Total Quality Management -BIJAY LAL PRADHAN
Total Quality Management
-BIJAY LAL PRADHAN
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Introduction
Total – Made up of the whole(or) Complete.
Quality – Degree of Excellence a product or service
provides to the customer in present and future.
Management – Act , art, or manner of handling ,
controlling, directing, etc.
TQM is the art of managing the whole to achieve
excellence.
Quality and process
Quality in all function.
For an organization to be truly effective,
each component of it must work properly
together. Each part, each activity, each
person in the organization affects and is in
turn affected by others. Errors have a way
of multiplying, and failure to meet the
requirements in one part or area creates
problems elsewhere, leading to yet more
errors, yet more problems, and so on.
Managements that rely heavily on exhortation of the
workforce to ‘do the right job right the first time’, or
‘accept that quality is your responsibility’, will not
only fail to achieve quality but may create division
and conflict. These calls for improvement infer that
faults are caused only by the workforce and that
problems are departmental or functional when, in
fact, the opposite is true – most problems are
interdepartmental. The commitment of all members
of an organization is a requirement of ‘organization-
wide quality improvement’. Everyone must work
together at every interface to achieve improved
performance and that can only happen if the top
management is really committed.
COST OF QUALITY Quality costs are defined as costs associated with
non-achievement of product/service quality. In simple terms, quality cost is the cost of poor products/services.
The price of nonconformance (Philip Crosby) or the cost of poor quality (Joseph Juran), is 'Cost of Quality’ [refers to the costs associated with providing poor quality product or service.]
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Customers will
seek out the
highest quality
product.
Improved quality that
exceeds customer
expectations will generate
more revenues that exceed
the cost of quality.
Therefore,
quality is
“free”.
Quality if Free
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Total Quality Management (TQM)
W. Edwards Deming
proposed that improving
quality reduces cost and
improves profitability.
Quality can be and
should be improved
continuously.
Quality
Tota
l R
evenues &
Costs
Revenues
Cost
Max Profit
Max Quality
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Cost of Quality
Cost of Achieving Good Quality
– Prevention costs
• costs incurred during product design
– Appraisal costs
• costs of measuring, testing, and analyzing
Cost of Poor Quality
– Internal failure costs
• include scrap, rework, process failure, downtime, and
price reductions
– External failure costs
• include complaints, returns, warranty claims, liability,
and lost sales
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Prevention Costs
Quality planning costs– costs of developing and
implementing quality management program
Product-design costs– costs of designing
products with quality characteristics
Process costs– costs expended to make
sure productive process conforms to quality specifications
Training costs
– costs of developing and putting on quality training programs for employees and management
Information costs
– costs of acquiring and maintaining data related to quality, and development of reports on quality performance
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Examples of prevention Cost
– Application screening
– Capability studies
– Controlled storage
– Design review
– Equipment maintenance
& repair
– Field testing
– Fixture design and
fabrication
– Forecasting
– Housekeeping
– Job descriptions
– Market analysis
– Procedure reviews
– Quality incentives
– Safety reviews
– Time and motion studies
– Survey
– Quality training
– Suppliers evaluation and training
– Quality Audit
– Zero Defect Program
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Appraisal Costs
Inspection and testing– costs of testing and inspecting materials, parts, and
product at various stages and at the end of a process
Test equipment costs– costs of maintaining equipment used in testing quality
characteristics of products
Operator costs– costs of time spent by operators to gather data for
testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality
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Examples of appraisal cost
Document checking
Diagram checking
Equipment calibration
Final inspection
In-process inspection
Laboratory test
Personnel testing
Procedure testing
Receiving inspection
Shipping inspection
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Internal Failure Costs
Scrap costs– costs of poor-quality
products that must be discarded, including labor, material, and indirect costs
Rework costs– costs of fixing defective
products to conform to quality specifications
Process downtime costs
– costs of shutting down
productive process to fix
problem
Price-downgrading costs
– costs of discounting poor-
quality products—that is,
selling products as
“seconds”
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External Failure Costs
Customer complaint costs– costs of investigating and
satisfactorily responding to a customer complaint resulting from a poor-quality product
Product return costs– costs of handling and
replacing poor-quality products returned by customer
Warranty claims costs– costs of complying with
product warranties
Product liability costs
– litigation costs resulting from product liability and customer injury
Lost Market Share
– costs incurred because customers are dissatisfied with poor quality products and do not make additional purchases
Service After Sales– costs of associated with
the service after the product sales if found defective.
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Classifying Quality Costs
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Qual
ity R
elat
ed C
ost
Quality awareness and improvement
Failure
Appraisal
Prevention
Preventing Poor Quality (Comparison)
Failure Costs
• Internal
• ExternalFailure Costs
Repair Costs
Repair Costs
Appraisal Costs
Appraisal Costs
Prevention Costs
Prevention
Costs
Before Quality
Cost Alignment
Benefit
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Cost of Quality (other version)
1. Like all things there is a price to pay for quality. This total cost can be split into two fundamental areas:
a. Non Conformance. This area covers the price paid by not having quality systems or a quality product. Examples of this are:
(1) Rework. Doing the job over again because it wasn't right the first time.
(2) Scrap. Throwing away the results of your work because it is not up to the required standard.
(3) Waiting. Time wasted whilst waiting for other people.
(4) Down Time. Not being able to do your job because a machine is broken.
b. Conformance. Conformance is an aim of quality assurance. This aim is achieved at a price. Examples of this are:
(1) Documentation. Writing work instructions, technical instructions and producing paperwork.
(2) Training. On the job training, quality training, etc.
(3) Auditing. Internal, external and extrinsic.
(4) Planning. Prevention, do the right thing first time and poka yoke.
(5) Inspection. Vehicles, equipment, buildings and people.
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Cost of Quality (other version)
2. These two main areas can be split further as shown below:
FIGURE 1.3
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Total Quality Management - Spring
2010 - IUG
1-10-100 Rule
$
$
$
$
$
$
$
$
$
$
1
10
10
0
Prevention
Correction
Failure
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Total Quality Management - Spring
2010 - IUG
The 1:10:100 rule:
Re.1 spent on prevention will save Rs.10 spent on appraisal and Rs.100 on failure costs.
This rule helps one to prioritize expenditure on prevention, which is sure to bring in greater returns.
“The earlier you detect and prevent a defect the more you can save. If you catch a Rs. two resistor before you use it and throw it away, you lose two Rupees. If you don’t find it until it has been soldered into a computer component, it may cost Rs 50 to repair the part. If you don’t catch the component until it is in the computer user’s hands, the repair will cost hundreds of Rupees. Indeed, if a Rs. 5000 computer has to be repaired in the field, the expense may exceed the manufacturing cost.”
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Total Quality Management - Spring
2010 - IUG
Taguchi Fundamental Concept
Quality should be designed and built into
the product and not inspected into it.
Quality is best achieved by minimizing
the deviation from target.
The cost of the quality should be
measured as a function of deviation from
the standard and loss should be measured
system wise
Taguchi’s Vs Traditional Approach
Taguch’s Traditional
When a product
moves from its
Target will cause the
loss even if the
product lies or not
within Limits
There is Good or
Bad Products only
as per Limits
Taguchi Loss Function
Taguchi suggested that the deviation of a
product from an optimum performance might
be described by a "quality loss function"
which can be selected with monetary value.
The objective of an organization should be to
minimize the quality loss function of its
product/ service. A quality loss function
indicates the relationship between production
effort and quality.
Taguchi’s Quadratic Quality Loss Function
Quality Loss Occurs when a product’s
deviates from target or nominal value.
Deviation Grows, then Loss increases.
Taguchi’s U-shaped loss Function Curve.
Taguchi Loss Function
Customer Tolerance
Unacceptable
Poor
Good
Best
Customer customer customerLower control quality upper control
Limit standard Limit
Loss
Quality loss function is a simple
quadratic formula
L=D2C where
L = Loss in rupees (any
measurable value)
D = Deviation from the target
quality standard value and
C = Cost of deviation
Maintenance and reliability
Maintenance refers to keeping equipment in a
good working condition through regular check
up and repair for its day-by-day operation.
It is very crucial to produce reliable product
continuously as per the requirement.
Under maintenance management, planning and
scheduling of maintenance, record keeping and
analysis, training to employees, parts
inventory, lubricating and inspection of
machine are to be performed.
Major Elements of Maintenance
Planning and scheduling of maintenance
Recording and analysis
Inspection and checks
Training to employers
Lubrication
Storage of spare parts
In order to establish a competitive strength and to
provide good customer service, companies must
have reliable equipment that will respond to
customer when it is needed. Thus, equipment
reliability can be maintained and improved in two
ways:
a) By improving engineering design.
b) By managing inventory level.
Objective of Maintenance
To ensure product and service quality and
satisfaction to customers.
To increase reliability and life of machines
and equipments to ensure plan safety and
minimize industrial accident.
To minimize operating cost.
To ensure continuity in production.
To maximize the utilization of capacity.
Importance of Maintenance
To be safe from inevitable losses due to
breakdown of the equipment.
To maintain proper functioning of the
machine
To prevent the loss due to plant breakdown
To ensure effective utilization of capacity
To prevent from the unexpected accident
.
If not done Maintenance…..
Loss in production time
Rescheduling in production plan
Spoilt the material due to sudden stoppage
Need for overtime
Needs for subcontracting work
Temporary work shortage
1. Direct cost:▪ Regular
maintenancecost
▪ Labor cost▪ Equipment &
parts cost▪ Stock
managementcost
▪ Training &technologicalcost
2. Indirect cost:
▪ Loss of production and
service
▪ Alternation of quality of
product and service
▪ Loss of potential sales
▪ Idle indirect labor
▪ Deterioration in workshop
and environment
▪ Delivery delays
▪ loss of goodwill
▪ Depression in employers
Cost of Maintenance
Types of Maintenance
Preventive maintenance
Corrective (Breakdown maintenance)
Predictive maintenance:
(a) Time based maintenance: It is a routine maintenance,
according to a specific time schedule prepared for each
machine and equipment on the basis of experience
and suggestions of manufactures. It contains
lubrication (oiling), cleaning, overhauling etc.
(b) Work base maintenance: maintenance activity will
be carried out after completion of certain work
(c) Opportunity base Maintenance: maintenance as
opportunity obtained eg. during holidays
(d) Condition base maintenance: condition of
machines and equipment, by regular inspections
and monitoring.
Preventive Maintenance
Causes of breakdown:▪ Failure to replace worn part▪ Lack of lubrication▪ Negligence in cooling if needed▪ Indifference towards minor failure▪ External factors such as voltage, impure fuels
etc▪ Indifference towards unusual sound and
vibrations
Breakdown Maintenance
Advantages of breakdown maintenance:▪ It involves minimum administrative works and
costs▪ Few records▪ Comparatively small staffs are required
Disadvantages of breakdown maintenance:▪ Delay in production▪ Faster plant deterioration▪ Increased chance of accident▪ Less safety to both workers and machines▪ More spoilt materials▪ Direct loss of profit
Breakdown Maintenance
• This is a method in which the service life of
important part is predicted based on inspection
or diagnosis, in order to use the parts to the
limit of their service life.
• Sensitive instruments and human sense is used
to predict troubles and troubles are cured before
the equipment fails.
Predictive Maintenance
Failure Analysis
The failure of any component frequently leads
to disruption.
To avoid reoccurrence of the failure of
component, it is important that whenever
failure occurs, the same is thoroughly
investigated to establish primary factor and
other important factors that lead to failure.
So that suitable recommendations can be
made to avoid failure in future.
Failure Analysis
In general, a component or assembly is
considered to have failed under the following
three condition
Inoperable
Operates but doesn’t perform the
intended function
Operates but safety and reliability is
very poor.
Fundamental Causes of failure
Failure can occur due to large factor related to
Design
Materials
Manufacturing
Handling
Fundamental Causes of failure
Systematic understanding on various factors
that can lead to failure of component under
following headings
Improper design
Improper selection of materials
Improper processing of materials
Poor handling
Poor maintenance
Failure modes & Effect AnalysisTabulation of equipment/components and their
associated single point failure modes, consequences
and safeguards. •Identification/assessment of risk is
derived from looking at each component (or machine
in the case of multi-unit manufacturing).
Item Identifi
cation
Description Failure
modes
Effects Safeguar
d
Actions
1 Car Tire Supports
Weight
Smooth Ride
Flat Stranded
Lose Control
Spare
Tire
Acceptab
le as is
Avoide
It has been observed that on receipt of failed
components failure analyst tend to jump into
conclusions based on half information and
tries to explore the deficiency in materials
This kind of quickness is uncalled for the
process vital clues, evidences and information
can be lost from the surface.
Optimum Maintenance Decisions
Repair versus replacement decision:
Sometimes repairing of some parts becomes
more expensive than replacing it. When
tube of cycle get puncture then repairing it
on or two time may not be expensive but if
it get puncture frequently the it will cost
less in replacing it because repairing tube
frequently may damage the tyre also which
cost very high.
Optimum Maintenance Decisions
Individual versus group replacement:
Replacing individual part may cost low but
the replaced part may not work properly if
the functions of the replaced part do not
match properly with function of the other
parts of the system which will cause the
further complication in the system.
Optimum Maintenance Decisions
Contract versus house maintenance
decision: In case of general, regular and
voluminous type of the maintenance
activities, it will be better to establish a
internal maintenance department. If the
volume of maintenance is less and rare then
it will be better to hire contract a
maintenance team for a certain period of
time.
Optimum Maintenance Decisions
Centralized versus decentralized
maintenance decision: If each department
of the organization requires different
equipment and rapid responses, then it will
more economic to establish separate
maintenance team for different department.
Optimum Maintenance Decisions
Maintenance Activities
Preventive Maintenance Cost
Total Cost
Breakdown Maintenance Cost
Cost
Y
0X
N
Total = All encompassing by maintenance
and production individuals working
together
Productive = Production of goods and
services that meet or exceed customers
expectations
Maintenance = Keeping equipment and
plant in as good as or better than the
original condition at all times.TP
MTotal Productivity Maintenance
TPM
TPM is a partnership between the
maintenance and production
organization to improve product
quality, reduce waste, reduce cost,
increase equipment availability and
improve maintenance state.
OBJECTIVES OF TPM
Improve Equipment Effectiveness
Achieve Autonomous
Plan Maintenance
To Train all staff in maintenance
skills
To Zero Breakdowns
▪ Designing machines that are reliable, easy to operate
and easy to maintain.
▪ Emphasizing total cost of ownership when
purchasing machines so that the service and
maintenance are included in cost.
▪ Developing preventive maintenance plans that
utilize the best practice of operators, maintenance
departments.
Training works to be operate and maintain their own machines
Reduce the variability through employee involvement
and excellent maintenance records. TPM mainly
includes following activities.
T P M
BENEFITS
❖Increased productivity
❖Equipment reliability
❖Reduced down time
❖Increased plant capacity
❖Low production maintenance costs
❖Team work Between Production &
Maintenance People
❖Improved safety & Profit