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Powered by TSS (Techno Script Solution) www.technoscriptz.com & www.notesengine.com Page 1 UNIT I INTRODUCTION 9 Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of manufacturing and service quality - Basic concepts of TQM - Definition of TQM TQM Framework - Contributions of Deming, Juran and Crosby Barriers to TQM. Introduction The definition of quality depends on the role of the people defining it. Most consumers have a difficult time defining quality, but they know it when they see it. For example, although you probably have an opinion as to which manufacturer of athletic shoes provides the highest quality, it would probably be difficult for you to define your quality standard in precise terms. Also, your friends may have different opinions regarding which athletic shoes are of highest quality. The difficulty in defining quality exists regardless of product, and this is true for both manufacturing and service organizations. Think about how difficult it may be to define quality for products such as airline services, child day-care facilities, college classes, or even textbooks. Today, there is no single universal definition of quality. Some people view quality as ―performance to standards.‖Others view it as ―meeting the customer’s needs‖ or ―satisfying the customer.‖ Let’s look at some of the more common definitions of quality. Need for Quality Management : By definition of ISO (Int'l Org. for Standardization) - TQM is a mgmt approach for an org.
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UNIT I INTRODUCTION 9

Introduction - Need for quality - Evolution of quality - Definition of quality - Dimensions of

manufacturing and service quality - Basic concepts of TQM - Definition of TQM – TQM

Framework - Contributions of Deming, Juran and Crosby – Barriers to TQM.

Introduction

The definition of quality depends on the role of the people defining it. Most

consumers have a difficult time defining quality, but they know it when they see it.

For example, although you probably have an opinion as to which manufacturer of

athletic shoes provides the highest quality, it would probably be difficult for you to

define your quality standard in precise terms. Also, your friends may have different

opinions regarding which athletic shoes are of highest quality. The difficulty in

defining quality exists regardless of product, and this is true for both manufacturing

and service organizations. Think about how difficult it may be to define quality

for products such as airline services, child day-care facilities, college classes, or even

textbooks.

Today, there is no single universal definition of quality. Some people view quality as

―performance to standards.‖Others view it as ―meeting the customer’s needs‖ or ―satisfying

the customer.‖ Let’s look at some of the more common definitions of quality.

Need for Quality Management :

By definition of ISO (Int'l Org. for Standardization) - TQM is a mgmt approach for an org.

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which is centered on quality and is based on the participation of all members to aim at long-term

success thru customer satisfaction (main) and also to its members and the society in whole.

TQM in Large-scale industries:

- Reduction in wastage: TQM ensures things are done rite the 1st time, so this reduces wastage

and defects.

- Quality Assurance: TQM guarantees that all the products and even operations in the org. are of

a certain quality standard. This promotes trust to the consumers and also maintains a healthy

environment for employees.

- Customer-based: TQM focuses on the needs of the customers and can be used effectively, o

make changes to the existing product design to meet such needs.

Failure Analysis: TQM is a statistical tool also. Hence provides a learned person with the faults

and failures in various process. This in turn can be used to make corrective progress.

Definition of quality

Today, there is no single universal definition of quality. Some people view quality as

―performance to standards.‖Others view it as ―meeting the customer’s needs‖ or ―satisfying

the customer.‖ Let’s look at some of the more common definitions of quality.

• Conformance to specifications measures how well the product or servic meets the targets and

tolerances determined by its designers. For example, the dimensions of a machine part may be

specified by its design engineers as 3.05 inches. This would mean that the target dimension is 3

inches but the dimensions can vary between 2.95 and 3.05 inches. Similarly, the wait for hotel

room service may be specified as 20 minutes, but there may be an acceptable delay of an

additional 10 minutes. Also, consider the amount of light delivered by a 60 watt light bulb. If the

bulb delivers 50 watts it does not conform to specifications. As these examples illustrate,

conformance to specification is directly measurable, though it may not be directly related to the

consumer’s idea of quality.

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• Fitness for use focuses on how well the product performs its intended function or use. For

example, a Mercedes Benz and a Jeep Cherokee both meet a fitness for use definition if one

considers transportation as the intended function. However, if the definition becomes more

specific and assumes that the intended use is for transportation on mountain roads and carrying

fishing gear, the Jeep Cherokee has a greater fitness for use. You can also see that fitness for use

is a user-based definition in that it is intended to meet the needs of a specific user

group.

• Value for price paid is a definition of quality that consumers often use for product or service

usefulness. This is the only definition that combines economics with consumer criteria; it

assumes that the definition of quality is price sensitive. For example, suppose that you wish to

sign up for a personal finance seminar and discover that the same class is being taught at two

different colleges at significantly different tuition rates. If you take the less expensive seminar,

you will feel that you have received greater value for the price.

• Support services provided are often how the quality of a product or service is judged. Quality

does not apply only to the product or service itself; it also applies to the people, processes, and

organizational environment associated with it. For example, the quality of a university is judged

not only by the quality of staff and course offerings, but also by the efficiency and accuracy of

processing paperwork

Psychological criteria is a subjective definition that focuses on the judgmental evaluation of what

constitutes product or service quality. Different factors contribute to the evaluation, such as the

atmosphere of the environment or the perceived prestige of the product. For example, a hospital

patient may receive average health care, but a very friendly staff may leave the impression of

high quality. Similarly, we commonly associate certain products with excellence because of

their reputation; Rolex watches and Mercedes-Benz automobiles are examples.

Dimensions of Manufacturing and Service quality :

Defining quality in manufacturing organizations is often different from that of services.

Manufacturing organizations produce a tangible product that can be seen, touched, and directly

measured. Examples include cars, CD players, clothes, computers, and food items. Therefore,

quality definitions in manufacturing usually focus on tangible product features. The most

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common quality definition in manufacturing is conformance, which is the degree to which a

product characteristic meets preset standards. Other common definitions of quality in

manufacturing include

performance—such as acceleration of a vehicle;

reliability—that the product will function as expected without failure;

features—the extras that are included beyond the basic characteristics;

durability—expected operational life of the product; and serviceability—how readily a product

can be repaired. The relative importance of these definitions is based on the preferences of each

individual customer. It is easy to see how different customers can have different definitions in

mind when they speak of high product quality.

In contrast to manufacturing, service organizations produce a product that is intangible. Usually,

the complete product cannot be seen or touched. Rather, it is experienced. Examples include

delivery of health care, experience of staying at a vacation resort, and learning at a university.

The intangible nature of the product makes defining quality difficult. Also, since a service is

experienced, perceptions can be highly subjective. In addition to tangible factors, quality of

services is often defined by perceptual factors. These include responsiveness to customer needs,

courtesy and friendliness of staff, promptness in resolving complaints, and atmosphere. Other

definitions ofquality in services include time—the amount of time a customer has to wait for the

service; and consistency—the degree to which the service is the same each time For these

reasons, defining quality in services can be especially challenging. Dimensions of quality for

manufacturing versus service organizations are shown in below Table 5-1.

MANUFACTURING ORGANISATION SERVICE ORGANIZATION

Conformance to specifications - Tangible factors

Performance - Consistency

Reliability - Responsiveness to customer needs

Features - Courtesy/friendliness

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Durability - Timeliness/promptness

Serviceability - Atmosphere

Evolution of quality :

Evolution of quality provides high degree of assurance that manufacturer will consistently

produce medical devices that:Are safe

Perform as intended

Comply with customer requirements

Comply with regulatory requirements

Have the appropriate degree of quality

BASIC CONCEPTS OF TOTAL QUALITY MANAGEMENT :

The concept of has existed for many years, though its meaning has changed and evolved over

time. In the early twentieth century, quality management meant inspecting products to ensure

that they met specifications. In the 1940s, during World War II, quality became more statistical

in nature. Statistical sampling techniques were used to evaluate quality, and quality control

charts were used to monitor the production process. In the 1960s, with the help of so-called

―quality gurus,‖ the concept took on a broader meaning. Quality began to be viewed as

something that encompassed the entire organization, not only the production process. Since all

functions were responsible for product quality and all shared the costs of poor quality, quality

was seen as a concept that affected the entire organization. The meaning of quality for businesses

changed dramatically in the late 1970s. Before then quality was still viewed as something that

needed to be inspected and corrected. However, in the 1970s and 1980s many U.S. industries lost

market share to foreign competition. In the auto industry, manufacturers such as Toyota and

Honda became major players. In the consumer goods market, companies such as Toshiba and

Sony led the way. These foreign competitors were producing lower-priced products with

considerably higher quality. To survive, companies had to make major changes in their quality

programs. Many hired consultants and instituted quality training programs for their employees. A

new concept of quality was emerging. One result is that quality began to have a strategic

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meaning. Today, successful companies understand that quality provides a competitive advantage.

They put the customer first and define quality as meeting or exceeding customer expectations.

Since the 1970s, competition based on quality has grown in importance and has generated

tremendous interest, concern, and enthusiasm. Companies in every line of business are focusing

on improving quality in order to be more competitive. In many industries quality excellence has

become a standard for doing business. Companies that do not meet this standard simply will not

survive. As you will see later in the chapter, the importance of quality is demonstrated by

national quality awards and quality certifications that are coveted by businesses.

The term used for today’s new concept of quality is total quality management or TQM. Figure 5-

3 presents a timeline of the old and new concepts of quality. You can see that the old concept is

reactive, designed to correct quality problems after they occur. The new concept is proactive,

designed to build quality into the product and process design. Next, we look at the individuals

who have shaped our understanding of quality.

CONTRIBUTIONS BY QUALITY GURUS

To fully understand the TQM movement, we need to look at the philosophies of notable

individuals who have shaped the evolution of TQM. Their philosophies and teachings have

contributed to our knowledge and understanding of quality today.

Walter A. Shewhart Walter A. Shewhart was a statistician at Bell Labs during the 1920s and

1930s. Shewhart studied randomness and recognized that variability existed in all manufacturing

processes. He developed quality control charts that are used to identify whether the variability in

the process is random or due to an assignable cause, such as poor workers or miscalibrated

machinery. He stressed that eliminating variability improves quality. His work created the

foundation for today’s statistical process control, and he is often referred to as the ―grandfather

of quality control.‖

W. Edwards Deming is often referred to as the ―father of quality control.‖ He was a statistics

professor at New York University in the 1940s. After World War II he assisted many Japanese

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companies in improving quality. The Japanese regarded him so highly that in 1951 they

established the Deming Prize, an annual award given to firms that demonstrate outstanding

quality. It was almost 30 years later that American businesses began adopting Deming’s

philosophy. A number of elements of Deming’s philosophy depart from traditional notions

of quality. The first is the role management should play in a company’s quality

Dr. Deming's famous 14 Points, originally presented in out of the Crisis, serve as management

guidelines. The points cultivate a fertile soil in which a more efficient workplace, higher profits,

and increased productivity may grow.

Create and communicate to all employees a statement of the aims and purposes of the

company.

Adapt to the new philosophy of the day; industries and economics are always changing.

Build quality into a product throughout production.

End the practice of awarding business on the basis of price tag alone; instead, try a long-

term relationship based on established loyalty and trust.

Work to constantly improve quality and productivity.

Institute on-the-job training.

Teach and institute leadership to improve all job functions.

Drive out fear; create trust.

Strive to reduce intradepartmental conflicts.

Eliminate exhortations for the work force; instead, focus on the system and morale.

(a) Eliminate work standard quotas for production. Substitute leadership methods for

improvement.

(b) Eliminate MBO. Avoid numerical goals. Alternatively, learn the capabilities of

processes, and how to improve them.

Remove barriers that rob people of pride of workmanship

Educate with self-improvement programs.

Include everyone in the company to accomplish the transformation.

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Comments on some of Dr. Deming's points:

The first of the 14 Points charges management with establishing continual improvement through

the redefinition of the company's purposes. Quite simply, the company must survive, compete

well, and constantly replenish its resources for growth and improvement through innovation and

research.

In the fifth point, Dr. Deming states that only a commitment to a process of continual

improvement truly rewards. A company cannot expect to ignite and feed a quality revolution

from which it will prosper for all time. Instead, it must adopt an evolutionary philosophy; such a

philosophy prevents stagnation and arms the company for the uncertain future. Part of the

evolutionary mentality is to abandon practices that, despite their obvious short term benefits,

ultimately detract from the company's effectiveness.

Point number four specifically warns against this scenario: the purchasing department of a

company consistently patronizes those vendors who offer the lowest prices. As a result, the

company often purchases low quality equipment. Dr. Deming urges companies to establish loyal

ties with suppliers of quality equipment.

Point five condemns mass inspection procedures as inefficient; a product should be monitored by

the workers, throughout the assembly process, to meet a series of quality standards. In the long

term, the use of better equipment and a more intense worker-oriented method of inspection will

markedly improve productivity and lower costs. In order to accomplish these goals, a company

must develop a consistent, active plan that involves its entire labor force in the drive toward total

quality.

Cooperation- Dr. Deming based his new business philosophy on an ideal of cooperation. In order

to fulfill its own potential, a company must harness the power of every worker in its

employment; for that reason, the third point bars shoddy workmanship, poor service, and

negative attitudes from the company.

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Theory of Profound Knowledge -- In order to promote cooperation, Deming espouses his Theory

of Profound Knowledge. Profound knowledge involves expanded views and an understanding of

the seemingly individual yet truly interdependent elements that compose the larger system, the

company. Deming believed that every worker has nearly unlimited potential if placed in an

environment that adequately supports, educates, and nurtures senses of pride and responsibility;

he stated that the majority--85 percent--of a worker's effectiveness is determined by his

environment and only minimally by his own skill.

A manager seeking to establish such an environment must:

employ an understanding of psychology--of groups and individuals.

eliminate tools such as production quotas and sloganeering which only alienate workers from

their supervisors and breed divisive competition between the workers themselves.

form the company into a large team divided into sub-teams all working on different aspects of

the same goal; barriers between departments often give rise conflicting objectives and create

unnecessary competition.

spread profit to workers as teams, not individuals.

eliminate fear, envy, anger, and revenge from the workplace.

employ sensible methods such as rigorous on-the-job training programs.

In the resulting company, workers better understand their jobs--the specific tasks and techniques

as well as their higher value; thus stimulated and empowered, they perform better. The expense

pays for itself.

The ideas of W. Edwards Deming may seem common or obvious now; however, they've become

embedded in our culture of work. Dr. Deming's ideas (and personal example) of hard work,

sincerity, decency, and personal responsibility, forever changed the world of management. "It is

not enough to just do your best or work hard. You must know what to work on."- W. Edwards

Deming

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Biography As the sun rose on the 20th century, a baby was born to the Deming family in a small

town in Iowa. W. Edwards Deming would become a colossus of modern management thinking.

He would live through most of the century, and have a tremendous impact on its second half.

The Demings moved from Iowa to Wyoming, and in 1917, Edwards entered the University of

Wyoming. To fund his education, he worked as a janitor. He graduated in 1921, and went on to

the University of Colorado, where he received a M.S. in physics and mathematics. This led

towards a doctorate in physics from Yale University.

From physics, Dr. Deming gravitated towards statistics. The U.S. Census Bureau hired Dr.

Deming in 1940, just at the time that the Bureau shifted its procedure from a complete count to a

sampling method. Upon completion of the 1940 census, Deming began to introduce Statistical

Quality Control into industrial operations. In 1941, he and two other experts began teaching

Statistical Quality Control to inspectors and engineers.

Dr. Deming started his own private practice in 1946, after his departure from the Census Bureau.

For more than forty years his firm served its clientele--manufacturers, telephone companies,

railways, trucking companies, census takers, hospitals, governments, and research organizations.

As a professor emeritus, Dr. Deming conducted classes on sampling and quality control at New

York University. For over ten years, his four-day seminars reached 10, 000 people per year.

The teachings of Dr. Deming affected a quality revolution of gargantuan significance on

American manufacturers and consumers. Through his ideas, product quality improved and, thus,

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popular satisfaction. His influential work in Japan--instructing top executives and engineers in

quality management--was a driving force behind that nation's economic rise. Dr. Deming

contributed directly to Japan's phenomenal export-led growth and its current technological

leadership in automobiles, shipbuilding and electronics. The Union of Japanese Science and

Engineering (JUSE) saluted its teacher with the institution of the annual Deming Prize for

significant achievement in product quality and dependability. In 1960, the Emperor of Japan

bestowed on Dr. Deming the Second Order Medal of the Sacred Treasure.

Stateside, the American Society for Quality Control awarded him the Shewhart Medal in 1956.

In 1983, Dr. Deming received the Samuel S. Wilks Award from the American Statistical

Association and election to the National Academy of Engineering. President Reagan honored

him with the National Medal of Technology in 1987, and, in 1988, the National Academy of

Sciences lauded him with the Distinguished Career in Science award. He was inducted into the

Automotive Hall of Fame in 1991.

Dr. Deming was a member of the International Statistical Institute. He was elected in 1986 to the

Science and Technology Hall of Fame in Dayton. From the University of Wyoming, Rivier

College, the University of Maryland, Ohio State University, Clarkson College of Technology,

Miami University, George Washington University, the University of Colorado, Fordham

University, the University of Alabama, Oregon State University, the American University, the

University of South Carolina, Yale University, Harvard University, Cleary College, and

Shenandoah University, Dr. Deming received the degrees L.L.D. and Sc.D. honorius causa.

From Yale University, he won the Wilbur Lucius Cross Medal, and the Madeleine of Jesus from

Rivier College.

Dr. Deming authored several books and 171 papers. His books, Out of the Crisis (MIT/CAES,

1986) and The New Economics (MIT/CAES, 1994) have been translated into several languages.

Myriad books, films, and videotapes profile his life, his philosophy, and the successful

application of his worldwide teachings.

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BARRIERS TO QUALITY MANAGEMENT :

To fully understand the TQM movement, we need to look at the philosophies of notable

individuals who have shaped the evolution of TQM. Their philosophies and

teachings have contributed to our knowledge and understanding of quality today.

One idea may be to look at new industry philosophies around continuous improvement.

The adoption of 'way of working' philosophies and 'lean' philosophies and how they tie in

with TQM.

buzzwords such as 'empowerment', 'training' and 'knowledge-sharing' may be useful in

researching seminars on such topics.

look at how attitudes of employees are improved with 'growth involvement'

An interesting was the 'Fish Philosophy'.

I appreciate that this does not directly answer your question, but may help you to find

research alternatives.

Definition of TQM:

Total Quality Management is a management approach that tries to achieve and sustain long term

organizational success by encouraging employee feedback and participation, satisfying customer

needs and expectations, respecting societal values and beliefs, and obeying governmental statutes

and regulations.

Five Pillars of TQM are,

· Product

· Process

· System

· People

· Leadership

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Total Quality Management is an effective system for integrating the quality development, quality

maintenance and quality improvement efforts of various groups in an organization continuously,

so as to enable marketing, engineering, production and service at the most economic levels

which allow for full customer satisfaction.

The TQM is applied to many stages of Industrial Cycle which are listed below:

1. Marketing

2. Engineering

3. Purchasing

4. Manufacturing

5. Mechanical

6. Shipping

7. Installation and product service.

<Strong>Fundamental factors affecting Quality: (9 M’s)

1. Market

2. Money

3. Management

4. Men

5. Motivation

6. Materials

7. Machines and Mechanization

8. Modern Information Methods

9. Mounting Product Requirements

Benefits of TQM:

Customer satisfaction oriented benefits:

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1. Improvement in product quality

2. Improvement in product design

3. Improvement in production flow

4. Improvement in employee morale and quality consciousness

5. Improvement in product service

6. Improvement in market place acceptance

Economic improvement oriented benefits:

1. Reduction in operating costs

2. Reduction in operating losses

3. Reduction in field service costs

4. Reduction in liability exposure

Historical Review:

The history of quality control is undoubtedly as old as industry itself.

In 1924, W.A. Shewhart of Bell Telephone Laboratories developed a statistical chart of the

control of product variables. This chart is considered to be the beginning of statistical quality

control. Later in the same decade, H.F.Dodge and H.G.Romig, both of Bell Telephone

Laboratories, developed the area of acceptance sampling as a substitute of 100% inspection.

In 1946, the American society for Quality Control was formed. Recently the name was changed

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into Americn Society for Quality (ASQ).

In 1950’s W.Edwards Deming emphasized about the management’s responsibility to achieve

quality.

In 1960’s the first quality control circles were formed for the purpose of quality improvement.

In the late 1980’s the automotive industry began to emphasize statistical process control.

After 1990’s the ISO became the model for a quality management system world wide.

Quality Movement in India:

Before Independence in India, quality has been a tradition but not in a consolidated form.

Walter Shewhart, the father of Statistical Quality Control, visited India for a short period of three

months during 1947-48 and initiated the SQC movements in Indian companies.

The quality movement was consolidated in the 1980s in the Indian Industries to bring out

synergy of resources by the pioneering efforts of Confederation of Indian Industries (CII)

Dr.W.Edward Deming, the father of Quality Control , who taught Japanese about applying

PDCA cycle (Deming Cycle) came to India in early 1950s.

The TQM movement in USA in 1980s triggered quality movement in India in the year 1982 and

Quality Circle was born.

Prof. Ishikawa , the founder of quality movement in Japan was invited by CII to come to India to

address Indian Industry in 1986.

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CII organized a first major seminar with Joseph Juran in 1987.

CII provided a focus and an impetus to the quality movement by forming a TQM division in

1987. By then the focus was shifted from quality circles to quality management.

CII set up the TQM division with the help of 21 companies who agreed to support the journey of

TQM in India. The chief executives of these companies formed a National Committee on

Quality.

CII also launched the first newsletter on Quality.

The year 1987 brought the ISO 9000 standards into reality and visible strategies emerged.

CII organized training programmes in ISO 9000 quality systems for international standards and

certification in the year 1989.

From the year 1991, Indian companies started to get the ISO 9000 certifications.

The concept of TQM spread over the service sector and technology apart from engineering

applications.

CII organized and launch of National Quality Campaign in 1992, led by the Prime Minister of

India and the ― Quality Summit ‖ organized by CII has now become an annual feature across the

country.

The future thrust on quality movement in India would be based on:

Application Research (Industry and Academics)

Experience Sharing

ISO certifications

Environmental protection, safety and consumer protection for quality enhancement.

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UNIT II TQM PRINCIPLES 9

Leadership – Strategic quality planning, Quality statements - Customer focus –

Customer orientation, Customer satisfaction, Customer complaints, Customer retention -

Employee involvement – Motivation, Empowerment, Team and Teamwork, Recognition

and Reward, Performance appraisal - Continuous process improvement – PDSA cycle,

5s, Kaizen - Supplier partnership – Partnering, Supplier selection, Supplier Rating.

40

Strategic Planning:

There are seven basic steps to strategic quality planning.

a) Customer needs

b) Customer positioning

c) Predict the future

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d) Gap analysis

e) Closing the gap

f) Alignment

g) Implementation

Strategic planning can be performed by any organization. It can be highly effective, allowing

organizations to do the right thing at the right time, every time.

Quality Planning:

Quality planning is the pre-determined activities in order to achieve conformation to the

requirements. Many organizations are finding that strategic quality plans and business plans are

inseparable. The quality planning procedure given by Joseph.A.Juran has the following steps:

· Identify the customers

· Determine their needs

· Translate those needs into our language.

· Develop a product that can respond to those needs

· Optimize the product features to meet our and customer needs

.

1. it is far from simple.

2. it is not an objective statistic, but more of feeling and attitude.

3. therefore like people's opinion

Quality Costs:

All organizations make use of the concept of identifying the costs needed to carry out the various

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functions – product development, marketing, personnel, production etc.,

Until the 1950’s this cost concept had not been extended to quality function, except for the

departmental activities of inspection and testing.

During the 1950’s the concept of ―Quality Cost‖ emerged. Different people assigned different

meanings to the term. Some people equated quality cost with the cost of attaining quality; some

people equated the term with the extra incurred due to poor quality. But, the widely accepted

thing is ―Quality cost is the extra cost incurred due to poor or bad quality of the product or

service‖.

Categories of Quality Cost:

Many companies summarize quality costs into four broad categories. They are,

a) Internal failure costs - The cost associated with defects that are found prior

to transfer of the product to the customer.

b) External failure costs - The cost associated with defects that are found after

product is shipped to the customer.

c) Appraisal costs - The cost incurred in determining the degree of

conformance to quality requirement.

d) Prevention costs - The cost incurred in keeping failure and appraisal

costs to a minimum.

Sometimes we can also include the hidden costs i.e., implicit costs.

Traditional Quality cost model

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Emerging Quality Cost Model

Higher quality doesn't mean higher costs

The companies estimate quality costs for the following reasons :

a) To quantifying the size of the quality problem in the language of money improves

communication between middle managers and upper managers.

b) To identify major opportunities for cost reduction.

c) To identify the opportunities for reducing customer dissatisfaction and associated threats to

product salability.

Analysis Techniques for Quality Costs:

i. Trend Analysis

ii. Pareto Analysis

CUSTOMER SATISFACTION

Customers are important asset to the organization, satisfied customers will buy more, and buy

more frequently, and pay their bill promptly.

In a manufacturing and service organization, customer satisfaction is considered as a measure of

quality.TQM implies an organizational drive with meeting or exceeding customer

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needs.Understanding the customer's needs and expectations is essential to winning new business.

To attain this level, the organization should examine their quality system to respond to their ever

changing customer's needs.

A simple definition of customer satisfaction is illustrated below

Teboul model

Characteristics of customer satisfactionand feeling, it is subjective by nature.

4. because of this subjective nature, it is difficult to measure.

5. the measurement of customer satisfaction is not precise.

6. the customer satisfaction should not be viewed in vacuum, i.e., it should be compared with the

level of satisfaction they have with competitor's product are service.

Types of customers.

1. Internal customers - each of them receives a product or service and in exchange, providers a

product or service.

2. external customers - one who uses the product or service, the one who purchase the product, or

the who influences the sale of theproduct.

One basic concept of TQM is focus on customers, both internal and external.

CUSTOMER RETENTION

Customer retention represents the activities that produces the necessary customer satisfaction

which in turn creates the customer loyalty.

customer retention moves customer satisfaction to the next level by determining what is truly

important to the customers and making sure that the customer satisfaction system focuses valuble

resources on things that are important to the customer. Customer rettention is the connection

between customer satisfaction and the bottom line.

World-class companiesknoe that continuous improvement and customer satisfaction should go

hand-in-hand.

Improved service to the customer is a costlier affair, so an organization must determine its return

on the service invesment. For this the important service elements that significantly improve

revenues and market share shuld be determined.

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One survey indicates, it requires five times of effort to win a new customer than retaining a

present customer. In this context customer retention is important for organizational sucess.

CUSTOMER COMPLAINTS

Unlike the customer's feedback the customer complaints are reactive, and they are important in

gaining data on customer perceptions.

A disatisfied customer can easily become a lost customer because of their frustrations.This

customer dissatisfaction become a measure for organizational process improvement measures.

Every single complaint should be accepted, analyzed, and acted upon to again win over

customer's confidence.Since more than 50% of the dissatisfied customers will buy again if they

are complaint has been heard and resolved. By adopting a positive approach the complaints can

be seen as an oppurtunity to obtain information and provide a positve service to the customer.

Handling the customer complaints

1.investigaste customer's experiences by actively receiving the customer feedback and then

acting promptly.

2. develop procedures for complaint resolution that include empowering front-line employee.

3. analyze complaints, try to put them in a category for speedy response.

4. Work to identify process and materuial variations and then eliminaste the root cause.'more

inspection' is not a corrective action.

5. Afetr receiving the response, a senior manager should contact the customer and strive top

resolve the concern

6. Establish customer satsfaction measures and constantly monitor them

7. Communicate complaint information, as well as the results of all inquiries and solutions, to all

people in the organization.

8. provide a monthly complaint report to the quality council for their evalution and if needed, the

assignment of process im[provement teams.

9. identify customer's expectations in advance rather than afterward through complaint analysis.

Three key elements to a partnering relationship

i. Long-term commitment

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ii. Trust

iii. Shared vision

Three types of sourcing

a) Sole sourcing

b) Multiple sourcing

c) Single sourcing

Ten conditions for the selection and evaluation of suppliers

I. The supplier understands and appreciates the management philosophy of the organization.

II. The supplier has a stable management system.

III. The supplier maintains high technical standards and has the capability of dealing with future

technological innovations.

IV. The supplier can supply precisely those raw materials and parts required by the purchaser,

and those supplied meet the quality specifications.

V. The supplier has the capability to produce the amount of production needed or can attain that

capability.

VI. There is no danger of the supplier breaching corporate secrets.

VII. The price is right and the delivery dates can be met. In addition, the supplier is easily

accessible in terms of transportation and communication.

VIII. The supplier is sincere in implementing the contract provisions.

IX. The supplier has an effective quality system and improvement program such as ISO/QS

9000.

X. The supplier has a track record of customer satisfaction and organization credibility.

Definition of Quality:

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The dictionary has many definitions of ―quality‖. A short definition that has achieved acceptance

is: ―Quality is Customer Satisfaction‖. ―Fitness for use‖ is an alternative short definition. Here,

customer means anyone who is impacted by the product or process.

Quality is ―a predictable degree of uniformity and dependability, at low cost and suited to the

market‖.

Quality is a relative term, generally used with reference to the end-use of a product. Quality

should be aimed at the needs of the consumer, present and future.

According to ISO 8402, quality is ―the totality of features and characteristics of a product or

service that bear on its ability to satisfy stated or implied needs‖.

Broadly quality is:

a) Fitness for use

b) Grade

c) Degree of preference

d) Degree of excellence

e) Conformity to requirements

Dimensions of Quality :

The following are the components reveal the dimensions of quality.

Manufacturing Industries Service Industries

Product Features Accuracy

Performance Timeliness

Reliability Completeness

Durability Friendliness and courtesy

Ease of use Anticipating customer needs

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Serviceability Knowledge of server

Esthetics

Availability Reputation

Reputation

EMPLOYEE INVOLVEMENT

Japanese management emphasizes the need to consider employee as a valuble resources

rather than treating them as a mere tools for production.

Employee involvement is one approach to improve quality and productivity. It is not an

replacement for management nor is it the final word in quality improvement, it aims at better

meeting of organizational goals at all levels.

Motivation

Knowledge fo motivation helps us to understand the utilization fo employee involvement to

achieve process improvement.

THEORIES OF MOTIVATION

He explained the motivation interms of a heirarchy of needs and that there were five levels.

These are survival, security, social, esteem, and self-actualization.

It is important to note that as employees move up the heirarchy, they will immedietly revert back

to the previous level if they feel threatned.

HERZBERG'S TWO FACTOR THEORY

Herzberg extends the Maslow's theory by using empirical research oin employee motivation.

He found that people were motivated by the motivators ( intrinsic factors) like recognition,

responsibility, achievement, advancement and the work itself.

In addition he found that bad feelings were associated with preventable dissatisfiers or hygiene

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factors (extrinsic factors) like low salary, minimal fringe benefits, poor working conditions, ill-

defined organizational policies and mediocre(ordinary) supervision.

He also explained that the presence of extrinsic factors( for example good working condition)

does not produce any motivation but their absence will create dissatifaction among employees.

In a same manner the absence of intrinsic factors ( for example advancement) does not produce

any dissatisfaction but their presence will provide strong level of motivation.

Mcgregor's Theory X and Theory Y

How to motivate work force

1. Know thyself

2. Know your employees

3. Establish a positive attitude

4. Share the goals

5. Monitor progress

6. Develop intersting work

7. Communicate

8. Celebrate sucess

EMPOWERMENT

The dictionary meaning of the term empowerment is to invest people with authority.Its purpose

is to tap the enourmous potential that lies within every worker.

An operational definition is as follows:

Empowerment is an environment in which people have the ability, the confidence, and the

commitment to take the responsibility and ownership to improve the process and initiate the

necessary steps to satisfy customer requirements within well defined boundaries in order to

achieve organizational values and goals.

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Empowerment is nothing unusual, people generally want to be more in charge of their own jobs

and carrers. afterall, they do that sucessfully in their personal lives every day. Most people

appreciate and value the trust and respopnsibility.This empowerment helps greatly in eliminating

resistence to changes.

Empowerment is different from delegation or job enrichment, which means distributing or

entrusting work to others.In empowerment employee is held responsible for accomplishing a

whole task.i.e., employee becomes process owner, thus not only responsible but also

accountable.

Three conditions are necessary for empowering employees

1. Everyone must understand the need for change

2. The system needs to change to the new paradigm( model/standard)

3. The organization must enable its employees.

TEAMS

Teams are very effective in solving all quality and productivity problems.

Team is defined as a group of peopleworking together to achieve common objectives or goals.

Teamwork is the cumulative actions of the team during which each member of the team

subordinates his interests and opinions to fulfill the objectives or goals of the group.

Many heads are better than one, especially in meeting ever-changing customer needs.

Each member of the team have special ability that can be used for the problem.Many processes

are so complex that one person cannot able solve completely.

Based on the synergic effect, whole is greater than sum of its parts.Team work is better than sum

of its member contribution.

Team builds a rapport with each other that allows everyone to do a better job.

Teams provide the vehicle for improved communication.

Types of teams

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· Process improvement teams

· cross-functional teams

· natural work teams

· self-directed/ self managed teams

Characteristics of successful teams

Sponsor

Team charter

Team competition

training

ground rules

clear objectives

accountability

well-defined decision procedures

resources

trust

effective problem solving

open communication

appropriate leadership

balanced participation

cohesiveness.

CONTINUOUS PROCESS IMPROVEMENT

The basic ways for a continuous process improvement are

Reduce resources

Reduce errors

Meet or exceed expectations of downstream customers

Make the process safer

Make the process more satisfying to the person doing it.

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Phases of a Continuous Process Improvement Cycle are

a) Identify the opportunity

b) Analyze the process

c) Develop the optimal solutions

d) Implement

e) Study the results

f) Standardize the solution

g) Plan for the future

JURAN TRILOGY

Three components of the Juran Trilogy are

i. Planning

ii. Control

iii. Improvement

PDSA CYCLE

The steps in the PDSA cycle are

The basic Plan-Do-Study-Act is an effective improvement technique.

1st. Plan carefully what is to be done

2nd. Carry out the plan

3rd. Study the results

4th. Act on the results by identifying what worked as planned and what didn’t.

The Deming’s PDSA cycle is a well-known model for continual process

improvement. It teaches organizations to plan an action, do it, study to see how it

conforms to the plan and act on what has been learned.

The terms are defined below.

Step 1: Plan Recognize an opportunity, and plan the change.

Step 2: Do Implement the change.

Step 3: Study Review the implementation, analyze the results and identify

learnings.

Step 4: Act Take action based on what you learned in the step 3. If the

change was successful, incorporate the learnings from the test into wider

changes. If not, go through the cycle again. The PDSA cycle for sustainable

development of TQM shown in Fig. 1 is made up of four steps.

Step 1: Plan for TQM

Quality having become one of the twentieth century’s most important

management ideas, has exorcised – driven out – the traditional business as well

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as graduate management school notion that a company’s success means making

products and offering services quicker and cheaper, selling them hard, and

providing a product service net to try to catch those that do not work well

(Feigenbaum, 1999). TQM has replaced this notion with the business principle

that making products better is the best way to make them quicker and cheaper

and that what you do to make quality better anywhere in an organization makes it

better everywhere in the organization. The evolution of TQM into and a full blown

management took shape through the works of Crosby (1979), Deming (1986),

Feigenbaum (1983) and Juran (1986). The primary focus of TQM philosophy is on

the hands and minds that employ the tools and techniques rather than the tools

and techniques themselves (Antony et al., 2002).

ISO 9000: 2000 versions adopt TQM philosophy with stronger focus on

customer satisfaction and an effective process-oriented approach emphasizing on

continual performance improvement. Clearly the new revised standard is a step

forward towards TQM, customer satisfaction and does not just achieve product

quality assurance (Magd et al., 2003). Those companies wishing to remain

competitive and improve their quality systems are recommended the use of ISO

9000 as a foundation for a much broader system of TQM. This is based on the

fact that ISO 9000 is an important part of TQM, and the implementation of both

the approaches will lead to organizational success and competitive advantage.

Rao et al. (1997) conducted a four nation study (US, China, India and Mexico) and

concluded that ISO 9000 registered companies have better quality management

practices and enjoy better quality results than companies that are planning to get

registered and are not interested in registration. The adoption of TQM in an

organization has to start from a strategy for implementation involving the planning

and preparation of document detailing the way forward (Yusof & Aspinwall 2000a).

The preparation of such a document may constitute:

1. Creation of a co-ordination body;

2. Development of a vision, mission and policy statements;

3. Education for the top management and coordinating body members on

total quality principles and philosophy;

4. Selection and trial run of the first improvement project;

Appraising the company’s current level of quality management

Implementation

Step 2: Implement TQM

Taylor and Wright (2003) conducted a longitudinal study of TQM implementation

for a cohort of 109 firms in UK over a 5-year period and found that 42 firms,

predominantly small in size, had discontinued with TQM, while the remaining 67

firms reported varying degree of success. The study concluded that the size of the

firm, the nature of the customer base and the holding of ISO 9000 series

certification has had no significant effect on TQM outcomes for this cohort. The

research has highlighted some necessary antecedents for TQM success. In

particular, managers need to understand the nature and purpose of TQM, its

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relationship to ISO 9000, and the potential benefits that can accrue from its

implementation. Antony et al. (2002) conducted an empirical study in Hong Kong

and developed an instrument by using the perceptions and experiences of TQMbased

companies. The authors concluded that the training and education is the

most critical success factor for the successful implementation of TQM in Hong

Kong organizations.

Step 3: Study and measure the level of TQM implementation

Regardless of which TQM model is adopted, the CSFs must be

operationalized for effective TQM implementation. Manifestation of CSFs results

in generation of Quality-related Action Programs (QAPs). The measurement of

TQM involves selecting a list of QAPs to measure each CSF, providing a

measurement scale for the QAPs, and then testing the instrument for reliability

and validity. For each CSF the actual level of TQM practice is represented by the

average of the QAPs ratings for that CSF. A vector of the averages for all the

CSFs represents the level of TQM implementation for the organization as a whole

(Saraph et al., 1989). Saraph et al. (1989) study was replicated by Badri et al.

(1995) in United Arab Emirates and Quazi et al. (1998) in Singapore. The TQM

implementation level in Singapore organizations was at a medium level and in the

organizations in the United Arab Emirates was found to be low.

5S

5S Philosophy focuses on effective work place organization and standardized work procedures.

5S simplifies your work environment, reduces waste and non-value activity while improving

quality efficiency and safety.

Sort – (Seiri) the first S focuses on eliminating unnecessary items from the workplace.

Set In Order (Seiton) is the second of the 5Ss and focuses on efficient and effective storage

methods.

Shine: (Seiso) Once you have eliminated the clutter and junk that has been clogging your work

areas and identified and located the necessary items, the next step is to thoroughly clean the work

area.

Standardize: (Seiketsu) Once the first three 5S’s have been implemented, you should concentrate

on standardizing best practice in your work area.

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Sustain: (Shitsuke) This is by far the most difficult S to implement and achieve.

Once fully implemented, the 5S process can increase morale, create positive impressions on

customers, and increase efficiency and organization.

Kaizen

Kaizen is a Japanese word for the philosophy that defines management’s role in continuously

encouraging and implementing small improvements involving everyone. It is the process of

continuous improvement in small increments that make the process more efficient, effective,

under control and adaptable.

The objectives of Performance measures

i. Establish baseline measures and reveal trends.

ii. Determine which processes need to be improved.

iii. Indicate process gains and losses.

iv. Compare goals with actual performance.

v. Provide information for individual and team evaluation.

vi. Provide information to make informed decisions.

vii. Determine the overall performance of the organization.

The characteristics used to measure the performance of a particular process

i. Quantity

ii. Cost

iii. Time

iv. Accuracy

v. Function

vi. Service

vii. Aesthetics

The criteria to evaluate the performance measures

Simple _

Few in number

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Developed by users

Relevance to customer

Improvement

Cost

Visible

TimelyAligned

Supplier Rating :

It depends on the characteristics used to measure the performance of a particular process

i. Quantity

ii. Cost

iii. Time

iv. Accuracy

v. Function

vi. Service

vii. Aesthetics

The criteria to evaluate the performance measures

Simple _

Few in number

Developed by users

Relevance to customer

Improvement

Cost

Visible

Timely

Aligned

UNIT III TQM TOOLS & TECHNIQUES I 9

The seven traditional tools of quality – New management tools – Six-sigma: Concepts,

methodology, applications to manufacturing, service sector including IT – Bench marking

– Reason to bench mark, Bench marking process – FMEA – Stages, Types.

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The seven tools of quality

i. Pareto Diagram

ii. Process Flow Diagram

iii. Cause and Effect Diagram

iv. Check Sheets

v. Histogram

vi. Control Charts

vii. Scatter Diagrams

The new seven management tools

i. Affinity Diagram

ii. Interrelationship Digraph

iii. Tree Diagram

iv. Matrix Diagram

v. Prioritization Matrices

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vi. Process Decision Program Chart

vii. Activity Network diagram

Benchmarking

Benchmarking is a systematic method by which organizations can measure themselves against

the best industry practices. The essence of benchmarking is the process of borrowing ideas and

adapting them to gain competitive advantage. It is a tool for continuous improvement.

BENCHMARKING PROCESS

1. Planning

2. Analysis

3. Integration

4. Action

5. Maturity

Six Sigma

Define - improvement opportunity with an emphasis on increasing customer satisfaction.

Measure - determine process capability

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Analyze - identify the vital few process input variables that affect key product output variables

(―Finding the knobs‖).

Improve - Make changes to process settings, redesign processes, etc. to reduce the number of

defects of key output variables.

Control - Implement process control plans, install real-time process monitoring tools, standardize

processes to maintain levels.

SERVICE QUALITY

Customer service is the set of activities anorgaqnization uses to win and retain customers'

satisfaction. it can be provided before, during, and after the sale fo the product.

Elements of customer service are:

Organization

1. identify each market segment

2.write down the requirements

3.communicate the requirements

4.organise processes

5.organize the physical spaces

Customer care

6. meet the customer's expectations

7. get the customer point of view

8. deliver what is promised

9. make the customer feel valued

10.respond to all complaints

11.over respond to the customer.

12.provide a clean and comfortable customer reception environment.

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Communication

13.optimize the trade fo between time and personal attention

14. minimize the number of contact points.

15 provide pleasant, knoweledgble, and enthusiastic employees.

16. write documents in customer friendly language.

front-line people

17. hire people who like people

18. challenge them to develop better methods.

19. give them a authority to solve problems

20. serve them as internal customers

21. be sure they are adequetly trained.

22. recognize and reward performance.

Leadership

23.lead by example

24. listen to the front line employee

25. strive for continuous process improvement.

The three key elements to a partnering relationship

Long-term commitment

Trust

Shared vision

The three types of sourcing

• Sole sourcing

• Multiple sourcing

• Single sourcing

UNIT IV TQM TOOLS & TECHNIQUES II 9

Quality circles – Quality Function Deployment (QFD) – Taguchi quality loss function –

TPM – Concepts, improvement needs – Cost of Quality – Performance measures.

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QFD

Quality Function Deployment is a planning tool used to fulfill customer expectations. It is a

disciplined approach to product design, engineering, and production and provides in-depth

evaluation of a product.

Quality Function Deployment (QFD) was developed to bring this personal interface to

modern manufacturing and business. In today's industrial society, where the growing

distance between producers and users is a concern, QFD links the needs of the

customer (end user) with design, development, engineering, manufacturing, and service

functions.

QFD is:

1. Understanding Customer Requirements

2. Quality Systems Thinking + Psychology + Knowledge/Epistemology

3. Maximizing Positive Quality That Adds Value

4. Comprehensive Quality System for Customer Satisfaction

5. Strategy to Stay Ahead of The Game

As a quality system that implements elements of Systems Thinking with elements of

Psychology and Epistemology (knowledge), QFD provides a system of comprehensive

development process for:

Understanding 'true' customer needs from the customer's perspective

What 'value' means to the customer, from the customer's perspective

Understanding how customers or end users become interested, choose, and are

satisfied

Analyzing how do we know the needs of the customer

Deciding what features to include

Determining what level of performance to deliver

Intelligently linking the needs of the customer with design, development,

engineering, manufacturing, and service functions

Intelligently linking Design for Six Sigma (DFSS) with the front end Voice of

Customer analysis and the entire design system

QFD is a comprehensive quality system that systematically links the needs of the

customer with various business functions and organizational processes, such as

marketing, design, quality, production, manufacturing, sales, etc., aligning the entire

company toward achieving a common goal.

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It does so by seeking both spoken and unspoken needs, identifying positive quality and

business opportunities, and translating these into actions and designs by using

transparent analytic and prioritization methods, empowering organizations to exceed

normal expectations and provide a level of unanticipated excitement that generates

value.

The QFD methodology can be used for both tangible products and non-tangible

services, including manufactured goods, service industry, software products, IT

projects, business process development, government, healthcare, environmental

initiatives, and many other applications.

Categories of Quality Cost:

Many companies summarize quality costs into four broad categories. They are,

a) Internal failure costs - The cost associated with defects that are found prior

to transfer of the product to the customer.

b) External failure costs - The cost associated with defects that are found after

product is shipped to the customer.

c) Appraisal costs - The cost incurred in determining the degree of

conformance to quality requirement.

d) Prevention costs - The cost incurred in keeping failure and appraisal

costs to a minimum.

Sometimes we can also include the hidden costs i.e., implicit costs.

Traditional Quality cost model

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Emerging Quality Cost Model

Higher quality doesn't mean higher costs

The companies estimate quality costs for the following reasons :

a) To quantifying the size of the quality problem in the language of money improves

communication between middle managers and upper managers.

b) To identify major opportunities for cost reduction.

c) To identify the opportunities for reducing customer dissatisfaction and associated threats to

product salability.

Total Productive Maintenance ( TPM ):

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It can be considered as the medical science of machines. Total Productive Maintenance (TPM) is

a maintenance program which involves a newly defined concept for maintaining plants and

equipment. The goal of the TPM program is to markedly increase production while, at the same

time, increasing employee morale and job satisfaction.

TPM brings maintenance into focus as a necessary and vitally important part of the business. It is

no longer regarded as a non-profit activity. Down time for maintenance is scheduled as a part of

the manufacturing day and, in some cases, as an integral part of the manufacturing process. The

goal is to hold emergency and unscheduled maintenance to a minimum.

Why TPM ?

TPM was introduced to achieve the following objectives. The important ones are listed below.

Avoid wastage in a quickly changing economic environment.

Producing goods without reducing product quality.

Reduce cost.

Produce a low batch quantity at the earliest possible time.

Goods send to the customers must be non defective.

Similarities and differences between TQM and TPM :

The TPM program closely resembles the popular Total Quality Management (TQM) program.

Many of the tools such as employee empowerment, benchmarking, documentation, etc. used in

TQM are used to implement and optimize TPM.Following are the similarities between the two.

1. Total commitment to the program by upper level management is required in both

programmes

2. Employees must be empowered to initiate corrective action, and

3. A long range outlook must be accepted as TPM may take a year or more to implement

and is an on-going process. Changes in employee mind-set toward their job

responsibilities must take place as well.

The differences between TQM and TPM is summarized below.

Category TQM TPM

Object Quality ( Output and effects ) Equipment ( Input and cause )

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Mains of attaining goal Systematize the management. It is

software oriented

Employees participation and it

is hardware oriented

Target Quality for PPM Elimination of losses and

wastes.

Types of maintenance :

1. Breakdown maintenance :

It means that people waits until equipment fails and repair it. Such a thing could be used when

the equipment failure does not significantly affect the operation or production or generate any

significant loss other than repair cost.

2. Preventive maintenance ( 1951 ):

It is a daily maintenance ( cleaning, inspection, oiling and re-tightening ), design to retain the

healthy condition of equipment and prevent failure through the prevention of deterioration,

periodic inspection or equipment condition diagnosis, to measure deterioration. It is further

divided into periodic maintenance and predictive maintenance. Just like human life is extended

by preventive medicine, the equipment service life can be prolonged by doing preventive

maintenance.

2a. Periodic maintenance ( Time based maintenance - TBM) :

Time based maintenance consists of periodically inspecting, servicing and cleaning equipment

and replacing parts to prevent sudden failure and process problems.

2b. Predictive 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. Compared to periodic

maintenance, predictive maintenance is condition based maintenance. It manages trend values,

by measuring and analyzing data about deterioration and employs a surveillance system,

designed to monitor conditions through an on-line system.

3. Corrective maintenance ( 1957 ) :

It improves equipment and its components so that preventive maintenance can be carried out

reliably. Equipment with design weakness must be redesigned to improve reliability or

improving maintainability

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4. Maintenance prevention ( 1960 ):

It indicates the design of a new equipment. Weakness of current machines are sufficiently

studied ( on site information leading to failure prevention, easier maintenance and prevents of

defects, safety and ease of manufacturing ) and are incorporated before commissioning a new

equipment.

TPM - History:

TPM is a innovative Japanese concept. The origin of TPM can be traced back to 1951 when

preventive maintenance was introduced in Japan. However the concept of preventive

maintenance was taken from USA. Nippondenso was the first company to introduce plant wide

preventive maintenance in 1960. Preventive maintenance is the concept wherein, operators

produced goods using machines and the maintenance group was dedicated with work of

maintaining those machines, however with the automation of Nippondenso, maintenance became

a problem as more maintenance personnel were required. So the management decided that the

routine maintenance of equipment would be carried out by the operators. ( This is Autonomous

maintenance, one of the features of TPM ). Maintenance group took up only essential

maintenance works.

Thus Nippondenso which already followed preventive maintenance also added Autonomous

maintenance done by production operators. The maintenance crew went in the equipment

modification for improving reliability. The modifications were made or incorporated in new

equipment. This lead to maintenance prevention. Thus preventive maintenance along with

Maintenance prevention and Maintainability Improvement gave birth to Productive maintenance.

The aim of productive maintenance was to maximize plant and equipment effectiveness to

achieve optimum life cycle cost of production equipment.

By then Nippon Denso had made quality circles, involving the employees participation. Thus all

employees took part in implementing Productive maintenance. Based on these developments

Nippondenso was awarded the distinguished plant prize for developing and implementing TPM,

by the Japanese Institute of Plant Engineers ( JIPE ). Thus Nippondenso of the Toyota group

became the first company to obtain the TPM certification.

TPM Targets:

P

Obtain Minimum 80% OPE.

Obtain Minimum 90% OEE ( Overall Equipment Effectiveness )

Run the machines even during lunch. ( Lunch is for operators and not for machines ! )

Q

Operate in a manner, so that there are no customer complaints.

C

Reduce the manufacturing cost by 30%.

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D

Achieve 100% success in delivering the goods as required by the customer.

S

Maintain a accident free environment.

M

Increase the suggestions by 3 times. Develop Multi-skilled and flexible workers.

Motives of TPM 1. Adoption of life cycle approach for improving the overall

performance of production equipment.

2. Improving productivity by highly motivated workers which is

achieved by job enlargement.

3. The use of voluntary small group activities for identifying the

cause of failure, possible plant and equipment modifications.

Uniqueness of TPM The major difference between TPM and other concepts is that the

operators are also made to involve in the maintenance process. The

concept of "I ( Production operators ) Operate, You ( Maintenance

department ) fix" is not followed.

TPM Objectives 1. Achieve Zero Defects, Zero Breakdown and Zero accidents in all

functional areas of the organization.

2. Involve people in all levels of organization.

3. Form different teams to reduce defects and Self Maintenance.

Direct benefits of TPM 1. Increase productivity and OPE ( Overall Plant Efficiency ) by 1.5

or 2 times.

2. Rectify customer complaints.

3. Reducethe manufacturing cost by 30%.

4. Satisfy the customers needs by 100 % ( Delivering the right

quantity at the right time, in the required quality. )

5. Reduce accidents.

6. Follow pollution control measures.

Indirect benefits of TPM 1. Higher confidence level among the employees.

2. Keep the work place clean, neat and attractive.

3. Favorablechange in the attitude of the operators.

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4. Achieve goals by working as team.

5. Horizontaldeployment of a new concept in all areas of the

organization.

6. Share knowledge and experience.

7. The workers get a feeling of owning the machine.

OEE ( Overall Equipment Efficiency ) :

OEE = A x PE x Q

A - Availability of the machine. Availability is proportion of time machine is actually available

out of time it should be available.

A = ( MTBF - MTTR ) / MTBF.

MTBF - Mean Time Between Failures = ( Total Running Time ) / Number of Failures.

MTTR - Mean Time To Repair.

PE - Performance Efficiency. It is given by RE X SE.

Rate efficiency (RE) : Actual average cycle time is slower than design cycle time because of

jams, etc. Output is reduced because of jams

Speed efficiency (SE) : Actual cycle time is slower than design cycle time machine output is

reduced because it is running at reduced speed.

Q - Refers to quality rate. Which is percentage of good parts out of total produced sometimes

called "yield".

Steps in introduction of TPM in a organization :

Step A - PREPARATORY STAGE :

STEP 1 - Announcement by Management to all about TPM introduction in the organization :

Proper understanding, commitment and active involvement of the top management in needed for

this step. Senior management should have awareness programmes, after which announcement is

made to all. Publish it in the house magazine and put it in the notice board. Send a letter to all

concerned individuals if required.

STEP 2 - Initial education and propaganda for TPM :

Training is to be done based on the need. Some need intensive training and some just an

awareness. Take people who matters to places where TPM already successfully implemented.

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STEP 3 - Setting up TPM and departmental committees :

TPM includes improvement, autonomous maintenance, quality maintenance etc., as part of it.

When committees are set up it should take care of all those needs.

STEP 4 - Establishing the TPM working system and target :

Now each area is benchmarked and fix up a target for achievement.

STEP 5 - A master plan for institutionalizing :

Next step is implementation leading to institutionalizing wherein TPM becomes an

organizational culture. Achieving PM award is the proof of reaching a satisfactory level.

STEP B - INTRODUCTION STAGE

This is a ceremony and we should invite all. Suppliers as they should know that we want quality

supply from them. Related companies and affiliated companies who can be our customers, sisters

concerns etc. Some may learn from us and some can help us and customers will get the

communication from us that we care for quality output.

STAGE C - IMPLEMENTATION

In this stage eight activities are carried which are called eight pillars in the development of TPM

activity.

Of these four activities are for establishing the system for production efficiency, one for initial

control system of new products and equipment, one for improving the efficiency of

administration and are for control of safety, sanitation as working environment.

STAGE D - INSTITUTIONALISING STAGE

By all there activities one would has reached maturity stage. Now is the time for applying for PM

award. Also think of challenging level to which you can take this movement.

Organization Structure for TPM Implementation :

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Pillars of TPM

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PILLAR 1 - 5S :

TPM starts with 5S. Problems cannot be clearly seen when the work place is unorganized.

Cleaning and organizing the workplace helps the team to uncover problems. Making problems

visible is the first step of improvement.

Japanese Term English Translation Equivalent 'S' term

Seiri Organisation Sort

Seiton Tidiness Systematise

Seiso Cleaning Sweep

Seiketsu Standardisation Standardise

Shitsuke Discipline Self - Discipline

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SEIRI - Sort out :

This means sorting and organizing the items as critical, important, frequently used items, useless,

or items that are not need as of now. Unwanted items can be salvaged. Critical items should be

kept for use nearby and items that are not be used in near future, should be stored in some place.

For this step, the worth of the item should be decided based on utility and not cost. As a result of

this step, the search time is reduced.

Priority Frequency of Use How to use

Low Less than once per year, Once per

year<

Throw away, Store away from the

workplace

Average At least 2/6 months, Once per month,

Once per week Store together but offline

High Once Per Day Locate at the workplace

SEITON - Organise :

The concept here is that "Each items has a place, and only one place". The items should be

placed back after usage at the same place. To identify items easily, name plates and colored tags

has to be used. Vertical racks can be used for this purpose, and heavy items occupy the bottom

position in the racks.

SEISO - Shine the workplace :

This involves cleaning the work place free of burrs, grease, oil, waste, scrap etc. No loosely

hanging wires or oil leakage from machines.

SEIKETSU - Standardization :

Employees has to discuss together and decide on standards for keeping the work place /

Machines / pathways neat and clean. This standards are implemented for whole organization and

are tested / Inspected randomly.

SHITSUKE - Self discipline :

Considering 5S as a way of life and bring about self-discipline among the employees of the

organization. This includes wearing badges, following work procedures, punctuality, dedication

to the organization etc.

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PILLAR 2 - JISHU HOZEN ( Autonomous maintenance ) :

This pillar is geared towards developing operators to be able to take care of small maintenance

tasks, thus freeing up the skilled maintenance people to spend time on more value added activity

and technical repairs. The operators are responsible for upkeep of their equipment to prevent it

from deteriorating.

Policy :

1. Uninterrupted operation of equipments.

2. Flexible operators to operate and maintain other equipments.

3. Eliminating the defects at source through active employee participation.

4. Stepwise implementation of JH activities.

JISHU HOZEN Targets:

1. Prevent the occurrence of 1A / 1B because of JH.

2. Reduce oil consumption by 50%

3. Reduce process time by 50%

4. Increase use of JH by 50%

Steps in JISHU HOZEN :

1. Preparation of employees.

2. Initial cleanup of machines.

3. Take counter measures

4. Fix tentative JH standards

5. General inspection

6. Autonomous inspection

7. Standardization and

8. Autonomous management.

Each of the above mentioned steps is discussed in detail below.

1. Train the Employees : Educate the employees about TPM, Its advantages, JH advantages

and Steps in JH. Educate the employees about abnormalities in equipments.

2. Initial cleanup of machines :

o Supervisor and technician should discuss and set a date for implementing step1

o Arrange all items needed for cleaning

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o On the arranged date, employees should clean the equipment completely with the

help of maintenance department.

o Dust, stains, oils and grease has to be removed.

o Following are the things that has to be taken care while cleaning. They are Oil

leakage, loose wires, unfastened nits and bolts and worn out parts.

o After clean up problems are categorized and suitably tagged. White tags is place

where problems can be solved by operators. Pink tag is placed where the aid of

maintenance department is needed.

o Contents of tag is transferred to a register.

o Make note of area which were inaccessible.

o Finally close the open parts of the machine and run the machine.

3. Counter Measures :

o Inaccessible regions had to be reached easily. E.g. If there are many screw to open

a fly wheel door, hinge door can be used. Instead of opening a door for inspecting

the machine, acrylic sheets can be used.

o To prevent work out of machine parts necessary action must be taken.

o Machine parts should be modified to prevent accumulation of dirt and dust.

4. Tentative Standard :

o JH schedule has to be made and followed strictly.

o Schedule should be made regarding cleaning, inspection and lubrication and it

also should include details like when, what and how.

5. General Inspection :

o The employees are trained in disciplines like Pneumatics, electrical, hydraulics,

lubricant and coolant, drives, bolts, nuts and Safety.

o This is necessary to improve the technical skills of employees and to use

inspection manuals correctly.

o After acquiring this new knowledge the employees should share this with others.

o By acquiring this new technical knowledge, the operators are now well aware of

machine parts.

6. Autonomous Inspection :

o New methods of cleaning and lubricating are used.

o Each employee prepares his own autonomous chart / schedule in consultation

with supervisor.

o Parts which have never given any problem or part which don't need any

inspection are removed from list permanently based on experience.

o Including good quality machine parts. This avoid defects due to poor JH.

o Inspection that is made in preventive maintenance is included in JH.

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o The frequency of cleanup and inspection is reduced based on experience.

7. Standardization :

o Upto the previous stem only the machinery / equipment was the concentration.

However in this step the surroundings of machinery are organized. Necessary

items should be organized, such that there is no searching and searching time is

reduced.

o Work environment is modified such that there is no difficulty in getting any item.

o Everybody should follow the work instructions strictly.

o Necessary spares for equipments is planned and procured.

8. Autonomous Management :

o OEE and OPE and other TPM targets must be achieved by continuous improve

through Kaizen.

o PDCA ( Plan, Do, Check and Act ) cycle must be implemented for Kaizen.

PILLAR 3 - KAIZEN :

"Kai" means change, and "Zen" means good ( for the better ). Basically kaizen is for small

improvements, but carried out on a continual basis and involve all people in the organization.

Kaizen is opposite to big spectacular innovations. Kaizen requires no or little investment. The

principle behind is that "a very large number of small improvements are move effective in an

organizational environment than a few improvements of large value. This pillar is aimed at

reducing losses in the workplace that affect our efficiencies. By using a detailed and thorough

procedure we eliminate losses in a systematic method using various Kaizen tools. These

activities are not limited to production areas and can be implemented in administrative areas as

well.

Kaizen Policy :

1. Practice concepts of zero losses in every sphere of activity.

2. relentless pursuit to achieve cost reduction targets in all resources

3. Relentless pursuit to improve over all plant equipment effectiveness.

4. Extensive use of PM analysis as a tool for eliminating losses.

5. Focus of easy handling of operators.

Kaizen Target :

Achieve and sustain zero loses with respect to minor stops, measurement and adjustments,

defects and unavoidable downtimes. It also aims to achieve 30% manufacturing cost reduction.

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Tools used in Kaizen :

1. PM analysis

2. Why - Why analysis

3. Summary of losses

4. Kaizen register

5. Kaizen summary sheet.

The objective of TPM is maximization of equipment effectiveness. TPM aims at maximization

of machine utilization and not merely machine availability maximization. As one of the pillars of

TPM activities, Kaizen pursues efficient equipment, operator and material and energy utilization,

that is extremes of productivity and aims at achieving substantial effects. Kaizen activities try to

thoroughly eliminate 16 major losses.

16 Major losses in a organisation:

Loss Category

1. Failure losses - Breakdown loss

2. Setup / adjustment losses

3. Cutting blade loss

4. Start up loss

5. Minor stoppage / Idling loss.

6. Speed loss - operating at low

speeds.

7. Defect / rework loss

8. Scheduled downtime loss

Losses that impede equipment efficiency

9. Management loss

10. Operating motion loss

11. Line organization loss

12. Logistic loss

13. Measurement and adjustment loss

Loses that impede human work efficiency

14. Energy loss

15. Die, jig and tool breakage loss

16. Yield loss.

Loses that impede effective use of production

resources

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Classification of losses :

Aspect Sporadic Loss Chronic Loss

Causation Causes for this failure can be

easily traced. Cause-effect

relationship is simple to trace.

This loss cannot be easily

identified and solved. Even if

various counter measures are

applied

Remedy Easy to establish a remedial

measure

This type of losses are caused

because of hidden defects in

machine, equipment and

methods.

Impact / Loss A single loss can be costly

A single cause is rare - a

combination of causes trends to

be a rule

Frequency of

occurrence

The frequency of occurrence is

low and occasional. The frequency of loss is more.

Corrective action

Usually the line personnel in

the production can attend to

this problem.

Specialists in process

engineering, quality assurance

and maintenance people are

required.

PILLAR 4 - PLANNED MAINTENANCE :

It is aimed to have trouble free machines and equipments producing defect free products for total

customer satisfaction. This breaks maintenance down into 4 "families" or groups which was

defined earlier.

1. Preventive Maintenance

2. Breakdown Maintenance

3. Corrective Maintenance

4. Maintenance Prevention

With Planned Maintenance we evolve our efforts from a reactive to a proactive method and use

trained maintenance staff to help train the operators to better maintain their equipment.

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Policy :

1. Achieve and sustain availability of machines

2. Optimum maintenance cost.

3. Reduces spares inventory.

4. Improve reliability and maintainability of machines.

Target :

1. Zero equipment failure and break down.

2. Improve reliability and maintainability by 50 %

3. Reduce maintenance cost by 20 %

4. Ensure availability of spares all the time.

Six steps in Planned maintenance :

1. Equipment evaluation and recoding present status.

2. Restore deterioration and improve weakness.

3. Building up information management system.

4. Prepare time based information system, select equipment, parts and members and map

out plan.

5. Prepare predictive maintenance system by introducing equipment diagnostic techniques

and

6. Evaluation of planned maintenance.

PILLAR 5 - QUALITY MAINTENANCE :

It is aimed towards customer delight through highest quality through defect free manufacturing.

Focus is on eliminating non-conformances in a systematic manner, much like Focused

Improvement. We gain understanding of what parts of the equipment affect product quality and

begin to eliminate current quality concerns, then move to potential quality concerns. Transition is

from reactive to proactive (Quality Control to Quality Assurance).

QM activities is to set equipment conditions that preclude quality defects, based on the basic

concept of maintaining perfect equipment to maintain perfect quality of products. The condition

are checked and measure in time series to very that measure values are within standard values to

prevent defects. The transition of measured values is watched to predict possibilities of defects

occurring and to take counter measures before hand.

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Policy :

1. Defect free conditions and control of equipments.

2. QM activities to support quality assurance.

3. Focus of prevention of defects at source

4. Focus on poka-yoke. ( fool proof system )

5. In-line detection and segregation of defects.

6. Effective implementation of operator quality assurance.

Target :

1. Achieve and sustain customer complaints at zero

2. Reduce in-process defects by 50 %

3. Reduce cost of quality by 50 %.

Data requirements :

Quality defects are classified as customer end defects and in house defects. For customer-end

data, we have to get data on

1. Customer end line rejection

2. Field complaints.

In-house, data include data related to products and data related to process

Data related to product :

1. Product wise defects

2. Severity of the defect and its contribution - major/minor

3. Location of the defect with reference to the layout

4. Magnitude and frequency of its occurrence at each stage of measurement

5. Occurrence trend in beginning and the end of each production/process/changes. (Like

pattern change, ladle/furnace lining etc.)

6. Occurrence trend with respect to restoration of breakdown/modifications/periodical

replacement of quality components.

Data related to processes:

1. The operating condition for individual sub-process related to men, method, material and

machine.

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2. The standard settings/conditions of the sub-process

3. The actual record of the settings/conditions during the defect occurrence.

PILLAR 6 - TRAINING :

It is aimed to have multi-skilled revitalized employees whose morale is high and who has eager

to come to work and perform all required functions effectively and independently. Education is

given to operators to upgrade their skill. It is not sufficient know only "Know-How" by they

should also learn "Know-why". By experience they gain, "Know-How" to overcome a problem

what to be done. This they do without knowing the root cause of the problem and why they are

doing so. Hence it become necessary to train them on knowing "Know-why". The employees

should be trained to achieve the four phases of skill. The goal is to create a factory full of

experts. The different phase of skills are

Phase 1 : Do not know.

Phase 2 : Know the theory but cannot do.

Phase 3 : Can do but cannot teach

Phase 4 : Can do and also teach.

Policy :

1. Focus on improvement of knowledge, skills and techniques.

2. Creating a training environment for self learning based on felt needs.

3. Training curriculum / tools /assessment etc conductive to employee revitalization

4. Training to remove employee fatigue and make work enjoyable.

Target :

1. Achieve and sustain downtime due to want men at zero on critical machines.

2. Achieve and sustain zero losses due to lack of knowledge / skills / techniques

3. Aim for 100 % participation in suggestion scheme.

Steps in Educating and training activities :

1. Setting policies and priorities and checking present status of education and training.

2. Establish of training system for operation and maintenance skill up gradation.

3. Training the employees for upgrading the operation and maintenance skills.

4. Preparation of training calendar.

5. Kick-off of the system for training.

6. Evaluation of activities and study of future approach.

PILLAR 7 - OFFICE TPM :

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Office TPM should be started after activating four other pillars of TPM (JH, KK, QM, PM).

Office TPM must be followed to improve productivity, efficiency in the administrative functions

and identify and eliminate losses. This includes analyzing processes and procedures towards

increased office automation. Office TPM addresses twelve major losses. They are

1. Processing loss

2. Cost loss including in areas such as procurement, accounts, marketing, sales leading to

high inventories

3. Communication loss

4. Idle loss

5. Set-up loss

6. Accuracy loss

7. Office equipment breakdown

8. Communication channel breakdown, telephone and fax lines

9. Time spent on retrieval of information

10. Non availability of correct on line stock status

11. Customer complaints due to logistics

12. Expenses on emergency dispatches/purchases

To support functions e.g. Head of Finance, MIS, Purchase etc should be heading the sub-

committee. Members representing all support functions and people from Production & Quality

should be included in sub committee. TPM co-ordinate plans and guides the sub committee

Failure Mode and Effective Analysis(FMEA) is a systematic tool for identifying:

effects or consequences of a potential product or process failure.

Methods to eliminate or reduce the chance of a failure occurring.

FMEA generates a living document that can be used to anticipate and prevent failures

from occurring.

o Basic and Secondary Functions - verb~noun

o descriptions of what product (process) does.

o Basic Function: ingress to and egress from vehicle

o Secondary functions - protect occupant from noise

o Failure Mode - physical description of a failure.

o noise enters at door-to-roof interface

o Failure Effects - impact of failure on people,

o equipment

o driver dissatisfaction.

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o Failure Cause - refers to cause of the failure.

o insufficient door seal.

Severity is a rating corresponding to the seriousness of an effect of a

potential failure mode. (scale: 1-10. 1: no effect on output, 5:

moderate effect, 8: serious effect, 10: hazardous effect)

Occurrence is a rating corresponding to the rate at which a first level

cause and its resultant failure mode will occur over the design life of

the system, over the design life of the product, or before any additional

process controls are applied. (scale: 1-10. 1: failure unlikely, 5:

occasional failure, 8: high # of failures likely, 10: failures certain)

Detection is a rating corresponding to the likelihood that the detection

methods or current controls will detect the potential failure mode

before the product is released for production for design, or for process

before it leaves the production facility. (scale: 1-10. 1: will detect

failure, 5: might detect failure, 10: almost certain not to detect failures)

Analysis Techniques for Quality Costs:

i. Trend Analysis

ii. Pareto Analysis

The objectives of Performance measures

i. Establish baseline measures and reveal trends.

ii. Determine which processes need to be improved.

iii. Indicate process gains and losses.

iv. Compare goals with actual performance.

v. Provide information for individual and team evaluation.

vi. Provide information to make informed decisions.

vii. Determine the overall performance of the organization.

Quality improvement teams focus on . . .

In establishing quality improvement teams, a smaller company might assign one quality

improvement team. Larger firms might assign several, possibly with one quality lead team as a

guide for the other teams. Areas where quality improvement teams could begin investigating for

possible improvement are:

♦Increased Employee Value

♦Informed Employees

♦Technical Training

♦Quality Training

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♦Employee Suggestions

♦Employee Participation

♦Higher Quality of Artistry

♦Personal Development

Good QIT member qualities are . . .

Representatives who are selected to be quality-lead team members should possess the following

attributes:

♦commitment to quality, customer satisfaction, and the success of the organization

♦good communication and interpersonal skills

♦a ―big picture‖ view of the organization and of the industry

♦a strong commitment to learning and change

♦representation of a different area and level of the organization

They are statistical methods developed by Genichi Taguchi to improve the quality of products.

Where as statisticians before him focused on improving the mean outcome of a process, Taguchi

recognized that in an industrial process it is vital to produce a product on target , and that the

variation around the mean caused poor manufactured quality. For example, car windshields that

have the target average mean are useless if they each vary significantly from the target

specifications.

What are the losses to society from poor quality?

Taguchi's key argument was that the cost of poor quality goes beyond direct costs to the

manufacturer such as reworking or waste costs. Traditionally manufacturers have considered

only the costs of quality up to the point of shipping out the product. Taguchi aims to quantify

costs over the lifetime of the product. Long term costs to the manufacturer would include brand

reputation and loss of customer satisfaction leading to declining market share. Other costs to the

consumer would include costs from low durability, difficulty interfacing with other parts, or the

need to build in safety margins.

Great, so what is the actual loss function?

Think for a moment about how the costs of quality would vary with the products deviation on

either side of the mean. Now if you were to plot the costs versus the diameter of a nut, for

example, you would have a quadratic function, with a minimum of zero at the target diameter.

We expect therefore that the loss (L) will be a quadratic function of the variance (σ, or standard

deviation) from the target (m). The squared-error loss function has been in use since the 1930's,

but Taguchi modified the function to represent total losses. Next we will walk though the

derivation of the Taguchi Loss Function.

Loss function for one piece of product:

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Where:

L = Loss in Dollars

y = Quality Characteristic (diameter, concentration, etc)

m = Target Value for y

k = Constant (defined below)

The cost of the counter measure, or action taken by the customer to account for a defective

product at either end of the specification range, Ao, is found by substituting y = m + Δ0 into the

loss function:

Now we can solve for the constant k,

Since we are not usually concerned with only one piece of product, the loss function for multiple

units is

The process capability index (Cp) is used to forecast the quality level of non-defective products

that will be shipped out. The Cp has been used in traditional quality control and is defined rather

abstractly as:

where represents the tolerance of the product.

Substituting k into the loss function and then rearranging in terms of Cp,

Taguchi Loss Function:

The Taguchi quality loss function is a way to assess economic loss from a deviation in quality

without having to develop the unique function for each quality characteristic. As a function of

the traditionally used process capability index, it also puts this unitless value into monetary units.

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Quality Loss Function for Various Quality Characteristics

There are three characteristics used to define the quality loss function:

1. Nominal–the-Best Characteristic

2. Smaller-the-Better Characteristic

3. Larger-the-Better Characteristic

Each of these characteristic types is defined by a different set of equations, which is different

from the general form of the loss function equation.

Nominal–Defined upper and lower boundries

For a nominal characteristic, there is a defined target value for the product which has to be

achieved. There is a specified upper and lower limit, with the target specification being the

middle point. Quality is in this case is defined in terms of deviation from the target value. An

example of this characteristic is the thickness of a windshield in a car.

The equation used to describe the loss function of one unit of product:

Where:

L = Loss in Dollars

y = Output Value

m = Target Value of Output

k = Proportionality Constant

The proportionality constant (k) for nominal-the-best characteristics can be defined as:

Where:

A0 = Consumer Loss (in Dollars)

Δ0 = Maximum Deviation from Target Allowed by Consumer

When there is more than one piece of product the following form of the loss function is used:

= Mean Squared Deviation

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A graphical representation of the Nominal Characteristic is shown below. As the output value (y)

deviates from the target value (m) increasing the mean squared deviation, the loss (L) increases.

There is no loss when the output value is equal to the target value (y = m).

Smaller-the- Better

In the case of Smaller-the-Better characteristic, the ideal target value is defined as zero. An

example of this characteristic is minimization of heat losses in a heat exchanger. Minimizing this

characteristic as much as possible would produce a more desirable product.

The equation used to describe the loss function of one unit of product:

Where:

k = Proportionality Constant

y = Output Value

The proportionality constant (k) for the Smaller-the-Better characteristic can be determined as

follows:

A0 = Consumer Loss (in Dollars)

y0 = Maximum Consumer Tolerated Output Value

A graphical representation of the Smaller-the-Better characteristic is below. The loss is

minimized as the output value is minimized.

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Larger-the-Better

The Larger–the-Better characteristic is just the opposite of the Smaller-the-Better characteristc.

For this characteristic type, it is preferred to maximize the result, and the ideal target value is

infinity. An example of this characteristic is maximizing the product yield from a process.

The equation used to describe the loss function of one unit of product:

Where:

k = Proportionality Constant

y0 = Minimum Consumer Tolerated Output Value

The proportionality constant (k) for the Larger-the-Better characteristic can be calculated by

using the equation given for the Smaller-the-Better proportionality constant. The only difference

between the two is the deffinition of y0.

A graphical representation of the Larger-the-Better characteristic is shown below. This

characteristic is the opposite of the Smaller-the-Better characteristic, as the loss is minimized as

the output value is maximized.

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Specifying Tolerances for a Process

A manufacturer is responsible for only shipping products that meet certain specifications.

Products that do not meet these determined specifications are defective and cannot be shipped for

sale, resulting in a loss to the company. In aiming to meet these specifications, manufacturers

have a determined level of tolerance for deviation from the desired target specification. The

problem that often occurs is products that barely meet specifications are shipped and fail after

customer purchase. This causes negative feedback from customers, which results in losses to the

manufacturer and ultimately society. The standard to fix this problem is to tighten up the

tolerances. More stringent tolerances would result in fewer products failing on customers,

reducing losses in the market, but they would also result in increased costs to manufacturers.

Before Taguchi, there was no set method for determining optimal tolerances for a given process.

Since it is very difficult to quantify the loss to society for a defective product after customer

purchase, Taguchi predicts the quality level. The quality loss function is the basis for

determining tolerances for a process. In quality engineering, tolerance is defined as the deviation

from the target, not the deviation between products. Taguchi's method determines tolerances that

aim for a balance between losses to the manufacturer and the customer. To do determine these

tolerances, the quality loss function can be used to determine how much it costs the manufacturer

to fix the defective product before shippment, and compare that value to the cost that the

defective product would have on the customer (society).

Worked out Example 1

Suppose you are manufacturing green paint. To determine a specification for the pigment, you

must determine both a functional tolerance and customer loss. The functional tolerance, Δ0 is a

value for every product characteristic at which 50% of customers view the product as defective.

The customer loss, A0, is the average loss occuring at this point. Your target is 200g of pigment

in each gallon of paint. The average cost to the consumer, HomePainto, is $10 per gallon from

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returns or adjusting the pigment. The paint becomes unsatisfactory if it is out of the range

.

Calculate the loss imparted to society from a gallon of paint with only 185g of pigment.

dollars/ gallon of paint

This figure is a rough approximation of the cost imparted to society from poor quality.

Worked out Example 2

Expanding on the first paint example, lets decide what the manufacturing tolerance should be.

The manufacturing tolerance is the economic break-even point for reworking scrap. Suppose the

off-target paint can be adjusted at the end of the line for $1 a gallon. At what pigment level,

should the manufacturer spend the $1 to adjust the paint?

The manufacturing tolerance is determined by setting L = $1.

dollars/ gallon of paint

As long as the paint is within of pigment, the factory should not spend $1 to

adjust the pigment at the end of the line , because the loss without the rework will be less than

$1. The manufacturing tolerance represents a break-even point between the manufacturer and the

consumer and sets limits for shipping the product. If the paint manufacturer ships the product

from example 1 with 185g of pigment, they are saving 1$ of reworking costs but imparting a cost

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of $22.50 on society. These additional costs will surface through loss of customer satisfaction

and thus brand reputation, loss of marketshare and returned products.

Multiple Choice Question 1

How do Taguchi's methods differ from traditional ways of calculating losses due to poor quality?

A) They average losses over a 12 month period of time

B) They include not only losses to the manufacturer up to the point of shipping, but also losses to

society

C) They put the losses in Yen instead of Dollars

D) They calculate the cost per product

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UNIT V QUALITY SYSTEMS 9

Need for ISO 9000- ISO 9000-2000 Quality System – Elements, Documentation, Quality

auditing- QS 9000 – ISO 14000 – Concepts, Requirements and Benefits – Case studies

of TQM implementation in manufacturing and service sectors including IT.

NEED FOR ISO

9001:2008 QMS

CERTIFICATION

Certification to ISO 9001:2008 QMS increases the Customer's confidence in

Supplier's Quality and Delivery Commitments.

ISO 9001:2008 QMS is universally recogonised and hence helps in

penetrating New Markets Globally.

Registration can improve service performance and reduce uncertainty.

Regular assessments ensure the organization continually uses, monitors and

improves their processes.

Worldwide Recogination.

Clearity in Roles, Responsibilities and Authorities among all.

Employee involvement and thus commitment.

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Improved Quality awareness throughtout the organisation.

LATEST

NEWS

Neda

Telecommunications,

Kabul, Afghanistan

has achieved ISO

9001 : 2008 Q M S

Certification. With

this, Neda

Telecommunications

becomes the first

company in

Afghanistan to

achieve the

certification to 2008

version of ISO 9001

Quality Management

System Standard.

Salwan Public

School, Mayur

Vihar, New Delhi,

India has achieved

ISO 9001:2008 QMS

Certification.

District Jail, Rohini,

New Delhi, Delhi,

India has achieved

ISO 9001:2008 QMS

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Certification.

Onicra Credit Rating

Agency of India Ltd.,

India has achieved

ISO/IEC 27001

ISMS Certification.

Central Jail No. 1,

Tihar, New Delhi,

Delhi, India has

achieved ISO 9001 :

2000 QMS

Certification.

Drug De-Addiction

Centre at Central Jail

Hospital, Central Jail

No. 3, Tihar, New

Delhi, Delhi, India

has achieved ISO

9001:2000 QMS

Certification.

Central Public

Relation Office,

Tihar Jail, New

Delhi, Delhi, India

has achieved ISO

9001:2000 QMS

Certification.

District Passport

Center, Asaf Ali

Road, New Delhi,

India has achieved

ISO 9001:2000 QMS

Certification.

Delhi Traffic Police

(Notice Branch),

New Delhi, India has

achieved ISO

9001:2000 QMS

Certification.

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ISO 9000

ISO 9000 is a series of quality management systems standards created by the International

Organization for Standardization (ISO), a federation of 132 national standards bodies. The ISO

9000 quality management systems (QMS) standards are not specific to products or services, but

apply to the processes that create them. The standards are generic in nature so that they can be

used by manufacturing and service industries anywhere in the world. First released in 1987 and

revised in a limited manner in 1994, they underwent a major overhaul in 2000.

Recruitment Cell

working under 4th

Battalion of Delhi

Armed Police, Delhi,

India has achieved

ISO 9001:2000 QMS

Certification.

The Orchid (Hotel),

New Delhi, India has

achieved ISO

14001:2004 EMS

Certification.

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The most important revised standard, ISO 9001:2000, uses a simple process-based structure,

which is more generic than the old 20-element structure of ISO 9001:1994, is consistent with the

plan-do-check improvement cycle used in the ISO 14000 environmental management systems

standards, and adopts the process management structure widely used in business today. ISO

9001:2000 addresses an organization’s quality management system requirements, in order to

demonstrate its capability to meet customer requirements, and applies to all generic product

categories, such as hardware, software, processed materials and services.

ISO 9001:2000 registration gives the organization the benefit of an objectively evaluated and

enforced quality management system. It is a tangible expression of a firm’s commitment to

quality that is internationally understood and accepted. ISO 9001:2000 registration is carried out

by registrars, accredited organizations that review the organization’s quality manual and other

documentation to ensure that they meet the standard, and audit the firm’s processes to ensure that

the quality management system described in the documentation is in place and is effective.

ISO 14000

ISO 14000, released in 1996, is a global series of environmental management systems (EMS)

standards, providing a framework for organizations to demonstrate their commitment to

environmental responsibility.

An EMS enables an organization to control the environmental aspects and impacts of its

activities, products and services by establishing targets and objectives related to identified

environmental management goals. Once implemented, an EMS will improve compliance with

legislative and regulatory requirements, reduce exposure to liability, prevent pollution, reduce

waste and create a more positive public image.

Organizations that register to ISO 14001, the most important of the ISO 14000 standards,

demonstrate sound environmental management practices, are able to prevent environmental

disasters and government sanctions, and experience fewer regulatory audits by correcting

environmental problems. ISO 14000 supporting documents include environmental labeling, life-

cycle assessment, environmental aspects in product standards, and environmental performance

evaluation.

ISO/TS 16949

ISO/TS 16949 is the international automotive quality management systems (QMS) standard,

released in 1999 and revised in 2002 to align with ISO 9001:2000. This standard combines ISO

9001:2000 with automotive sector-specific requirements from the American QS-9000, German

VDA 6.1, French EAQF and Italian AVSQ quality standards. British and Japanese automakers

also contributed to its development.

ISO/TS 16949 applies to all internal and external suppliers of production or service parts;

production materials; and heat treating, painting, plating or other finishing services directly

relating to original equipment manufacturer (OEM) customers. International automotive

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suppliers no longer have to satisfy multiple national automotive quality standards, which were

often contradictory and led to redundant audits.

Each participating automaker has customer-specific requirements for unique and specific product

needs that could not be harmonized. Applicable customer-specific requirements are audited as

part of ISO/TS 16949 registration and the particular automaker(s) are listed on the supplier’s

registration certificate.

TE Supplement

The TE (Tooling and Equipment) Supplement to QS-9000, released in 1996, sets forth quality

system requirements for Big Three tooling and equipment suppliers.

Developed by the Chrysler/Ford/General Motors Supplier Requirements Task Force, it fully

embraces ISO 9001:1994, includes many of the QS-9000 sector-specific requirements, and

contains sector- and customer-specific requirements for manufacturers of tools, dies, molds,

plating, robotics and assembly, along with some coolants and lubricants.

Big Three tooling and equipment suppliers must conform to the TE Supplement. Chrysler has

mandated that its tooling and equipment suppliers register to this standard.

VDA 6.1

VDA 6.1, released in 1991, is the quality system standard of the German automobile industry. It

was developed by the Verbrand der Automobilindustrie e.V. (VDA), with input from major

manufacturers and suppliers.

The majority of VDA 6.1 is based on the ISO 9000 quality management systems standards, but is

organized into a distinct set of elements in two areas: Management, and Product and Process.

These elements incorporate portions of the ISO 9001:1994 quality system model and the ISO

9004-1 quality system guidelines, along with automotive sector-specific requirements.

VDA 6.1 has also incorporated requirements from QS-9000 and the French EAQF automotive

quality standard. In addition, suppliers with design responsibility must comply with German

Road Traffic Law.

This standard affects companies that manufacture or supply components and other products to

such German automotive manufacturers as Volkswagen, Audi, Mercedes-Benz, BMW, Porsche,

Adam Opel and Ford-Were.

The Volkswagen Group, consisting of Volkswagen, Audi, Seat and Skoda, requires all of its

production and service parts suppliers to register to VDA 6.1.

OHSAS 18001

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OHSAS 18001, developed by a group of European standards bodies, is an occupational health

and management systems (OHSMS) standard designed to create a safer workplace. OHSAS

18001 contains requirements in such areas as planning, risk assessment and hazard identification,

consultation and communication, operational control, emergency preparedness and response, and

accidents and incidents.

OHSAS 18001 is ideal for a company that wants to make occupational health and safety a

priority; reduce liability, workers’ compensation and medical treatment costs; eliminate or

minimize workplace injuries, and increase employee productivity; and decrease absenteeism and

lost work hours by preventing injuries and accidents.

Debate over the International Organization for Standardization (ISO) developing an OHSMS

standard continues. ISO may revisit the matter in the future, with OHSAS 18001 offering a

possible framework for such a standard.

TQM in IT industries :

Total Quality Management is a set of philosophy that act like a principles of management. It

has been adopted by many big and small business organizations and government bodies to

perform their bjectives. Within the TQM principles, it deal with elements like Management

Commitment, Customer Satisfaction, Process management. Employee involvement, etc that

are aimed to manage your business in a more holistic manner

With the same token, the Malcolm Baldrige Criteria is a set of guidelines written and used as a

yardstick to assess if an organization is able to meet a business excellence level. The Baldrige

Criteria has seven categories which of its own clearly states its objectives and guidelines. The

seven categories are listed below:-

1. Leadership

2. Strategic Planning

3. Customer and Market Focus

4. Information and Data Analysis

5. Human Resource Management and Development

6. Process Management

7. Business Results

Take a closer look and you may notice that the Baldrige Criteria are build upon a set of values

and concepts as opposed to how TQM Principles are used in Total Quality

Management. There are eleven values and concepts in the Baldrige Criteria listed below:-

1. Visionary Leadership

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2. Customer-Driven Excellence

3. Organizational and Personal Learning

4. Valuing Employees and Partners

5. Agility

6. Focus on the Future

7. Managing for Innovation

8. Management by Fact

9. Public Responsibility and Citizenship

10. Focus on Results and Creating Value

11. Systems Perspective

To ensure the application of these values and concepts, they are embodied in the detail Baldrige

Criteria categories mentioned above. Each category has set up its own criteria to the highest

standard of Business Excellence. While the values and concepts remain quite unchanged over the

years, the detail criteria for each category has changed every year. The objective for a yearly

changes to the criteria is to ensure it is reviewed and kept current to the business and

enviornment changes and needs.

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Hazard Analysis of Critical Control Points (HACCP)

Hazard Analysis of Critical Control Points (HACCP), enforced by such agencies as the US

Department of Agriculture's Food and Safety Inspection Service (FSIS) and the Food and Drug

Administration (FDA), is a scientific process control system for eliminating contaminants at

critical areas in the food production and distribution process.

HACCP helps to prevent, as close to 100 percent as possible, harmful contamination in the food

supply. To ensure safer food, HACCP requires the following seven principles to be followed:

Conduct a hazard analysis

Identify critical control points (CCPs)

Establish critical limits for CCPs

Establish monitoring procedures

Establish corrective actions

Establish verification procedures

Establish record keeping procedures

HACCP requirements, endorsed by the United Nations Codex Alimentarius, European Union,

Canada, Australia, New Zealand and Japan, apply to meat, seafood and poultry plants; grocery

stores; restaurants; and other food processing and handling facilities.

AS9100

AS9100, released in 1999 and revised in 2001 to align with ISO 9001:2000, is the international

ISO 9000 derivative for suppliers to the aerospace industry. AS9100 takes the ISO 9001:2000

quality management systems standard covering every step and department of the manufacturing

process, and inserts aerospace industry-specific requirements. AS9100 also addresses flowdown

of aerospace prime contractors’ quality management system requirements to suppliers and their

subcontractors. Flowdown includes specifications for parts or assembly designs, characteristics,

inspections, and other process functions and product features.

The prime aerospace contractors consider AS9100 a major step in the history of quality

management in the aerospace field. Government agencies, such as the Defense Department and

the Federal Aviation Administration (FAA), also support AS9100, though suppliers still have to

meet additional federal requirements. The major difference is a drop in compliance costs and

time for suppliers, due to the elimination of multiple audited governmental standards. This

industry-generated standard also takes the place of programs the government has dropped.

AS9100 is designed to reduce defects in the supplier chain, continually improve quality and

boost customer satisfaction. By becoming registered to AS9100 and ISO 9000, companies

dealing with aerospace prime contractors and the government enjoy a competitive advantage.

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The regulatory burden is lightened, so suppliers can spend more time improving the

manufacturing process in an industry that puts a top priority on safety and quality.

CE Marking

The CE Marking is required to sell any product manufactured or distributed under European

Union (EU) New Approach Directives in the European Economic Area (EEA). The EEA

consists of the 27-nation EU. In addition, Switzerland, although part of European Free Trade

Association (EFTA), is not part of EEA. The other 3 non-EU countries in EFTA, Liechtenstein,

Iceland and Norway, are members of the EEA.

The New Approach Directives, designed to eliminate technical barriers to trade in Europe, set

product safety technical requirements. The most important of these apply to medical devices.

Other directives include low voltage, simple pressure vessels, toys, construction products,

electromagnetic compatibility, machinery, personal protection equipment, telecom terminal

equipment, boilers, explosives and recreational craft.

The CE Marking is affixed to products after they are successfully tested for conformity to

applicable directives.

Current Good Manufacturing Practices (CGMP)

Manufacturers of medical devices that plan to distribute products in the U.S. are required to

adhere to Food and Drug Administration (FDA) Current Good Manufacturing Practices

(CGMP), under which the company must establish a quality assurance program and its medical

devices must meet specifications and controls to guarantee they are safe and effective for

intended use.‖

CGMP covers quality assurance programs and organization, buildings, equipment, components,

production and process controls, packaging and label control, distribution and installation, device

evaluation and records.

The FDA monitors medical device problem data and inspects the operations and records of

device manufacturers to determine CGMP quality assurance compliance.

ISO/IEC 17025

ISO/IEC 17025, released in 1999, contains all the requirements that testing and calibration

laboratories must meet to demonstrate that they operate quality management systems (QMS), are

technically competent and can generate technically valid results. All ISO 9000 requirements that

are relevant to the scope of testing and calibration laboratory QMS have been incorporated into

ISO/IEC 17025, along with technical competency requirements.

ISO/IEC 17025 covers such matters as quality system; personnel; document control; review of

requests, tenders and contracts; subcontracting of tests and calibrations; purchasing services and

supplies; services to the client; control of records; internal audits; accommodation and

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environmental conditions; test and calibration methods and method validation; equipment;

measurement traceability; sampling; handling of test and calibration items; and reporting the

results.

ISO/IEC 17025 accreditation is a more thorough process than ISO 9000 registration because it

recognizes a laboratory’s competence to produce technically valid results as well as its QMS

conformance. When a laboratory is part of a larger facility, ISO/IEC 17025 accreditation can

occur at the same time as ISO 9000, QS-9000 or ISO/TS 16949 registration if the auditor is

working for both an accreditation body and a registrar.

BS 7799

BS 7799, developed by the British Standards Institution (BSI), provides a comprehensive set of

information security management systems (ISMS) controls, which apply to information systems

used by organizations in industry and commerce, including information processing technology in

the area of networks and communications.

There are two parts to the standard. BS 7799-2 is a specification standard that sets ISMS

requirements that can be implemented, audited and used for registration. BS 7799-1 is a guidance

document that is the basis for the international information security guidance standard, ISO/IEC

17799.

The standard covers such areas as document control, security policy and organization, asset

classification and control, physical and environmental security, communications and operations

management, access control and compliance with legal requirements. Organizations seeking BS

7799 registration must assess security risks, select controls and develop guidelines.

TL 9000

TL 9000, released in 1999 and revised in 2001 to align with ISO 9001:2000, is the

telecommunications industry derivative of ISO 9000. This standard harmonizes

telecommunications quality management system (QMS) requirements for the design,

development, production, delivery, installation and maintenance of hardware, software products,

and services. Conformance to TL 9000 decreases time to market and improves the total cost of

ownership throughout the supply chain.

TL 9000’s structure contains five levels of QMS requirements and measurements. They are ISO

9001:2000; common telecommunications industry quality system requirements (QSRs);

hardware, software and services specific QSRs; common telecommunications industry

measurements; and hardware, software and services specific quality system measurements.

TL 9000’s telecommunications sector-specific QSRs are divided into six categories and marked

accordingly: common (C), hardware (H), software (S), services (V), hardware and software

(HS), and hardware and services (HV). There are no services and software (VS) elements. A

supplier is only required to implement the additional elements that fit its scope of operations.

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Only a hardware and software company that offers a service must implement all sector-specific

requirements.

TL 9000 breaks ground by establishing cost and performance based measurements that measure

the reliability and quality performance of hardware, software and services. These performance

measurement tools are important from the customer’s point of view and include hardware return

rates, system outages, number of problem reports, software update quality, on-time delivery,

invoice accuracy, and the efficiency and level of success of the supplier’s business processes and

activities.

TL 9000 registration may encompass an entire company, an organizational unit, a combination

of units, several facilities, an individual facility, or a limited and defined product line. The

registration scope may be for hardware, software, services or any combination thereof.

SA 8000

Social Accountability (SA) 8000, released in 1997, is the first international standard dealing with

the workplace environment. It requires employers to pay wages sufficient to meet workers' basic

needs, provide a safe working environment, not employ child or forced labor, and not force

employees to regularly work more than 48 hours a week. Other SA 8000 elements address health

issues, freedom of association, discrimination, disciplinary practices and management.

Developed by the nonprofit Council on Economic Priorities Accreditation Agency (CEPAA),

with the assistance of a wide range of business, industry, labor, human rights, certification and

audit experts, and based on several existing international human rights standards, including the

United Nations Universal Declaration of Human Rights and the Convention on the Rights of the

Child, SA 8000 provides a means to improve working conditions and meet the social challenges

of economic globalization.

SA 8000 certification enables a company to project a positive image and good reputation to

clients, employees, suppliers, shareholders and consumers. This standard gives the general public

confidence in the ethical production of the products they buy, contains mechanisms for

continuous improvement and provides a marketing edge with better labor practices. Enforcing

humane conditions in factories may also lead to higher quality products on the market.

ISO/IEC 15408

ISO/IEC 15408, released in 1999, is the first international information technology security

evaluation criteria standard, defining Common Criteria (CC) used to evaluate security properties

of information technology (IT) products and systems, such as operating systems, computer

networks, distributed systems, applications and other hardware, firmware and software.

These requirements apply to both security functions of IT products and systems, and assurance

measures used during security evaluation and validation. The CC can also be used as a guide by

IT consumers, developers and evaluators in developing or procuring products or systems with IT

security functions.

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During a security evaluation or validation, an IT product or system is known as a Target of

Evaluation (TOE). A set of security requirements and specifications used to evaluate or validate

a TOE is a developer Security Target (ST). An implementation-independent set of security

requirements for a category of TOEs that meet specific consumer needs is a user Protection

Profile (PP). Evaluation and validation is an assessment of a PP, ST or TOE against CC security

requirements.

The ISO/IEC 15408 CC is implemented in the U.S. by the National Information Assurance

Partnership (NIAP) Common Criteria Evaluation and Validation Scheme (CCEVS), which sets

standards; monitors the quality of evaluations; and assures that the Common Evaluation

Methodology (CEM), which addresses evaluation methodology and procedures, is used

consistently across government-accredited, product testing and evaluation facilities.

Information technology security evaluations are conducted by Common Criteria Testing

Laboratories (CCTLs), commercial testing laboratories accredited by National Voluntary

Laboratory Accreditation Program (NVLAP), approved by the NIAP Validation Body and

placed on the NIAP Approved Laboratories List

Supply Chain Management

Supply Chain Management recognizes that competition is now across supply chains, not

individual companies. A supply chain is the network of companies linked together in supplier to

customer relationships across a product life cycle from raw material to final consumption.

Supply Chain Management integrates every aspect of product development and design,

producing competitive advantages throughout the product life cycle.

Supply Chain Management optimizes and synchronizes material, process, information and cash

flow from raw material to final consumption, while driving out excess inventory and unnecessary

costs. The right product gets delivered to the right place, at the right time and at the right price.

Any organization in the supply chain network can initiate a supply chain program and realize

benefits. However, the closer a company is to the final customer, the better it is positioned to

lead a Supply Chain Management program.

Six Sigma

Six Sigma is a statistically oriented approach to process improvement, designed to reach a

quality level of less than 3.4 Defects Per Million Opportunities (DPMO) for Critical-To-Quality

(CTQ) characteristics in a manufacturing or service process.

Achieving this Six Sigma level reduces the cost of defects from 20-30 percent to 1 percent of

revenues. There is a reduced need for testing and inspection, costs go down, cycle time decreases

and customer satisfaction goes up as companies are able to deliver the highest quality product, on

time and at the right price.

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Six Sigma uses a variety of tools, including Statistical Process Control (SPC), Total Quality

Management (TQM) and Design of Experiments (DOE). It can be coordinated with other major

initiatives and systems, such as new product development, Materials Requirement Planning

(MRP)

UNIT – I

PART –A

1. Define quality.

2. List the barriers of TQM

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3. What are the dimensions of quality?

4. Name the criteria for manufacturing organization.

5. Compare manufacturing and service organization

6. Define the concept of Deming philosophy

7. Define TQM.

8. Factors that helps in improving the quality.

9. What is fitness of use?

10. What is meant by support service?

PART-B

1. Discuss in detail about the basic concepts of quality.

2. Explain the dimensions of total quality management.

3. What are terms that affects quality in manufacturing organization

4. Explain in detail about the need for TQM

5. Describe the barriers of TQM.

UNIT – II

PART-A

1. What is quality planning?

2. Differentiate customer satisfaction and retention.

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3. Define Employee involvement.

4. What is meant by empowerment?

5. Differentiate recognition and reward.

6. Define 5s concept.

7. How will you measure the supplier rating?

8. How will you retain the customer?

9. Advantages of continuous process.

10. What is meant by performance appraisal?

PART-B

1. Describe in detail about 5s Kaizen concepts with example.

2. How to achieve the best quality through the customer?

3. Explain the concept of PDSA cycle.

4. Describe in detail about employee benefits?

5. Write shortnotes on a. Leadership b. Quality statements.

UNIT - III

PART-A

1. List the seven traditional tools.

2. What is meant by six sigma?

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3. Define benchmark.

4. Define Affinity diagram

5. Draw Pareto diagram

6. Name the terms in benchmarking process.

7. What is meant by FMEA?

8. List the reasons to benchmark?

9. Differentiate single sourcing and multiple sourcing.

10. Name any 3 methods in six sigma concepts.

PART-B

1. Explain the various methods of six sigma with example.

2. Describe the seven traditional tools of TQM.

3. What is meant by benchmark process? Explain.

4. Discuss the various types of diagrams that are used to improve the quality?

5. Explain how the management tools are used in manufacturing industry?

UNIT - IV

PART-A

1. List the seven traditional tools.

2. What is meant by QFD?

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3. Define cost of quality

4. List the performance measures.

5. What is meant by Taguchi Quality loss function?

6. List the points for improvement needs.

7. What is TPM?

8. Give three characteristics used to define the quality loss function

9. What are the requirements of improvement needs.

10. Use of Taguchi quality loss function.

PART - B

1. Explain Quality Loss Function for Various Quality Characteristics with example.

2. Describe the concepts of QFD.

3. Explain the concepts of TPM.

4. How to measure the cost of quality? Explain with neat diagram.

5. Write shortnotes on a. traditional tools b. improvement needs

UNIT-V

1. Why ISO 9000 is needed?

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2. Define ISO9000-2000.

3. What is ISO 14000?

4. List 4 benefits of ISO 9000.

5. Advantages of ISO14000.

6. List some IT companies which has ISO standards.

7. What are the requirements for ISO?

8. What is meant by auditing?

9. Define hazard analysis.

10. What is meant by Malcolm Baldrige Criteria?

PART-B

1. Describe in detail about ISO9000 and ISO 14000.

2. Why auditing is required to improve the quality? Explain.

3. Explain the concept of Malcome Bridge criteria.

4. Describe in detail about the concept of hazard analysis?

Explain the concepts, requirements and advantages of ISO standards.