TQM
Oct 25, 2014
Total quality Management
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3rd Semester MBA
Elective: Operations
TOTAL QUALITY MANAGEMENT
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UNIT I
An overview and role of TQM- classical definition of quality – product satisfaction- product dissatisfaction trends in change management and role TQM
TQM
Total quality management can be defined as an organization wide effort to develop the systems, tools technique, skills and mindset required to establish a quality assurance system that is responsive to emerging market needs
The total quality management calls for radical change in the thinking among employees. First the term total connotes every one, everywhere and every time
TQM can be thought of as involving every one and every aspects of an organization in continuous improvement through team work. It is an approach for Gaining or sustaining competitive advantage
Excellent techniques- customer focused.
Excellent methods— Quality driven
Excellent people --- improvement oriented
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Total Quality ManagementElements
QualitySystem
Role ofTop Management
Tools & TechniquesEmployee InvolvementTraining & Team Work
Evolution in Quality Mgmt.Scientific Management Era
Plan
Act Do
Check
Specialist
Management/Specialist controls. All problem solving derived from specialist
Direct employeesperform tasks
Quality
The word quality is recognized by most people and in general speech is used to describe excellence, value, reliability or goodness.
Why is quality management important? >> Because of completion
Definitions
Conformance to specifications – focus on manufacturing process Fulfilling customer needs- customers perceptions and preferences are
taken into consideration Fitness for use Attaining Zero defects (ppm, ppb)
Dimensions of quality
1. Aesthetics2. Conformance3. Durability4. Features5. Performance6. Reliability
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Evolution in Quality Mgmt.TQM Era
Plan
Act Do
Check
Employee controls the cycle
Management provides the resources of raw material, equipmentand training.
7. Safety8. Serviceability
Quality is both qualitative (consumer perspective by experience and intangible issues) and quantitative (manufacturers perspective)
QUALITY IMPROVEMENT APPROACHES
EVOLUTION
• Inspection of finished items• Product Certification ( BIS, AGMARK)• Quality Assurance/Quality System- (ISO 9000, CMM 5)
• SPC• TQM/TPM• Six Sigma/ LM
Quality cost
Quality costing is a technique by which all the costs related to the delivering of quality are captured and classified for evaluation of management efforts in an organization
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conformance to specification
fulfillment of customer needs
fitness for useMinimization of loss to society
Classification of quality costs
Employee Involvement & Team work-Use of Small group improvement projects
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QUALITY COSTS
CONTROL COSTS
PREVENTION APPRAISAL
FAILRE COSTS
EXTERNAL INTERNAL
Identify Quality problem
Set the scopeMeasure
current status
Identify improvement
projects
Project 1
Project 2
Project 3
Project N
. . .
Small group improvement using Quality Control Tools
Employee Involvement & Team workUse of Small group improvement
projects
Product satisfaction and dissatisfaction
Customers usually recognize good quality not by a set of attributes but by experience and intangible issues. Thus a customer using similar products from two competitors will find it much easier to rate one to be of better quality than the other
The international market for any product is now mature- the products or services offered by different companies are basically same. As a result the basis of competition is increasingly the quality of the product or service. There is no conflict between quality and price as more and more organizations realize that in the long term quality goods and actually cost less.
1. Hence it can be seen that satisfaction and dissatisfaction of a product is basically dependent upon its quality. The degree of satisfaction or dissatisfaction is based on the various dimensions of quality such as Aesthetics Conformance ,Durability, Features, Performance,Reliability,Safety,Serviceability
Change management
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POKA YOKEAn example
A pair of sensors for fail proof
through drilling
Change management is a structured approach for transforming to individuals, teams and organizations from a current state to a desired future state. It is an organizational process aimed at helping employees to accept and embrace changes in their current business environment
• The manager has a responsibility to facilitate and enable change• Workshops are very useful processes to develop collective
understanding, approaches, policies, methods, systems, ideas, etc• tolerance and compassion from the leaders and executives• Management and leadership style and behaviour are more important
than clever process and policy. Employees need to be able to trust the organization
Change management principles
• At all times involve and agree support from people within system• Understand where you/the organization is at the moment. • Understand where you want to be, when, why, and what the measures
will be for having got there. • Plan development towards above No.3 in appropriate achievable
measurable stages. • Communicate, involve, enable and facilitate involvement from people,
as early and openly and as fully as is possible.
Kotler's eight step change model can be summarized as:
• Increase urgency - inspire people to move, make objectives real and relevant.
• Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels.
• Get the vision right - get the team to establish a simple vision and strategy focus on emotional and creative aspects necessary to drive service and efficiency.
• Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to
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people's needs. De-clutter communications - make technology work for you rather than against.
• Empower actions - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements.
• Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.
• Don't let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones.
• Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture
Unit II
Philosophical approach of TQM- Eastern and western approaches-methodological approaches to TQM- Deming, Juran, Crossby and
others
Methodological Approaches
• QUALITY CIRCLES
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• By 1968, Kaoru Ishikawa, one of the fathers of TQC in Japan, had outlined the elements of TQC management,
• Quality comes first, not short-term profits. • The customer comes first, not the producer.• Customers are the next process with no organizational barriers.• Decisions are based on facts and data.• Management is participatory and respectful of all employees.• Management is driven by cross-functional committees covering product
planning, product design, production planning, purchasing, manufacturing, sales, and distribution (Ishikawa 1975)
The introduction of quality circles in Japan in the postwar years was inspired by the lectures of W. Edwards Deming (1900-1993), a statistician for the U.S. Noting that American management had typically given line managers and engineers about 85 percent of responsibility for quality control and only about 15 percent to production workers,
Deming argued that these shares should be reversed. Quality Circle as “a small group of employees doing similar or related work who meet regularly to identify, analyze and solve product quality and production problems and to improve general operations. The circle is a relatively autonomous unit (ideally about ten workers) usually led by a supervisor or a senior worker and organized as a work unit”.
Contributions of Quality Circles towards 4M’sAccording to F. Talib (2003) the Quality Circles have contributed towards various projects in order to increase the productivity of Man, Machines, Material and Methods.
Man -36% Machine-29% Material-21% Methods-14%
Attributes of Quality Circle
Quality Circle concept has three major attributes:
Quality circle is a form of participation management Quality circle is a human resource development technique Quality circle is a problem solving technique
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Scope of Quality Circle activities
According to the International Quality Management System, the areas of improvement include
Work area Working environment Methods of working / manufacturing Products & services
Q.C Goals that serve the Organization
To improve the quality of the product manufactured or service provided. To reduce the costs of the product or service. To increase productivity by solving problems that interferes with
production. To improve communication within the organization.
Goals serving the interests of the Employees
To permit employees to use a greater amount of knowledge and skill. To provide a vehicle whereby relationships among workers improve. To provide the opportunity to gain more control over their work by
allowing them more input to factors that affect it. To enrich jobs through greater involvement in the work progress.
Role of Management
The top management must be committed to providing all the support, encouragement and necessary, infrastructure for QC activities
The middle management should make themselves knowledgeable and up-to-date about the concepts and working of the QCs, They should make themselves responsive to the ideas and contributions by one and all at the shop floor.
Structure of Quality Circles
A steering committee: This is at the top of the structure. It is headed by a senior executive and includes representatives from the top management
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and human resources development. It establishes the policy, plans and directs the program and meets usually once in a month.
Coordinator: He may be a Personnel or Administrative officer who co- ordinates and supervises the work of the facilitators and administers the program
Facilitator: He may be a senior supervisory officer, he co-ordinates the work of several quality circles through the Circle leaders.
Circle leader: Leaders may be from the lowest level workers or Supervisors. A circle leader organizes and conducts Circle activities.
Circle members: They may be staff workers. Without circle members the program cannot exist. They are the lifeblood of quality circles. They should attend all meetings as far as possible, offer suggestions and ideas, participate actively in-group process and take training seriously with a receptive attitude
Training & motivation
Training should also comprise of: Brief orientation program for top management Program for middle level executives Training of facilitators Training for circle leaders and members
Apart from the training program as basic tool of QC, various means as given below may be followed for motivating the workers to undertake QC activities:
Formal presentation of the case studies by the workers themselves before the management
Publication and distribution of in-house case study volumes Publication in House Magazine Awards for good case studies Recording in personnel file Participation of the workers (in small groups) in major forums
Process
Problem Identification Problem Analysis Problem Selection
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Implementation of the solution Select the most appropriate solution Generate Alternate Solutions Prepare Plan of Action Presentation to management
QUALITY GURUS
William Edward Deming (1949-1958 in Japan). He is considered to be the father of Japanese quality management system. In recognition of his contribution, the highest honour for excellence in quality management, The Deming Prize is named after him. Deming proposed a four –step process PLAN-DO- CHECK-ACT, popularly known as PDCA cycle. Deming also proposed a 14- point agenda for quality improvement.
Joseph.M.Juran: - Juran visited Japan immediately after Deming and imparted to Japanese Executives the key principles behind quality management. Juran proposed simple definition for quality “Fitness for use”. His approach to quality management focuses on three important aspects known as Juran’s Trilogy
• Quality planning- process of preparing to meet quality plan• Quality control – the process of making quality goals during operations• Quality Improvement - The process of breaking through to
Unprecedented levels of performance
Philip.B.Crossby:- Philip .B. Crossby was the vice president for quality at International Telephone and Telegraph in Japan for 14 years. The essentials of Crossby’s quality philosophy are embodied in what he calls the absolutes of quality management.
Absolute I: Definition of quality is conformation of standards. Absolute I: System of quality is prevention. Absolute III: The performance standard is zero defects. Absolute IV : Measurement of quality is the prize of non conformance Absolute V: There is no such thing as a quality problem.
Crossby introduced the notion of zero defect performance and hence popularize the phrase “do it right the first time”.
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Karou Ishikawa : He was the most prominent figure in Japanese quality management until his death in 1989. Dr. Ishikawa influenced the development of a participative, bottom- up approach to quality management. He promoted the concept of company wide quality through use of quality control circle (QC). He also proposed the fish bone diagram to analyze quality problems at the work place.
Shigeo Shingo : Shingo’s primary contribution to quality management is to suggest an approach for complete elimination of error. He proposed a method called POKA- YOKE or mistake proofing for eliminating defects once and for all.
Genichi Taguchi: Taguchi’s focus was on achieving quality by reducing variation in processes. Taguchi proposed a three stage approaches to the design process
1] System design 2] Parameter design 3] Tolerance design.
Unit III
Tools of TQM- Diagnostic- 7 tools of analysis- old and new- cybernetic analysis
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Basic Tools of QC
The greatest strength of management system such as TM is the emphasis laid on using simple yet powerful tools for tracking various aspects relate to quality management. The QC tools fall under five broad categories.
• Tools for high lighting quality problem• Tools for identifying specific improvement opportunities• Tools for analyzing problem and their root causes• Tools for operational planning• Tools for strategic planning
The workers should be given in-depth exposures to basic QC techniques (i.e. 7 basic tools of QC), which are as follows:
1. Stratification2. Check-sheets 3. Pareto analysis 4. Cause & Effect diagram 5. Histogram /Frequency distribution 6. Control charts / graphs 7. Scatter diagram
Quality Management Tools – a classification
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HistogramIt is a simple method of graphically representing the frequency distribution of multiple attributes of interest. Based on a simple count of occurrences of each attribute, a histogram can be constructed. The value of histogram lies in its ability to portray various causes pertaining to the problem as well as the magnitude of these causes. The power of histograms lies in its ability to trigger the quality Manager and the employees to further investigate the root causes of the problem. The visual appeal of histogram is much greater than data arranged in a tabular form alongside.
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Purpose for which the tool is used Quality Control Tools New 7 Management tools
Highlighting problems (a) Process Control Charts Identifying specific improvement opportunities
(b) Histograms (c) Check Sheets (d) Pareto Diagrams (e) Scatter Diagrams (f) Process chart
Analysing problems & their root causes
(g) Cause and Effect (Fish bone) Diagram
(i) Affinity Diagram (j) Relationship
Diagram Operational planning for building quality into products/services
(k) Tree Diagram (l) Matrix Diagram (m) Matrix Data
Analysis (n) Process Decision
Program Chart (PDPC)
(o) Arrow Diagram
Strategic Planning QFD , Bench marking
HistogramAn example
Causes for adjustment snags
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Categories of problems
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Causes for Rework
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Design issues Vendor relatedproblems
Categories of problems
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Pareto Diagram
Pareto diagram is a method by which clear cut priorities are established for directing the improvement effect. It is similar to histograms, but the data are plotted in a decreasing or increasing order of occurrence to obtain an importance/ priorities of improvement.
Cause effect l/Fish bone /Ishikawa Diagram
It is a generic methodology developed to trace the problems to their root causes. A fishbone diagram helps the quality improvement team to analyze problems in a structured manner and identify the root causes.
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Pareto DiagramAn example
Adjustment Snags Analysis
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Poorrouting
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Categories of problems
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Reworks Analysis
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Categories of problems
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Cause and Effect DiagramA generic representation
Materials Work methods
Equipment Labour
Quality
Cause Effect
CEDAC- CAUSE EFFECT DIAGRAM ACTION CHARTS
It is a variation of cause effect diagram where the brainstorming process is left open to all employees of the organization by adding two sets of colour code cards known as problem card and solution card. An employee who thinks that he/she knows what the problem or solution to the problem could well pick up an appropriate card and write the suggestions and affix it at the appropriate leg of the fish bone. It enables all the employees in an organization to make full use of their accumulated knowledge and experience and helps to change the organizational culture by empowering people to fully participate in the continuous improvement process
Poka Yoke
Poka Yoke is the Japanese word for mistake proofing of operations. Shigeo Shingo proposed this method while he improved the Toyota Production System. The basic principle behind this method is that several defects that creep in to operations are usually avoidable. Errors and defects have cause and effect relation ship. If errors are not eliminated they will become defects. The root causes could be eliminated by re-designing the operations and incorporating methods by which the process will not allow the errors to happen in future.
Matrix Diagram
It is one of the quality management tools used in operational planning and for building quality into products and services.
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Seven New tools of analysis
1) Affinity Diagram2) Relationship Diagram3) Tree Diagram4) Matrix Diagram5) Matrix Data Analysis6) Process Decision Progress Chart (PDPC)7) Arrow Diagram
Affinity diagram:- Grouping ideas according to family--a creative brain storming tool
Interrelations digraph:- To map logical links of a central idea to more than one idea at a time--- Lateral thinking than linear thinking
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Matrix Diagram: An ExampleHindustan Motors - 1035N Dumper
Order Winning
QualifyingLess
important
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orst
Tree diagram:- Maps paths & tasks to achieve a goal
Matrix diagram:- Spread sheet/ graphically displays relations between tasks and functions , House of quality.
Matrix data analysis:-Matrix in the form of quantitative factor analysis
Process decision program chart :- maps every conceivable event from problem statement to solution and counter measures.
Arrow diagrams:-PERT/CPM
TQM techniques
• Bench marking• Nominal group technique• 5 Ws and 1 how• Cost of quality• QFD(Quality Function Deployment)• FMEA(Failure Modes & effects Analysis)• Force field analysis• VE/VA(Value engineering & Value analysis
Steps in Nominal Group Technique
• Read problem statement• Problem clarification• Silent idea generation• Round robin idea generation• Idea clarification• Idea grouping• Individual ranking of first 6 ideas• Compilation of idea ranking by all, by Facilitator
FMEA
Analyses ways of failure of a product and its effect of each mode using 3 criteria on 5 pt scale
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• severity• Probability of occurrence(MTBF)• Ease of detection of failure
Items of higher Total scores are to be dealt with on priority
Force field analysis
• Kurt Levin in 1920s• To identify the forces (pressures) for and against changes.• Participation and sense of ownership• Forces for forces against • What can be done to strengthen forces for and weaken forces against
VE/VA
• Better value to customer at lower cost• Ex; plastics replacing in automobiles
Steps
• Gather information• Functional identification’• Functional analysis• Creative alternatives • analysis &evaluation• Implementation
Read Edward de Bono, six thinking hats, penguin,1990
7 wastes
• Overproduction• Waiting• Transporting• Inappropriate processing (poor process capability) • Unnecessary inventory• Unnecessary motion• defects
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Cybernetic Analysis
Cybernetics" comes from a Greek word meaning "the art of steering".Cybernetics is about having a goal and taking action to achieve that goal.Knowing whether you have reached your goal (or at least are getting closer to it requires "feedback", a concept that comes from cybernetics
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Unit IV
Overview of other developments in TQM, QFD-TPM- ISO-CMM- Bench marking- six sigma- leadership management for TQM
Continuous Improvement
Continuous improvement
Refers to constant and positive change in the working conditions in an operating system
Leading to better performance evident from key performance measures Typical examples of such improvements Increase in production with no addition of capacity, Elimination of manpower even when production levels go up No appreciable increase in cost of production even when the volume
drops Increase in the velocity of various business processes without any
addition of new capacity or technology Significant reduction in defects Rework and inventory investments when the production rates go up An overall increase in the productivity
Improvement in Operations-Alternative TrajectoriesRadical (Step) Improvement
raises the level of the system substantially at a point in time Typically happen due to innovations in technology pertaining to
the operations & substantial up-gradation of the capacity Once a radical improvement is made, the system moves to a
significantly higher level of performance
Continuous (Ramp) Improvement
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Improvements made in small steps and on a continuous basis through a systematic study of the existing system and changes in the processes and procedures
Does not call for breakthrough innovations, large investment in capacity or radically new technology
Could be applied in several areas of business including manufacturing, business processes in other areas such as marketing, finance and customer and supplier relationship
Hybrid Improvement A combination of both in alternating cycles
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Improvement of OperationsAlternative trajectories
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Time(a) Step improvement (b) Ramp improvement
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Time(c) Hybrid improvement
Continuous Improvement-Creating a context
Benchmarking Exercises Internal benchmarking Competitor benchmarking Process Benchmarking
TPM & TQM Initiatives International Awards & Certifications Industry Association initiatives
IMVP Example CII’s initiatives in automotive cluster
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Continuous Improvement ProcessA frameworkCreate a
context for continuous
improvement
Set up a measurement
methodology for assessing the quantum of
improvementEquip the
employees with tools &
techniques for continuous
improvement
Create appropriate
organisational structures for
continuous improvement
Closely monitor and recognise the benefits
accrued from improvements
Continuous
ImprovementCycle
Continuous Improvement -Tools & Techniques
Process Mapping A tool to understand various steps involved in performing a
business process Non-Value Added (NVA) Analysis
A method by which the relevance of some of the existing activities are questioned
Business Process Engineering (BPR)
Fundamental rethinking and radical redesign of processes
Kaizen Initiatives Setup time reduction through SMED QC Tools
Activity Based Management (ABM)
Process Mapping - Some alternatives
o Customer order “walk through”o Collaborative brainstorming/chartingo Bottom-up approach – Interviews of staff in functional departmentso Executive judgment
Reasons QC do not function well
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Benchmarking
APQC methodology
Source: Adopted from http://www.apqc.org/portal/apqc/site/generic?path=/site/benchmarking/free_resources.jhtml
Colle
ct
Plan
AnalyseA
dapt
• According to the Quality Forum of the World Class Organization, infantile mortality failure of these QC circle has been found to be very high. Probing into such failures revealed that the following were the frequent modes of failures in general:
• By-passing top management. • Not convincing top management. • Non-committing by top management. • Lip sympathizing by top management. • Mistrust by middle management. • Disassociation by middle management. • By-passing the work force. • Poor leadership in QC. • Lack of team spirit and Non-Cooperation among the members in a QC • Lack of proper guidance from the management in the face of difficulties
experienced by a QC while pursuing a problem • Lack of motivational measures for the QC members.• Poor information feed-back mechanism.
A STUDY ON THE EFFECTIVENESS OF THE QUALITY CIRCLES AT HI – TECH ARAI LIMITED, MADURAI
Company Profile
Started operations in 1985 with initial capital of Rs. 4.25 Lakhs Technical Collaboration with Arai Seisakusho Company Limited, Japan Joint Venture with Arai Seisakusho Company Limited, Japan Company is a leader in the Oil Seals market with 70% market share The company has a sales of Rs.190 Crore and PBT of Rs.30crores Major Clients
– Yamaha– TVS– Maruti Udyog – Piaggio
The products also serve export clients in Thailand, France, Indonesia, China and Italy
Vision
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1993- To become the market leader in the country with in five years
1997- To become one of the top three in the world in the field of oil seals
Mission
To produce high quality products at competitive prices combined with on time delivery strictly adopting environmental friendly processes
Products
– ‘O’ rings– Oil Seals– Reed valve assemblies– Technically specified Molded Rubber Products
Quality Practices
– Total quality management– Poka yoke– 5S practices– ISO 9001:2000– ISO 14000
Objectives
To study the structure and working of the Quality Circles. To study the employees attitude towards the functioning of the Quality
Circles To study the level of Employee Improvement because of Quality Circles. To study the impact of Quality Circles on the production performance of
the organization To study the impact of Quality Circles on the production performance of
the organization
Research Methodology
• Plant visit and personal observation• Discussion with executives in Quality and HR departments• Questionnaires (2 types)
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Questionnaires for the members of the Quality Circles
Questionnaires for non-members
• Articles published in dailies and magazines• Booklets • Websites and • Books on Quality Management and Research
Employee perception towards the Quality Circle
1 1 2 2 3 3 4 4 5 5 WeightedWeightedTotal Total
Weighted Weighted Average Average
% %
Functioning of QC Functioning of QC 13 13 24 24 3 3 0 0 0 0 170 170 11.3 11.3 85 85
Support from SupervisorSupport from Supervisor 16 16 16 16 8 8 0 0 0 0 168 168 11.2 11.2 84 84
Support from Top Support from Top Management Management
11 11 S20S20 9 9 0 0 0 0 162 162 10.8 10.8 81 81
Continuous Continuous Improvement Improvement
26 26 14 14 0 0 0 0 0 0 186 186 12.4 12.4 93 93
Implementation time Implementation time 18 18 15 15 7 7 0 0 0 0 171 171 11.4 11.4 85.5 85.5
Overall Performance Overall Performance 33 33 7 7 0 0 0 0 0 0 193 193 12.9 12.9 96.5 96.5
Recommendation for Recommendation for colleagues to join colleagues to join QC QC
33 33 6 6 1 1 0 0 0 0 192 192 12.8 12.8 96 96
Total Total 1242 1242 88.7 88.7
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Major Findings
• Attitude
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Employee Improvement
QCs contribution to various areas
Quality Circle contribution to various areas
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On timedelivery
HouseKeeping
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Skill Development is the major factor that motivates the employees to join the Quality Circle.
Foundation for Continuous Improvement• Employee Improvement
Teamwork, Leadership, Confidence, Credibility, Safety Awareness, and Communication
Problem Solving and Creativity are the areas where the employees need improvement
Conclusion
– QCs have improved the performance of the organization – QCs have also increased the proficiency of the employees– Positive attitude of the employees towards QCs
Total Productive Maintenance (TPM)
Practice of optimal maintenance of equipments for enhancing over all Equipment Efficiency (OEE). The focus is on for zero defects, zero waste, zero break down through total employee involvement, sense of ownership, management commitment, team work and continual improvement.
• TPM is a maintenance process developed for improving productivity by making processes more reliable and less wasteful.
• “Continuously improve all operational conditions, within a production system; by stimulating the daily awareness of all employees” (by Seiichi Nakajima, Japan, JIPM)
• a) Efficient Equipment Utilization b) Efficient Worker Utilization c) Efficient Material & Energy Utilization
• TPM is a maintenance process developed for improving productivity by making processes more reliable and less wasteful.
• “Continuously improve all operational conditions, within a production system; by stimulating the daily awareness of all employees” (by Seiichi Nakajima, Japan, JIPM)
• a) Efficient Equipment Utilization b) Efficient Worker Utilization c) Efficient Material & Energy Utilization
• • TPM focuses primarily on manufacturing (although its benefits are
applicable to virtually any "process") and is the first methodology Toyota
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used to improve its global position (1950s). After TPM, the focus was stretched, and also suppliers and customers were involved (Supply Chain), this next methodology was called lean manufacturing
Pillars of TPM
• 1) Focused improvement (Kobetsu Kaizen) - Continuously even small steps of improvement.
• 2) Planned Maintenance - It focuses on Increasing Availability of Equipments & reducing Breakdown of Machines.
• 3) Initial Control - To establish the system to launch the production of new product & new equipment in a minimum run up time.
• 4) Education & Training - Formation of Autonomous workers who have skill & technique for autonomous maintenance.
• 5) Autonomous Maintenance (Jishu Hozen) - It means "Maintaining one's equipment by oneself". There are 7 Steps in & Activities of Jishu Hozen
• 6) Quality Maintenance (Hinshitsu Hozen) - Quality Maintenance is establishment of machine conditions that will not allow the occurrence of defects & control of such conditions is required to sustain Zero Defect.
• 7) Office TPM - To make an efficient working office that eliminate losses• 8) Safety, Hygiene & Environment - The main role of SHE (Safety,
Hygiene & Environment) is to create Safe & healthy work place where accidents do not occur, uncover & improve hazardous areas & do activities that preserve environment
• Other Pillars :
Tools Management - To increase the availability of Equipment by reducing Tool Resetting Time, To reduce Tool Consumption Cost & to increase the tool life.
• Zero accident• Pillars 1 to 5• Zero defects• Pillars 1 to 7• Zero accidents• Pillars 2,4,7 and 8
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• Indian TPM journey started in 1991 when Vikram Cements initiated TPM consulting through JIPM, the then JIPM Solutions Co Ltd with Mr. Sueo Yamaguchi as their consultant. From them on there has been no stopping for the Indian TPM Journey. Today, 20 years later, more than 10 Japanese consultants and 9 CII – TPM Club India Counselors are providing TPM consulting support to over 200 companies, making India the largest known TPM practicing country in the world outside Japan.
Growth of TPM in a company : – Levels of Awards
• Award for TPM Excellence – Category A & B• Award for Excellence in Consistent TPM• Commitment• Special Award for TPM Achievement• Advanced Special Award for TPM Achievement• Award for World-class TPM Achievement
TPM Companies in India
ABI Showtech (Ind) Ltd, Sholingur,Hindustan Lever Ltd, Khaliabad ,Beverages factory Munjal Showa Limited, Manesar, Aditya Cements Hindustan Lever Ltd, Khamagaon Munjal Showa Ltd, Aquasub (Aqua group) Hindustan Lever Ltd, Kidderpor ,National Engg Industries Ltd, Jaipur ,Aradhana Soft Drinks., Hindustan Lever Ltd, Mangalore, National Engg Industries Ltd, Newai Plant, Asahi India Glass Limited, Hindustan Lever Ltd, Mysore Beverages, Orient Cements, AVTEC Ltd, Power Unit Plant, (Hindustan Motors Ltd) Pithampur , Hindustan Lever Ltd, Nashik factory ,PepsiCo India Holdings Private Ltd, Bajaj Auto Ltd, Akurdi Plant, Pune
TPM Implementation
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Quality Function Deployment
The process of incorporation of the Voice of the Customers into the design and development of a certain product and service and subsequently standardization of the process of manufacturing.
Quality Function Deployment is a design planning process driven by customer requirements.
QFD deploys “The Voice of the Customer” throughout the organization. QFD uses planning matrices -- each called “The House of Quality”.
History of QFD
• 1960’s, Yoji Akao conceptualized QFD. Statistical Quality Control, SQC, was the central quality control activity after WWII. SQC became Total Quality Control, TQC. QFD was derived from TQC.
First Application of QFD
• 1966, Bridgestone Tire Corp first used a process assurance table.
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• 1972, the process assurance table was retooled by Akao to include QFD process.
• 1972, Kobe Shipyards (of Mitsubishi Heavy Industry) began a QFD Oil Tanker project.
• The QFD institute was formed in 1994.
What Does QFD Require?
• QFD requires time, effort, and patience. QFD requires access to stakeholder groups. The benefits of QFD are not realized immediately. Usually not until later in the project or the next project. QFD requires full management support. Priorities for the QFD process cannot change if benefits are to be realized.
Why use QFD?
• The QFD process leads participants to a common understanding of project direction and goals. QFD forces organizations to interact across their functional boundaries. QFD reduces design changes.
How QFD works?
– market analysis to establish needs and expectations– examination of competitors abilities– identification of key factors for success– translation of key factors into product and process characteristics
Characteristics of QFD
4 Main Phases to QFD
Product Planning including the ‘House of Quality’ (Requirements Engineering Life Cycle)
Product Design (Design Life Cycle) Process Planning (Implementation Life Cycle) Process Control (Testing Life Cycle)
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Process of QFD
Phases of QFD
• Product planning– wishes of customer transferred to product– evaluation of competitor products– identification of important properties
• Product design– choose best design to fulfill targets– identify critical parts and components– further R&D if needed.
• Process design– critical parameters identified– process control/improvement methods set
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Process of QFD
Product Planning
Cu
stomer
Attrib
utes
Engineering
CharacteristicsHouse
of Quality#
1
Key P
rocess O
peration
s
Production
Requirements
Product
ion Design
Part
Ch
aracteristics
Key Process
Operations
Process Design
En
gineerin
g C
haracteristics
Part Characte
ristics
Product Design
Start with the Voice of the Customer – Customer needs
CTQ: Critical to QualityA product feature or process step that must be
controlled to guarantee that you deliver what the customer wants.
House of
Quality# 2
House of
Quality#3
House of
Quality#4
• Production design– design instructions for production– define measurements, frequency and tools to be used
The House of Quality (HoQ)
HoQ is a set of matrices which contains the requirements (What’s) and the detailed information to achieve those requirements (How’s, How Much’s). Stakeholder groups fill in the matrices based on their priorities and goals
Key Items to Address in HoQ
• Who is the customer?• What are the Requirements?• How important is each requirement?• How will you achieve each requirement?• Complete the Relationship Matrix (what’s vs. how’s).• Which how’s are the most important?• What are the tradeoffs between the hows?• What target values should be established?
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QFD – House of Quality
Who
Who vs.What
WhatWhat vs. How
How vs. How
Now vs.What
How Much
How Now
1
2
8
3 6
5 4
4
7
Process capability
Process capability
It indicates the spread of the process about the mean. The purpose of process capability improvement initiatives is to minimize the process spread. According to Genichi Taguchi, any deviation or spread is a loss to the society, amounting to squared values of the deviation form target values.
Concepts of precision and accuracy
Precise process is one with narrow spread/std deviation.
Accurate process is one which has process average close to design values, but variability may be high.
• Process A is centered at 15 cm with spread +/-1.2 cm .
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IMPROVING CAR DOOR DESIGN
• Process B is centered at 15.3 cm with spread of +/- .004
• Which is better and why? Pictorially represent. Process A is accurate but not precise. Process B is precise but not accurate. By shifting the process average to the design value it can be accurate. In the former case, reducing variation is difficult.
Cp & Cpk
• Cp = (USL –LSL)/UCL – LCL
= (USL –LSL)/6 sigma
• Cpk = Lower of the two values .i.e.
1) (mean-LSL) / 6sigma
2) (USL-mean) / 6sigma
Higher values above 1 for both Cp & Cpk indicate better process capability
• Problem• Ball bearings of X brand has the following spec; 245 +/-0.85mm• Two Processes are available. see matrix in next slide
Centre LCL UCL
Process A 244.90 244.15 245.65
Process B 244.98 244.16 245.80
• Which process will you recommend and why?• Cp process A =1.133• Cp process B=1.037• Cpk process A =1.000• Cpk process B =1.012• A is precise due to high Cp while B is accurate having close average• Precise process is to be preferred • Both process have low Cp & Cpk values. Process variability needs further
reduction
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Concepts of six sigma
Fundamentally, it is a customer-focused methodology that drives out waste, raises levels of quality, and improves the financial anytime performance of organizations to breakthrough levels.
• Six Sigma’s target for perfection is to achieve no more than 3.4 defects, errors or mistakes per million opportunities whether it involves the design and production of a product or a customer-oriented service process.
• It is from this target that the “Six Sigma” name originated. sigma is the symbol used to denote the standard deviation or measure of variation
Table values of different sigma levels ppm (ONE TAIL)
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It would be foolish, however, to try to achieve Six Sigma levels of performance for every process in the organization. This is because not all processes are equally important. For example, the process for requesting time-off or vacation is not as critical as the order fulfillment process. What really counts is significant improvement in the mission critical areas – critical as defined by the customer, “critical-to-quality” requirements or CTQs.
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Table values of different sigma levels
ppm (ONE TAIL)
Define, measure
Define – identify, evaluate and selectprojects; prepare the mission; and select and launch the team.
Measure – the size of the problem, document the process, identify key
Customer requirements determine key product characteristics and process parameters, document potential failure modes and effects; theories on the causes or determinants of performance.
Analyze – plan for data the data, and establish and confirm the “vital few” determinants of performance.
Improve – design and carry out to determine the mathematical cause-effect relationships, and optimize the
Control – design controls; make improvements, implement, and monitor.
There is another methodology for designing and developing a new product, service or process.
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Design for Six Sigma
Follows the DMADV cycle. DMADV is quality in the eyes of the customer. DMAIC. Typically focuses on one CTQ, which is related to the problem at hand.
Analyze – identifies alternative design concepts and develops one or more into a high-level design control mechanisms in place.
Project approach in implementation
Champion
Six Sigma Project Teams are supported by the leadership of each business unit through the Champions. As influential members of management, they are expected to promote the application, acceptance and evolution of the process within their business units.
They select projects, team’s objectives, allocate resources & mentor teams. They are normally the owners of the process being improved
• Master Black Belt• Fully trained experts in six sigma tools& methods. The work across
organization to develop teams, conduct training, lead change. Role of facilitator and trouble shooters
• Black belts Having been trained for 160 hours they do the technical analysis on full time basis for the projects They help select members, assist in training, lead teams for timely completion After project they work with functional managers to implement and monitor solutions they develop and mentor green belts Highly motivated and respected ,they are future business leaders
• Green belts
Functional employees trained in introductory tools. They work on projects part time ,assisting black belts. Conduct base analysis and give ideas for improvement, To become green belt must complete one six sigma project.
• Team members• Individuals from functional as who support the project The gather data
conduct experiments, due to their functional domain knowledge of
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process details Typically green belts are team leaders. Black belt is staff expert
• Process mapping (value stream mapping)• Pareto• Ishikawa diagram• SPC• Statistical tools like anova
Capability Maturity Model ( CMM)
It is the unique quality certification programme developed by the Software Engineering Institute(SEI) at the Carnegie Mellon University for the software sector. CMM is model used by many organizations to identify the best practices useful in helping them to increase the maturity of their processes
Currently six variations of CMM are available
• Capability Maturity Model Integration (CMMI)• People Capability Maturity Model (P-CMM)• Software acquisition Capability Maturity Model (SA-CMM)• Capability Maturity Model for Software (SW-CMM)• System Engineering Capability Maturity Model (SE-CMM)• Integrated Product Development Capability Maturity Model(IPD-CMM)
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UNIT V
Integration and implementation of TQM in organizations- application of TQM
TQM elements Based on MBNQA framework for business excellence
Leadership
1) Visible long term commitment of transformational leadership2) Vision and mission 3) Facilitating conducive environment and work culture for employee
empowerment, competence, learning & innovation, and joy at work4) Keeping in touch with stake holders employees, suppliers & customers,
besides share holders5) Corporate social responsibility
TQM elements Based on MBNQA
1) Formulation of strategy by involving every one in strategic planning. 2) Deployment of strategy to day to day activities for creating alignment
of operations with strategy3) Major strategic initiatives in quality like TQM, TOM, Six sigma, Lean
manufacturing
Customer Focus
• Customer satisfaction• Market share• New product development• Customer relationship management• Meeting changing customer expectations• Human resources focus • Training• Employee involvement & empowerment• Team work among workers and executives • Minimum hierarchy and access to top management• Treatment of Human Resource as an asset and with respect
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Process management
• Process approach• Lay out for efficient process flow with minimum non value adding
activities• Process capability for near zero defect (ppm) in critical operations• Focus on process and product improvements for reducing variation• Focus on prevention for errors and defects• Use of problem solving tools for continuous improvement and
contemporary techniques of quality management• Energy conservation• Cost reduction
Supplier focus
• Supplier partnership• Involving suppliers in product & process improvements.• Vendor development for reliable supplies for lean manufacturing
Information Management
• Transactional automation• Measurement of key performance indicators in relation to strategic and
operational goals, for feedback and improvements• Data base and knowledge management for benchmarking and
improvements
Business results
• Financial performance • Market share growth• customer satisfaction• Employee satisfaction • Supplier satisfaction• Impact on society
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List of Deming Prize winners
Year Name of the company
1998 Sundaram-Clayton Limited, Brakes Division
2001 Sundaram Brake Linings Ltd. (India)
2002 TVS Motor Company Ltd. (India)
2003 Brakes India Ltd., Foundry Division (India) Mahindra and Mahindra Ltd., Farm Equipment Sector (India) Rane Brake Linings Ltd. (India) Sona Koyo Steering Systems Ltd. (India)
2004 SRF Ltd - Industrial Synthetics Business Lucas-TVS Indo Gulf Fertilisers Limited
Implementing TQM
• Decide • Prepare• Start
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Quality Certifications & Awards
No Name of the Award/Certification
Awarding Agency
Applicable to whom
Remarks
Some well known Quality Awards
1 Deming Prize Union of Japanese Scientists & Engineers (JUSE)
No geographical restrictions for applicants.
More than one may be selected for the prize.
2 Malcom Baldrige National Quality Award
National Institute of Standards & Technology (NIST), USA
Open only for US corporations
Only one winner selected for each category
3 European Quality Award
European Foundation for Quality Management (EFQM)
Open only for European companies
Only one winner selected for each category
4 CII-EXIM Business Excellence Award
Confederation of Indian Industries (CII)
Any company in India can apply
Only one winner selected for each category
5 Rajiv Gandhi National Quality Award
Bureau of Indian Standards (BIS)
Indian companies can apply
Four categories (Large scale manufacturing, small scale manufacturing, service sector, BEST OF ALL).
Some well known quality certifications 6 ISO 9000 series
ISO 14000 series (Environmental issues) QS 9000 series (Automotive sector) TL 9000 series (Telecommunication Sector)
International Organization for Standardization
Any company can apply for the certification
Rating agencies assess and recommend certification. Certificates valid for three years.
7 OHSAS 18001 An association of national standards bodies
Companies can apply with the respective national standards body.
Deals with occupational health & safety management
• Expand• Integrate• Timing of TQM implementation phases
1 1 2 2.5 3
3.5 4 4.5 5
5.5
Decide ---------------
Prepare ----------------
Start -----------------
expand -------------------------
integrate
--------------------------------------------
• Decide appropriate approach SPC,QCs,TPM,5S etc• Prepare initial training to top and selected middle managers.Start more
training, pilot quality project,( to show case success to all employees),
Expand.
• Deploy approach to other organizational units by setting teams, measurement systems individual quality initiatives, additional training.
Integrate. Final phase.
• 1) Strategic goals are deployed to all levels.• 2)People are trained to work in teams and do individual roles. • 3)Key business processes are finalized.• 4) Assessments reviews, audits are in place.
• 5)In short, quality is a way of life and not merely a programme. TQM culture is institutionalized
Formulation of quality goals
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• Vision/Mission• strategy• Excellence Model (Deming, MBNQA, EQA etc)• Gap Analysis• Prioritize key actions• Develop tactical plans• Organize improvement teams• Measure achievements against goals
Competitive benchmarking
• Compare with the best in particular industry• Compare with the best in any industry
Training for quality
Topic Top mgmnt Quality mgrs other middle mgrs specialists Facilitators workers
Quality awareness x x x x x
Basic concepts x x x x x x
SQM x x
Personal Roles x x x x x x
Quality processes x x x x x
Problem solving methods
x x x x x
Basic statistics x x x x x x
Advanced statistics x x
Quality functional areas
x x x
Motivation for quality x x x x
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Obstacles to achieving TQM
• Lack of leadership & top management commitment.• Lack of infrastructure for quality. Plans, budgets, rewards recognitions• Skepticism about new quality programs • Mere exhortations trying to achieve TQM results too soon ,and all
together. • Learning from pilot projects and then deploying in other units is
effective.• Limiting the scope of projects to achievable levels is important to
sustain interest of employees.
• Reliance on specific techniques like SPC, QFD, QCs, FMEA, etc.
• Techniques are important; but address only part of the problems. Perspective on the big picture is more important.
• Under estimating time & resource requirements. • 10% time of top % middle management is required. Time must be found
with out adding personnel, by reallocating work
Business Process Engineering- Some guidelines to identify scope
• Extensive information exchange, data redundancy and re-keying of data points to arbitrary fragmentation of a natural process
• Large investment in inventory, buffers and other assets indicates that the existing process is unable to cope up with uncertainty
• High proportion of checking, control and progress monitoring implies too much fragmentation of the process
• Inadequate feedback in the process results in excessive rework and iteration
• Increase in complexity of operations, exceptions and special cases also indicate the need for simplifying the process by revisiting the process fundamentals
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What is ABM
– ABM is a management tool to link different functional areas of management to achieve a common goal of enhancing the competitiveness of a firm
– Process view of an organization is as important as the cost view. It facilitates continuous improvement process for obtaining operational and strategic benefits.
Organization for Continuous Improvement
• Task force for continuous improvement• Quality Circles• Small Group Improvement Activity (SGIA) Projects
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Implementing BPRA three-step methodology
Understand the existing
Process
Simplify theProcess by
eliminating NVA
Automatethe Process
Process MappingBrainstorming
“As-is” analysis
NVA Analysis“Should-be”
analysis
EDIERP
Internet tools
Tools used in each step
Activity Based ManagementUnifies Operations & Costing functions
Resources
Cost Objects
Cost view
Process Drivers
PerformanceMeasures
Process View
Activities
• Visual control aids for improvement
Using Visual Control Aids for continuous improvement: An Example
Continuous Improvement - Organizational Challenges
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Continuous Process Improvement
Using SGIA ProjectsProduct/
Service
Identified
Set the scope
Measure current status
Map at overallLevel;
Identify detailed projects
Project 1
Project 2
Project 3
Project N
. . .Explore and Implement improvements for
each project
• Resistance to Change• Tangibility of Improvements• Incentive & Rewards Systems• Organizations make improvements either in a step mode or a gradual
mode. • The step mode improvement happen on account of radical
innovations. • On the other hand, gradual mode improvements happen on
account of continuous improvements. • A continuous improvement does not require any radically new
technology or product. It concentrates on improving the effectiveness of existing processes in small steps.
• There are several ways by which organizations can create a context for continuous improvement of their operations.
• Benchmarking exercises• Preparing for international awards and certifications• Engaging in TPM and TQM initiatives
Working along with other industry partners in cluster mode
5S practices
• Table I The 5-Ss in Japanese and English• Japanese English Meaning• Seiri Structurize Organization• Seiton Systemize Neatness• Seiso Sanitize Cleaning• Seiketsu Standardize Standardization• Shitsuke Self-discipline Discipline
The technique has been practiced in Japan for a long time. Most Japanese 5-S practitioners consider the 5-S useful not just their physical environment but for improving their thinking processes as well.
• Seiri…structure. Separate and keep immediately necessary things as few as possible,
• Seiton. Neatess. A place for every thing and every thing in its place- • quick identification by name,• safe storage,
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• neatness for notice ,posters• Seiso..cleaning• Every one from CEO to the operator is a janitor. No separate cleaner• Every one will not get things dirty, nor spill, nor scatter litter,• Every one will right away, rewrite things, which got erased• Seiketsu..standardization • Repeatedly and continually maintain neatness and cleaning, by visual
management. Labeling, colour codes are used• Transparency. Keep things visible. Do not sweep things under the
carpet, out of sight• Shitsuke..Discipline• Creating a habit of dong things in the way supposed to be done.• Self discipline and are important training• 5S check points for factory • Cleaning up machines / equipment• Whether fixtures, tools are in their allotted place• Whether pallets, tote pans are kept clean• Whether work- in- process(WIP) and finished goods(FG) are kept in
proper place• Whether surrounding work places is clean• Whether empty pallets, tote pans are kept in their allotted place• Whether machines fans, lights are switched off after work• Whether used consumable items like waste not thrown on the floor• Whether rusted, dust- covered WIP are sent to next stage or not.• Whether walkway/pathway are kept clear without obstacles• Floor and surrounding area is clean• Telephone and computers are kept clean• Furniture, cupboard, table drawers are kept clean and in order• Files are kept in labeled folders in file racks• In record rooms, files ore kept in order• Defective equipments are reported to maintenance department• Lights, Fans, computers and AC equipments are switched off after use• Work place is cleaned after work.• Index of files is kept• Answering telephones in pleasant and decent manner.
Implementing 5S
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• Top management commitment• Promotional campaign• Keep records photos, video before and after 5S• 5S training• Evaluation
ANSWERS TO TEST PAPER
COST OF QUALITY • 141
The reason quality has gained such prominence is that organizations have gained an understanding of the high cost of poor quality. Quality affects all aspects of the organization and has dramatic cost implications. The most obvious consequence occurs when poor quality creates dissatisfied customers and eventually leads to loss of business. However, quality has many other costs, which can be divided into two categories. The first category consists of costs necessary for achieving high quality, which are called quality control costs. These are of two types: prevention costs and appraisal costs. The second category consists of the cost consequences of poor quality, which are called quality failure costs. These include external failure costs and internal failure costs.These costs of quality are shown in Figure 5-1. The first two costs are incurred in the hope of preventing the second two.
Prevention costs are all costs incurred in the process of preventing poor quality from occurring. They include quality planning costs, such as the costs of developing and implementing a quality plan. Also included are the costs of product and process design, from collecting customer information to designing processes that achieve conformance to specifications. Employee training in quality measurement is included as part of this cost, as well as the costs of maintaining records of information and data related to quality.
Appraisal costs are incurred in the process of uncovering defects. They include the cost of quality inspections, product testing, and performing audits to make sure that quality standards are being met. Also included in this category are the
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costs of worker time spent measuring quality and the cost of equipment used for quality appraisal.
Internal failure costs are associated with discovering poor product quality before the product reaches the customer site. One type of internal failure cost is rework, which is the cost of correcting the defective item. Sometimes the item is so defective that it cannot be corrected and must be thrown away. This is called scrap, and its costs include all the material, labor, and machine cost spent in producing the defective product. Other types of internal failure costs include the cost of machine downtime due to failures in the process and the costs of discounting defective items for salvage value.
External failure costs are associated with quality problems that occur at the customer site. These costs can be particularly damaging because customer faith and loyalty can be difficult to regain. They include everything from customer complaints, product returns, and repairs, to warranty claims, recalls, and even litigation costs resulting from product liability issues. A final component of this cost is lost sales and lost customers. For example, manufacturers of lunch meats and hot dogs whose products have been recalled due to bacterial contamination have had to struggle to regain consumer confidence. Other examples include auto manufacturers whose products have been recalled due to major malfunctions such as problematic braking systems and airlines that have experienced a crash with many fatalities. External failure can sometimes put a company out of business almost overnight. Companies that consider quality important invest heavily in prevention and appraisal costs in order to prevent internal and external failure costs. The earlier defects are found, the less costly they are to correct. For example, detecting and correcting defects during product design and product production is considerably less expensive than when the defects are found at the customer site.
Robust design
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Robust design is a design that results in products that can perform over a wide range of conditions. Taguchi is known for applying a concept called design of experiment to product design. This method is an engineering approach that is based on developing a robust design. Taguchi’s philosophy is based on the idea that it is easier to design a product that can perform over a wide range of environmental conditions than it is to control the environmental conditions
SERVQUAL
SERVQUAL or RATER is a service quality framework. SERVQUAL was developed in the mid eighties by Zeithaml, Parasuraman & Berry.
SERVQUAL was originally measured on 10 aspects of service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding the customer and tangibles. It measures the gap between customer expectations and experience.
By the early nineties the authors had refined the model to the useful acronym RATER:
Reliability Assurance Tangibles Empathy , and Responsiveness
SERVQUAL has its detractors and is considered overly complex, subjective and statistically unreliable. The simplified RATER model however is a simple and useful model for qualitatively exploring and assessing customers' service experiences and has been used widely by service delivery organizations. It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service.
The five gaps that organizations should measure, manage and minimize: •Gap 1 is the distance between what customers expect and what managers think they
expect - Clearly survey research is a key way to narrow this gap. •Gap 2 is between management perception and the actual specification of the
customer experience - Managers need to make sure the organization is defining the level of service they believe is needed.
•Gap 3 is from the experience specification to the delivery of the experience - Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the spec.
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•Gap 4 is the gap between the delivery of the customer experience and what is communicated to customers - All too often organizations exaggerate what will be provided to customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer perceptions.
•Gap 5 is the gap between a customer's perception of the experience and the customer's expectation of the service - Customers' expectations have been shaped by word of mouth, their personal needs and their own past experiences. Routine transactional surveys after delivering the customer experience are important for an organization to measure customer perceptions of service.
PDCA (plan–do–check–act) is an iterative four-step management method used in business for the control and
continuous improvement of processes and products. It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plan–do–study–act (PDSA).
The steps in each successive PDCA cycle are[2][3] :
PLAN Establish the objectives and processes necessary to deliver results in accordance with
the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. When possible start on a small scale to test possible effects.
DO Implement the plan, execute the process, make the product. Collect data for charting
and analysis in the following "CHECK" and "ACT" steps. CHECK Study the actual results (measured and collected in "DO" above) and compare
against the expected results (targets or goals from the "PLAN") to ascertain any differences. Look for deviation in implementation from the plan and also look for the appropriateness/ completeness of the plan to enable the execution i.e.'Do'. Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step "ACT".
ACT Request corrective actions on significant differences between actual and planned
results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle, or attention needs to be placed in a different stage of the process.
Comparison of eastern and western approaches of TQM
EASTERN WESTERN
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Thinking is based on inclusion Thinking is based on exclusionEmphasis process in things West will emphasis things in processIndividualism plays a role Individual referred by groupNaturally convergent Naturally divergent
Cause effect l/Fish bone /Ishikawa Diagram
It is a generic methodology developed to trace the problems to their root causes. A fishbone diagram helps the quality improvement team to analyze problems in a structured manner and identify the root causes.
Master Black Belt
Black belts are fully trained experts in six sigma tools& methods. The work across organization to develop teams, conduct training, lead change. Role of facilitator and trouble shooters. Black belts having been trained for 160 hours they do the technical analysis on full time basis for the projects. They help select members, assist in training, lead teams for timely completion After project they work with functional managers to implement and monitor solutions they develop and mentor green belts Highly motivated and respected, they are future business leaders
Poka Yoke
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Cause and Effect DiagramA generic representation
Materials Work methods
Equipment Labour
Quality
Cause Effect
Poka Yoke is the Japanese word for mistake proofing of operations. Shigeo Shingo proposed this method while he improved the Toyota Production System. The basic principle behind this method is that several defects that creep in to operations are usually avoidable. Errors and defects have cause and effect relation ship. If errors are not eliminated they will become defects. The root causes could be eliminated by re-designing the operations and incorporating methods by which the process will not allow the errors to happen in future.5S practices
• Japanese English Meaning• Seiri Structurize Organization• Seiton Systemize Neatness• Seiso Sanitize Cleaning• Seiketsu Standardize Standardization• Shitsuke Self-discipline Discipline•• Seiri…structure. Separate and keep immediately necessary things as few
as possible,• Seiton. Neatness. A place for every thing and every thing in its place- • quick identification by name,safe storage, neatness for notice ,posters• Seiso..Cleaning. Every one from CEO to the operator is a janitor. No
separate cleaner. Every one will not get things dirty, nor spill, nor scatter litter.Every one will right away, rewrite things, which got erased
• Seiketsu..standardization. Repeatedly and continually maintain neatness and cleaning, by visual management. Labeling, colour codes are used. Transparency. Keep things visible. Do not sweep things under the carpet, out of sight.
• Shitsuke..Discipline. Creating a habit of dong things in the way supposed to be done. Self discipline and are important training
EMS Environmental Management Systems
The increasing consciousness of environmental protection has fostered the development of environmental management systems (EMS). ISO 14001 is an international standard that provides guidance for the establishment and monitoring of EMS implementation
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An Environmental Management System (EMS) is a systematic approach for incorporating energy and environmental goals and priorities (such as energy use and regulatory compliance) into routine operations. While some sort of de facto system is inherent to any organization that must meet energy and environmental requirements as part of daily operations, it is generally accepted as a valuable step to formalize the approach by documenting it. Not only does documentation of the system ensure consistency over time and across employees, there is a growing body of evidence indicating that there is considerable value in defining a systematic approach to managing energy and environmental goals.EMS Models
More than one model or conceptual framework for an EMS exists. Probably the most well known of EMS models is the ISO 14001 international standard. Other models include the following:• European Eco-Management and Audit Scheme(EMAS);• Responsible Care model developed by the AmericanChemical Council (ACC);• US Department of Justice (DOJ) “Seven KeyCompliance Program Elements;” and• EPA National Enforcement Investigation Center
• (NEIC) “Compliance Focused” EMS.
Complementary Systems and ToolsGrowing industrial and government interest in energy and environmental
management has led to the development of a number of concepts and tools that enable organizations to understand, evaluate and manage the environmentalimplications of their operations, services and products. Some tools are: Green procurement; Sustainable community planning; Life cycle management; Life cycle assessment; and Sustainable design.
The ISO 14001 EMS Model
According to the international standard, ISO 14001, an Environmental Management System (EMS) is “the part of the overall management system that includes organizational structure, planning activities, responsibilities, practices, procedures, processes, and resources for developing, implementing, achieving, reviewing and maintaining the environmental policy.” While this is a more complex definition than previously provided, it still implies the same cycle of “Plan, Do, Check, Feedback.” The ISO 14001 EMS standard consists of five
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sections, Environmental Policy, Planning, Implementation & Operations, Checking and Corrective Action, and Management Review.
SA 8000
SA8000 is a global social accountability standard for decent working conditions, developed and overseen by Social Accountability International (SAI). SA8000 is an auditable certification standard based on the UN Universal Declaration of Human Rights, Convention on the Rights of the Child and various International Labour Organization (ILO) conventions.
SA8000 covers the following areas of accountability:
Child labor : No workers under the age of 15; minimum lowered to 14 for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working.
Forced labor : No forced labor, including prison or debt bondage labor; no lodging of deposits or identity papers by employers or outside recruiters.
Health and Safety : Provide a safe and healthy work environment; take steps to prevent injuries; regular health and safety worker training; system to detect threats to health and safety; access to bathrooms and potable water.
Freedom of Association and Right to Collective Bargaining: Respect the right to form and join trade unions and bargain collectively; where law prohibits these freedoms, facilitate parallel means of association and bargaining.
Discrimination : No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age; no sexual harassment.
Discipline : No corporal punishment, mental or physical coercion or verbal abuse
Working hours : Comply with the applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement.
Compensation : Wages paid for a standard work week must meet the legal and industry standards and be sufficient to meet the basic need of workers and their families; no disciplinary deductions.
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Management systems for Human Resources: Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices
FMEA
A failure modes and effects analysis (FMEA) is a procedure in product development and operations management for analysis of potential failure modes within a system for classification by the severity and likelihood of the failures. A successful FMEA activity helps a team to identify potential failure modes based on past experience with similar products or processes, enabling the team to design those failures out of the system with the minimum of effort and resource expenditure, thereby reducing development time and costs. It is widely used in manufacturing industries in various phases of the product life cycle and is now increasingly finding use in the service industry. Failure modes are any errors or defects in a process, design, or item, especially those that affect the customer, and can be potential or actual. Effects analysis refers to studying the consequences of those failures.
Implementation
In FMEA, failures are prioritized according to how serious their consequences are, how frequently they occur and how easily they can be detected. A FMEA also documents current knowledge and actions about the risks of failures for use in continuous improvement. FMEA is used during the design stage with an aim to avoid future failures (sometimes called DFMEA in that case). Later it is used for process control, before and during ongoing operation of the process. Ideally, FMEA begins during the earliest conceptual stages of design and continues throughout the life of the product or service.
The outcomes of an FMEA development are actions to prevent or reduce the severity or likelihood of failures, starting with the highest-priority ones. It may be used to evaluate risk management priorities for mitigating known threat vulnerabilities. FMEA helps select remedial actions that reduce cumulative impacts of life-cycle consequences (risks) from a systems failure (fault).
It is used in many formal quality systems such as QS-9000 or ISO/TS 16949.
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Analyses ways of failure of a product and its effect of each mode using 3 criteria on 5 pt scale
• severity• Probability of occurrence(MTBF)• Ease of detection of failure
Items of higher Total scores are to be dealt with on priority
Force field analysis
• Kurt Levin in 1920s• To identify the forces (pressures) for and against changes.• Participation and sense of ownership• Forces for forces against • What can be done to strengthen forces for and weaken forces against
Six Sigma projects follow two project methodologies inspired by Deming's Plan-Do-Check-Act Cycle. These methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV.[14]
DMAIC is used for projects aimed at improving an existing business process.[14] DMAIC is pronounced as "duh-may-ick".
DMADV is used for projects aimed at creating new product or process designs.[14] DMADV is pronounced as "duh-mad-vee".
DMAIC
The DMAIC project methodology has five phases:
Define the problem, the voice of the customer, and the project goals, specifically.
Measure key aspects of the current process and collect relevant data. Analyze the data to investigate and verify cause-and-effect relationships.
Determine what the relationships are, and attempt to ensure that all factors have been considered. Seek out root cause of the defect under investigation.
Improve or optimize the current process based upon data analysis using techniques such as design of experiments, poka yoke or mistake proofing, and standard work to create a new, future state process. Set up pilot runs to establish process capability.
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Control the future state process to ensure that any deviations from target are corrected before they result in defects. Implement control systems such as statistical process control, production boards , visual workplaces, and continuously monitor the process.
DMADV or DFSS
The DMADV project methodology, also known as DFSS ("Design For Six Sigma"),[14] features five phases:
Define design goals that are consistent with customer demands and the enterprise strategy.
Measure and identify CTQs (characteristics that are Critical To Quality), product capabilities, production process capability, and risks.
Analyze to develop and design alternatives, create a high-level design and evaluate design capability to select the best design.
Design details, optimize the design, and plan for design verification. This phase may require simulations.
Verify the design, set up pilot runs, implement the production process and hand it over to the process owner(s).
Cybernetics
Cybernetics is the interdisciplinary study of the structure of regulatory systems. Cybernetics is closely related to information theory, control theory and systems theory, at least in its first-order form. (Second-order cybernetics has crucial methodological and epistemological implications that are fundamental to the field as a whole.) Both in its origins and in its evolution in the second half of the 20th century, cybernetics is equally applicable to physical and social (that is, language-based) systems.
Cybernetics is a broad field of study, but the essential goal of cybernetics is to understand and define the functions and processes of systems that have goals and that participate in circular, causal chains that move from action to sensing to comparison with desired goal, and again to action. Studies in cybernetics provide a means for examining the design and function of any system, including social systems such as business management and organizational learning, including for the purpose of making them more efficient and effective.
The second order cybernetics emphasized the concepts of autonomy, self-organization, cognition, and the role of the observer in modeling a system
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CMM- capability Maturity Model
The software sector has adopted a unique quality certification programme developed by the Software Engineering Institute(SEI) at the Carnegie Mellon University, known as Capability Maturity Model. It is amodel used by many organizations to identify the best practices usful in helping them increae the maturity of their processes. In 2000 CMM was upgraded to CMMI. Currenntly six variations of CMM are available
• Capability Maturity Model Integration (CMMI)• People Capability Maturity Model (P-CMM)• Software acquisition Capability Maturity Model ( SA-CMM)• Capability Maturity Model for software (SW-CMM)• System Engineering Capability Maturity Model (SE-CMM)• Integrated product development Capability Maturity Model Integration
( IPD-CMM)
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