Professional Documents
Culture Documents
By
Muruganantham.G
MBA, M.Phil, UGC-NET, Ph.D.
Unit 3 Process Capability Six Sigma concepts - New Seven tools of Quality, Business Process Reengineering, Quality Function Deployment - Failure Mode and Effect Analysis.
Unit 4 Business Excellence Business Excellence Awards (EFQM, Deming, Malcolm Balridge), Indian Quality Awards and Case Studies - Human Resource Management in TQM environment. Unit 5 HR Aspects Employee Involvement - Motivation - Teams - Reward System, Quality circles Introductory aspects of ISO 9000 series Standards and ISO 14000. Text Books Dale H. Besterfield, Carol Besterfield, Glen H Besterfield and Mary Besterfield, Total Quality Management, Pearson, New Delhi. Subburaj Ramasamy, Total Quality Management, Tata McGraw Hill, New Delhi. Janakiraman and Gopal, Total Quality Management, PHI, New Delhi. Reference Books Juran, Gryna and Bingham, Quality Control Hand Book, McGraw Hill, New Delhi. Howard, Alan, Rosa and David, Quality Management, Tata McGraw Hill, New Delhi. Poornima M.Charantimath,Total Quality management, Pearson Education, New Delhi.
Introduction to TQM
Quality Concept Evolved in USA. TQM concept evolved in Japan - world war II. Edward Deming - use of statistical methods RM..Consumer research TQM set a new trend in the Japanese industry by shifting the managements focus from profits to quality). During 1980s American.. Ford Motors, Xerox Mfu Companies - Industrial Revolution Q in India No competition - Public sector, one or two players Top Management - sold, cost, awareness & interest level - selling concept 1991 LPG era competition, car, Marketing concept, customer is the king
Customer Satisfaction
Competitiveness is measured by three parameters Quality, price and delivery.
TQM cont..
TQM is associated with ..doing right things right, first time. Method by which management and employees involved in the continuous improvement.
WHAT IS QUALITY ?
Juran(1974). Fitness for use
Quality cont
In ISO 9000 : a more definitive definition of quality is given. degree to which a set of inherent characteristics fulfills Requirements. Degree - quality can be used with adjectives such as poor, good and excellent. Inherent - something, especially as a permanent characteristics. Characteristics can be quantitative or qualitative. Requirement is a need or expectation that is stated; customers, and other interested parties. The term quality is perceived differently by different people.
Quality Cont
Quality Cont
Quality can be quantified as follows: Q =P / E Where Q - Quality, P - Performance, E - Expectations.
Quality of the product is decided by customer. conformance to specifications, assured performance level, safety, effective packaging, on - time delivery, efficient technical service and caring for the customers feedback.
Quality cont
Quality is both a user oriented and a production oriented expression. Quality, therefore is Defined by the customers, A measure of achievement of customer satisfaction Value for money Keeping ones word Ensuring no defects A precise and measurable variable Utility to the society.
Stakeholder Expectations
Customers - Product Quality Employees - Career / Work Satisfaction Owners - Investment Performance Vendors - Continuing Business Opportunity.
Evolution of Quality
1920s - QC - Process control; - Acceptance sampling 1930s - Great depression after world war - Defense role in quality 1950s - TQC, - Japanese QC 1960s - QA in new product development 1970s - Worldwide management of Quality 1980s - Quality systems and standards 1990s - Quality as a main winning point 2000s - Continual improvement.
Developing workers to manage and mangers to lead Becoming faster, leaner and more responsive to market opportunities.
Dimensions of quality
Performance: Also called Functionality or Operationality. It is the main operating characteristics of a product. Example: Crystal clear picture, for clear sound etc., in a TV set. Enhancement or Additional Features: It represents the additional features supplementing the products basic function. Example: Auto power off when not in use, Telephone directory storage, In built videogames, child lock facility etc., Reliability: Probability that a product is performing its intended function over its intended life and under the stated conditions.
Dimensions of quality cont.. Conformance: The extent to which the products design and
operating characteristics satisfy the pre . determined standards. Durability: Measure of products. useful life, Serviceability: Time consumed in servicing, Courtesy, Competence and ease of repair or reconditioning of a product.
Aesthetics: Should appeal to senses. It is Human response to a
Prior to TQM
Product oriented Short term
With TQM
Customer Long term
Quality control Every one Managers Teams Price Life cycle cost & partnership Detection Plan, assign Prevention Delegate, coach, facilitate and mentor
Quality Management
Quality Management - coordinated activities to direct and control an organization with regard to quality QM = QP + QA + QC + QI Quality Plan-focuses on setting quality objectives Quality Assurance- providing confidence that quality requirements will be fulfilled Quality Control - focused on fulfilling quality requirements Quality Improvement - focused on increasing the ability to fulfill quality requirements
Quality Management
Quality Planning: Planning process to meet the customer requirements Define Q. Policy, Objectives and requirements. Statement describes an org commitment to Q.. Guides everyone in the org. Plan about the resources. Identify your customer, Determine their needs, Translate them into your language, Develop a product. Jurans Q Planning..
Principles of TQM
Deming Philosophy
Edwards Deming had proposed fourteen principles towards quality achievement. These principles are summarized as follows:
2. Adopt new philosophy : Focus on the customer satisfaction, prevention of non - conformance, rather than detection and correction,
Mass inspection is costly and unreliable. Mass inspection is managing for failure and Defect prevention is managing for success To improve the process and reduce its cost, use of statistical techniques should be adopted.
6. Institute
Each employee is to be trained in quality improvement skills, communication skills, statistical methods and problem solving methods. Management must allocate resource to train employees to perform their jobs in the best possible manner. 7. Teach and Institute leadership: Improving Supervision is Managements responsibility. Management must provide supervisors with training on analytical methods. Instead of focusing on a negative, fault-finding atmosphere, Supervisors should create a positive, supportive climate. All communications must be clear from top management to supervisors to operators.
8. Drive out Fear, Create Trust, and Create a climate for Innovation:
Fear is caused by lack of job security, performance appraisal by superiors, ignorance of organizational goals, poor supervision and poor knowledge of the job. All the employees are to be treated with dignity - Only then, they can provide ideas and act upon for improvement. Management must encourage open, effective communication and team work. Management can begin by providing workers with adequate training, good supervision, and proper tools to do the job.
9. Optimize the Efforts of Teams and groups:
Break down barriers between departments, research, design, sales and production . must work together to foresee problems in production .
10. Eliminate slogans, exhortations and numerical targets for the workforce:
Goals - achievable and the methods are known and made available, to all the employees. Improvements in the process cannot be made unless the tools and methods are available.
When workers feel proud of their work, they will grow fully and successfully, in their job and out of their job.
Benchmarking
Concept of Benchmarking taken the new meaning since 1970s. Companies compared the performance CY LY Parameters like cost, profit, sales volume, expenses, etc..Target In a Market driven hyper competitive Globalised economy The process of identifying, understanding, and adapting outstanding practices and process from organisations anywhere in the world to an organisation to improve its performance .Systematic and continuous measurement process
Benchmarking
Systematic method by which organisations can measure themselves against the best in class org in order to achieve the best of the best.
It is the search for the industry best practices that lead to superior performance.
Benchmarking
Reasons to Benchmark: Helps to set new goals and adopts the best practices Helps to develop the strengths and reduce the weakness Benchmarking is time and cost efficient
Types of Benchmarking:
a) Internal b) Competitive to improve the performance to the level of the competitors c) Functional or process or generic benchmarking certain process which are common across the industry Marketing, Finance, Human Resource, R&D, etc
Benchmarking process:
a)Identify what function is to be benchmarked, (CSF) ..PROCESS that causing most trouble, factors that are not performing up to the satisfaction level, critical factors that result in customer satisfaction, areas in which more competition, Process or function that would help to achieve Competitive Advantage. b)Identify best-in -class company c) Identify the data that to be collected d) Analyse the data to arrive at the current performance gap
Benchmarking
e) Communicate the benchmark findings to the employees f) Establish functional goals to achieve objectives g) Develop action plan, implement and monitor the progress.
Benchmarking
.. Reasons for failure of Benchmarking:
Lack of commitment, wrong selection process, Not being cost effective, wrong selection of team members and not positioning the benchmarking within a larger strategy
Quality Cost
Appraisal cost
Inspection and Testing of incoming material, In-process inspection, Final inspection, Product Inspection and Testing Maintaining accuracy of test equipment
Prevention Cost
Quality Planning & Inspection, New Products Review, Product Process Design Process Control, Quality training, TQM
Failure cost
Internal Failure Cost External Failure cost
External Failure cost Complaint Adjustment, Returned Product Warranty Charges, Liability Costs, Indirect Costs
5S Principle
SEIRI SEITON SEISO SEIKETSU
SHITSUKE -
THE 5S PRINCIPLES
IDEA BEHIND 5S
The 5S philosophy focuses on effective workplace organisation, helps to simplify the workplace environment and reduce waste, while improving quality and safety. Developed by the Japanese - Housekeeping System. Helps Create a Better Working Environment and a Consistently High Quality Process.
1. Seiri or sorting Seiri means sorting through everything in each work area. It requires keeping only what is necessary. Materials, tools, equipment and supplies that are not frequently used should be moved to a separate, common storage area. Items that are never used should be discarded. This makes it easier to find the things needed and frees up additional space.
2. Seiton or systematise
This is the next step. It requires organising, arranging and identifying everything in a work area for efficient retrieval and return to its proper place. Commonly used tools are readily available; storage areas, cabinets and shelves are properly labeled; and painted to make it easier to spot dirt, spaces are outlined on the floor to identify work areas, movement lanes, storage areas, finished product areas and so on.
3. Seiso or shining Once everything from each individual work area to the entire facility is sorted and organised, Regular cleaning and inspection makes it easy to spot lubricant leaks, equipment misalignment, breakage, missing tools. When done on a regular, frequent basis, cleaning and inspecting does not take a lot of time and, in the long run, actually saves times.
4. Seiketsu or standardise Seiketsu ensures that the first three steps of the 5S programme continue to be effective. The good practices developed in the first three steps need to be standardized. Therefore, organisations must develop a work structure that will support the new practices and turn them into habits.
Shitsuke or self-discipline
This implies continuous training and maintenance of standards. The organisation must build a formal system for monitoring the results of the programme. A follow-up is a must for the above four steps to continue to be practice.
There will have to be continuous education about maintaining standards. When there are changes that will affect the 5S programme -- such as new equipment, new products or new work rules -- it is essential to make changes in the standards and provide training.
A good way to continue educating employees and maintaining standards is to use 5S posters and signs.
If tools and materials are conveniently located in uncluttered work areas ----
TIME SAVING QUICK RETRIEVAL ACCIDENTS & MISTAKES MINIMIZED INCREASES SPACE CREATES WORKPLACE OWNERSHIP LITMUS TEST FOR 5S
30 SECOND RULE ONE MUST LOCATE THE ITEM WITH IN 30 SECOND IF 5S IS PROPERLY IMPLEMENTED
ICICI Bank saved more than Rs 600,000 a year on payments to third-party warehousing companies, since records can now be stored in the office. Another advantage is that Five S could be easily followed by everybody from the "peon to the president", The best thing about Five S is that it is extremely simple and yet powerful. More importantly, the benefits are visible immediately. "Five S is a workplace transformation exercise.