProcessProcessProcessProcess

Design Design SpecificationSpecification

ss(d) Specifications (d) Specifications greater than natural greater than natural variation, but process variation, but process off center; capable butoff center; capable butoff center; capable but off center; capable but some output will not some output will not meet upper meet upper specification.specification.

ProcessProcess

582

Concept of Standardized normal distribution

Standard The normal distribution with, •Mean μ = 0

Concept of Standardized normal distribution

Normal Distribution

•Mean,•Standard deviation, σ = 1

μ = 0

Mean

Total area under the curve is 1Most of the area is between -3 σ and +3 σTotal area under the curve is 1

583

Specification & defect areas

Lim

it (L

SL)

d Li

mit

(USL

)

wer

Spe

cifie

d

pper

Spe

cifie

d

Low Up

DefectsDefects

584

Definition of Process capabilityP bilit St d i d f l tiProcess capability Study is procedure of evaluating a process by means of control charts to determine if the process iscapable relati e to its specifications & the centeringcapable relative to its specifications & the centering ability of the Process.

Design ToleranceProcess Capability =

Process Variationp y

=USL - LSL

66 σ

585

P bilit tifi h ll th i f iProcess capability quantifies how well the process is performingwithin specification limits with respect to different sources of variationvariation

Lim

it (L

SL)

Lim

it (U

SL)

er S

peci

fied

L

per S

peci

fied

Low

e

Upp

Meas re of capabilitMeasure of capability of process

586

Need for Process Capability Studies

1. Provide best in class product and services.

2. 100% inspection is not 100% quality & waste of resourcesresources.

3. One of the keyway to achieve quality objective.3. One of the keyway to achieve quality objective.

4. Comparison between two process, different equipment and machinesand machines

587

Five ‘Ws’ and One ‘H’ of process Capability Study

WHY To predict the ability of machine orWHY To predict the ability of machine or process.To identify the conditions leading to non conformance.non conformance.

HOW By Statistical analysisWHEN Pre delivery,On going

process,retoolingprocess,retoolingApproval of newly installed system

WHERE

In equipment supplier plant, Customer own plant.p

WHAT Quality Characteristics chosen 588

Measure of process capability

Process capability indices:

Pp It relates the specification range

USLLSL NOMINAL

Cpspecification range directly to the process variationprocess variation

It l t thPpk

It relates the specification range

ith th

LSL NOMINAL USLMEAN

Cpkwith the process mean and the process variationprocess variation

Cp > Cpk Pp > Ppk,p p ,589

Meaning of Process capability

USL Cp=0.60 Cp=1.0 Cp=1.33 Cp=1.67 Cp=2.0USL p p p p p

Nominal A EDCB

LSL

DPMO 382089 66087 6210 233 3 4DPMO 382089 66087 6210 233 3.4590

Example of Process capabilityp p yA B

C DC

Which is the most CAPABLE ?Which is the most CAPABLE ?591

Sources of variation

• Within variationWithin variation

• Between variation• Between variation

Overall variation = Within variation + Between variation

592

S f i tiSources of variation

Between variation in sub groups 1 & 4

1 2 3 4 5 6within variationwithin variation

Overall variationwithin variation in sub group 4

within variationin sub group 1

593

Measures of process capability

P Overall variationP

C Within variationC Within variation

594

Measures of process capability

Pp Captures Relates specific range to σ only

Ppk

pOverall variationRelates specific range to & σPpk Relates specific range to μ & σ

Cp Relates specific range to σ onlyCaptures

Cpk Relates specific range to μ & σ

pWithin variation

595

Measures of process capability

USL - LSLPp = USL - X X - LSL

Ppk = min6 σs

Pp =3 σs^ 3 σs

Ppk = ,min

∑ (x1-x)2L=1

n

σ =Ppk = Pp ( 1 k)K=2(m-target/tol L=1n-1σsPpk = Pp ( 1- k)( g

Cp =^

USL - LSL

Cpk = , X - LSLUSL- Xmin6 σ

Cpk ,3σ3σ

min

Cpk = Cp (1- k) σ can be calculated from the available

data or can be expressed as R/d2 data or can be expressed as R/d2

596

Consideration of Process capability indicesConsideration of Process capability indices

Cpk 1 - Not AcceptableCpk 1 - Not Acceptable

Cpk = 1.33 - Just Acceptablep p

Cpk 1.67 - Good

Cpk 2 - Best in class process

597

Decisions making with Process capabilityDecisions making with Process capability # Relationship Probable action /Decisionp

1 Cpk 1.67 1) Job can be changed to less costly/ precise machinep machine.2) Specified tolerance can be narrowed if it is economically worthwhile.3) I ti i t l b i d &3) Inspection interval can be increased & product can be accepted on the basis of control chart details.

2 Cpk = 1.33 1) Greater attention to the centering of the process should be given.2) Investigate the possibility of reducing process variability at least marginally.3) Set the machine at the most economic level ( mean)( )

3 Cpk 1.0 1) Scrap & rework are inevitable.2) Resort to minimum machine adjustment.3) 100 t i ti t b t d3) 100 percent inspection must be resorted to.4) Examine the possibility of widening the

f

598

How to achieve process capability

Process capability can be improved by reducing variations due to 5 M ‘sdue to 5 M s

Man

MachineMeasurement variation

Material

Method

Measurement

599

P bilit t tProcess capability targetsUSLLSL Target

Reduce the variation

Shift P t d t tShift Process mean towards target600

Workout ( within / overall variation)

CITY 1 CITY 2 CITY 3 CITY 4

Motorcycle Mileage (Km/l ) in 4 citiesCITY 1 CITY 2 CITY 3 CITY 4

601

Result ( within / overall variation)

WithinWithin variation in

CITY 1

Overall variation

among the gCITIES

602

PEMP EMM502

Six sigmaSix sigma

603

PEMP EMM502

6 SIGMA METHODOLOGY6 SIGMA METHODOLOGY

SIX SIGMA RELIES ON “DMAIC”METHODOLOGYMETHODOLOGY

DEFINE

MEASURE

ANALYSE

IMPROVEIMPROVE

CONTROLCONTROL

604

Foll ill be co eredFoll will be covered• Introduction• Definition

• Design For Six Sigma• Failure Modes and• Definition

• Different Views of 6 Si

• Failure Modes and Effects AnalysisR f f SiSigma

• Approaches---• Reference of Six

Sigma cases which ill bl t

ppChoice?

• Roleswill enable to understand the Ri hRoles

• Tool-KitDMAIC P bl

Rigorous approach of this Breakthrough St t• DMAIC-Problem

solving ModelStrategy

605

PEMP EMM502

I t d tiIntroduction

• Six Sigma is a smarter way to manage a business or dept.The final aim is to achieve near perfection ,which p pgenerally will require a BREAKTHROUGH IDEA.

• Generally it targets three main areas– Improving customer satisfaction– Reducing Cycle timeg y– Reducing defectsLooks Old Hat!!!Looks Old Hat!!!IT IS A FIRM NO!---------------Because

606

PEMP EMM502

ContdContdThe vital thing is that GOALS are set very steep and they require BREAKTHROUGHS in every areaand they require BREAKTHROUGHS in every area of operation.In statistical terms it means that your processes orIn statistical terms,it means that your processes or products will perform with almost no defects.NEAR PERFECT PRODUCTS/SERVICES ANDNEAR PERFECT PRODUCTS/SERVICES AND SUPERB CUSTOMER SATISFACTION.—as near to a simple definition as I could geta simple definition as I could get.

607

PEMP EMM502

ContdContd

• Three key characteristics separate Six Sigma from Quality programs of the pastfrom Quality programs of the past– Six Sigma is Customer focused—It is almost an

b i t k t l t ’ d i l iobsession to keep external customer’s needs in plain sight,driving the improvement effort

– Six Sigma projects produce major returns on investment

– Six Sigma changes how management operates—They learn new approaches to thinking, planning,and executing, to achieve results.

608

PEMP EMM502

ContdContd– This Overview CANNOT and WILL not bombard you

with lot of details or expertise BUT enoughwith lot of details or expertise BUT enough information to allow you to draw your own conclusions about what Six Sigma may hold for you, your job, g y y , y j ,your co.

609

PEMP EMM502

Defining Si SigmaDefining Six Sigma• We will look at Six Sigma from three angles--• A Statistical measure of the performance of aA Statistical measure of the performance of a

process or product• A Goal that reaches near perfection wrto perfA Goal that reaches near perfection wrto perf

improvement• A System of mgt to achieve lasting businessA System of mgt to achieve lasting business

leadership and World Class Performance—What is this??

610

PROCESS RATING

• LEVEL 5 – WORLD CLASS • LEVEL 4 - BEST IN CLASS

LEVEL 3 COMPETETIVE• LEVEL 3 – COMPETETIVE• LEVEL 2 – NON COMPETETIVE• LEVEL 1 – UNHEALTHY

611

PROCESS RATINGPROCESS RATING

LEV-EL

EFFICIENCY EFFECTIVENESSEL (DOING THINGS

CORRECTLY)(DOING CORRECT THINGS)

5WORLD

DEFECT FREE, LOW COST, QUICK

OUTPUT EXCEEDS ALL

CLASSLOW COST, QUICK RESPONSE

EXCEEDS ALL CUST. REQMT

4BEST IN

LOW DEFECT, MODERATE COST/

OUTPUT EXCEEDS MOSTBEST IN

CLASSMODERATE COST/ RESPONSE

EXCEEDS MOST OF CUST. REQMT

612

PROCESS RATINGPROCESS RATING

3COMPETECOMPETE--

SCOPE FOR IMPR. OF COST, DEFECT,

OUTPUT MEETS CUST. REQMT

TIVETIVE, ,

RESPONSEQ

2NON

INEFFICIENT BARELY MEETS CUSTOMER

COMPETE-TIVE

CUSTOMER RQMT

1 PROCESS IS OUTPUT DOES1CHAOTIC

PROCESS IS CHAOTIC: HIGH COST/ REJECTIONS

OUTPUT DOES NOT MEET CUST REQMTCOST/ REJECTIONS CUST. REQMT.

613

PEMP EMM502

PROCESS RATING

EEF 5 WORLDCLASSF L E V E LI 4 BEST IN CLASSI 4 BEST IN CLASSCI 3 EFFECTIVEEN 2 EFFECTIVECCY 1 CHAOTIC

E F F E C T I V E N E S S

614

PEMP EMM502

BUSINESS EXCELLENCE MODELS

• NOTABLE AMONG THESE AWARDS AREMALCOLM BALDRIGE AWARDDEMING AWARDDEMING AWARDEUROPEAN FOUNDATION FOR QUALITY MANAGEMENT (EFQM)RAJIV GANDHI QUALITY AWARDJAMANLAL BAJAJ AWARDJAMANLAL BAJAJ AWARD

• THESE ARE AWARDED ON THE BASIS OF ASSESSMENT OF: CUSTOMER SATISFACTIONCUSTOMER SATISFACTIONLEADERSHIP, STRATEGY & POLICIESQUALITY RESULTSINFORMATION ANALYSISHUMAN RESOURCE UTILIZATIONSTRATEGIC QUALITY PLANNINGQUALITY ASSURANCE SYSTEM IMPACT ON SOCIETY

615

PEMP EMM502

Si Si St ti ti l MSix Sigma as a Statistical Measure

• Sigma is a measure of Deviation• Six Sigma means that there can be only

3 4 defects in a Million Opportunities3.4 defects in a Million Opportunities• The deviation must be measured on the

key customer expectations---called CTQ.

616

PEMP EMM502

What is Sigmag

The term ‘Sigma’ taken from the Greek alphabet, isused to designate the distribution or spread about themean (average) of any parameter of product, processor procedure. In the context of business or

f t i Si bilit i t imanufacturing process, Sigma capability is a metricwhich indicates how the process is behaving. Higherth Si l b tt th bilit f ththe Sigma value, better the capability of the processto produce defect free work and vice versa.

617

PEMP EMM502

Understanding normalUnderstanding normal distribution

618

ContdContd

• SEE VIDEOnormal distbn.dat

619

PEMP EMM502

Normal DistributionNormal Distribution

In practice generally we come across data which is ofvariable type and is measured on continuous scale Ifvariable type and is measured on continuous scale. Ifthere are no extraneous factors it follows asystematic pattern known as “Normal Distribution”. Itsyste at c patte o as o a st but o tcan be derived after plotting histogram as explainedin the next slide.

620

HistogramPEMP EMM502

g

50

60

y

40

50

eque

ncy

30

Fre

10

20

10

0

Thickness of output in mm1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

CTQ 621

Normal curvePEMP EMM502

Normal Curve is a smooth symmetrical bell shaped curve as shown below.

50

60

y

40

50

eque

ncy

30

Fre

10

20

10

0

Thickness of output in mm1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

CTQ 622

PEMP EMM502

Most commonly used intervalsMost commonly used intervals

In normal distribution, the most common intervals are :

1. Process mean - SD and process mean + SD i.e 1 Sigma

2. Process mean - 2 SD and process mean + 2 SD i.e 2 Sigma

3. Process mean - 3 SD and process mean + 3 SD i.e 3 Sigma

623

% Population between Mean - SD & Mean + SD (1Sigma)PEMP EMM502

Mean = 10, SD = 2

Mean+SD =12Mean-SD =8

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

- SD + SD

% population between Mean - SD and Mean + SD or 1 Sigma = 68.3,This implies that 68.3% population lies between dimensions of 8 and 12

624

% Population between Mean - 2 SD & Mean + 2 SD (2Sigma)

PEMP EMM502

Mean = 10, SD = 2

( g )

Mean-2 SD=6Mean+2 SD=14

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 172 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

-2 SD +2 SD

% population between Mean - 2 SD and Mean +2 SD or 2 Sigma = 95.5This implies that 95.5% population lies between dimensions 6 &14 625

% Population between Mean - 3 SD & Mean + 3 SD (3 Sigma)

PEMP EMM502

Mean = 10, SD = 2

g )

Mean + 3SD =16Mean - 3SD =4

% Population

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

- 3 SD + 3 SD

% population between Mean - 3 SD and Mean +3 SD or 3 Sigma = 99.73% popu o be wee e 3 S d e 3 S o 3 S g 99.73This implies that 99.73 % population lies between 4 & 16 626

PEMP EMM502

Range of observations for nearly 100% populationg y p p

Range of observations for nearly 100% population (tobe precise 99.73%) depends upon, mean of thep ) p p ,process and standard deviation of the process. If itfollows normal distribution the population liesfollows normal distribution the population liesbetween -

Mean - 3 SD & Mean + 3 SD i.e ( 3Sigma )Mean 3 SD & Mean + 3 SD i.e ( 3Sigma )

627

What is a Sigma processWhat is a Sigma process

628

PEMP EMM502

Meaning of a Sigma processg g p

From a sigma process we come to know that at whatdi t i t f th t d d d i ti thdistance, in terms of the standard deviation, thespecification limits are placed from the target value.

629

PEMP EMM502

Move beyond 3 sigmay g

Until a few years back all statistical process controlswere designed on the basis of 3 sigma limits. It is onlyg g yin the recent years that this concept has beenchallenged and the organizations have started lookingf lit l l b d 3 Sifor quality levels beyond 3 Sigma.

630

3 Sigma processPEMP EMM502

Mean=8LSL USLSD = 2

2 3 4 5 6 7 8 9 1210 16151413111

- 3 SD + 3 SD

Note : LSL is Lower specification limit and USL is Upper specification limit. 631

4 Sigma processPEMP EMM502

M 8LSL USLMean=8SD = 1.33

2 3 4 5 6 7 8 9 1210 16151413111

- 4 SD + 4 SD

632

5 Sigma processPEMP EMM502

Mean=8LSL USLSD = 1.07

2 3 4 5 6 7 8 9 1210 16151413111

- 5 SD + 5 SD

633

6 Sigma processPEMP EMM502

M 8LSL USL

Mean=8SD = 1

2 3 4 5 6 7 8 9 1210 16151413111

- 6 SD + 6 SD

634

PrecisionPEMP EMM502

Lesser the standard deviation of the process, more precise or consistent is the process

635

PEMP EMM502

3 Sigma Vs 6 Sigma

The goal of Six Sigma program is to reduce the variationThe goal of Six Sigma program is to reduce the variationin every process to such an extent that the spread of 12sigmas i.e. 6 Sigmas on either side of the mean fits withinsigmas i.e. 6 Sigmas on either side of the mean fits withinthe process specifications. The figure on next slide showswhat this looks like.

636

3 Sigma Vs 6 SigmaPEMP EMM502

6 Sigma curve

LSL USL

3 Sigma curve

2 3 4 5 6 7 8 9 1210 16151413111

In a 3 sigma process the values are widely spread along the center line, h i th hi h i ti f th Wh i 6 Sishowing the higher variation of the process. Whereas in a 6 Sigma

process, the values are closer to the center line showing less variation in the process.

637

PEMP EMM502

3 Sigma Vs 6 Sigmag g

The comparison on the previous slide also shows ap pprocess in which the process spread of Six Sigmas (ie. 3Sigmas on either side just fits within the specifications). Inthis case one must be extremely careful to ensure thatthe process average never slips off the target, otherwisethe curve will shift and non-conforming items willincrease. With Six Sigma requirement the process meancan shift by as much as 1.5 sigma before the likelihood ofnon-conforming items is increased. Even if the process

d hift ff t b h 1 5 i lmean does shift off center by as much as 1.5 sigma, only3.4 non-conforming items per million parts should result.

638

Amount of process shift allowedPEMP EMM502

1 5 SD 1.5 SD

LSL USL

1.5 SD 1.5 SD

LSL USL

SD = 1SD 1

2 3 4 5 6 7 8 9 1210 16151413111

639

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Si SigmaSix Sigma

• Six sigma is exciting.• But it requires tenacity,mental toughness

and above all an excellent statisticaland above all an excellent statistical analytical ability and dedication to perfection.A successful six sigma project mustA successful six sigma project must contribute substantially to the bottom line.y

640

PEMP EMM502

What is DPUWhat is DPU

The common metric :D f t it (DPU)Defects per unit (DPU).

DPU is the best measure of the overall qualityof the processof the process.

DPU is the independent variable.Process yields are dependent upon DPUProcess yields are dependent upon DPU.

641

PEMP EMM502

SIX SIGMASIX SIGMA

EXAMPLEEXAMPLE

We checked 500 Purchase Orders (PO) and PO had 10( )defects then,d.p.u = d/u = 10/500 = 0.02

In a P.O. we check for the following :

a) Supplier address/approval.b) Quantity as per the indentc) Specifications as per the indentc) Specifications as per the indent.d) Delivery requirementse) Commercial requirements.

Then there are 5 opportunities for the defects to occur. Then,the total no opportunities = mu=5x500 = 2500the total no. opportunities mu 5x500 2500.

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SIX SIGMASIX SIGMA

EXAMPLE----What is DPMOEXAMPLE----What is DPMO

Defects per opportunity, d.p.o = d/(m u) = 10/2500 =0.004If expressed in terms of d.p.m.o. (defects per millionopportunities) it becomes.

d.p.m.o. = d.p.o x 106 = 4000 PPM-Todays languageof Quality is PPM

From d.p.o., we go to the normal distribution tablesp , gand calculate ZLT and corrected to ZST by adjustingfor shift (1.5 σ) then.

ZLT = 2.65; andZST = 2.65 + 1.5 = 4.15. SEE TABLE

643

PEMP EMM502

SIX SIGMASIX SIGMA

No. of opportunities = No. of points checked.

If you don’t check some points then it becomes apassive opportunity. We should take only activepassive opportunity. We should take only activeopportunities into our calculation of d.p.o., andSigma level.g

644

PEMP EMM502

6 SIGMA6 SIGMA

• OPPORTUNITY FOR DEFECT/ UNIT• OPPORTUNITY FOR DEFECT/ UNIT• (ACTUAL) DEFECTS/ OPPORTUNITY (d.p.o.)• DEFECT/ MILLION OPPORTUNITY (d.p.m.o.)

WHEN D P M O IS• WHEN D.P.M.O. IS308,537, IT IS 2 SIGMA (30.8% DEFECTIVE)66,000 IT IS 3 SIGMA(6.6%)6200, IT IS 4 SIGMA(0. 62%), ( )233, IT IS 5 SIGMA(O.0233%)3 4 IT IS 6 SIGMA(0 00034%)3.4, IT IS 6 SIGMA(0.00034%)

645

646

647

648

PEMP EMM502

FICCI CEInaccurate and imprecise

+

649

PEMP EMM502

FICCI CEPrecise but inaccuratePrecise but inaccurate

+

650

PEMP EMM502

FICCI CEAccurate and imprecisep

+

651

PEMP EMM502

FICCI CEAccurate and precise

+

652

Without 1.5 sigma shiftg

653

With 1 5 sigma shiftPEMP EMM502

With 1.5 sigma shiftFICCI CE

Levels of Sigma and defect rate

Quality level % Quality Defective PPM *

3 Sigma 99 73 668073 Sigma 99.73 66807

4 Sigma 99.9937 6210

5 Sigma 99.999943 233

6 Sigma 99.9999998 3.4

*Parts Per Million

654

PEMP EMM502

FICCI CE

Cost of quality at various levels of Sigma

Sigma Defect rate(PPM) Cost of quality Competitive level

3.4 <10%

233 10-15%WorldClass

6

5

6210 15-20%

66807 20-30%Industry Average

4

3 66807 20 30%

308537 30-40%

Average

NonC titi

3

2

6,90000 >40% Competitive1

655

PEMP EMM502

6 SIGMA

• SCALE OF IMPROVEMENT REQUIRED

2 TO 3 SIGMA, THERE IS A 5 FOLD IMPROVEMENTIMPROVEMENT3 TO 4 SIGMA, THERE IS A 10 FOLD IMPROVEMENTIMPROVEMENT4 TO 5 SIGMA, THERE IS A 30 FOLD IMPROVEMENT5 TO 6 SIGMA, THERE IS A70 FOLD IMPROVEMENT

656

WHAT DOES SIGMA LEVELS MEAN?-simple termsterms

Sigma level

Spelling Money Time

3 1.5 misspelled words per page in a book

Time $ 2.7 Million Indebtedness per $1 Billion in Assets

3 ½ Months per century

4 1 misspelled word per 30 pages in a book

$ 63000 Indebtedness per $1 Billion in

30 Minutes per century

assets

5 1 Misspelled Word in a $570 Indebtedness per 2½ days per centuryset of Encyclopedia $1 Billion in Assets

6 1 Misspelled Word in all of the Books in a Small Library

$2 Indebtedness per $1 Billion in Assets

6 Seconds per Century

657

PEMP EMM502

T i l Si L lTypical Sigma Levels

• Restaurant Billing – 4.0C ith d ti 3 9• Company with good practices – 3.9

• Doctors’ Prescription – 3.8p• Postal Delivery – 4.5

Ch Cl 4 8• Cheque Clearance – 4.8• Airline luggage Handling – 4.2gg g g• Bombay Dabbawallah – 6.8

Ai li F t lit 6 5• Airline Fatality – 6.5

658

PEMP EMM502

Concl sionConclusion

• Aiming for Six Sigma means g gAiming for Perfection

659

PEMP EMM502

Si Sigma as a GoalSix Sigma as a Goal• If 250000 credit card bills are processed and operated at 4 sigma or

99.38% accuracy there wd be 1550 unhappy customers per mth Accuracy delivery could be two CTQsmth.Accuracy,delivery could be two CTQs.

• Since a dissatisfied customer will tell ten people and a satisfied tells five, it is imperative to aim for 6sigma defect level. Otherwise you , p g ywill lose customers

• So a co embarking on 6 sigma is saying “We’d like to get as many of our customer related activities and products performing as closeof our customer-related activities and products performing as close to 6 sigma as we can”

• Knowing from the concept of COQ that 15-20% revenue is lost due to Quality issues it is good to have a Goal to Work towards.

660

PEMP EMM502

Ho to Choose Projects?How to Choose Projects?

• Project Selection StrategiesT O P Model– T-O-P Model

– O-P-T Model– Balance Score Card Model

661

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ContdContd• T-O-P Model

– Level T---Top Mgt decides to launch Six Sigma– Level T---Top Mgt decides to launch Six Sigma Project to confront serious business challenges

– (Termed as big Ys)(Termed as big Ys)– Level O—Establish Process Owners who are able to

translate the business goals into Process goals(smalltranslate the business goals into Process goals(small ys)

– Level P---Hand over improvement ideas to Project p jleaders ,who will fine tune the assigned project definitions,and proceed with DMAIC

– This is a good std model

662

PEMP EMM502

ContdContd

• O-P-T ModelStarts at Process owner level who sit together and– Starts at Process owner level,who sit together and drill down from the original business issues to discover the individual process problemsdiscover the individual process problems

– So a series of small ys are identified and causal l ti tifi d ith bi Y d th h d d d trlation quantified with bigYs and then handed down to

Project Leaders.W k ll h li d l i l h– Works well where policy deployment is clear.as the Process owners can easily pick-up the business iissues.

– It is no doubt faster

663

PEMP EMM502

ContdContd

• Balance Score Card– BSC approach for selection of projects(small

ys) includes both financial and non-financial y )measures across the four areas—

• FinancialFinancial• Customer

I t l• Internal processes• Employee learning and growth

664

PEMP EMM502

ContdContd

• Whichever is used(Mgt has to be comfortable!1 there is a Goalcomfortable!1 there is a Goal– Every output results from a process.If process

i h d li fis not changed,quality of output cannot improve

– All processes have inherent Variability– Data MUST be used to understand theData MUST be used to understand the

Variability and drive process improvement decisionsdecisions

– GOAL ORIENTED

665

PEMP EMM502

Si Sigma as a S stem of MgtSix Sigma as a System of Mgt• In Six Sigma programs Mgt plays a key role in

regularly monitoring resultsregularly monitoring results• Mgt has to get involved to make a success of

the important programs selected under 6the important programs selected under 6 sigma.So at regular meetings,mgrs can use 6 sigma to lead their businesssigma to lead their business.

• As a mgt system ,it is not owned by senior and id t l d b t h th t t l i l t fmid mgt leaders but has the total involvement of

front line employees.• So six sigma involves combination of both strong

leadership and grassroot energy and p g gyinvolvement 666

PEMP EMM502

Si Themes of Si SigmaSix Themes of Six Sigma

• Genuine focus on the Customer• Data-and Fact-Driven Mgt• Processes are where the Action is• Processes are where the Action is• Proactive Mgtg• Boundaryless Collaboration• Drive for Perfection; Tolerate Failure

667

PEMP EMM502

Three Approaches to Six Sigma pp gHighway

• Business Transformation Approach—Full l Ch I iti tiscale Change Initiative

• Strategic Improvement—Limited to one orStrategic Improvement Limited to one or two Critical Business Areas/Functions

• Problem Solving—Attacks only Nagging problems which cd not be solved earlierproblems which cd not be solved earlier.

• Which route to take??

668

PEMP EMM502

S mmarSummary

• What have we learnt till now?

669

PEMP EMM502

How Six Sigma worksHow Six Sigma works

Six Sigma is a high performance datadriven approach focused on analyzing thepp y groot causes of business problems andsolving them. It ties the outputs of ag pbusiness directly to market place. 670

PEMP EMM502

Clear focus on the bottom line

Six Sigma places a clear focus on getting thebottom line results along with the time frame.No Six Sigma project is approved until thebottom line or the success factors are clearlyspelt out. Each project must be completedwithin a given time frame which is usually 3-6months.

671

PEMP EMM502

Objectives of Six Sigma

At the strategic level, the goal of Six Sigma is toalign an organization to its marketplace anddeliver real improvements (in terms ofrupees/dollars) to the bottom linerupees/dollars) to the bottom line.

At the operational level, the Six Sigma goal is top , g gmove the business product or service attributeswithin the zone of customer specifications and toi ifi tl h i k i ti

672

PEMP EMM502

RolesRoles• New Roles for Managers and Employees• Once the Ramp is Chosen---IT IS UP TO A COLLECTION OF

Business Leaders,Team Leaders,and Facilitators• Black Belt—Most Critical role.Full time person dedicated to tackling

change opportunities He has to lead inspirechange opportunities.He has to lead, inspire, manage,delegate,coach the team.He has to have many skills –problem solving ability,collect and analyse data, leadership and coaching experience good admin sensecoaching experience,good admin sense.

• Master Black Belt—Coach and Mentor to Black Belts.• He is generally a real expert in six sigma analytical tools.He is generally a real expert in six sigma analytical tools.• He also plays more of an orgn change agent role.And investigate

customer reqmts and developing measures for key processes• Monitors milestones

673

PEMP EMM502

Contd RolesContd--Roles• Green Belt---Part time six sigma work.Their role is to bring the new

concepts and tools of six sigma to the day-to-day activities of business

• Champion and/or Sponsor—Senior person accountable.• Normally a senior mgt person –Must ensure that projects stay

aligned to business results,Provision of resources,Negotiate conflicts linkages etc Keep other top mgt persons aware of progressconflicts,linkages etc,Keep other top mgt persons aware of progress.

• Implementation Leader---Orchestrates all 6 Sigma Efforts.• BB,MBB,are certified.—Some questions—Who will be my bossBB,MBB,are certified. Some questions Who will be my boss

during assignment,assessment,after 6 sigma,Will orgn look at my 6 sigma work like my regular job.

• Each orgn will have to find its own solution.

674

PEMP EMM502

Si Sigma tool kitSix Sigma tool kit• Tools to Generate Ideas —Brainstorming, affinity

diagramgTree diagram, High-level process map, Flowchart, Cause-and-Effect diagram, Tools for data gathering ---Sampling, Voice of customer, Checksheets and Spreadsheets, MSA,Tools for Process and Data analysis ---Process-flow analysis, VA and NVA analysis,Charts and graphs like P t Hi t R S tt C t lPareto,Histogram, Run, Scatter ,ControlTools for statistical analysis ---Tests for statistical significance chi sq are t and ANOVA Correlation andsignificance—chi-square, t,and ANOVA,Correlation and regression,DOETools for implementation and process mgt ProjectTools for implementation and process mgt ---Project mgt, FMEA,Stakeholder analysis,Force field diagram,balance score card

675

PEMP EMM502

DMAIC Problem sol ing modelDMAIC Problem solving model

• Identifying projects—meaningful,manageable—Leadership groupLeadership group

• Forming Team---• Developing the Charter---written document to

the problem/project—Champion/Teamthe problem/project Champion/Team• Training the team• Doing DMAIC and implementing the solutions• Handing off the solutionHanding off the solution

676

PEMP EMM502

DMAIC ModelDMAIC Model• Define the problem---What are we working on?Why?Who is

customer?What is his reqmt?How is it done now?What are benefits of making improvement?Above are fundamental Questions which help originality in thinkingMeasure Gather data to validate and quantify the problem Begin• Measure---Gather data to validate and quantify the problem.Begin collecting facts and numbers that offer clues about cause of the problem.Always take a process view.y=f(x)is most imp equation.p y p y ( ) p q

• Analyse---Step to find Root Cause—5 M’s and 1 P—Methods,Machines,Materials,Measures,Mother nature,People

• Improve—Final planning and implement and achieve results• Control—Avoiding snap back into old habits.—Monitoring,creating

f i ll t l h d ff t ti kresponse for new issues,sell to people,hand off to routine workers

677

PEMP EMM502

Fundamental steps -- More detailsFundamental steps -- More detailsThere are 6 fundamental steps involved in applyingthe breakthrough strategy for achieving Six Sigmathe breakthrough strategy for achieving Six Sigma.These 6 steps are :-

• Define• Define• Measure• Analyze• Analyze• Improve

Control• Control• Standardize

678

The Six Sigma roadmap- Breakthrough strategy

Stage Phase ObjectiveG

Y Identification Define Identify key businessissues

TR

ATE

G issues

U d t d t

UG

H S

T

Characterization MeasureAnalyze

Understand current performance levels

TH

RO

U

OptimizationImproveControl

Achieve breakthroughimprovement

RE

AK

T p Control improvement

BR

Institutionalization Standardize Integrate Six Sigma in day to day functioning.

679

PEMP EMM502

Define phaseDefine phase

This phase defines the project. It identifies criticalcustomer requirements and links them to businessqneeds. It also defines a project charter and thebusiness processes to be undertaken for Six Sigma.

”.

680

PEMP EMM502

Measurement phaseMeasurement phase

This phase involves selecting product characteristic,mapping respective process making necessarymapping respective process, making necessarymeasurements and recording the results of the process.This is essentially a data collection phaseThis is essentially a data collection phase.

”.

681

PEMP EMM502

Analysis phase

I thi h ti l i t d t l th “ ”In this phase an action plan is created to close the “gap”between how things currently work and how theorgani ation o ld like them to ork in order to meet theorganization would like them to work in order to meet thegoals for a particular product or service. This phase alsorequires organizations to estimate their short term andrequires organizations to estimate their short term andlong term process capabilities.

682

PEMP EMM502

Improvement phaseImprovement phase

This phase involves improving processes/productThis phase involves improving processes/productperformance characteristics for achieving desired resultsand goals This phase involves application of scientificand goals. This phase involves application of scientifictools and techniques for making tangible improvements inprofitability and customer satisfactionprofitability and customer satisfaction.

683

PEMP EMM502

C t l hControl phaseThis phase requires the process conditions to be properlydocumented and monitored through statistical processcontrol methods. After a “settling in” period, the processcapability should be reassessed Depending upon thecapability should be reassessed. Depending upon theresults of such a follow-up analysis, it may be sometimesnecessary to revisit one or more of the preceding phasesnecessary to revisit one or more of the preceding phases.

”.

684

PEMP EMM502

Standardization phaseStandardization phase

This phase requires institutionalizing Six Sigma intoThis phase requires institutionalizing Six Sigma intoday to day working of the organization. In this phase theSix Sigma gains derived by certain specific projects areSix Sigma gains derived by certain specific projects areapplied to the other projects as well for optimumbusiness resultsbusiness results.

685

PEMP EMM502

Six SigmaSix Sigma

Quotable Quotes

686

PEMP EMM502

Q otesQuotes

• We are what we repeatedly do. E ll th i t t b t h bitExcellence, then is not an act but a habit--Aristotle B.C

• It must be considered that there is nothing diffi lt t t d btf lmore difficult to carry out,no more doubtful

to success,no more dangerous to handleto success,no more dangerous to handle than to initiate a new order of thing—Mach 15131513

687

PEMP EMM502

ContdContd

• The greatest challenge to any thinker is t ti th bl i th t ill llstating the problem in a way that will allow

a solution—Bertrand Russel• You can improve things ONLY when you

K l ican measure---Kelvin• Many times Learning is suddenly• Many times Learning is suddenly

understanding an old thing in a new way

688

PEMP EMM502

ContdContd

• Product and service quality requires i l t h l i l d t ti ti lmanagerial,technological and statistical

concepts throughout all major functions in p g jan organisation---JuranH th t ill t l di t• He that will not apply new remedies must expect new evils ,for time is the greatestexpect new evils ,for time is the greatest innovator

689

PEMP EMM502

ContdContd

• Quality is not something you install like a t t f b k h lnew carpet or a set of bookshelves.you

implant it.Quality is something you work at p y g yit----DemingTh bitt f l lit i t• The bitterness of low quality is not forgotten ,nor can it be sweetened with lowforgotten ,nor can it be sweetened with low price

690

PEMP EMM502

Tools & TechniquesTools & Techniques

691

PEMP EMM502

Common tools for Si SigmaCommon tools for Six Sigma

• DMAIC• Tools for Definition

– Input-Process-Output diagram(ipo SIPOC)– Input-Process-Output diagram(ipo,SIPOC)– Flow diagram– Critical to quality tree

Project charter (object definition and– Project charter (object definition and deliverables)

692

PEMP EMM502

ContdContd• Tools for Measurement

– Check sheetsC ec s eets– Histograms– Run charts– Scatter diagrams– CED– Pareto charts– Control charts– Flow process charts– Process cap measurement– MSA—R&R,Calibration

693

PEMP EMM502

ContdContd• Tools for Analysis

– AnovaAnova– Hypothesis testing– Process mapping– Regression analysis– Resource utilisation and Customer service analysis

SWOT– SWOT– Pestle analysis

The five why’s– The five why s– Interrelationship diagrams– OEE– TRIZ—Innovative problem solving(RUSSIAN WORD)

694

PEMP EMM502

ContdContd• Tools for improvement

– Affinity diagram– Affinity diagram– Nominal group technique

SMED– SMED– 5 S

Mi t k fi– Mistake proofing– VSM

B i t i– Brainstorming– Mind Mapping– Force field analysis Diagram

695

PEMP EMM502

ContdContd

• Tools for control– Gantt Chart– Radar chartRadar chart– PDCA Cycle– Milestone tracker diagram– Earned value ManagementEarned value Management

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PEMP EMM502

ContdContd

• Qualitative TechniquesBenchmarking– Benchmarking

– Balanced score card– EFQM,Deming awards– SOP– Kanban– ABCABC– QMS

L– Lean

697

PEMP EMM502

ContdContd

• Quantitative Techniques• FMEA• SPC• QFD• DOEDOE• DFSS• Monte Carlo Technique• Monte Carlo Technique• DMAIC

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PEMP EMM502

The breakthrough strategyThe breakthrough strategy

Each phase is designed to ensure that :-• Companies apply the breakthrough strategy• Companies apply the breakthrough strategy

in a systematic way.• Six Sigma projects are systematically• Six Sigma projects are systematically

designed and executed and• The results of these projects are incorporated• The results of these projects are incorporated

into running the day-today business.

699

PEMP EMM502

St t t i l lStrategy at various levels

Almost every organization can be divided into 3basic levels :-

1. Business level2 Operations level2. Operations level3. Process level.It is extremely important that Six Sigma isunderstood and integrated at every level.

700

PEMP EMM502

Strategies at various levels

• Executives at the business level can use Six Sigma forimproving market share, increasing profitability andorganizations long term viabilityorganizations long term viability.

• Managers at operations level can use Six Sigma toi i ld d d th l b d t i l timprove yield and reduce the labor and material cost.

• At the process level engineers can use Six Sigma top g greduce defects and variation and improve processcapability leading to better customer satisfaction.

701

PEMP EMM502

Contributions of Robust Design (Six Sigma) to Business Excellence : A Spider ChartBusiness Excellence : A Spider Chart

Chronic Problem Solving

90%Profit /R.O.I Improvement

Employee Morale

90%

60%60%

50%

Improvement

Customer Loyalty

Supplier Improvement

50%

70%

60%

30%70%

40%

Overall Quality

Improvement

Total Productive

Maintenance50%40%

30%30%

p

Design Improvement

Reliability Improvement

Space

Cycle – Time Reduction

Cost reductionSpace

Reduction

702

PEMP EMM502

What is DFSS?What is DFSS?

703

PEMP EMM502

Design for Si SigmaDesign for Six Sigma• What is DFSS?

– DFSS stands for Design For Six Sigma - an approach SS sta ds o es g o S S g a a app oacto designing or re-designing a new product and/or service for a commercial market, with a measurably high process sigma for performance from dayhigh process-sigma for performance from day one. The intention of DFSS is to bring such new products and/or services to market with a process performance of around 4.5 sigma or better, for every customer requirement. This implies an ability to understand the customerThis implies an ability to understand the customer needs and to design and implement the new offering with a reliability of delivery before launch rather than ft !after!

– DFSS concentrates on prevention actiities that might inhibit 6 sigma perf of product/service--Examplesinhibit 6 sigma perf of product/service--Examples

• 704

PEMP EMM502

MethodologMethodology

– DFSS also has a methodology by which new products and services can be designed andproducts and services can be designed and implemented.

– DMAIC is now an industry standard methodology for Six Sigma, however DFSS gy g ,does not yet have such a universal offering.DMADV (Define Measure Analyse Design– DMADV (Define, Measure, Analyse, Design, Verify) is one approach, however there are

l iseveral in use.

705

PEMP EMM502

DFSS M th d l iDFSS Methodologies

• IDOV (Identify, Design, Optimize, Verify)• DMADV (Define Measure Analyze Design Verify)• DMADV (Define, Measure, Analyze, Design, Verify)• DMADOV (Define, Measure, Analyze, Design,

O ti i V if )Optimize, Verify)• DMCDOV (Define, Measure, Characterize, Design,

O f )Optimize, Verify)• DCOV (Define, Characterize, Optimize, Verify)

706

PEMP EMM502

DFSS M th d l iDFSS Methodologies

• DCCDI (Define, Customer, Concept, Design, Implement)Implement)

• DMEDI (Define, Measure, Explore, Develop, I l t)Implement)

• DMADIC (Define, Measure, Analyze, Design, ( y gImplement, Control)

• RCI (Define and Develop Requirements ConceptsRCI (Define and Develop Requirements, Concepts, Improvements)

707

PEMP EMM502

DFSS s DMAICDFSS vs DMAIC• What are the differences between Six Sigma

and DFSS?– Six Sigma is a process improvement philosophy and methodology,

whereas DFSS is centred on designing new products and services. The main differences are that Six Sigma focuses on one or two CTQ (Critical T Q li ) i l k d i i h CTQTo Quality) metrics, looks at processes, and aims to improve the CTQ performance by about +1 process-sigma. In contrast, DFSS focuses on every single CTQ that matters to every customer, looks at products and services as well as the processes by which they are delivered and aimsservices as well as the processes by which they are delivered, and aims to bring forth a new product/service with a performance of about 4.5 sigma or better.

– Other differences are that DFSS projects are often much larger and take longer, and are often based on a long term business need for new products, rather than a short term need to fix a customer problem. p p

•

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PEMP EMM502

• Where can I use DFSS in my company?– DFSS can be used anywhere a new product or service is to be

introduced or re introduced For many manufacturingintroduced or re-introduced. For many manufacturing organisations the design and development of new products is very much a part of everyday company life, and a soundly adopted DFSS methodology can make a considerableadopted DFSS methodology can make a considerable improvement to the process of 'design and implement'.

L DFSS j t b t it d f th i t d ti f– Large DFSS projects are best suited for the introduction of new products/services with major design and large impact, and where customer approval and high levels of performance and delivery are required DFSS is about reducing the risk of failure failureare required. DFSS is about reducing the risk of failure - failure to promote and develop the correct products/services, failure to identify all the customers and customer requirements, failure to design and implement appropriately and without error ordesign and implement appropriately and without error or omission.

•

709

PEMP EMM502

More ClarificationsMore Clarifications

• DFSS is an enhancement of your present productDFSS is an enhancement of your present product development process ,not a replacement. In fact a documented,well understood and useful new product dev process is vital for success of DFSS program.

• DFSS provides tools and teamwork to get the job done ff / ff fefficiently/effectively.By rigorously applying the tools of

DFSS,we can be assured of predictable product quality/acceptancequality/acceptance

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PEMP EMM502

Is DFSS needed in your yOrganisation

• Answer following Questions– How does your organisation develop Products?– What is the ratio of product success to product failure?Generally 60-70% of Products launched are a success.R f f ilReasons for failure are;

Inadequate market analysis----24%Product probems/defects--------16%Product probems/defects--------16%Lack of effective marketing effort-14%Higher costs than anticipated----10%g pCompetetors reaction--------------9%Poor timing of introduction--------8%Technical or production problems

DFSS can help overcome manyof the above problems

711

PEMP EMM502

Methodolog of DFSSMethodology of DFSS• DFSS uses a disciplined set of tools to bring

high quality to launcheshigh quality to launches.– Gap analysis—factors negatively affecting new

product performanceproduct performance– VOC capture/ driven decisions

• Plan-enable team to succeed by mapping vital stepPlan enable team to succeed by mapping vital step• Identify-hear VOC to select best product concept• Design-build a thorough data base about product and

process• Optimise-achieve a balance of Q,C and time to mkt• Validate demonstrate with data that VOC is heard and that• Validate-demonstrate with data that VOC is heard and that

customer expectations are satisfied

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PEMP EMM502

DMADV ProcessDMADV Process

• Define—Goals of design activity are establishedM Id tif i CTQ’• Measure---Identifying CTQ’s

• Analyse---Evaluating product concepts to satisy y g p p ycustomer expectations

• Design Optimises the configuration of features• Design---Optimises the configuration of features and process

• Verify—Ensures that new product performs as expected at 6 Sigma levelp g

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DMAIC s DFSSDMAIC vs DFSS• Basic differences are

– DMAIC is for existing products and DFSS for NEWDMAIC is for existing products and DFSS for NEW– DMAIC is based on manufacturing/transactional

processes;DFSS is focussed on Marketing,R&D,and p ; g, ,Design

– Monetary benefits are easier and faster to Quantify y yfrom a DMAIC program.It may take even upto 12 mths after launch to to properly account for impact of DFSSDFSS.

– DFSS needs greater cultural change wrto roles.The CFT has to be in ol ed in all aspects of designCFT has to be involved in all aspects of design process,from market to launch.

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Tools in DFSSTools in DFSS• Phase wise Project reviews• Benchmarking Internal Competitive Functional• Benchmarking-Internal,Competitive,Functional• MSA-Validity,Precision,Accuracy

VOC St t d d t t d d f t• VOC-Stated and unstated needs of customercollected and analysed using Surveys,Affinity diagrams,QFD,Kano model,etc

Pugh concept selection technique for evaluating design alternatives.Design for X—DFM,DFA,DFT etcg , ,

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ContdContd• FMEA---DFMEA,PFMEA• Poka-YokePoka Yoke• Process capability and performance studies• Multi-Vari analysisMulti-Vari analysis• DOE• Monte Carlo Simulation• Monte Carlo Simulation• Robust Design(Taguchi Methods)

Tolerance Design• Tolerance Design• Control Plan

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Ad antages of DFSSAdvantages of DFSS• DFSS and Customer—All CTX’s are clearly looked into

by a CFT via VOC methodologyby a CFT via VOC methodology• DFSS and Quality—Quality from Customers point as

well as organisation’s point are optimisedwell as organisation s point are optimised.• DFSS and Time—Reduces time to market ,and also

gives products higher value at lower costsgives products- higher value at lower costs.• DFSS and bottomline---Long term cost reductions are

seen in dev and validation Manufacturing/serviceseen in dev and validation,Manufacturing/service processes,Service and support

717PEMP EMM502

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Le erage on CostLeverage on Cost• How DFSS in planning stage can save in operational stage

5 each

2030Cost

influence

Actualcost overhead

5 each

20

15 labor

70%50design

material

5

design

Design represents the smallest cost element in products ,it leveragesthe largest cost influence.WHY?HOW?

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More detailsMore details• Any incremental improvement in the design has a large

direct impact on cost.For ex,a 30% saving thru a designdirect impact on cost.For ex,a 30% saving thru a design simplification would translate into over 21% cost savings overall,while the same 30% applied to labor or overhead , % ppwd result in just 1.5% savings overall

• DFSS wd simplify or eliminate a process!DFSS wd simplify or eliminate a process!• An improvement in materials or labor is unlikely oto

affect other areas In contrast a simplification of designaffect other areas.In contrast,a simplification of design will often result in a direct reduction in material and labor cost and an indirect redn in the cost of overheadcost and an indirect redn in the cost of overhead.

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B fit f DFSSBenefits of DFSS

• Structured development projects• Add value and improve customer satisfactionAdd value and improve customer satisfaction• Anticipate and avoid problems• Minimize design changesMinimize design changes• Reduce development cycle times• Reduce life cycle costs• Reduce life cycle costs• Reduce manufacturing cycle times & time to market

Improve product quality reliability and durability• Improve product quality, reliability and durability• Reduce costs of after-sales service & support

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Competitive Advantages of p gDFSS

• Tangiblef• Provides a stru for managing dev projects

• Add value and improve customer satisfaction• Anticipate problems• Minimise design changesMinimise design changes• Reduce developmentcycle times• Reduce life cyclecost• Reduce life cyclecost• Reduce service cost• Improve product quality,reliability,durability.

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ContdContd

• Intangible– New ways of thinking and a culture of

accountability to customers.y– It is a methodology ,not a strategy.

V f l t l b d i th f– Very powerful tools can be used in the area of prduct dev which WILL give rise to better,faster product dev

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FMEAFMEA

723

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Failure Mode and Effects Analysis (FMEA)Failure Mode and Effects Analysis (FMEA)

FMEA is a structured analysis for identifying ways &methods in which the product or processes can fail andmethods in which the product or processes can fail andthen plan to prevent those failures. FMEA is a proactivetool for reducing defects and non-conformitiestool for reducing defects and non-conformities.

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Failure Mode and Effects Analysis (FMEA)y ( )

FMEA is a structured approach in :-• Identifying ways in which a process can fail to meet

critical customer requirements.• Estimating the risk of causes with regard to these

failures.• Evaluating control plan for preventing these failures.• Prioritizing the actions for improving the process.

FMEA is an extremely important tool for each phasey p pof Six Sigma strategy viz. Measure, Analyze,Improve, Control.

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Advantages of FMEAAdvantages of FMEA

• For improving the reliability and safety of theproducts.products.

• For improving customer satisfaction.• Tracking actions to reduce non-conformities• Tracking actions to reduce non-conformities.• New product development.

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Definition of terms

Failure Mode : It is a manner in which a part or aprocess can fail to meet specifications. It is usuallyassociated with defect or non-conformities.

Examples : Missing part, Oversized, Undersized,p g p , , ,Incorrect price, Offspec parts.

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Definition of terms

Cause : Causes are sources of variation which areCause : Causes are sources of variation which areassociated with key process inputs. Cause can bebest defined as a deficiency which results in a failurebest defined as a deficiency which results in a failuremode.

Examples : Instructions not followed, Lack ofexperience, Incorrect documentation, Poor handlingp , , getc.

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Definition of terms

Effect : Effect is the impact on the customer (bothinternal & external) if the failure mode is notprevented or corrected.Examples : Customer dissatisfaction, Frequentproduct breakdowns, Customer downtime.

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Relationship of cause, failure mode & effectp

Cause Failure EffectCause Mode Effect

730

FMEA through Cause & Effect Diagram

Causes Causes Causes

Preventor Detect

FailureModeMode

Effect

Causes CausesCauses 731

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Steps in FMEA processSteps in FMEA process

1. Develop a process map and identify process steps.p p p y p p2. List key process outputs for satisfying internal and

external customer requirements.3. List key process inputs for each process steps.4. List ways the process inputs can vary (causes) and

identify associated failure modes and effectsidentify associated failure modes and effects.5. Assign severity occurrence and detection rating for each cause..

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Steps in FMEA processSteps in FMEA process

6. Calculate risk priority number ( RPN) for each t ti l f il dpotential failure mode

7. Determine recommended actions to reduceRPN’s.8. Establish time frame for corrective actions.8. Establish time frame for corrective actions.9. Take corrective actions.10 P t ll t l i l10. Put all controls in place.

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Ranking terms used in FMEA calculationsScale:1(Best) to 10 ( Worst)

• Severity (SEV) : Severity indicates how severe is the impact of theff t th teffect on the customer.

• Occurrence (OCC) : This indicates the likelihood of the cause ofthe failure mode to occurthe failure mode to occur.

• Detection (DET) : This indicates the likelihood of the currentsystem to detect the cause or failure mode if it occurssystem to detect the cause or failure mode if it occurs.

• Risk priority number : This number is used to place priority toitems for better quality planningitems for better quality planning.

RPN = SEV X OCC X DET

See next slides for specimen best to worst ratings on a 10 point scale. 734

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Best to Worst ratings for FMEA calculationsg

Rating Degree of Severity Likelihood of Occurrence Ability to detect

1 Customer will not at all observe Very remote possibility Sure that the potential failure the adverse effect will be detected & prevented

before reaching the next customer

2 Customer will experience Low failure with supporting Almost sure that the potentialli ht di f t d t f il ill b d t t d b fslight discomfort documents failure will be detected before

reachig the next customer

3 Customer will experience Low failure without supporting Less chances that the3 Customer will experience Low failure without supporting Less chances that the annoyance because of slight documents potential failure will reach the degradation of performance next customer undetected

4 Customer dissatisfied due to Occasional failures Some controls may detectreduced performance the potential from reaching the

t tnext customer

5 Customer is uncomfortable Moderate failure rate with Moderate chances that the supporting documents potential failure will reach thesupporting documents potential failure will reach the

next customer735

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Best to Worst ratings for FMEA calculationsRating Degree of Severity Likelihood of Occurrence Ability to detect

Best to Worst ratings for FMEA calculations

6 Warranty repairs Modearate failure rate without Controls are not likely to detectsupporting documents or prevent the potential failure

from reaching the next gcustomer

7 High degree of customer High failure rate with supporting Less chances that the potentialdissatisfaction documents failure will be detected or

prevented before reaching the next customer

8 Vey high degree of customer High failure rate with supporting Very less chances that thedissatisfaction documents potential failure will be detected

or prevented before reachingor prevented before reaching the next customer

9 Negative impact on the Failure is almost certain Existing controls will not detectg p gcustomer the potential failure

10 Negative impact on the Assured failure Existing controls will not detectcustomer, people & society the potential failure 736

PEMP EMM502FMEA Form: ( Column 1 to 9 )

Rank severityon 1 to 10

scale

Rank occurrenceon a 1 to 10

scale

List how the causeis presently

being controlled

Rank how wellcause/failure

can be detected1 10scale being controlled on 1 to 10 scale

1 2 3 4 5 6 7 8 9Process Potential failure mode Potential failure effect SEV Potential causes OCC Current Controls DET RPNPart No.

123345

List failuremodes for each

step

List effectsof each

failure mode

List causesfor each failure

mode

RPN=SEV*OCC*DETstep failure mode mode

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FMEA Form contd: ( column 10 to 15 )

Designates peopleresponsible for

corrective action

RPN is recalculatedon completion ofcorrective actioncorrective action

10 11 12 13 14 15Actions Recommended Responsibility SEV OCC DET RPNp y

List actions recommendedon RPN pareto

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739

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741

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ENDEND

• Example of :• How to assess present LEVEL of your

organisation to ENABLE choosing of Sixorganisation to ENABLE choosing of Six sigma projects(ref ppt)

• Example of six sigma (ref pdf file)Xerox Case study• Xerox Case study

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S mmarSummary

• Following have been covered– Basics of Variation and various methods of

Process control have been introduced– Six sigma concepts have been discussed

C t di h b di d– Case studies have been discussed

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Session 9Session 9

ISOBPR

BenchmarkingBenchmarkingCase Studies

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Session Objecti esSession Objectives

• At the end of the session the student would have understoodunderstood

Why Standards Matter?

• The world of ISO standards and Introduction to ISO 9000 and 14000 series of standards and theirISO 9000 and 14000 series of standards and their evolution

h f h ki• The concepts of Benchmarking• The principles of BPRp p

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Session TopicsSession Topics

• Elements of iso and their evo;ution• Types of Benchmarking and procedures• BPR• BPR

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Why Standards Matter?Why Standards Matter?What if Standards did not exist?

St d d k t ib ti t tStandards make an enormous contribution to most aspects of our lives - although very often, that contribution is invisible. It is when there is an absence of standards that their importance is brought home. For p gexample, as purchasers or users of products, we soon notice when they turn out to be of poor quality do notnotice when they turn out to be of poor quality, do not fit, are incompatible with equipment we already have, are unreliable or dangerousare unreliable or dangerous.

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Wh Standards Matter? ContdWhy Standards Matter? Contd

When products meet our expectations, we tend to take thi f t d W ll f th lthis for granted. We are usually unaware of the role played by standards in raising levels of quality, safety, reliability, efficiency and interchangeability - as well as in providing such benefits at an economical cost. p g

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Brief Histor of ISOBrief History of ISO

• ISO is the International Organization for Standardization It is located in Switzerland andStandardization. It is located in Switzerland and was established in 1947 to develop common i t ti l t d d iinternational standards in many areas. Its members come from over 120 national standards bodies

• ISO's purpose is to facilitate international tradeISO s purpose is to facilitate international tradeby providing a single set of standards that peopleeverywhere would recognize and respecteverywhere would recognize and respect.

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Big Wide World of ISO gStandards

• ISO (International Organization for Standardization) is the world's largest developer of standardsthe world s largest developer of standards.

• ISO's principal activity is the development of technicalISO s principal activity is the development of technical standards, ISO standards also have important economic and social repercussionsand social repercussions.

• ISO standards make a positive difference, not just to p , jengineers and manufacturers for whom they solve basic problems in production and distribution but to society asproblems in production and distribution, but to society as a whole.

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Big Wide World of ISO gStandards

How ISO Standards benefit the Society:

F B i th id d d ti f I t ti l• For Businesses, the widespread adoption of International Standards means that suppliers can base the development of their products and services on specifications that have wide acceptance in their sectors.p

• For customers, the worldwide compatibility of technology which is achieved when products and services are based on International Standards brings them an increasingly wide choice of offers, and they also benefit from the effects of competition among suppliers.benefit from the effects of competition among suppliers.

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Big Wide World of ISO gStandards

• For everyone, International Standards can contribute to the quality of life in general bycontribute to the quality of life in general by ensuring that the transport, machinery and tools

fwe use are safe.• For the planet we inhabit, International p ,

Standards on air, water and soil quality, and on emissions of gases and radiation can contributeemissions of gases and radiation, can contribute to efforts to preserve the environment.

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O Vi f ISO 9000Over View of ISO 9000ISO 9000 is sweeping the world. It is rapidlybecoming the most important quality standardbecoming the most important quality standard.Thousands of companies in over 100 countriesh l d d t d it d ihave already adopted it, and many more are inthe process of doing so. Why? Because itcontrols quality. It saves money.Customers expect it. And competitors use it.p p

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O er Vie of ISO 9000Over View of ISO 9000SO 9000 li ll f i i d 'ISO 9000 applies to all types of organizations. It doesn't

matter what size they are or what they do. It can helpboth product and service oriented organizations achievestandards of quality that are recognized andq y grespected throughout the world.

The ISO 9000 Standards apply to all in all kinds of areas.Some of these areas include manufacturing, processing,g, p g,servicing, printing, forestry, electronics, steel, computing,legal services financial services accounting trucking andlegal services, financial services, accounting, trucking andso on.

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I t d ti t ISO 9000Introduction to ISO 9000The ISO 9000 family is primarily concerned with "quality management" This means what thequality management . This means what the organization does to fulfill:

• The customer's quality requirements, and• Applicable regulatory requirements, while aiming topp cab e egu ato y equ e e ts, e a g to• Enhance customer satisfaction, and • Achieve continual improvement of its performance in• Achieve continual improvement of its performance in

pursuit of these objectives.

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Introd ction to ISO 9000Introduction to ISO 9000The term ISO 9000 refers to a set of quality management standards.ISO 9000 currently includes three quality standards:

ISO 9000:2000, ISO 9001:2000, ISO 9004:2000 and ISO 9000:2005.9000: 005.

• ISO 9000:2000: Covers the basics of what quality management t d l t i th l f th ISO 9000systems are and also contains the core language of the ISO 9000

series of standards.

•ISO 9002,9003 have been merged into 9001.CERTIFICATION IS always against ISO 9001

•Latest version is ISO 9001-2008

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Introd ction to ISO 9000Introduction to ISO 9000

• ISO 9001 Quality management systems-Requirements: Intended for use in anyRequirements: Intended for use in any organization which designs, develops,

f t i t ll d/ imanufactures, installs and/or services any product or provides any form of service.

• ISO 9004 & 9005 Quality management systems -Guidelines for performance improvements:Guidelines for performance improvements: Covers continual improvement.

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Hi t & l tiHistory & evolution• ISO 9000• ISO 9000 is a family of ISO (the International• ISO 9000 is a family of ISO (the International

Organization for Standardization) standards f lit t tfor quality mgt systems.

• ISO 9000 was developed from the British pStandards Institution's BS 5750. The ISO 9000 standards are maintained by ISO (TC)9000 standards are maintained by ISO (TC) and administered by accreditation and certification bodiescertification bodies.

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Hi t & l tiHistory & evolution• Although the standards originated in

manufacturing, they are now employed across a id f th t f i ti I f twide range of other types of organizations. In fact,

according to ISO in 2004, "service sectors now account by far for the highest number of ISOaccount by far for the highest number of ISO 9001:2000 certificates - about 31% of the total" -source: ISO surveysou ce SO su ey

• ISO 9000 is quite similar to ISO 14000. Both pertain to how a product is produced, rather than how it is p p ,designed. For example, ISO 216 refers to sizes of paper.

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History & EvolutionHistory & Evolution• These sizes are very clearly laid out and shall not• These sizes are very clearly laid out, and shall not

deviate while ISO 9000 and ISO 14000are more general, referring to a process, rather than any single g , g p , y gproduct.

• ISO 9000 is more in reference to making sure the gproduct -- any product -- has been produced in the most efficient and effective manner possible. ISO 9000

lit t d t tt t th li f thquality system does not attest the compliance of the produced products with a code or a standard.

• ISO 9000 does not guarantee the quality of end• ISO 9000 does not guarantee the quality of end products and services; rather, it certifies that consistent business processes are being appliedbusiness processes are being applied.

• ISO 14000 exists to ensure the product ( any product ) has the lowest possible environmental impacthas the lowest possible environmental impact

• CI Clause—demonstratable in new revised stds assures improvement of processes & hence reliability of

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History & EvolutionHistory & Evolution• History• Errors committed in manufacturing have been an

impetus for creating quality standards. For p g q yexample, in World War I, a high percentage of shells failed to explode. .p

• During World War II, the United Kingdom had a serious problem with accidental detonations inserious problem with accidental detonations in weapons factories. In an attempt to solve the problem the Ministry of Defence placed inspectorsproblem, the Ministry of Defence placed inspectors in the factories to oversee the production process. To supply to the Government a company had toTo supply to the Government, a company had to write up the procedure for making their product, have the procedure approved by the Ministry andhave the procedure approved by the Ministry and ensure that their workers followed the procedure. .761

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History & EvolutionHistory & Evolution

• In 1959, the United States developed Quality Program Requirements a quality standard forProgram Requirements, a quality standard for military procurement, detailing what suppliers had t d t hi f B 1962 NASAh dto do to achieve conformance. By 1962, NASAhad similarly developed Quality System Requirements for its suppliers and applied these techniques on the project "travel to the moon" with great success. .p j g

• .

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Histor & E ol tionHistory & Evolution• The idea of quality assurance spread beyond the military

and nuclear sectors. In 1966, the Unitedand nuclear sectors. In 1966, the United KingdomGovernment led the first national campaign for quality and reliability with the slogan "Quality is everybody's business." In 1969, the UK and Canada developed quality assurance standards for suppliers.

• By this time, suppliers were being assessed by any number of their customers. In 1969, a UK committee report on the subject recommended that suppliers'report on the subject recommended that suppliers methods should be assessed against a generic standard of quality assurance, to avoid duplication of effort.of quality assurance, to avoid duplication of effort.

• In 1971, the British Standards Institution(BSI) published the first UK standard for quality assurance, BS 9000, q y , ,which was developed for the electronics industry. In 1974, BSI published BS 5179, Guidelines for Quality Assurance.

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Hi & E l iHistory & EvolutionIn order to shift the burden of inspection from the• In order to shift the burden of inspection from the customer, quality assurance was guaranteed by the supplier through third-party inspection though none ofsupplier through third party inspection, though none of the assessing bodies at that time accepted any legal liability for the quality of their decisions. The collapse of y q y pa jetty at Dover, which had been assessed by LRQA, an assessing body, and the subsequent court case f d thi kforced a rethink.

• Through the 1970s, BSI organized meetings with industry to set a common standard The result was BSindustry to set a common standard. The result was BS 5750 . Key industry bodies agreed to drop their own standards and use it instead The purpose of BS 5750standards and use it instead. The purpose of BS 5750 was to provide a common contractual document, demonstrating that industrial production was controlled.g

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Histor & E ol tionHistory & Evolution• In 1982 the UK government produced a White Paper No.

8621 entitled "Standards, Quality and International yCompetitiveness". This introduced the concept of certification of a company's management system as a

k ti t l Ob i l i d d t thi d tmarketing tool. Obviously, an independent third party was needed to ensure fairness., BSI became the first de facto assessorsassessors.

• The lack of technical expertise in the first assessors, and the inevitable fact that the first generation of assessorsthe inevitable fact that the first generation of assessors were trained by people with purely military quality assurance skills caused many problems. At the time, y pmilitary procurement contracts were given on a cost-plus basis, so on-costs such as inspection, internal auditing and procedure writing became profit centerswriting became profit centers.

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C ti dContinued• The standard has evolved over several revisions.The standard has evolved over several revisions.• The initial 1987 version, ISO 9000:1987, had the same

structure as the UK Standard BS 5750, with three 'models' ,for quality management systems, the selection of which was based on the scope of activities of the organization. Alth h th St d d h th h tAlthough the Standard has gone through two more iterations which have resulted in some radically changed language all the core prevention oriented qualitylanguage, all the core, prevention oriented quality assurance requirements were present in the 1987 document. Contrary to many claims, the Standard did not y y ,focus on quality control via retroactive checking and corrective actions.. With it’s structure of twenty 'elements' of

i t th h i t d d t b l l d f ithrequirements, the emphasis tended to be overly placed on conformance with procedures rather than the overall process of management - which was the actual intent.

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C ti dContinuedTh 1994 i ISO 9000 1994• The 1994 version, ISO 9000:1994, was an attempt to break from the practices which had somewhat corrupted the use of the 1987somewhat corrupted the use of the 1987 standard. It also emphasized quality assurance via preventive actions and continued to requirevia preventive actions, and continued to require evidence of compliance with documented procedures. Unfortunately, as with the firstprocedures. Unfortunately, as with the first edition, companies tended to implement its requirements by creating shelf-loads of q y gprocedure manuals, and becoming burdened with an ISO bureaucracy. Adapting and y gimproving processes could be particularly difficult in this kind of environment.

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ContinuedContinued• The 2000 version, ISO 9000:2000, sought to make a

di l h i thi ki b t ll l i th tradical change in thinking by actually placing the concept of process management front and centre in the Standard. Documents produced by the ISO Technical CommitteeDocuments produced by the ISO Technical Committee which drafted the third edition make it clear that they didn't see any change in the essential goals of the standard, y g g ,which had always been about 'a documented system' not a 'system of documents'. The goal was always to have

t t ff ti imanagement system effectiveness via process performance metrics. The third edition makes this more visible and so reduced the emphasis on havingvisible and so reduced the emphasis on having documented procedures if clear evidence could be presented to show that the process was working well. p p gExpectations of continual process improvement and tracking customer satisfaction were made explicit at this

i i U f l i i irevision. Unfortunately too many organizations continue to produce reams of unnecessary documents and to write quality systems around the paragraph structures of ISO

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ContinuedContinued• Contents• Like all properly-written Standards , ISO 9000 seeks

to set criteria which achieve a goal and is notto set criteria which achieve a goal and is not prescriptive as to methods.

• The requirements come in Sections 4 to 8The requirements come in Sections 4 to 8.• Section 4 is entitled General Requirements• Section 5 is entitled Management Responsibility• Section 5 is entitled Management Responsibility• Section 6 is entitled Resource Management• Section 7 is entitled Product Realisation• Section 8 is entitled Measurement, analysis and y

improvement• In each of these areas, ISO 9001:2000 seeks to set ,

out key requirements, which if met will ensure consistency.

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C ti dContinued• In the standard, there are 6 documents that ISO

specifies:• Control of Documents• Control of RecordsControl of Records• Internal Audits

C l f N f i P d• Control of Nonconforming Product• Corrective Action• Preventive Action• In addition to these ISO 9001:2000 requires a• In addition to these, ISO 9001:2000 requires a

Quality Policy and Quality Manual (which may or may not include the above documents)or may not include the above documents).

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CertificationCertification• Certification• ISO does not itself certify organizations. Many countries

h f d dit ti b di t th ihave formed accreditation bodies to authorize certification bodies, which audit organizations applying for ISO 9001 compliance certification It is important tofor ISO 9001 compliance certification. It is important to note that it is not possible to be certified to ISO 9000. Although commonly referred to as ISO 9000:2000 g ycertification, the actual standard to which an organization's quality management can be certified is SOISO 9001:2000. Both the accreditation bodies and the

certification bodies charge fees for their services.

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CertificationCertification• The applying organization is assessed based on an• The applying organization is assessed based on an

extensive sample of its sites, functions, products, services, and processes and a list of problems ("action requests" or p p ( q"non-compliances") made known to the management. If there are no major problems on this list, the certification b d ill i ISO 9001 tifi t f hbody will issue an ISO 9001 certificate for each geographical site it has visited, once it receives a satisfactory improvement plan from the managementsatisfactory improvement plan from the management showing how any problems will be resolved.

• An ISO certificate is not a once-and-for-all award, but must beAn ISO certificate is not a once and for all award, but must be renewed at regular intervals recommended by the certification body, usually around three years

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AuditingAuditingAuditing• Auditing

• Two types of auditingare required to become registered to the standard: auditing by an external certification body andthe standard: auditing by an external certification body and audits by internal staff trained for this process (internal audits). The aim is a continual process of review andaudits). The aim is a continual process of review and assessment, to verify that the system is working as it's supposed to, find out where it can improve, and to correct or prevent problems identified. It is considered healthier for internal auditors to audit outside their usual management line so as to bring a degree ofmanagement line, so as to bring a degree of independence to their judgements.

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AuditingAuditing• Tell me what you do (describe the business

process)p )• Show me where it says that (reference the

procedure manuals)procedure manuals)• Prove that that is what happened (exhibit

evidence in documented records)• How this led to preventive actions was not• How this led to preventive actions was not

clear.

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AuditingAuditing• The 2000 standard uses the process approach.The 2000 standard uses the process approach.

While auditors perform similar functions, they are expected to go beyond mere auditing for rote p g y g"compliance" by focusing on risk, status and importance. This means they are expected to make more judgements on what is effective, rather than merely adhering to what is formally prescribed. The diff f h i d d bdifference from the previous standard can be explained thus:

• Under the 1994 version, the question was broadly "Are you doing what the manual says you should be d i ?" h d th 2000 i thdoing?", whereas under the 2000 version, the question is more "Will this process help you achieve your stated objectives? Is it a good process or isyour stated objectives? Is it a good process, or is there a way to do it better?". 775

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ISO S iteISO Suite• ISO 9000 document suite

ISO 9000 i d f th f ll i• ISO 9000 is composed of the following sections:

• ISO 9000:2000, Quality management systems Fundamentals andsystems - Fundamentals and vocabulary. covers the basics of what

lit t t dquality management systems are and also contains the core language of the g gISO 9000 series of standards..

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ISO SuiteISO Suite• ISO 9001 Quality management systems -

Requirements is intended for use in any organizationRequirements is intended for use in any organization which designs, develops, manufactures, installs and/or services any product or provides any form ofand/or services any product or provides any form of service. It provides a number of requirements which an organization needs to fulfill if it is to achievean organization needs to fulfill if it is to achieve customer satisfaction through consistent products and services which meet customer expectations. This isservices which meet customer expectations. This is the only implementation for which third-party auditors may grant certifications. The latest version is :2000.y g

• ISO 9004 Quality management systems -Guidelines for performance improvements. covers p pcontinual improvement. This gives you advice on what you could do to enhance a mature system. This y ystandard very specifically states that it is not intended as a guide to implementation.

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S ifi St d dSpecific Standards• Industry-specific interpretations• Industry-specific interpretations• The ISO 9001 standard is generalized and abstract. Its

parts must be carefully interpreted to make sense withinparts must be carefully interpreted, to make sense within a particular organization. Developing software is not like making cheese or offering counseling services; yet the g g g yISO 9001 guidelines, because they are business management guidelines, can be applied to each of these. Di i ti li d t t (US)Diverse organizations—police departments (US), professional soccer teams (Mexico) and city councils (UK)—have successfully implemented ISO 9001:2000(UK) have successfully implemented ISO 9001:2000 systems.

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S ifi St d dSpecific Standards

• Over time, various industry sectors have wanted to standardize their interpretations of the guidelines within their own marketplace. This isguidelines within their own marketplace. This is partly to ensure that their versions of ISO 9000 have their specific requirements but also to tryhave their specific requirements, but also to try and ensure that more appropriately trained and

i d dit t t thexperienced auditors are sent to assess them..

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Specific StandardsSpecific Standards• AS 9000 is the Aerospace Basic Quality System Standard, an p y y

interpretation developed by major aerospace manufacturers. The current version is AS 9100.

• PS 9000 is an application of the standard for Pharmaceutical• PS 9000 is an application of the standard for Pharmaceutical Packaging Materials.

• QS 9000 is an interpretation agreed upon by major automotive manufacturers (GM, Ford, Chrysler). It includes techniques such as FMEA and APQP. QS 9000 is now replaced by ISO/TS 16949.

• ISO/TS 16949:2002 is an interpretation agreed upon by major automotiveISO/TS 16949:2002 is an interpretation agreed upon by major automotive manufacturers (American and European manufacturers); the latest version is based on ISO 9001:2000. The emphasis on a process approach is stronger than in ISO 9001:2000. ISO/TS 16949:2002 contains the full text ofstronger than in ISO 9001:2000. ISO/TS 16949:2002 contains the full text of ISO 9001:2000 and automotive industry-specific requirements.

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ISO 14000ISO 14000• An ISO 14001 EMS• promotes integration of• business functions with• environmental

t It id• management. It provides• for continuous and• verifiable improvement• verifiable improvement• towards a safe working• environment and• reduced environmental• impacts. EMS has five• key elements.

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ComparisonComparison• .

• SIMILARITIES BETWEEN ISO 9001 AND ISO 14001• ISO 14001 REQUIREMENTS• ISO 14001 REQUIREMENTS• ISO 9001 AND ISO 14001• Quality Policy --------------- Environmental PolicyQuality Policy Environmental Policy• Quality Management System Documentation ----------Environmental

Management System Documentation• Document Control------------ Document Control• Inspection and Testing --------Monitoring and Measurement• Corrective and Preventive Action Nonconformance and• Corrective and Preventive Action -------------Nonconformance and

Corrective and Preventive Action• System Audits------------------ System Auditsy y• Management Review---------- Management Review

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Ho Elements ere Deri edHow Elements were Derived• Actually the elements were derived from the colective experience

and knowledge of experts who participate in ISO technical committee.

• The main 8 guiding principles were:• Customer focus• Leadership

I l t f l• Involvement of people• Process approach

System approach to mgt• System approach to mgt• Continual improvement• Factual approach to decision making• Factual approach to decision making• Mutually beneficial supplier relationship

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More details of principlesMore details of principles• Customer Focus

Orgns shd understand current & future needs shd meetOrgns shd understand current & future needs,shd meet them & strive to xceed expectations.

• LeadershipLeadershipLeaders establish unity of purpose & dirn of orgn.Theyshd create & maintain the internal env in which peopleshd create & maintain the internal env in which people

become fully involved in achieving objectives

• Involvement of peopleInvolvement of peoplePeople at all levels are the essence of an orgn & theirfull involvement enables abilities to be used for org benefitfull involvement enables abilities to be used for org benefit

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ContdContd• Process Approach

A desired result is achieved more efficiently whenA desired result is achieved more efficiently when activities & related resources are managed as a process.

• Systems approach to mgt• Systems approach to mgtIdentifying,understanding,& managing interrelated processes as a system contributes to the org eff.

• Continual improvementOf Overall perf----- Shd be the permanent obj of org--

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ContdContd• Factual approach to decision making

ff l i fEffective decisions are based on analysis of Data

• Mutually beneficial supplier relationshipOrgns and supliers are interdependent

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QM PRINCIPLESQM PRINCIPLES

In more detail—Refer Separate tppt

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Le els of Doc mentationLevels of Documentation

• A Quality system has four levels of d t tidocumentation.

• Level 1----Quality policy and manualLevel 1 Quality policy and manual• Level 2----Departmental op procedures.• Level 3----”How- to’ OR work instructions• Level 4------Quality records for audit trail.

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Mandatory Documented yProcedures

• 4.2.3. Control of Documents4 2 4 C t l f Q lit R d• 4.2.4. Control of Quality Records

• 8.2.2. Internal Audit• 8.3. Control of Non-Conformity

8 5 2 C ti A ti• 8.5.2 Corrective Action• 8.5.3 Preventive Action• Additional procedures may have to be

documented to Finally PROVE compliance todocumented to Finally PROVE compliance to QMS

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Mandator RecordsMandatory Records

• 5.6.1. Management Review6 2 2( ) Ed ti T i i• 6.2.2(e). Education,Training

• 7.1(d) Realisation process that products meet ( ) p preqmts

• 7 2 Review of customer related processes• 7.2 Review of customer related processes• 7.3.2 Design & dev inputs,outputs,validation

etc• 7 4 1 Supplier evaluation7.4.1 Supplier evaluation• Special process validation,traceability,cpac etc

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Re ision ProcessRevision Process• ISO requires all stds to be periodically revised to satisfy

the needs of global community.the needs of global community.• The New ISO has a Process approach.• Process An activity using resources and managed in• Process—An activity using resources,and managed in

order to enable transformation of inputs to outputs.A d t f h i th i t l• An advtage of process approach is the ongoing control that it provides over the linkage between the individual process within the system of processes as well as overprocess within the system of processes as well as over their combination and interaction

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ContdContd• Under the 1994 version, the question was broadly "Are

you doing what the manual says you should be doing?",you doing what the manual says you should be doing? , whereas under the 2000 version, the question is more "Will this process help you achieve your stated p p y yobjectives? Is it a good process, or is there a way to do it better

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ISO 9001 2000 VersionISO 9001—2000 Version

• 5 New Sections of New ISO 9001 are:• Quality mgt system• Management Responsibility• Management Responsibility• Resource Mgtg• Product/Service Realisation• Measurement,Analysis and Improvement

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QUALITY MANAGEMENT SYSTEMQUALITY MANAGEMENT SYSTEM

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DIFFERENCES IN THE DOCUMENTATIONSTRUCTURE OF ISO 9000: 2000 AND ISO

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STRUCTURE OF ISO 9000: 2000 AND ISO 9000:19949000:1994

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9000: 2000 AND ISO 9000:19949000 000 SO 9000 99

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Latest ISOLatest ISO

ISO 9001:2008 was released on November 15, 2008.

It replaces the year 2000 version of theIt replaces the year 2000 version of the standard which is currently y

implemented by business and public sector organizations worldwidesector organizations worldwide.

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Latest ISOLatest ISOWhat will the 2008 amendments to

ISO 9001 mean to you?ISO 9001 mean to you?

– If you already have your ISO 9001 registration in place or are in theIf you already have your ISO 9001 registration in place, or are in the process of building it, the changes will have minimal impact on your system.

– The amendment has focused on clarification of, not the addition or removal of any requirements.

– If you are complying now, you will still be meeting requirements of the Nov 15, 2008 publication.

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Latest ISOLatest ISO

Teams of experts have carefully crafted the wording of each paragraph each sentencewording of each paragraph, each sentence and each bullet with the goal of registrars,

dit d f th t d dauditors and users of the standard worldwide reading the same meaning into g gthe standard as the committees intended.

That is a challenging goal, and not g g galways met.

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Ho to get certifiedHow to get certified• Top Mgt & Senior mgt take a decision to get

certifiedcertified• Decide the certifying Authority.

A i d M t / id i t k• An experienced Mentor/guide is taken on-board

• A Competent Mgt Rep is appointed.• Coordinators for each dept are chosenCoordinators for each dept are chosen• Spread message of intent,utility ,road map

etc by CEO through personal meetings andetc by CEO through personal meetings and media---TO ALL GROUPS

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