MMG 401 Total Quality Management and Six Sigma

MMG401
TOTAL QUALITY
MANAGEMENT AND
SIX SIGMA
Manufacturing Management Group
MBA
Semester - IV
YASHWANTRAO CHAVAN MAHARASHTRA OPEN

UNIVERSITY
Dnyangangotri, Near Gangapur Dam, Nashik 422 222, Maharashtra
Yashwantrao MMG401
Maharashtra
Open University
TOTAL QUALITY MANAGEMENT AND SIX

SIGMA
Unit 1 QUALITY
Unit 2 TOTAL QUALITY MANAGEMENT
Unit 3 PROCESS IMPROVEMENT
Unit 4 INVOLVEMENT OF EMPLOYEES
Unit 5 CUSTOMER SERVICE
Unit 6 GOVERNANCE & LEADERSHIP

Unit 7 STATISTICAL PROCESS CONTROL
Unit 8 PATTERN IDENTIFICATION
Unit 9 PHILOSOPHIES IN TQM
Unit 10 ELEMENTS OF SIX SIGMA
Unit 11 SIX SIGMA PHASES
Unit 12 SIX SIGMA TOOLS
Yashwantrao Chavan Maharashtra Open University
Vice-Chancellor : Prof. Dr. Deelip Mhaisekar
Director, School of Commerce & Management : Dr. Pandit Palande
NATIONALADVISORY BOARD
Dr. Pandit Palande Prof. Devanath Tirupati, Dr. Surendra Patole
Director, Dean Academics, Assistant Professor,
School of Commerce Indian Institute of Management School of Commerce &
& Management (IIM-Bangalore) Bangalore. Management,
Y. C. M. Open University, Nashik Y. C. M. Open University, Nashik
Prof. Sudhir. K. Jain Prof. Karuna Jain,
Vice Chancellor Director, Dr. Latika Ajitkumar Ajbani
Shri Mata Vaishno Devi University N I T I E, Vihar Lake, Assistant Professor,
(SMVDU) Katra Mumbai - 400087 School of Commerce &
Jammu and Kashmir. Management,
Y. C. M. Open University, Nashik
Prof. Vinay. K. Nangia
Ex- Head
Department of Business Studies,
Indian Institute of Technology,
(IIT- Roorkee) Roorkee.
Author Co-Author Editor

Dr. Srikanta Routoy Dr. Gunjan Soni Dr. Satyendra Kr. Sharma
Associate Professor Assistant Professor Assistant Professor
Department of Mechanical Department of Mechanical Department of Management
Engineering Engineering BITS Pilani
BITS Pilani, Pilani Campus, MNIT Jaipur Pilani Campus
Rajasthan, India Rajasthan, India Rajasthan, India
Instructional Technology Editing & Programme Co-ordinator

Dr. Latika Ajitkumar Ajbani
Assistant Professor,
School of Commerce & Management
Y. C. M. Open University, Nashik
Production
Shri. Anand Yadav
Manager, Print Production Centre, Y. C. M. Open University, Nashik- 422 222
Copyright Yashwantrao Chavan Maharashtra Open University, Nashik.
(First edition developed under DEC development grant)
q First Publication : October 2016 q Publication No. :
q Typesetting :
q Cover Design : Shri. Avinash Bharne
q Printed by :
q Publisher : Dr. Dinesh Bhonde, Registrar, Y. C. M. Open University, Nashik- 422 222
ISBN :
Introduction
I am very pleased in placing the first edition of this study material on 'Total Quality Management and
Six Sigma' to the students and practitioners of this subject. This book is designed as per the revised syllabus
prescribed by the YCMOU Nashik from August 2015. It gives equal importance to the theoretical aspects as
well as to the practical case studies. Hence this edition will be an ideal companion not only to the scholars but
also to the average students. I am sure that this work would subserve the genuine interest of all the students
concerned in enriching their knowledge of this ever-growing Total Quality Management and Six Sigma discipline.
I have made a sincere attempt to make the subject easy to understand. For this purpose the theory on
each topic is written in a simple and lucid language to enable the students to grasp the essence of subject.
Any suggestions will be appreciated.
I am confident, that students will welcome new edition of this book.
With knowledge, hard work, marvelous success is just around the corner.
All The Best!
- Dr. Gunjan Soni

Copyright Yashwantrao Chavan Maharashtra Open University, Nashik.
All rights reserved. No part of this publication which is material protected by this copyright
notice may be reproduced or transmitted or utilized or stored in any form or by any means now
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The information contained in this book has been obtained by authors from sources believed
to be reliable and are correct to the best of their knowledge. However, the publisher and its
authors shall in no event be liable for any errors, omissions or damage arising out of use of this
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particular use.
Message from the Vice-Chancellor
Dear Students,
Greetings!!!
I offer cordial welcome to all of you for the Masters degree programme of Yashwantrao Chavan
Maharashtra Open University.
As a post graduate student, you must have autonomy to learn, have information and knowledge regarding
different dimensions in the field of Commerce & Management and at the same time intellectual development
is necessary for application of knowledge wisely. The process of learning includes appropriate thinking,
understanding important points, describing these points on the basis of experience and observation, explaining
them to others by speaking or writing about them. The science of Education today accepts the principle that
it is possible to achieve excellence and knowledge in this regard.
The syllabus of this course has been structured in this book in such a way, to give you autonomy to study
easily without stirring from home. During the counseling sessions, scheduled at your respective study centre,
all your doubts will be clarified about the course and you will get guidance from some experienced and expert
professors. This guidance will not only be based on lectures, but it will also include various techniques such as
question-answers, doubt clarification. We expect your active participation in the contact sessions at the study
centre. Our emphasis is on self study. If a student learns how to study, he will become independent in
learning throughout life. This course book has been written with the objective of helping in self-study and
giving you autonomy to learn at your convenience.
During this academic year, you have to give assignments and complete the Project work wherever
required. You have to opt for specialization as per programme structure. You will get experience and joy in
personally doing above activities. This will enable you to assess your own progress and thereby achieve a
larger educational objective.
We wish that you will enjoy the courses of Yashwantrao Chavan Maharashtra Open University, emerge
successful and very soon become a knowledgeable and honorable Masters degree holder of this university.
Best Wishes!
- Vice-Chancellor
Total Quality Management and Six Sigma
SYLLABUS
UNIT 1: Introduction, History of Quality Assurance, Contemporary Influences on Quality, Definitions of Quality,
Quality Perspectives, Customer-Driven Quality, Total Quality, Principles of Total Quality, Demings View of a
Production System, Infrastructure, Practices, and Tools, Quality and Profitability, Three Levels of Quality,
Quality and Personal Values.
UNIT 2: Introduction, Historical development, New Definition of Quality, Quality Guru, The dimension of
Quality, Obstacles in TQM implementation.
UNIT 3: Introduction, Process, Improvement, Jurans Trilogy, Improvement Strategies, PDSA Cycle, Kaizen.
UNIT 4: Introduction Maslows Hierarchy of needs, Hertzberg two factor theory, Achieving a motivated
workforce, Empowerment, Decision making methods in teamwork, Performance appraisal, Union and Employee
Involvement, Benefits from Employee Involvement.
UNIT 5: Introduction, Feedback, Translating needs into requirement, Customer Retention, Categories of Customer,
Understanding Customer Requirement, Kanos Model, Customer Protection, Quality Awards and Customer
Satisfaction, Customer Complaint and Feedback System, Customer Satisfaction Survey, Customer Satisfaction
Performance Measures.
UNIT 6: Introduction, Role of leadership in implementation, Role of senior management, Quality Council, Core
values and concepts, Shared values, Quality Statement, Communications, Characteristics of leader.
UNIT 7: Introduction, Need for the continual reduction of variation, Instabilities and Out-of-Control Situations,
Quality consciousness and types of control charts, Variable and attribute control charts.
UNIT 8: Introduction, Persistent disturbances, Out-of-Control Patterns, Types of control chart patterns, Out of
control patterns and the rules of thumb.
UNIT 9: Introduction, Components of Profound Knowledge, Demings Fourteen Points, Jurans Quality Trilogy,
Crosbys Absolutes of Quality Management, Malcolm Baldridge National Quality Award (MBQA), ISO 9000.
UNIT 10: Introduction, Customer concern, Organizational concern, Elements of six sigma.
UNIT 11: Introduction, Define, Measure, Analyze, Improve, Control.
UNIT 12: Introduction, Customer requirement statement, Pareto chart, Project charter , SIPOC, CTQ tree,
Measure Phase, Analyze Phase, Improve Phase, Control Phase.
Index
Unit No. Unit Name Page No.
01 QUALITY
02 TOTAL QUALITY MANAGEMENT
03 PROCESS IMPROVEMENT
04 INVOLVEMENT OF EMPLOYEES
05 CUSTOMER SERVICE
06 GOVERNANCE & LEADERSHIP
07 STATISTICAL PROCESS CONTROL
08 PATTERN IDENTIFICATION
09 PHILOSOPHIES IN TQM
10 ELEMENTS OF SIX SIGMA
11 SIX SIGMA PHASES
12 SIX SIGMA TOOLS
NOTES
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (9)
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
NOTES
(10) TOTAL QUALITY

MANAGEMENT
AND SIX SIGMA
Quality
UNIT 1
QUALITY
Structure NOTES
1.0 Introduction
1.1 Unit objective
1.2 History of Quality Assurance
1.2.1 Skilled craftsmanship during Middle Ages
1.2.2 Industrial Revolution: rise of inspection and separate quality
departments
1.2.3 Quality control during World War II
1.2.4 Quality management in Japan
1.2.5 Quality awareness in U.S. manufacturing industry during 1980s:
Total Quality Management
1.2.6 Quality in service industries, government, health care, and
education
1.2.7 Current and future challenge: keep progress in quality
management alive
1.3 Contemporary Influences on Quality
1.3.1 Social Responsibility (SR)
1.3.2 Adaptability and speed of change
1.3.3 Environmental sustainability
1.3.4 Globalization
1.3.5 Shifting demographics
1.4 Definitions of Quality
1.4.1 Transcendent definition: excellence
1.4.2 Product-based definition: quantities of product attributes
1.4.3 User-based definition: fitness for intended use
1.4.4 Value-based definition: quality vs. price
1.4.5 Manufacturing-based definition: conformance to specifications
1.5 Quality Perspectives
1.6 Customer-Driven Quality
1.7 Total Quality
1.8 Principles of Total Quality
1.8.1 A focus on customer and stakeholder
1.8.2 Employee Engagement and Teamwork
1.8.3 Process Focus and Continuous Improvement
1.9 Continuous Improvement TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (11)
TOTAL QUALITY 1.10 Demings View of a Production System
MANAGEMENT
AND SIX SIGMA 1.11 Learning
1.12 Infrastructure, Practices, and Tools
NOTES 1.13 TQ Infrastructure
1.14 Competitive Advantage
1.15 Quality and Profitability
1.16 Evidence that Quality Impacts Business Results
1.17 Three Levels of Quality
1.17.1 Organizational level: meeting external customer requirements
1.17.2 Process level: linking external and internal customer requirements
1.17.3 Performer/job level: meeting internal customer requirements
1.18 Quality and Personal Values
1.19 Summary
1.20 Key concepts
1.21 Exercise and questions
1.22 Further reading and references
1.0 Introduction
The first job we have is to turn out quality merchandise that consumers
will buy and keep on buying. If we produce it efficiently and economically, we will
earn a profit, in which you will share.
- William Cooper Procter
In this chapter, we are going to analyze quality. We are going to discuss about its
value in organization, its history and its part in constructing competitive advantage
& sustaining. In the starting of each lesson we profile two created firms that have
created commendable quality management practices. These examples are going
to make a deep understanding of the key cultural issues that comprise the base of
elevated-performing firms.
Quality Assurance is any activity coordinated toward giving clients services goods
& services of appropriate quality.
1.1 Unit objectives

After studying this unit, you will be able to:
Understand Quality assurances
Understand Deming view
To know about Quality management
1.2 History of Quality Assurance

1.2.1 Skilled craftsmanship during Middle Ages
(12) TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
During medieval times in European countries, the talented craftsperson Quality
served both as overseer & producer. Producers who managed specifically with
the client took extensive pride in workmanship. Create societies, comprising ex-
perts, understudy & disciples, rose to guarantee that craftspeople were sufficiently
NOTES
prepared.
1.2.1 Industrial Revolution: rise of inspection and separate

quality departments
In the mid-1900s, the work of Frederick W. Taylor, who is likewise called as
father of logical administration, prompted to another logic of generation. His logic
was to isolate the arranging capacity from the execution work. Specialists and
Managers were given the errand of arranging; chiefs and laborers went up against
the assignment of execution. This approach functioned admirably when the new
century rolled over, when laborers did not have the training required for doing
arranging. By dividing an occupation into particular work errands and concentrat-
ing on expanding proficiency, quality confirmation fell into the hand of the control-
lers. In the end, generation associations made separate quality departments.
1.2.2 Quality control during World War II

During the period of 1939-1945 that is at the time of World War II the US military
started utilizing factual testing techniques and forcing stringent measures on pro-
viders. The War Production Board offered free instructional classes in the mea-
surable strategies created inside the Bwell framework. The effect on wartime
creation was negligible, yet the exertion created quality pros, who started to utilize
and augment these instruments inside their associations. In this manner measur-
able quality control turned out to be broadly known and bit by bit received all
through assembling industries.
1.2.3 Quality management in Japan

After the war, amid the late 1940s and mid-1950s, the deficiency of regular citizen
merchandise in the US made generation a top need. In many organizations, quality
remained the region of the expert. Quality was not a need of top administrators,
who appointed this duty to the quality directors.
In the midst of this time, two US experts, Dr. Joseph Juran and Dr. W. Edwards
Deming, acquainted factual quality control strategies with the Japanese to help CHECK YOUR
them in modifying endeavors. A critical piece of their instructive action was cen- PROGRESS
tered around upper administration, instead of the quality authority alone. With the 1.When in modern era
support of top supervisors, the Japanese incorporated quality all through their as- concept of quality
sociations & built up a culture of constant change. introduced?
1.2.4 Quality awareness in U.S. manufacturing industry

during 1980s: Total Quality Management
Directors started to understand that the methodologies they use to tune in to
clients and grow long haul connections, create technique, dissect information &
measure execution, prepare workers & reward, plan, convey items &
administrations, and go about as pioneers in their associations are the genuine TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (13)
TOTAL QUALITY empowering influences of value, consumer loyalty and business comes about. As
MANAGEMENT
it were, they perceived that the nature of administration is as imperative as the
AND SIX SIGMA
administration of value. As associations came to perceive the wide extent of value,
the idea of aggregate quality administration (TQM), or essentially add up to
NOTES quality (TQ), emerged.
Total quality is the unyielding and continually improving effort by everyone
in an organization to understand, meet and exceed the expectations of
customers.
Procter & Gamble
1.2.5 Quality in service industries, government, health care,

and educatiomn
Human services: A by-result of alternate powers on this rundown, global-
ization and maturing populace has uplifted the need and desire of the quality me-
dicinal services. Quality can assume an imperative part in the social insurance by
removing waste from the framework with the goal that more individuals can profit.
Strategy creators should likewise address value of get to wasteful aspects in the
framework just fuel these issues. On contrary, progressions in Nano & bio tech-
nology will bring about cures for sicknesses & delayed lives. The prerequisite is
expanded concentrate on quality in the without waste advancement of these inno-
vations. Quality likewise aid guarantee operational efficiencies in human services
conveyance.
1.2.6 Current and future challenge: keep progress in

quality management alive
The genuine test today is to guarantee that administrators keep on apply-
ing the fundamental standards of value administration and execution magnificence.
Lamentably, a current study supported by ASQ discovered critical holes between
administrators consciousness of value change procedures and execution, propos-
ing that numerous associations either are not utilizing these demonstrated method-
ologies or just dont understand that methodologies they do utilize are established
in the quality discipline(and may miss key chances to enhance them). As previous
Xerox president David Kearns watched, quality is a race without a finish line.
1.3 Contemporary Influences on Quality

1.3.1 Social Responsibility (SR)
As organizations began to realize that social responsibility is not only the
moral thing to do, but that its also good for business, the world will continue to
embrace SR philosophies and practices at an increasing rate. Consumers are de-
manding more knowledge of organizational practices, and corporate reputation
will play a greater role in consumer buying choices. Organizations that seek to
improve their practices will need to know the concepts, techniques, and tools of
quality to deliver on their goals. Issues such as ethics, transparency, social behav-
ior, and environmental coincide with the broader considerations of SR and formu-
late what some have called a triple bottom line that affects planet, people, &
profits.
(14) TOTAL QUALITY
MANAGEMENT 1.3.2 Adaptability and speed of change
AND SIX SIGMA
A new accumulation of value related abilities will be required if quality is Quality
to keep up importance in a rapidly evolving world. Associations are searching for
initiative in advancement the capacity to grow new thoughts & oversee change.
This requires the mixing together of value & advancement. The developing con-
centration should work inside the frameworks of associations - not simply be cen- NOTES
tered around items & administrations. Associations must ace change and these
developing capacities, or offer approach to littler, more current and more light-
footed competitors.
CHECK YOUR
1.3.3 Environmental sustainability PROGRESS
The environment comprehend a great part of the ecological harm that has 1. How contemporary
been done cant be turned around, & that expanding utilization will put signifi- issues are affecting
cantly more strained on limited assets. Quality gives the ideas, instruments, meth- Quality?
ods, and models to encourage change.
1.3.4 Globalization
It is driving worldwide provider systems and the need to oversee world-
wide quality stages. Associations are no longer limited by area and space. In like
manner, completely new client markets are being made regularly by web, which
makes concern & opportunity. Exchange of goods & services over the globe will
impact exchange approach & exchanging accomplices in new, unheard of ways.
1.3.5 Shifting demographics
The total populace is getting more established, and with that pattern come
issues and arrangements. As indicated by a 2008 report from the United Nations
on worldwide populace changes, the middle age is anticipated to increment from
29 to 38 years in the vicinity of 2009 and 2050. The quickest developing fragment
of the populace will be individuals 60 years or more established. The maturing
populace will push economies and associations to react to the subsequent market
needs. Maturing laborers will leave the workforce, and associations will be ac-
cused of supplanting those abilities. This, thusly may bring about conventional
retirement to be reclassified as associations try to take advantage of aptitudes of
the individuals who have left the workforce.
1.4 Definitions of Quality

Quality can befuddle idea, incompletely on the grounds that individuals
see quality subjectively and in connection to varying criteria in light of their indi-
vidual parts in the generation promoting esteem chain. Whats more, the signifi-
cance of value keeps on advancing as the quality calling develops and develops.
Neither advisors nor business experts concur on a widespread definition.
1.4.1 Transcendent definition: excellence
One normal idea of value, frequently utilized by shoppers, is that it is
synonymous with prevalence or incredibleness. Perfection is theoretical and sub-
jective, be that as it may, and models of fabulousness may any extensively among
people. Henceforth, the otherworldly definition is of minimal reasonable incentive
to administrators. It doesnt give a methods by which quality can be measured or
evaluated as a reason for basic leadership.
1.4.2 Product-based definition: quantities of product at-
tributes TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (15)
TOTAL QUALITY Another meaning of value is an element of a particular, quantifiable vari-
MANAGEMENT
AND SIX SIGMA able that distinctions in quality reflect contrasts in amount of some item property,
for example, in the quantity of lines per square cm on a shirt or in the quantity of
chambers in a motor. This evaluation suggests that higher expanding measures of
NOTES item attributes are proportional to higher quality price.
1.4.3 User-based definition: wellness for planned utilize
A third meaning of value depends on assumption that the quality is dic-
tated by what a client needs. People has diverse needs, thus extraordinary quality
models. This prompts to a client based definition: Quality is characterized as wellness
for expected utilize, or how well the item plays out its planned capacity.
1.4.4 Value-based definition: quality versus cost
A fourth way to deal with characterizing quality depends on esteem; is the
interrelationship of handiness or fulfillment to cost. In accordance with this view-
point, good quality item is is as valuable as contending items and is sold at a lower
cost, or one that offers more noteworthy convenience or fulfillment at a similar
cost. In this manner, one may buy a bland item, as opposed to a brand name one,
on the off chance that it executes and additionally the brand name item at a
lower
1.4.5 Manufacturing-based definition: conformance to speci-
fications
Fifth perspective of value is assembling based and characterizes quality
as the alluring result of building and assembling practice, or conformance to deter-
minations. Particulars are targets and resiliences dictated by architects of items
and administrations. Targets are perfect qualities for which generation is to en-
deavor; resistances are indicated in light of the fact that planners perceive that it is
difficult to meet focuses on all the time in assembling. Complying with particulars
CHECK YOUR establishes consistency in goods and services.
PROGRESS
1.5 Quality Perspectives
1. Define Quality on The needs of customers are met with the survey and feedback collection from
different basis? customers and designing the product based upon the feedback and data collected
then manufactured by manufacturing departments further the product is distrib-
uted by distribution department to the last but foremost important customer. This is
how the quality is maintained regarding fulfilling the customer needs.
1.6 Customer-Driven Quality

Meeting or exceeding customer expectations
A great many people think about a client as a definitive buyer of an item or admin-
istration; for example, the individual who purchases a vehicle for individual utilize.
These clients are all the more definitely alluded to as buyers. Obviously, Meeting
the desires of shoppers is a definitive objective of any business. Prior to an item
achieves purchasers, be that as it may it might course through a chain of many
firms or divisions, each of which increases the value of the item. For instance, a
vehicle motor plant may buy steel from a steel organization and produces motor.
The steel organization is a provider to the motor plant. The motor plant is hence a
(16) TOTAL QUALITY client of the steel organization. These clients are called outer clients. Each repre-
MANAGEMENT sentative in an association additionally has inward clients who get merchandise or
AND SIX SIGMA
administrations from providers inside the association. Quality
Client driven quality is basic to high-performing associations. For example, Hilton
Hotels Corp. executed its Ultimate Service Program, which trains representatives
to expect visitor needs, customize benefit, and if important, manage grievances
rapidly and consistently with an end goal to guarantee abnormal amounts of con- NOTES
sumer loyalty. Hilton likewise utilizes thorough examinations and fulfillment dedi-
cation following surveys.
1.7 Total Quality

It is individuals centered administration framework exceptionally centering on
expanding consumer loyalty and diminishing expenses. A precise approach that CHECK YOUR
coordinates hierarchical capacities and the whole inventory network, which weighs
PROGRESS
on learning and adjustment to change. In view of the logical method.
1. What is Total Quality?
1.8 Principles of Total Quality 2. What are the principles
of Total Quality?
Total quality is based on three fundamental principles:
1.8.1 A focus on customer and stakeholder.

The client is the key judge of value. Impression of significant worth and fulfillment
are affected by many variables all through the clients general buy, proprietorship,
and administration encounters.
An association that is near the client comprehends what the client needs, how the
client utilizes its items, and foresees needs that the client may not have the capac-
ity to express. It likewise ceaselessly grows better approaches for upgrading cli-
ent connections. Associations must form associations with clients. Customers in-
clude employees and society at large
1.8.2 Employee Engagement and Teamwork
When managers give employees commitments, they essentially ensure that better
quality items and generation procedures will come about. Workers who are per-
mitted to take an interest both independently and in groups in choices that
influence their employments and the client can make significant commitments to
quality. Enabling workers to settle on choices that fulfill clients without compelling
them with bureaucratic tenets demonstrates the largest amount of trust.
Contrary imperative component of aggregate quality is cooperation, which cen-
ters consideration on client provider connections & supports the contribution of
the aggregate workforce in assaulting efficient issues, especially those that cross
useful limits. Associations with unions, clients, providers, and training associations
likewise advance collaboration and allow the mixing of associations center skills
and capacities with the correlative qualities of accomplices, making common ad-
vantages. Cooperation and organization exist both evenly & vertically
1.8.3 Process Focus and Continuous Improvement
A procedure is a grouping of exercises that is expected to accomplish outcome.
The customary method for review an association is by looking over the vertical
measurement by watching out for an association outline. Be that as it may,
work completes on a cross or level plane practically, not progressively. Almost
every real action inside an association includes a procedure that crosses cus- TOTAL QUALITY
tomary hierarchical limits. MANAGEMENT
AND SIX SIGMA (17)
TOTAL QUALITY A process perspective links together all necessary activities and increases ones
MANAGEMENT
AND SIX SIGMA understanding of the entire system, rather than focusing on only a small part.
Many of the greatest opportunities for improving organizational performance lie
in the organizational interfaces those spaces between the boxes on an organiza-
NOTES
tion chart.
1.9 Continuous Improvement

Kaizen or ceaseless change alludes to both incremental changes, which are little
& progressive, leap forward, substantial & fast, upgrades. These changes may
lead to:
1. Upgrading an incentive to the client via as good as ever items and
administrations.
2. Lessening blunders, deformities, squander, and their related expenses.
3. Expanding profitability and viability in the utilization of all assets.
4. Enhancing responsiveness and process duration execution for such procedures
as settling client objections or new item presentation.
1.10 Demings View of a Production System

Deming proposed a model to have a look of the Production System so
that the flow of material can be seen from input to output stations. The supplier
supplies the materials and equipment and the design department design it based
on the research done with regard to the customers preferences. It is important
to note that all sort of tests are done before distributing to consumer a product
like assembly and testing, total quality maintenance.
1.11 Learning
Establishment for development. Understanding why modifications are fruitful via
criticism amongst results & practices, which prompts to recent objectives & meth-
odologies.
Learning cycle:
1. The first phase is planning
2. The second phase is Execution of arrangements
3. The third phase is Assessment of advance
4. The fourth phase is Revision of arrangements in view of evaluation discoveries.
1.12 Infrastructure, Practices, and Tools

The infrastructure contains elements like leadership, strategic planning, HRM,
process management and data & information management. Similarly, practices
contains performance appraisal and training departments. Tools contain all sort of
charts like trend charts etc.
1.13 TQ Infrastructure
(18) TOTAL QUALITY 1. Leadership & key arranging
MANAGEMENT
AND SIX SIGMA
2. Customer relationship administration Quality
3. Process administration
4. Data & data administration
5. Human assets administration NOTES
1.14 Competitive Advantage

Upper hand indicates an associations capacity to accomplish showcase predomi-
nance. Over the long haul, a reasonable upper hand gives better than expected
execution
Attributes of a solid upper hand
1. It is run by client requirements
2. Creates critical commitment to organization achievement
3. Matches associations novel assets with circumstances
4. Solid & enduring
5. Support reason for further change
6. Support heading and inspiration
CHECK YOUR
1.15 Quality and Profitability PROGRESS
To understand the relationship between quality and profitability the fol- 1.How quality related to
lowing sequence is followed. For higher profitability the quality of design should profitability?
be improved which gives a higher perceived value that led to more market share
but the prices are very higher but again due to higher market share the revenues
are higher. By doing so the cost of manufacturing also lowered.
1.16 Evidence that Quality Impacts Business Results

General Book keeping Office investigation of Baldrige Award candi-
dates
Baldrige stock review
Singhal & Hendricks investigation of value honor victors
Execution consequences of Baldrige Award champs
1.17 Three Levels of Quality

1.17.1 Organizational level: meeting external customer
requirements
At the authoritative level, quality concerns fixate on meeting outer client
prerequisites. An association must look for client contribution all the time. Client
driven execution benchmarks ought to be utilized as bases for objective setting,
critical thinking, execution evaluation, motivator remuneration, non-money related
prizes, and asset designation.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (19)
TOTAL QUALITY
MANAGEMENT
1.17.2 Process level: linking external and internal customer
AND SIX SIGMA requirements
At the procedure state, hierarchical units are delegated capacities or divisions, for
NOTES example, showcasing, outline, item advancement, operations, back, buying, charg-
ing, et cetera. Since most procedures are cross utilitarian, peril exists that the
supervisors of specific authoritative units will attempt to enhance the exercises in
accordance to their command, which can sub optimize exercises for the associa-
tion all in all.
1.17.3 Performer/job level: meeting internal customer re-
quirements
At entertainer state, guidelines for yield must be founded on quality & client ben-
efit prerequisites that begin at authoritative & process levels. These models incor-
porate prerequisites for such things as exactness, culmination, advancement, con-
venience, and cost.
1.18 Quality and Personal Values

1. Personal activity positively affects business achievement
2. Quality starts with individual mentalities
3. Quality-centered people frequently surpass client desires
4. Attitudes can be changed through mindfulness and exertion
1.19 Summary
According to the ISO definition: The totality of features and char-
acteristics of a product or service that bear on its ability to satisfy
stated or implied needs. In other way, we can state that a product
will have good quality when it complies with the requirements
specified by the client. When projected on analytical work, qual-
ity can be defined as delivery of reliable information within an
agreed span of time under agreed conditions, at agreed costs, and
with necessary aftercare.
The agreed conditions ought to incorporate a determination with
regards to the exactness and precision of the information which
is specifically identified with wellness of utilization and which may
contrast for various applications. However, as a rule the unwa-
vering quality of information is not addressed and the demand for
details precluded. Numerous research facilities work as per set
up strategies and systems which are not promptly changed and
have inborn default details. Additionally, not every future us of
the information and reports can be predicted so that determina-
tions about required exactness and precision cant be given.
1.20 Key Concepts
Quality-An attribute or level of excellence. The standard of a
product, service, etc., as measured against similar products, ser-
vices, etc. A distinctive characteristic or attribute possessed by
someone or something.
(20) TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
Quality Assurance-A system in which the delivery of a service or Quality
the quality of a product is maintained to a high standard, espe-
cially by means of attention to every stage of the process.
Quality management-Management activities and functions in-
volved in determination of quality policy and its implementation NOTES
through means such as quality planning and quality assurance
(including quality control).
Statistical quality control-Statistical quality control refers to the
use of statistical methods in the monitoring and maintaining of the
quality of products and services.
Social Responsibility-The obligation of an organizations manage-
ment towards the welfare and interests of the society in which it
operates.
Environmental sustainability-The maintenance of the factors and
practices that contribute to the quality of environment on a long-
term basis.
Total Quality-A holistic approach to long-term success that views
continuous improvement in all aspects of an organization as a
process and not as a short-term goal. It aims to radically trans-
form the organization through progressive changes in the atti-
tudes, practices, structures, and systems.
1.21 Exercises & Questions

Q1. What components have added to the expanded attention to quality in
present day business?
Q2. Clarify the different meanings of value. Could a solitary definition
suffice? Why?
Q3. What is the idea of aggregate quality? What does it mean for the way
an association is overseen?
Q4. How does quality support the achievement of competitive advantage?
1.22 Further Reading and References

Taguchi, G. (1986). Introduction to quality engineering: de-
signing quality into products and processes.
Stevenson, W. J., & Sum, C. C. (2002). Operations manage-
ment (Vol. 8). New York, NY: McGraw-Hill/Irwin.
Juran, J. M. (1988). Juran on planning for quality. New York:
Free Press.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (21)
TOTAL QUALITY
MANAGEMENT UNIT 2
AND SIX SIGMA
TOTAL QUALITY MANAGEMENT

NOTES
Structure
2.0 Introduction
2.1 Unit objectives
2.2 Historical development
2.3 New Definition of Quality
2.4 Quality Guru
2.5 Symptoms of Non quality business
2.6 Benefits
2.7 The dimension of Quality
2.8 What is Total Quality?
2.9 Obstacles in TQM implementation
2.10 Summary
2.11 Key Concepts
2.12 Exercise & Questions
2.13 Further Reading & References
2.0 Introduction
To achieve excellence in organization all the things should be
managed in the perfect way
Total the whole whatever that is available
Quality index of matching standard with value experimental
Management the philosophy that is behind all the successful
practices and a way of controlling the process or project
The tool to combine all activities to fulfil the goals of a firm and to
achieve greater heights through which is used to make all the
expectations to come true of the use of customer as well as soci-
ety and the objectives are meet at time without incurring any of
the extra costs.
It needs some sort of changes those are following as requires
cultural change prevention not detection, pro-active versus fire-
fighting, life-cycle costs not price.
2.1 Unit objectives

To know about Total Quality Management
(22) TOTAL QUALITY Understand Old vs new approach
MANAGEMENT
AND SIX SIGMA Understand Implementation of TQM
2.2 Historical development Total Quality
Management
Total quality is evolutionary but never had been a revolutionary
concept
NOTES
CHECK YOUR
PROGRESS
Throw some light on
evolution of TQM with
time.
2.3 New definition of Quality

Old definition
Its all about Quality of work life
Quality circles shows that it is for technical
For inspectors
Led by experts CHECK YOUR
High grade quality PROGRESS
It is about control- little How the new definition of
New definition quality is different from
the old one.
Organizational quality
If It is decision for strategic quality
No one should be deprived of this so its a
Everyones quality
It is led by department of quality management
Quality shows the grade of quality
2.4 Quality Gurus
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (23)
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
NOTES
CHECK YOUR
PROGRESS
Name some quality gurus

along with their quality
views.
2.5 Symptoms of Non Quality Business

Complaints
Waste times
Frustration
Hassle
Confusion
Overload
Under load
Neglect
2.6 Benefits
High employee moral
CHECK YOUR
PROGRESS More efficient process
What are the benefits of Higher productivity

TQM? More time for innovation
More share in firm business
Costs of all kind are lower than expected
Increased customer satisfaction
Improved quality for products and services
2.7 The dimensions of Quality

Dimension
Performance: ulnar one can say the illumination as the Primary
product characteristics, all are important characteristics of a prod-
(24) TOTAL QUALITY ucts
MANAGEMENT
AND SIX SIGMA
Features: A secondary characteristics or can be said the feature Total Quality
like remote control Management
Reliability: High employee moral

Durability: More efficient process NOTES
Service: good serving the customer to increase the share of mar-
ket as all sort of problems are sorted out here with ease
Response: the action of interaction with customers as more is this
more is the trust of consumer
2.8 What is Total Quality?

Basically this is nothing but the movement of the firms on whole
or individually so that quality is having a degree of high and high
It is a strategic sort of concepts bt the goal is to make the best
item and give away the best of service whatever is possible using
the motivation factors such as cost lows , more profits index
Quality has to be 100% i.e. full utilization of resources and is the
responsibility of every person.
2.9 Obstacles in TQM Implementation

Issues of lack of efforts form top mgmt. side
Unable to change the culture in firm is not ones cup of tea
Issues like improper planning
No pain no gains so train hard
No data is also a problem
No appropriate techniques of measurement is also a hazards thing
Continuous improvements is necessary
Always try to improve
Les after handling costs
Low treatment costs after failure of various models
2.10 Summary
The new era sees quality with a whole different perspective than
the old one. In the modern times a thorough analysis about what
the customer wants is required. Also a huge amount of efforts
are focused on bringing out the best quality standards. Such a
desperate time demands desperate measures. One such quality
tool is Total Quality Management.
The different in opinions between earlier approach and TQM is
mentioned in the text above. So a comparison between the theo-
ries can be carried out. Further the benefits and dimensions of
TQM are discussed.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (25)
TOTAL QUALITY
MANAGEMENT
2.11 Key Concepts
AND SIX SIGMA
Total Quality Management: it a model based sort of thing in which
there is needed some comprehensive and frequency based way
NOTES of doing that so it is good for the organizational management who
is looking to enhance the quality by organizing a continuously
monitored feedback system.
Quality: the observed value is reaching the standard is can be
termed as the so called quality that is soul of any firm
Reliability: t can be defined as probability of working in the given
environment for a specified time in specified or predefined
standards.
2.12 Excercise & Questions

Q1. What do you understand by TQM? Explain its various principles.
Q2. Give a detailed comparison between new and old era views on
maintaining quality.
Q3. Discuss the implementation process of TQM.
Q4. What are the obstacles in TQM implementation?

Nag, R.; Hambrick, D. C.; Chen, M.-J (2007). What is strategic
management, really? Inductive derivation of a consensus defini-
tion of the field. (PDF) Strategic Management Journal.
Ghemawat, Pankaj (Spring 2002). Competition and Business Strat-
egy in Historical Perspective. Business History Review. Harvard
Business Review
Kvint, Vladimir (2009). The Global Emerging Market: Strategic
Management and Economics. Routeledge.
Mason, R. L., Champ, C. W., Tracy, N. D., Wierda, S. J., &
Young, J. C. (1997). Assessment of multivariate process control
techniques. Journal of quality technology, 29(2), 140.
(26) TOTAL QUALITY

MANAGEMENT
AND SIX SIGMA
Process Improvement
UNIT 3
PROCESS IMPROVEMENT
Structure NOTES
3.0 Introduction
3.1 Unit objectives
3.2 Process
3.3 Improvement
3.4 Jurans Trilogy
3.5 Improvement Strategies
3.6 PDSA Cycle
3.7 Kaizen
3.8 Summary
3.9 Key Concepts
3.0 Introduction
Based upon the basic concept of continuous improvement and
according to the concept of continuous improvement this philoso-
phy says one should try to accomplish the process improvements
by in way that is proper and sustainable improving the business
and improvising the production processes.
We continuously improve by
Whatever it is like production related or activities of business
these should be noticed as a process, whatever it is
Any one of the process should be more of a processes which is
effective, efficient and adoptable
Nee that changes faster than anything should be given impor-
tance in advance
A constant monitoring on factors like scrap reduction, cycle time
etc. will help in Controlling in process
The amount of level of performance should be maintained in a
constructive way
Investigating exercises that dont increase the value of the item
or administration, with the point of killing these exercises
Eliminating non similarities in all periods of everybodys work re-
gardless of the possibility that the addition of change is little
Using benchmarking to enhance upper hand
Incorporating lesson learned into future activities TOTAL QUALITY
MANAGEMENT
Using technical tools like SPC, QFD, and BM etc. AND SIX SIGMA (27)
TOTAL QUALITY Any firm make attempts to catch a place of thinking about finding
MANAGEMENT
AND SIX SIGMA a single minded link between quality and work execution by evalu-
ating its constituent to continuously analyse and improve their own
work, process and their work group.
NOTES
3.1 Unit objectives
Understand Improvement of a Process
To know about trilogy of Juran
Understand PDSA cycle
Understand Kaizen
3.2 Process
Refer to business or production activity of all organizations, eg.
Purchasing, marketing etc.
Input: 5M, Information
Output: information, product / service
Output of one process can be contribution to other
Output are intended to accomplish certain attractive
Results on consumer loyalty Feedback
Provided to improve the process
Process
CHECK YOUR
PROGRESS Mixing of some combination of mean, material, machine strategy,
estimation and environment to create a yield, for example, item/
What are the 5M of input benefiting addition to input and output, a process must have value
in any production pro- added activities and repeatability
cess? It must hold fast to specific conditions forced by arrangements
and contract or direction
Customer characterizes the motivation behind the association and
each procedures inside must adhere to certain conditions imposed
by policies and contract or regulation
Customer defines the purpose of the organization and every pro-
cesses within i
All process have at least one owner
Often it will happen that any of the processes will try to go be-
yond the relevant boundaries of multiple organization boundaries
and supporting sub processes will be owned by individual
3.3 Improvement
What are the basic ways to improve?
5 basic ways to improve
(28) TOTAL QUALITY Reduce resource
MANAGEMENT
AND SIX SIGMA
Reduce error Process Improvement
Meeting then the expectation of lower order customer
Make the process safe
Reduce resources NOTES
Reports that are conveyed to a larger number of individuals than

would normally be appropriate
Waste of replicating, dispersion time, material, and client read
time and so on reduce errors
Poor workmanship and require rework and it is needed to cor- CHECK YOUR
rect the errors PROGRESS
Errors detected after printout results in opening a file, correc- Why customer satisfac-
tion and printing again tion is desired for
organization existence?
Meeting or exceed expectations of downstream customer
Better welding less grinding required appearance or finish is
goo
Improvement of process by making it safe
Less accidents and hence lost time, less compensation etc.
Improve the process to increase the satisfaction of individual
performance
Ergonomically correct chai
3.4 Jurans Trilogy

Explain the various components for Process improvement
3 components for process improvement planning, control and
improvement
Planning
Pareto diagram can be used to determine the vital few customer
Customer needs are identified, based on their own words, but
real needs may differ, but internal customer may not tell real needs
due to fear
Develop product / service that are useful to a customer and sup-
plier and optimize the cost of stakeholder
Developed by cross functional team and different tools like QFD,
DoE are use
Develop process to produce the product, which is also done by
cross functional tea
Product will move from laboratory, prototype to process environ-
ment and process validation is don
Controlling
Used by working strengths to meet the item procedure prerequi-
site
TOTAL QUALITY
Uses input and have the accompanying strides MANAGEMENT
AND SIX SIGMA (29)
TOTAL QUALITY Evaluate genuine execution
MANAGEMENT
AND SIX SIGMA Compare genuine execution to objectives
Act on distinction Statistical process control (SPC) and 7 QC
NOTES tools are used
Improvement
Aims to attain levels of performance that are higher than current
CHECK YOUR levels
PROGRESS It is based on the effective infrastructure of quality council
Write down all the Quality council need to identify improvement project and project
important steps involved teams
in Jurans trilogy? Necessary resources have to be provided
Process improvement can be incremental or breakthrough
3.5 Improvement Strategies

What are the various strategies for process improvement? How
they are different?
Four strategies Repair, Refinement, Renovation and Reinven-
tion
Choosing the right strategy for right situation is critical
Repair
Anything broken must be settled, so it works as designee This
level is temporary and it is a short term measure
Refinement
Continually improving the various intermediated processes and
that is not broken
Improvements happen, but in incremental basis but it improves
efficiency and effectiveness
It ought to be essential piece of representative
CHECK YOUR It depends on doing things faster, better, less demanding and so
PROGRESS forth.
List the various strategies Changed things or processes might be progressive, no appear-
involved in process
ance of progress
improvement and their
advantages. Benefit is that, it creates little resistance from representatives
Change is continuous, administration may not perceive and remu-
nerate the representative
It may not be legitimately recorded or impart
Organization program like suggestion system and empowerment
are combination of repair and refinement
Renovation
Strategy results in major or breakthrough improvement
(30) TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
Resulting output may appear different from original, but it is basi- Process Improvement
cally the same
costlier than other two
time consuming NOTES
Reinvention
Very popular requirement
Very important one to be established
Reinvention a reengineering beings by imagining previous condi-
tions does not exist, Eg. Laser jet and water jet
Very competitive so it an advantage
3.6 PDSA Cycle

Developed by Stewart and this was called PDCA cycle
It was modified by Deming, which is called PDSA cycle
New techniques those are effective also
Future course of action i.e. Plan
Study: Did the plan work as intended
CHECK YOUR
Act: analysis of final results by finding that what worked and
what planned PROGRESS
Process improvement What do you understand
by PDSA cycle? Give an
In initial stages, quick results are obtained, as solution are
example of its application.
obvious, but in long term, systematic approach is needed to get
better results
They are several phases in PDSA cycle
Phases are integrated and are dependent on previous phases
Continuous improvement is the objective
Plan
Opportunity Identification
process analyse
solution Development
Do
Implement
Study
Study the results
Act
Solution arrangement
Future deeds
Identify the opportunity
TOTAL QUALITY
Problem can be identified from
MANAGEMENT
AND SIX SIGMA (31)
TOTAL QUALITY Pareto analysis of repetitive external alarm signals like field
MANAGEMENT failures, complaints, returns etc.
AND SIX SIGMA
alarm signals like scrap, rework, sorting etc. those are of
occurring internally by Pareto analysis of
NOTES
Proposal from suggestion schemes, managers etc.
Data on performance of competitor
Comments from customer, supplier, journalist, government rules
etc.
Improvement opportunity will come after the Problem
identification
criterial of a problem being a problem
established standard are varied due to Performance
perception and Deviatio
Cause is unknown
Prioritize the problem based on
If the problem is feasible and why?
Will goals be accompanied by this?
Maximum benefit should be got, solving it with minimum effort
Form a team
Natural work group or cross functional and choosing it depends
on problem
Team leader is identified and team is selected and assigned the
specific problems
given landmarked
only repair is needed then personal can be used
Define the scope
problem solving ability fails due to poor problem definition
Criteria for good problem statement are
- Problem description clearly Described it should be clearly
mentioned that what is wrong, when it happened, where
it is occurring and not who is responsible and why it is
wrong
- known and unknown focus on that aspects
- Uses facts and is free from judgement and emphasize on
the impact of customer
- Eg. 150 bills showed 18 errors and required one hour to
correct
It should also include authority, expected output, team members,
methods, resources etc.
Phase 2: Analyse the current process
(32) TOTAL QUALITY
MANAGEMENT Where is the currently status is valued on performance scales
AND SIX SIGMA
Key activities are to be done like defining process boundaries, Process Improvement
output and customers, input and suppliers, process flow, materials
needed, gathering data and identify root causes
to translates complex work into graphics which are easily under-
stood so their description so Process flow diagram is required NOTES
Target performance measures are defined. If something cannot

be measured, it cannot be improved
New should be designed if needed
Establishing standards and collecting the data theft is needed and
feedback system
Collect available data and information
Data helps to
Coming to the real and complex problem exists
Make a team to work better
Increases the possibility of data measure
Provides directions for a team to check effectiveness of solution
Data can be collected using check sheet, gauges etc.
Common item of data are
Customer information like complaints, surveys
Design information like BOM, drawings, etc.
Process information like routing, equipment, component etc.
Statistical information like mean, median, range etc.
Quality information like Pareto, scatter diagram, run chart, con-
trol chart
Supplier information like process variation, sample etc.
Cause and effect diagram is used, through brainstorming to list
down only possible causes and not solution
Identify too causes
Phase 3: Develop optimal solution
Creativity and brainstorming play a major role
3 types of solution can happen
Create a new process
Modify existing process
Combine different process
Evaluation or testing of solutions - to test which has the greatest
potential and the advantages and disadvantage
Criteria include cost, feasibility, effect, resistance to change, train-
ing etc.
Solution must prevent reoccurrence
TOTAL QUALITY
Phase 4: Implement changes MANAGEMENT
AND SIX SIGMA (33)
TOTAL QUALITY Preparing the implementation plan
MANAGEMENT
AND SIX SIGMA Getting approval and implementing it
A written or oral report is given
NOTES Why will it be done?
How will it be done?
When will it be done?
Who will do it?
Where will it be done?
After implementation, monitoring has to be done
What information will be monitored?
Who will take measurements?
What is required?
How it will be taken?
When?
Phase 5: Study the results
To check the effectiveness of improvement effort
It is necessary to evaluate the results to check for any fine tuning
They will check for any unforeseen problem getting developed
Phase 6: Standardize the solution
Positron (positive control) a tool that ensure important variables
are best under control
It specifies what, who, how, where and when the process and it
is a updating of maintaining activity
Operator must be trained on what to do, how to do etc.
If required job rotation is done, so all people knows about i
Phase 7: Plan for future
Objective achievement
Important to regularly scheduled review
Management must identify future area of improvement by
tracking internal and external customer requirement
Lessons learned in problem solving etc. should be transferred to
other with in organization
3.7 Kaizen
A philosophy that defines management role as the continuous
improvement by continuously encouraging and implementing small
improvements involving everyone
Progress is made with little or no expense without sophisticated
technique or equipment
(34) TOTAL QUALITY
MANAGEMENT Breaking down the problems so into sub process and focus
AND SIX SIGMA
Kaizen focuses on Process Improvement
Muda: waste of over production, inventory, transportation, wasted
motion, delay, defective parts etc.
5S NOTES
Poka yoke
Documentation
Principle of motion study and material handling etc.
It relies on culture that encourages suggestion by operators
3.8 Summary
A firm attempt to reach a single point among quality and by evalu-
ation of its constituent to continuously analyse and improve their
own work, process and their work group. Customer defines the
purpose of the organization and every processes within it.
To achieve the above stated goals various philosophies of quality
guru are implemented in the production unit. In the text above
Jurans trilogy and PDSA cycle are discussed along their imple-
mentation steps.
3.9 Key Concepts

Process performance: the index for process improvement is the
process performance index and it is an indication of the capabili-
ties of a process during its starting plan, before it has been brought
into a state of statistical control.
Feedback: Information about the following thing come in feed-
back process like reactions to a product, a persons performance
of a task, etc. which is used as a basis for improvement.
3.10 Exercise & Questions:

Q1. What do you understand by Jurans trilogy? Explain its different phases.
Q2. Discuss PDSA cycle. Also explain its various stages.
Q3. What are SQC? Discuss Pareto analysis.

Innovation. Merriam-webster.com. Merriam-Webster. Retrieved
4016-03-14.
Based on Frankelius, P. (4009). Questioning two myths in innova-
tion literature. Journal of High Technology Management Research.
Vol. 40, No. 1,
MIT Sloan Management Review Spring 4004. How to identify
and build New Businesses.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (35)
TOTAL QUALITY
MANAGEMENT UNIT 4
AND SIX SIGMA
INVOLVEMENT OF EMPLOYEES
NOTES
Structure
4.0 Introduction
4.1 Unit objectives
4.2 Maslows Hierarchy of needs
4.3 Hertzberg two factor theory
4.4 Achieving a motivated workforce
4.5 Empowerment
4.6 Decision making methods in teamwork
4.7 Training
4.8 Performance appraisal
4.9 Union and Employee Involvement
4.10 Benefits from Employee Involvement
4.11 Summary
4.12 Key Concepts
4.13 Exercise Questions
4.0 Introduction
To improve quality and productivity Employee involvement is one
approach
Contributing to the success enjoyed by the Japanese in market
the use is credited for improvement
Providing relevant Motivation
Having been the good understanding of things will help in getting
been motivated and also to understand the importance of exploi-
tation of employees up to the beneficial extents involvement
4.1 Unit objectives
Understand Employee Involvement
Understand Training
Understand Union and Employee Involvement
Understand service system design tools
4.2 Maslows Hierarchy of needs

A layered model termed as a mode of hierarchy of needs
is a good factor of motivation so it has many level
(36) TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
All 5 parts of motivation are following as survival, security, social, Involvement of Employees
esteem and self-actualization
After achieving a level human nature is that will not go for next
level so as a person it no longer motivates a man
NOTES
Survival: Food, garments or clothing and palace to living
Security: a safe place to work
Social: relate to our need to belong, because we are social ani-
mals, i.e. cutting someone out of the group and isolation CHECK YOUR
Esteem: w.r.t. the self-respect PROGRESS
Promotion in job Why it is required to
Employees always move up the hierarchy, but if there is a threat, improve quality?
they will get back to previous level
4.3 Hertzberg Two Factor Theory

To propel the more of the work of Maslow by using empirical
methods
According to Hertzberg there are elements involved in reaching
the level that are desired. He found that people are motivated by
recognition, responsibility, achievement, advancement and the work
itself and these factors are called labelled motivator
Bad feelings are associated with wages, fringe benefits, environ-
ment of working, organization policy, technical supervision and
these are called dissatisfaction or hygiene factors, which implies
prevention
What employee wants? Good pay!!!
Not only this but survey depicts that doing the work things like
appreciation, involvement, job security, good pay, promotion /
growth, good working condition, loyalty to employees, help with
personal problem, tactful discipline are also seed by employees.
4.4 Achieving a Motivated Workforce CHECK YOUR

PROGRESS
Everywhere and all their needs that like no one can make one to
work harder similarly Managers cannot cause employees to What are labeled
motivate but they must create an environment and individuals to motivators?
motivate themselves
Some concepts are
Know themselves
- Everyone should understand their own strength,
motivation and weakness including the Managers also
- Obtained by peers and employees appraising the
managers performance
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (37)
TOTAL QUALITY - Managers success depends on employee achieving their
MANAGEMENT goals
AND SIX SIGMA
Employees should be known
NOTES - Manager must know employee interest and dream and

help to achieve them
- Manager can help employee in directing his efforts to-
ward satisfying goal and wellbeing, thus can utilize their
strengths
Establish a positive attitude
- Feedback should be positive
- Respect and sensitivity towards others is essential
- Hearing ideas and suggestion and implementing or ask-
ing about job related problems etc. will create a condu-
cive atmosphere
Share the goals
- A committed workforce requires well defined set of
predefined goals
Monitor progress
- Process of goal setting should have a roadmap along to
durational milestones and personnel landmarks
- Performance should be reviewed after certain durational
Developing interesting work
- Manager should alter the employee assignment by fol-
lowing methods like job rotation, job enlargement or job
enrichment
- Changing jobs frequently is the output of rotational jobs
and allows the employees to change the jobs so that they
dont feel bored (no boredom and knowledge enhance-
ment for error some time) for a fixed duration.
- Job enlargement making the domain of the job more wide
so that the employees performs a various tasks at same
time one after other
- Job nourishment combines task vertically by involving
factors like planning, scheduling and inspection (employee
gets sense of autonomy and control)
Communicate effectively
Celebrate success: Recognizing success factors of employee is
the most powerful tool in managers tool box
4.5 Empowerment
Their total management effort comprises any functional unit that
is empowering the employees and possibly double of the possible
(38) TOTAL QUALITY other firms to report significant product or service enhancements
MANAGEMENT
AND SIX SIGMA
Empowerment the meaning is according to pannerselvam is Involvement of Employees
invest people with authority
To create empowered environment, three conditions are neces-
sary
NOTES
All should be knowing that change is always required change Is
the universal truth behind all the inventions
- Fear should not be there of any kind one like is change I
mean fear of things being change
- Good, Effective and elaborative overall skills of commu-
nication requires to change the index of success
- Critical factors should be stressed upon
- Healthy relationship with people also contribute towards
success
- Role of each others should be understood by everyone
Entire system also needs to be change go for new stories
- System need to change to one thing that is reinforce and
motivate individual and group accomplishments
The organization would give or provide enable its employees
- Providing the needed knowledge about the process and
all that like about information, education and skill
- Asking people to change work habits
4.6 Decision making method in team work
There are total of Five type of decision as well as no decision CHECK YOUR
happen in between the team process planning and meetings PROGRESS
No decision List the all the different
Occasionally discussion on strategies not more than that exten- type of decision and no
decision occur during the
sively also no conclusion will be derived from it
team process plan set up.
Completely wastages of time as it is unfortunate
Unilateral decision
It is made by one person leader
It saves time
Assumption is that leader have necessary information and team
will not react negatively and if it reacts, it affects the success
decision by Minority rule
domination by a few members of group and impose their decision
on the majority, this type of decision taken place
Members abdicate their responsibility and go along with the deci-
sion in order to avoid conflict and be cooperative
Provides low enthusiasm for implementation and future involve-
ment TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (39)
TOTAL QUALITY Majority rule decision
MANAGEMENT
AND SIX SIGMA When all agrees and give their consents This method is widely
used when most of the team agrees
NOTES Best choice

Decision by vote of Consensus
Here adequate discussion is needed and good for all members to
feel that they can give their nod to it
It takes more time
Probability of successful implementation is enhanced
4.7 Training
Necessary for a team to be good
Active participation by Quality council and conducting training
programs
Training must be experimental because trainee retains 20% of
what they hear and 80% of what they do
Needed Whenever relevant market case studies should be used
1st step is firstly make all aware of the real situation now thoughts
suggestion, feedback should be gather
2nd step is get acceptance, the trainee should feel that it is value
to them
3rd step is to adapt the program need of all is evaluated
4th step is adapt to what has been agreed upon?
Training must be in group dynamics, communication, customer
relationship, problem solving, safety and technical aspect etc.
team leader plays a major role, he must be trained in human rela-
tions, motivation, conflict resolution et
Consultants are needed for training
4.8 Performance Appraisal

Purpose is to enhance or intensify performance
Lets employee know, how they are performing and provide a
basis for promotion, salary increase etc.
Nice relationship between employee and appraiser
Employee must being knowledge of the appraisal process, what
and how is evaluated?
Appraisal should point out strength and weakness and how his
performance can be improved
Performance appraisal may be for individual or tea
The standard those are developed should are like based upon
(40) TOTAL QUALITY performance and should be praised by both employer and em-
MANAGEMENT ployee
AND SIX SIGMA
It should change with respect to changes happening in organiza- Involvement of Employees
tion
Performance appraisals is looked as a approach of assessment
and better technique to measure the employees potential who are
working continuously. NOTES
No error is the first priority so work according to that

Culture, ethics, education level and predetermined opinion affects
evaluation
Doing wrong sort of evaluation or assessment then you might end
up losing your best and most trusted employee
Disadvantages
It have term performance and destroy long term planning
Personnel focus will destroy team work
Team are good for better execution of projects but one single
employee might spoil it
Only one ,an cant do all thing it is a wrong thinking so let it go
Approach are based on subjectivity and immeasurable
4.9 Union and Employee Involvement

Sometimes the trade unions really dont come good and some-
time the reverse happens so a lot of concern is giving to the qual-
ity improvement program, but there is a problem and that is the
excessive co troll over employees
Union representative should be a required part of that
There should be any discussions on the team wages, rate of pay,
hours of employment etc and thats going to affect it at large the
motive behind the real things
No concentrated power so there should be a distribution of power
every time
Working in coordination is the only way to beat competition
Mutual respect of teams or working between people and Man-
agement is must for smooth operations
Make all level of employees to participate in the decision making
like in planning, implementation and evaluation of entire effort.
Other method is traditional bargaining of the impact and imple-
mentation action
In case 1, union leadership run the risk of criticism from other
members that he is working too closely with management
Choosing the method depend on background and history of labour
relations
But leadership or organization will seek early involvement of union.
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MANAGEMENT 4.10 Benefits from Employee Involvement
AND SIX SIGMA
Involving employees, empowering them and bringing them into
decision making will help in achieving very good results
NOTES
Also there is a very important advantage and that is continuous
process improvement
Innovation and new ideas along with the all-important thought
process will make the difference between success and failure
It also has following advantages as
Employee make better decision using their expert knowledge of
their process
Quality enhancement
Lead time reduction
Higher productivity as employees are happy
Low amount of throughput time due to Lead time reduction
The best critic of failure or breakdowns are employee itself so
please respect them and nourish them as they are best to spot
and pinpoint the areas of improvement
4.11 Summary
Employee involvement is basically the participation of a firms
workforce in its decision making. It involves various stages such
as training, performance appraisal, teamwork decision making etc.
A motivated workforce is better both for the organization and for
itself also. Better productivity is the main aim of any organization.
So a motivated or inspired team work would lead to enhancement
of quality and productivity of any organization
4.12 Key Concepts

Employee empowerment: it says that Employee empowerment is
giving employees a certain degree of autonomy and responsibility
for decision-making regarding their specific organizational tasks.
and Employee make better decision using their expert knowledge
of their process Quality enhancement, Lead time reduction, Higher
productivity as employees are happy so their empowerment is
very important
Performance Appraisal: author says that A performance appraisal
(PA), also referred to as a performance review, evaluation, (ca-
reer) development discussion, or employee appraisal is a
method.by which the job performance of an employee is docu-
mented and evaluate.
Employee Involvement: he also says that The direct participation
of staff to help an organization fulfill its mission and meet its ob-
jectives by applying their own ideas, expertise, and efforts to-
wards solving problems and making decisions.
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MANAGEMENT
AND SIX SIGMA
4.13 Excercise & Questions Involvement of Employees
Q1. Why it is important for an organization to have a motivated workforce?

Q2. Why employee empowerment is required?
NOTES
Q3. Discuss the impact of employee involvement on productivity of an
organization
Q4. What are the different type of decision and no decision situation arise
in decision making process.

cf. Andreas Wieland, Carl Marcus Wallenberg (2011): Supply-
Chain-Management in strmischen Zeiten. Berlin
Harland, C.M. (1996) Supply Chain Management, Purchasing and
Supply Management, Logistics, Vertical Integration, Materials
Management and Supply Chain Dynamics. In: Slack, N (ed.)
Blackwell Encyclopaedic Dictionary of Operations
Management.UK: Blackwell.
http://www.orie.cornell.edu/research/supply_chain.cfm
TOTAL QUALITY
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AND SIX SIGMA (43)
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MANAGEMENT UNIT 5
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CUSTOMER SERVICE
NOTES Structure
5.0 Introduction
5.1 Unit objectives
5.2 Feedback
5.3 Using Customer Complaint
5.4 Translating needs into requirement
5.5 Customer Retention
5.6 Who are the customers?
5.7 Categories of Customer
5.8 Internal Customer Supply Chain
5.9 External Supplier
5.50 Understanding Customer Requirement
5.11 Kanos Model
5.11.1 Threshold/basic/Expected
5.11.2 Attractive/Delightful
5.12 Customer Requirement
5.13 Observation
5.14 Methodology
5.15 Applications
5.16 Application to a Hotel
5.17 Customer Protection
5.18 Quality Awards and Customer Satisfaction
5.19 Customer Complaint and Feedback System
5.20 Customer Satisfaction Survey
5.21 Customer Satisfaction Performance Measures
5.22 Summary
5.23 Key Concepts
5.0 Introduction
Customer is the most important thing for any firm
As success of firm depends on him or her and a good firm angers
the following questions in a positive way so the questions are like
(44) TOTAL QUALITY What is the no. of customers in the firm
MANAGEMENT
AND SIX SIGMA
What is the no. customers who used to buy something Customer Servvice
Frequency of their buying
The measure of quality (MBNQA) accounts for 30% of the point
this shows that many of the organization are giving a serious con- NOTES
cerns towards maintaining good relations with customers and serv-
ing them the best
An organization must give its customer should be given the best
of things like a quality product or service that meet their needs at
a reasonable price, which includes on-time delivery and outstand-
ing service and customer satisfaction and remember that only
profit should not be primary goal of organization
Offer should meets need so that each and every customer is sat-
isfied Totally
Part of the square outside the circle is unwanted so discard it
It is subjective in nature and hence difficult to measure
5.1 Unit objectives

Understand Feedback
Understand Customer Satisfaction
Understand Kano Model
Understand Performance Measures
5.2 Feedback CHECK YOUR

PROGRESS
Changes that Customers make like at last moment changing
Make a list of feedback
(a) Their thoughts (b) wants (c) Delivery options
Methods.
Feedback is ongoing and evaluating at every time in his the
customer mind
this gives enough power to an organization to check out or find
out
Dissatisfaction of a potentially ill-treated customer
Quality priorities
the competition with quality and price
needs of customers and
improvement areas for giving a pleasure to the customers
By using some appropriate tools are may be used to know the
customers voice to have a proper feedback system
They are tools available like comment cards, surveys, focus groups,
toll-free telephone lines, customer visit and internet
Comment card
Lesser cost of getting feedback
Given along with the warranty card and the information are pro- TOTAL QUALITY
vided with it included with product when purchasing MANAGEMENT
AND SIX SIGMA (45)
TOTAL QUALITY Intent is to get small personal information and what made that
MANAGEMENT customer buy the product
AND SIX SIGMA
Survey
NOTES A very popular tool to know the customers reaction and percep-
tions about product and service qualities
time consuming and costly
Can be administered through mail or phone
Normally a questionnaires is asked to customer on a 1 to 5 scale
and try to rate the various products or services are rated
After sales service is also rated on the same concept
The result may not represent the normal population and they may
be biased as those who feels strongly about the subject
Survey (eight points to be remembered)
Difference between Clients and customers as both are not the
same
Surveys raise customers expectations
Answer is dependent on asking habits to a customers
More time and more data and more concurrent is the results and
because data analysis and interpretation takes a lot of time
Whom you ask is important on what you ask
Data analysis method should be clear
Survey is different from public opinion poll, as in later customer
tend to be anonymous
Question are off different types
Information on customer feelings or attitudes
Information on customer behaviour
Information on customer knowledge
Questions should be carefully crafted, so that it does not get con-
taminated and hence the answers
Customer should be thanked for spending their time after it is
done with them with them
Focus groups
Most popular and too expensive, but effective way of gathering
information on expectation and requirement
Group of customers of profile
They are asked questions (carefully prepared) by moderator, who
knows what information he wants
An incentive is given to these people for their time
Toll-free telephone numbers
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Effective technique
MANAGEMENT faster and more cheaply to the reply
AND SIX SIGMA
Customer visit Customer Servvice
Provides organization to proactively monitor its products perfor-
mance when it is in use and identify specific problems
Managers involvement is must and not delegated to some one NOTES
Internet
Manager can monitor discussion about what take place on internet
to know that what customer say about products
Newsgroups, electronic bulletin boards and mailing lists are
scanned for keywords, if it is of interest to some group
Message like comparing a company product with that of com-
petitors can be uncovered
Less costly method
5.3 Using Customer Complaints

Previous activities (feedback) are proactive methods
The most important tool of gathering information and risk is also
involved of losing customer
If not treat well than a customer will become a past
Use customer dissatisfaction as the primary measure to know
the possible process improvement
About 80% of people never do complaints and hence organiza-
tion may perceive that customers are satisfied
Mostly they switch to a competitor and hence every complaints
should be accepted, analysed and solved, as it represents the tip
of iceberg
Small organization has a tremendous advantage, as top ranking
personnel having contact with customers and hence provide fast
response, but its not the case of large organization
If you heard their complain then more than half of dissatisfied
customers will buy again
Complaints may fail to reach top management, but it reaches po-
tential customers
5.4 Translating needs into requirements

Kanos model
Diagram
Conceptualizes customer requirements
3 major area of customer satisfaction
1st area given by diagonal line
- Explicit needs
- Very Easy to target and happen to be met
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AND SIX SIGMA (47)
TOTAL QUALITY 2nd area is innovation
MANAGEMENT
AND SIX SIGMA - Customer ideas are vague and hence new idea comes
out during conceptualization
NOTES - Some idea may excite and delight the customer
3rd area is un-stated and unspoken requirements
- Most significant area
- Customer may be unaware and thinks that all his require-
CHECK YOUR
ments will be automatically met but he dost not know
PROGRESS
about the facts
Name some threshold,
normal and delighters
attributes.
5.5 Customer Retention

Customer satisfaction is not as important as this one
Represent those acts of customer ease and loyalty of customer is
created which improves bottom line
Customer satisfaction survey, focus group, interviews help to iden-
tify what customer think and what he does may be different
Customer satisfaction should also be measured by market share,
cash register receipts, no. of referrals from other customer etc.
Can be done by having employee retention, which has an impact
on customers
Notes
Improved service always carries cost and any one of firm must
determine its paybacks of investment made in services that in-
volve revenue and market share
Benchmarking can be used to assess organization against com-
(48) TOTAL QUALITY petitor and hence set realistic goals
MANAGEMENT
AND SIX SIGMA
A good firm should be taking some data to improve the methods Customer Servvice
by contacting to customers about their concerning customer needs
and expectation
More of the customer retention and satisfaction, financial reward
will follow automatically NOTES
In the market economy, the customer is the king is well known

and never failing in its veracity.
TQM purpose is the customer satisfaction to the degree that his/
her expectations are to be not only met but also exceeded.
Customers are the people but the consumer are the statistics.
5.6 Who are the customers?

The customer is a generic word for the receiver of the goods or
services.
Customer concept is both strategic and tactical
Strategic deals with designing the products to satisfy customer
and create process to deliver to their needs
But tactical focus is vital to really satisfy the customer
5.7 Categories of customers

A customer is chief of all of our business.
Treatment with respect is all he wants
A person who is purpose of our work and existence in business.
A person deserves attention and curtesy.
A person who want quality, cost, safety, and delivery with moral
orientation.
Internal or external are the two class of customers.
5.8 Internal customer supply chain

As an organisation seeks to satisfy the external customer, same
concept applies to internal departments.
Each individual becomes customer and supplier along the busi-
ness process flow.
5.9 External Supplier

This concept has rapidly developed in large organisations in the
west as they now have their own quality standards which sup-
plier must satisfy to be favoured one.
Small and medium business also needs to develop a strategy treat-
ing themselves as a customer to their own external suppliers.
A policing attitude towards suppliers where visits and inspection
are undertaken with little or no prior warning may reveal their
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mistakes and poor quality.
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AND SIX SIGMA (49)
TOTAL QUALITY Some formal measures must be established between the cus-
MANAGEMENT tomer and supplier, otherwise the relationship may become un-
AND SIX SIGMA
comfortable.
These could include:
NOTES
Accurate measurable customer requirements
Periodic customer supplier quality reviews
Examination of supplier quality policy
Creation of customer supplier improvement teams
5.10 Understanding customer requirement

Who is the customer
What he wants?
Typical Indian Customer
Subtle, Polite, Diplomatic
May not come out openly
5.11 Kanos model

Proposed by Prof Noriaaki Kano
The model is based on the concepts and it was defined by kano
as customer quality and provides a simple ranking scheme which
distinguishes between essential and differentiating attributes
A good way to visualizing the product is this model to check the
characteristics and stimulating to have a discussion on with de-
sign team
Kano, demonstrated that same people have same wants.
These demands can be hierarchy or a systematic system should
be made to demonstrate it
Relationship between an organization and customers behavior are
made better by implying the hierarchy provides a logical straight-
way to meeting and exceeding customer needs
5.11.1 Threshold / Basic/Expected Attributes
According to kano basic attributes are described as attributes
which must be present in order for the product to be successful,
can be viewed as a price of entry, However, the customer will
remain neutral towards the product even with improved execu-
tion of these aspects.
5.11.2 Attractive/Delightful Attributes
(Exciters Delighters) any special feature gives Customers great
joy to be made along with are ready to pay for the service or
product. Although the level of satisfaction may not goes (below
neutral) if the product is not up to mark of thoughts of a customer
(50) TOTAL QUALITY These features sometimes not of the utmost importance as there
MANAGEMENT may be some latent needs.
AND SIX SIGMA
Customer Servvice
5.12 Customer requirement
Expected
The basic needs of customers that should be met whenever he
NOTES
demands a products or paying for a service. If these needs are
not met, he will say none or may be even not even notice.
Example: Telephone dial tone. If it rings they are not happy. It is
not noticed when it is there although.
Normal
Sometimes referred to as fundamental of quality. Customers take
it very seriously and these needs are quite cognizant about them.
If these needs are satisfied then, customers are very Hush, they
are not showing signs of pleasures when they are not met.
Example: Price, performance, delivery
Delightful
Sometimes some types of needs are there which Customers dont
know of. These are referred to as latent needs. These are
always there are not felt but ta times so these are termed as
mysterious needs It is also described as having attractive quality.
5.13 Observations
About Product differentiation
Very new and distinct feature.
May the thing which are today extra seems might become
tomorrows reality or basic needs as customer tastes changes
over time say for example like a cup holder in a car
5.14 Methodology
Determine main features
Development of relevant questionnaire those aims to understand
how futures customers shall be thinking about the present fea-
tures that there should be there or not for example - a functional
question (i.e. - the feature is present) and a dis-functional ques-
tion (i.e. the feature is not present)
Collecting or summing the responses as with or by conducting
some any interviews by appropriate method.
Identify the alternative available options
Classified them on received responses as these are attributes to
which the customer pays no attention If they are present, it is
nice. If they are not present, it does not matter
Separate the clashing responders
5.15 Applications
The model given by the Kanos to have a look in the segments of TOTAL QUALITY
quality features. MANAGEMENT
AND SIX SIGMA (51)
TOTAL QUALITY It suggests that a good outlook is presented by Kanos Model for
MANAGEMENT
AND SIX SIGMA controlling the quality of the products
5.16 Application to a hotel

NOTES
Must-Be Needs
To make a positive relationship with the customer it is very not of
much of utmost importance that all the customers he needs should
be served in the best way. Firms uses this concept as the mea-
sure of dissatisfaction of customer as to assess process improve-
ment efforts
One-Dimensional Needs
It is sort of the needs of any customer that will result in one way
traffic of any discussion like he should not be made to pay more
or he should be served in the best way that is possible. The charge
taken by a hotel room by authorities is the example of this kind.
5.17 Customer protection

The following points justify the need for customer protection:
CHECK YOUR
PROGRESS Customer do not have adequate product knowledge.
They are ignorant of their right.
Why is the need of
customer protection? They are in a weak bargaining position.
Manufactures and suppliers have the expertise which they dont
have.
Often products are forced on customers through publicity, eye
catching packaging and advertisements.
Fake and spurious products are flooding the markets and deceiv-
ing the customers.
Let the buyer be aware is not realistic in complex and mass pro-
duced goods or services.
5.18 Quality awards and customer satisfaction

They are quality awards aiming for customer satisfaction:
CHECK YOUR
PROGRESS Malcolm Baldrige National Quality Award
ISO 9000: though it does not fully address but the inherent as-
Make a list of quality
sumption is that customer requirements are known and fulfilled
awards.
The European quality award
The Deming prize for quality
The Golden Peacock National Quality Award
5.19 Customer complaint and feedback system

This is vital for any industry to survive in the market for long.
(52) TOTAL QUALITY A typical management system may have these points for its ef-
MANAGEMENT fective working
AND SIX SIGMA
Complaints must be collected from all sources. Customer Servvice
Data should be collected in a defined format.
Complaints must be resolved quickly.
Customer must have quick response. NOTES
Local issues must be solved locally.

All others should be solved at central coordinator.
Data must be analysed on regular basis.
Performance measures should be identified.
Manager must monitor and promote use of entire process and
should extend it to customers
5.20 Customer satisfaction survey

An organisation can undertake a number of different kinds of
surveys.
These could be:
Post purchase survey
Post installation survey
Customer satisfaction serve
5.21 Customer Satisfaction Performance measures

Reliabilities of a product to delved to the customer
using easiness
network of net of various types or class of dealers and retailers
Paper work needed
Price and costs of ownership
After sales service
System integration and compatibility
Functionality and performance
Customer complaints and feedback
Environment friendly products
5.22 Summary
Customer is the most important determining factor of any organi-
zation. Every production unit aims at satisfying the customer needs
so that maximum market can be captured and maximum profit
can be obtained
There are various theories of refining the customer requirement
and their needs. Kano model is very popular in determining the
customer needs. Transforming the needs into design requirement
is achieved by using these theories. Kano model categorizes the
requirements according to their importance and weightage. After TOTAL QUALITY
MANAGEMENT
that other terms such as performance measures, customer reten-
AND SIX SIGMA (53)
TOTAL QUALITY tion, customer protection, quality awards etc. inspires the organi-
MANAGEMENT zation to achieve total customer satisfaction
AND SIX SIGMA
5.23 Key Concepts

NOTES Customer Satisfaction: to know up to what extent the customer is
satisfied or not is the basic aim of all service providers and to
know how the products and services supplied by a company are
in coordination with the customer expectation
Customer Retention: This concept shows how to make a good-
will of a firm so that market can be expanded so it can be defined
as the activity a company undertakes to prevent customers from
defecting to alternative companies. Good companies always gives
emphasis on this part.
Kanos Model: The Kano model was developed in the domain of
product development and customer satisfaction in the 1980s by
Professor Noriaaki Kano which classifies customer preferences
into five categories.
Customer Protection: regulation from govt. part to safeguard the
customers and their legal requirements

Q1 Customer requirements are made in feedback system by how?
Q2 Describe the customer satisfaction and TQM?
Q3. Explain Kano Model. Give an example where customer needs are
divided into categories.
Q4. Explain the terms: Customer retention and Customer protection.

Scientific and Technical Societies of the United States (Eighth
ed.), Washington DC: National Academy of Sciences. 1968. p.
164. Retrieved 25 March 2014.
Automobile Industry Introduction. Plunkett Research. 2008. Re-
trieved 25 March 2014.
Manufacturing & Investment around The World: An International
Survey of Factors Affecting Growth & Performance, ISR Publi-
cations/Google Books, revised second edition. 2002. ISBN 978-
0-906321-25-6.
Herzberg, Frederick; Mausner, B.; Snyderman, B.B. (1959). The
motivation to work (2nd ed.). New York: Wiley. ISBN 0-471-
37390-7.
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MANAGEMENT
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Governance &
UNIT 6 Leadership
GOVERNANCE & LEADERSHIP

Structure NOTES
6.0 Introduction
6.1 Unit objectives
6.2 Role of leadership in implementation
6.3 Role of senior management
6.4 Quality Council
6.5 Core values and concepts
6.6 Shared values
6.7 Quality Statement
6.8 7 Steps of Strategic Planning
6.9 Communications
6.10 Characteristics of leader
6.11 Summary
6.12 Key Concepts
6.0 Introduction
Needs a lot of thoroughly understanding of human nature should
be understood keenly
Abilities of people and wants are the basic needs of people et
To be an effective leader, he should know nature of all the people
A good leader not only focuses on rewards but also on the pun-
ishments and are ready to accepts any challenge to move ahead
Distrust leader, if words are inconsistent with leader action
Leader needs to do the following
Give employees independence; encourage and reward small suc-
cess
Create an environment do not penalize mistake
Give a personal control over their task to make them ow
James McGregor Burns says
A good leader is that person who instils purpose, not one who
control by brute force
Leader strengthen the followers
Leader always try to set standards and provide a value to the
TOTAL QUALITY
organization and promote it and protect i
MANAGEMENT
AND SIX SIGMA (55)
TOTAL QUALITY
MANAGEMENT
6.1 Unit objectives
AND SIX SIGMA
To give a brief introduction of what is Leadership
To give a brief introduction of what is the functions of senior
NOTES management
To give a brief introduction of what is the duties of Quality
council
To give a brief introduction of what is the meaning of a point of
view named as Shared value and core value
6.2 Role of leadership in implementation

Commitment
Begins with senior management (CEO commitment
Commitment and leadership requires every phase of implemen-
tation
Education
Senior management / manager should be educated about TQM
concede
Can learn by industrial visits of TQM plants, seminars, books etc.
CHECK YOUR Timing
PROGRESS Is organization ready for implementation?
What are the responsibil- Check for any foreseeable problem like change in management,
ity of leadership in TQM? some crisis like strike etc.
Develop a vision, mission statements and quality policy with in-
volvement of all personnel including middle managers and super-
visors
TQM retreat
TQM ownership
More skills to be better
More motivation for successful implementation
TQM training, leadership skills etc. will be tag
Discussion with union
Share implementation plan of TQM
Both manager and union leader have to work together
Communicate it to entire organization
Very much of prime importance that can be like creating the
awareness, interest and desire for action from worker
Conduct survey
Customer, employee and supplier surveys to collect information
to identify quality improvement projects
(56) TOTAL QUALITY Problem solving training to employee
MANAGEMENT
AND SIX SIGMA
Training is conducted to employees, who will play a major role in Governance &
quality improvement project Leadership
Deploying projects
Team are formed and are allotted initial projects NOTES
Quality council monitors the progress
6.3 Role of senior management

Participating with purposes
Implementing with coordination
They must practice philosophy management by wandering CHECK YOUR
around PROGRESS
Getting out of office, talk with customer, supplier and collect first- What is the planning term
hand information cycle for senior
Should provide needed resources like training, equipment, fund- management?
ing etc.
Should celebrate the success of quality improvement effects
through award and recognition
Must visibly and actively engage in quality effort through demon-
strating, communicating and emphasizing on quality statement
Listen to internal and external customers and suppliers based on
which process improvements projects to be identified
Important role is communication. To create awareness and im-
portance of TQM and provide TQM results in ongoing mane
Ultimately they would be doing the following duties like
Drive out fear of the organization
Remove all the barrier
All barriers be examined critically
Remove system obstacle
No change no gain so try to implement it
Culture is responsible for change so change it
6.4 Quality Council

What do you understand by term Quality Council and what is its
needs
Establish to provide overall direction
Driver of the TQM engine
Composed of CEO, senior managers of functional area and a
consultant along with union representative and coordinator
Coordinator should report to CEO. His responsibility is to build
two-way trust model
Propose teams need to the council, share council expectation to TOTAL QUALITY
team etc. MANAGEMENT
AND SIX SIGMA (57)
TOTAL QUALITY Responsibility
MANAGEMENT
AND SIX SIGMA - According to the writer there should be a guideline to be
followed to be a good leader like core values, vision state-
ment, mission statement, quality policy statement with
NOTES input from personnel
- Along with good values also try to develop the long dura-
tion strategic plans to achieve the desired and pre-planned
goals.
- Provide adequate training to them
- Minimum cost of quality
- Give them idea about the bad effects of bad quality
- The selection of performance measures in respect to firms
profit and future and monitor the
- Determining the improvement programs or the projects
that used to affect internal and external customer
satisfaction
- Establish multi-functional project
It is necessary that quality council become ingrained in culture
6.5 Core values and concepts

Helps to TQM behaviour and define the culture
Customer driven quality
It is a strategic concept
Customer has the all rights of judgement powers
Should have product / service / process characteristics, that add
value to the customer and satisfying them should be the focus
CHECK YOUR
PROGRESS Also include organization that try to build the relationship with
customers and loyalty with them
Give the difference
between core and shared
Should also include product differentiation that makes it unique
from competition
values.
Nonstop learning
To adapt according to any situation and also to change also try to
achieve the new heights and new goals
Continuous improvement and learning
Both have to be added inside the system of the firms functions
- Are required part of daily work
- Eradicate the roots of problem
- Use effective strategies and tools to do this
- Create opportunities
- Create better chances of development
(58) TOTAL QUALITY - Improving the skillset
MANAGEMENT
AND SIX SIGMA - Reducing errors, defect, waste
Valuing employees Governance &
Leadership
motivation of workforce
Organization needs to Drive out fear of the organization Re-
move all the barrier. All barriers be examined critically. NOTES
It also include integration of HR practices like selection, perfor-
mance, career advancement etc.
Design quality and prevention
Organization needs to look upon design quality and whatever the
problems arises due to the waste prevention through building
quality into product
Design quality means fault-tolerant / failure resistant process and
product
Waste can occur not only due to resource use and manufacturing
process, it also talks about process waste and product wastes
Growing environmental demand means, design quality and pre-
vention should also take into account these factor
Management by fact
Organization depends on measurement of the true performance
Measures the firms strategy and will give away all data and re-
quired information of key indicators like the output and results
Data needed are of many types: customer, product/service, com-
petition, supplier, employee related, cost & financial etc.
Management by fact
Decision making should be based on analysis of the above said
data
It helps to set realistic goals
Partnership development
Organization needs to build all level and checked partnership to
have better accomplished goals
Internal partnership include labour management cooperation and
agreement with unions
It also relates to creating network relationship among organiza-
tion units for knowledge sharing and flexibility
External partnership include customers, suppliers and educational
organizations
Partnership helps to blend organizations core competencies with
strength and capabilities of partners to improve overall capability
Corporate responsibility and citizenship
Responsibility refers to organizations business ethics, protection
of public health, safety and environment, which may be affected
by organization process, product / service
Emphasize on resource conservation and waste reduction at TOTAL QUALITY
source MANAGEMENT
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TOTAL QUALITY According to the contextual relationship an organization should
MANAGEMENT meet all local, state and federal laws
AND SIX SIGMA
Citizenship refers to education improvement, community services
etc.
NOTES
6.6 Shared Values
What are the major principles, which leads to the following ele-
ments like more productivity in natural ways, quality, job satis-
faction and profit
Treat others with uncompromising truth
- Avoid rumours / grapevine
- Tell truth good or bad
Lavish trust on your associates
- Pride of ownership is the feeling employee get, when lav-
ished with trust
- Managers must trust employees to make decisions
Mentor unselfishly
- Management teach employees
- Employees teach employees
- Employees teach management
- When an individual has unique knowledge and is
unwilling to share, then it will hurts the organization
Be receptive to new ideas, regardless of their origin
Health work environment should invite people to offer ideas and
suggestion
Mostly best ideas comes from the person performing the process
It motivates the employee and enhance job security
Take personal risk for organizations sake
Organization culture should allow for sorrowful tasks without
reprisal
Employee wants to understand the rewards and feel that they are
fair enough
Do not touch dishonest dollars
Some survey shows managers are dishonest according to the
working employees
It affects organization morals and self-respect
6.7 Quality Statement

What do you understand by Quality Statements
It is a part of planning during strategic stage and includes goal
(60) TOTAL QUALITY and objective
MANAGEMENT
AND SIX SIGMA
So from firm to firm level it varies so in general it has four state- Governance &
ments showing standards Leadership
Small organization can have only quality policy statement

Vision statement NOTES
Statement declaring what an organization should look like 5 to 10
years in the future
Statement should be short and concise
Mission statement
If It provide solution to the following questions
- Who we are
- Who are the customers CHECK YOUR
PROGRESS
- What we do
State the list of Quality
- How we do it
Statements.
Rules like only one paragraphed Statement is are enough
To meet the needs of a customer related to transportation and
also to the distribution are being met at the earlies and on time
with utmost safety and precautions Canadian National Railway
Strategic planning
Many organization find that strategic quality plans and business
plans are inseparable
Long term plan 3 to 10 years
Short term plan - < 1 year
Goals and objectives
Both has same meaning
Goal for long-term (winning the war)
Objective for short-term planning (capture the bridge)
Goal should provide the basis for measurement
Goals must be based on statistical evidence or otherwise it may
be exhortations
Goals must be definitive, specific and understandable using con-
crete results rather than behaviours or attitude
It should involve specific time frame and there should be cause
and effect relationship between the goals and method
6.8 7 Steps to Strategic Planning

What are the various steps to be taken for strategic planning?
Explain?
Underlying principle is quality and customer satisfaction are the
centre of organization future
Customer needs: Who are the customers? What they want? How TOTAL QUALITY
will organization meet and exceed expectation MANAGEMENT
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TOTAL QUALITY Customer positioning: Product or service with poor quality per-
MANAGEMENT formance should be targeted for breakthrough and are eliminated
AND SIX SIGMA
Predict the future
NOTES Demographics, economic forecast, technical assessment are tools

that help predict the future
Rate of change is continuously increasing
Gap analysis: to know the gap that exists between the current
state and the future state
Closing the gap: Develop plan and establish goal, objectives and
responsibilities
Alignment: According to the planning as the plan is developed
now it should be like matching with the mission, vision and ethical
values of the company.
Implementation: The most difficult step and resources may be
allocated and resistance to change has to be overcome
6.9 Communications
Quality council is driver and communication is the fuel
It takes care the things related to quality at all levels
2 basic communication techniques are interactive and formal
Interactive
Most effective communication is between the employee and his /
her supervisor
He can transfer information on what needs to be improved, how
to do it, why it need to be done etc.
This type of communication can be on one-on-one basis or group
basis
Group meeting generally occur at beginning of shift
Another effective communication is through discussion during a
lunch session
Meeting of all employees every quarter and explain the state of
company and answer questions from employee
It can also occur electronically by email, video conference etc.
Formal
Occurs by either through printed page or electronics
Very common and famous is the certain interval published publi-
cations like newsletter, monthly magazine etc.
Graphics is another form of effective communication like charts,
Pareto diagrams etc.
Feedback
Communication system to be effective, there must be feedback
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Survey to be conducted to check whether key messages are un- Governance &
derstood and supported by the employees Leadership
Decision making
The worst thing is making the poor decisions is one of the deadli- NOTES
est threat
To make correct decision, it is better to use techniques of solving
method of any problem.
6.10 Characteristics of Leaders

They always find some or the other way improved
communications
They disseminate information clearly and maintain two way
communication
They continuously demonstrate their commitment to quality
They establish organization systems to support the quality effort
They provide adequate environment to the encouragement and
recognizing the team effort
6.11 Summary
Good leadership is essential for any organization. Leadership is
about guiding the organization towards better management for
optimum results. So the role of senior management who can take
long term decision is very important
A quality council is formed whose responsibility is to maintain the
quality within the organization. So the mission statements are de-
cided which decides the working aim for the firm. A regular guid-
ance of the senior management is required at every step to bring
the process under control
6.12 Key Concepts

Quality Planning: Quality planning is defined as The pre-deter-
mined activities in order to achieve conformation to the require-
ments. Many organizations are finding that strategic quality plans
and business plans are inseparable.
Quality Council: A team which includes members from various
departments of an organization whose primary purpose is to take
care of the quality by implementing the principles of TQM.
Strategic Planning: Strategic planning can be determined by the
above literature as a process taken in hand by any of a firm for
setting the standards for its strategy, direction and making deci-
sions on allocating its resources to accomplish this very important
concept strategy.

Q1. Explain the importance of leadership in an organization. TOTAL QUALITY
MANAGEMENT
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TOTAL QUALITY Q2. Name some characteristics of good leaders.
MANAGEMENT
AND SIX SIGMA Q3. What is Quality Council? Why it is required?
Q4. What are the steps of strategic planning?
NOTES
The Business Dictionary. Organizational culture. Accessed June
22, 2015
Needle, David (2004). Business in Context: An Introduction to
Business and Its Environment.
http://www.lean.org/
Ravasi, D.; Schultz, M. (2006). Responding to organizational iden-
tity threats: Exploring the role of organizational culture. Academy
of Management Journal. 49 (3): 433458. doi:10.5465/
amj.2006.21794663
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Statistical Process
UNIT 7 Control
STATISTICAL PROCESS CONTROL
Structure NOTES
7.0 Introduction
7.1 Unit objectives
7.2 Need for the continual reduction of variation
7.4 Basic structure of control charts
7.5 Instabilities and Out-of-Control Situations
7.6 Quality consciousness and types of control charts
7.7 Variable and attribute control charts
7.8 Notation for Variable Control charts
7.9 X-bar charts
7.10 R charts
7.11 S chart
7.12 Parameters for X-bar chart
7.13 Parameters for s chart
7.14 Attribute control charts
7.15 p charts
7.16 np charts
7.17 c charts
7.18 u charts
7.19 Summary
7.20 Key Concepts
7.0 Introduction CHECK YOUR

The need for the control charts is due to the complexity of (process) steps PROGRESS
taken in order to acquire a particular result never go as intended they always have
What is process variation?
variation. The requirement for the control outlines is because of the many-sided
quality of (process) steps taken keeping in mind the end goal to acquire a specific
outcome never go as planned they generally have variety. It might be regular
variety (intrinsic in each procedure) or unique variety made by causes lie outside
the framework. For this reason, we utilize control outlines to distinguish and separate
amongst normal and unique reasons for variety. Control diagrams, or may be called
a Shewhart charts or prepare conduct diagrams, in a unit of absolutely measuring
the observations with the goal that control are contraptions used to make sense of
whether a collecting or business process is in a state of real control.
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TOTAL QUALITY
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7.1 Unit objectives
AND SIX SIGMA
One going through this chapter one night or may able to
Understand what process variation are
NOTES
Know about control charts
Know how to identify and differentiate process variability
7.2 Need for the continual reduction of variation
Most mass production concerned itself with meeting engineering
specifications variation was not major concern. As long as an item or apart served
its intended purpose it was good and passed on. When excessive variation caused
an item to be nonconforming it was classified as bad. Little if any effort was made
to investigate the causes of such variation; it was accepted as a way of life but
when variation is reduced we get
Parts will be more alike and services rendered will be more pre-
dictable
Finished product and services will work better and be more reli-
able
Customer satisfaction will increase because customers will know
what to expect
Process capability will be known with greater certainty and result
will be more predictable
7.3 A process can be described as existing in one of

four states
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Control charts permit relentlessly pursue the continuous reduction of process varia- Statistical Process
tion and strive towards the ideal state. Control
7.4 Basic structure of control charts

NOTES
Control frameworks are real instruments used to examine and understand
get ready elements to choose a strategy capacity to perform concerning those
components and to screen the effect of those elements on the refinement be-
tween customer needs and process execution
All control charts have a common structure
A line that is very much at the center so called an average value

of the very much about the process
The upper and lower control limit are shown by two lines that are
horizontal in geometry and shows the limits of variation
The datas plotted w.r.t. Time.
The important assumptions that are two in number can be de-
fined as following
The function (e.g. the mean) for the using of measurement is a
normal distribution curve and is used for process monitoring i.e. if
process seems to be going out of control that it saves you form
doing any mistakes and make the necessary transform them
Type I /alpha errors happen when no special cause is operating
and the process seems to be going out of control
Type II /alpha errors happen when someone misses any special
cause is operating and the process seems to be going out of con-
trol
All procedure control is powerless against these two sorts of mis-
takes. The reason that 3-sigma control limits adjust the danger of
blunder 99.73%is that, for regularly dispersed information, infor-
mation focuses will fall limits inside the 3-sigma 99.73% level of
accuracy of the time when a procedure is in control. The cutoff
points are picked with the goal that it is likely that irregular rea-
sons for variety will be distinguished
7.5 Instabilities and Out-of-Control Situations

A test for checking the hazards in procedures, we look at various outlines TOTAL QUALITY
for occurrences and examples that flag non-irregular conduct. Values falling MANAGEMENT
AND SIX SIGMA (67)
TOTAL QUALITY outside as far as possible and surprising examples inside the values of inline record
MANAGEMENT recommend that assignable causes exist. In control suggests that all focuses are
AND SIX SIGMA
between as far as possible and they shape an irregular example
NOTES Test 1: beyond the 3-sigma control limit only a single point falls
outside of it A
Test 2: At least eight values in the continuous manner should be
falling on the same side of the center line
7.6 Quality consciousness and types of control charts

Quality consciousness should typically follow a logical pattern. It gener-
ally begins with a lack of Quality consciousness , moves on to defect detection
,moves from there to defect prevention then through the never ending improve-
ment of current product and services and ultimately leads to realization that only
to continued prosperity must include innovations in future products and services
No quality consciousness: accept everything without question

Defect detection: mass inspection to sort conforming and
nonconforming output
Defect prevention: attribute control charts
Purpose of defect prevention is to achieve zero defects, by use of control charts
based on attribute data, such as conforming vs nonconforming with respect to
some specification limit. Most common types of attribute control charts are:
P chart: used to examine the fraction of units with some charac-
teristics (such as the fraction defective)
Np chart: used to study the number of units with some character-
istics (such as the number of defectives per batch)
C chart: used to consider the number of events (such as defects)
in some fixed area of opportunity (such as a single unit)
U chart: used to examine the number of events (such as defects)
in a changeable area of opportunity (such as square yards of
paper drawn from an operational paper machine).
Never ending improvement: variables control charts and Taguchi
loss function view of quality never ending improvement necessi-
ties using control charts based on variables data. These types of
control charts allow for the never ending reduction of unit to unit
variation, even though all output is well within specification limits.
Most common variables control charts are:
X-bar chart: used for showing the variation of average values
I (individuals) chart: For to control the process average for sub-
groups of one data point per subgroup.
R chart: used to control the process range when between 2 and
10 data points exist per subgroup.
MR (moving range) chart: used by the practitioners to limit the
process parameters range when only one data points per sub-
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MANAGEMENT
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S chart: used to make a final limit to the process standard devia- Statistical Process
tion when more than 10 data points exist per subgroup. Control
7.7 Variable and attribute control charts

NOTES
Variables data is the data that varies w.r.t. the process as the
process is dependable on various things and are a part of the
continuous evaluation phenomena.
Examples: following are the examples of this are as measure-

ments of length, weight, volume and speed CHECK YOUR
PROGRESS
Software examples: passed time, exertion consumed, long dura-
tion of experience, memory usage and cost of revamp. Attributes Difference between
variable and attribute
information happen when data is recorded just about whether a
control charts?
thing adjusts or neglects to comply with a predefined measure or
set of criteria. Characteristics information quite often begin as
tallies
Examples: following are the best the quantity of imperfections
found, the quantity of source explanations of a given sort, the
quantity of lines of remarks in a module of n lines, the quantity of
individuals with specific abilities or experience on a venture or
group, and the percent of tasks utilizing formal code investiga-
tions
7.8 Notation for Variable Control charts

n: size of the sample (collection of observations, sometimes called a subgroup)
chosen at a point in time
m: number of samples selected
= average of the observations in the i-th sample (where i = 1, 2... m)
= fantastic normal or normal of the midpoints (this esteem is use as the

inside line of the control diagram)
= range of the values in the i-th sample
= average range for all m samples
shows the mean of a process and it is known as the true mean of a well-defined
process ,generally it is given but sometimes it needed to be calculated by tacti-
cians. For example take a large sort of sample it contains about a large number
(for example 20) so the mean of a sample is something on which one can with
confidence that the value of mean was obtained when the process was in control
shows the standard deviation of a process given for a well-defined process,
TOTAL QUALITY
generally it is not given but sometimes it needed to be calculated by tacticians. Or MANAGEMENT
AND SIX SIGMA (69)
TOTAL QUALITY maybe it can be calculated from a large number of samples of data points which
MANAGEMENT
AND SIX SIGMA are collected when the process was in control.
7.9 X-bar charts

NOTES
Let be showing a set of values which are a result of
some intense calculation of the sample.
For each sample compute the average
And the mean average
Lower control limit:
Center line:
Upper control limit:
is a constant based on size of subgroup
7.10 R charts
Let is a set of values of observation divided into groups
For each sample the range i
(70) TOTAL QUALITY And the range average is

MANAGEMENT
AND SIX SIGMA
Statistical Process
Control
Lower Control Limit
Center Line NOTES
Upper Control Limit:
And are constants based on the subgroup size.
Both are X-bar and R charts used in a pair wise form. Actually, since the speci-
men range is utilized to develop the X-bar diagram, it is fundamental to look at an
R outline first (to make certain that the procedure variety is steady).It is essential
to build and decipher an R graph before the X-bar outline.
For example- The following collection of data represents samples of the amount
of force applied in a gluing process:
Determine if the process is in control
By calculating the appropriate upper and lower Control limits of the X-bar and R
charts.
Step 1. Calculate sample means, sample ranges, mean of means, and mean of
ranges.
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NOTES
Step 2. Determine Control Limit Formulas and Necessary Tabled Values
R chart control limits

UCL = D4
LCL = D3
Steps 3&4: Calculate R-chart and Plot Values
UCL = D4 = 2.11* 0.697309 = 1.47132199
LCL = D3 =0
7.11 S chart
Handle inconstancy could be better conceived by either an R diagram or a Stan-
dard Deviation graph (s outline) Depends on the interdependency on the how the
populace standard deviation is assessed. S graph is utilized to figure out if the
standard deviation has change
Let be the set of observation divided into sample
(72) TOTAL QUALITY For each sample compute the standard deviation
MANAGEMENT
AND SIX SIGMA
Statistical Process
Control
NOTES
And the average is
7.12 Parameters for X-bar chart
Lower Control Limit:
Center Line:
Upper Control Limit:
7.13 Parameters for S chart
Limit of Lower Control:
Center Line:
Limit of upper Control
7.14 Attribute control charts

Emerge when things are contrasted and some standard and afterward they are
delegated to whether they meet the standard or not. The control outline is utilized
to figure out whether the rate of non-adjusting items is steady and identify when a
deviation from security has occurred. The contention can be made that a LCL
ought not to exist, since rates of nonconforming item outside the LCL is in cer-
tainty something worth being thankful for; we need less numbers of defective
products those can be termed as a nonconforming product. However, in the event
that we regard these LCL infringement as basically another scan for a cause
which is having a value that is assignable, we may gain from the drop in resistance
rate and potentially for all time enhance the procedure
7.15 p charts
Assume y is the quantity of deficient items in an arbitrary specimen of length n. TOTAL QUALITY
We expect that y is a binomial irregular variable with obscure parameter MANAGEMENT
AND SIX SIGMA (73)
TOTAL QUALITY Let the samples no is detonated by k
MANAGEMENT
AND SIX SIGMA Now the chart is plotted as following as
NOTES
The samples means proportion is
The proportion is is
Limit of Lower Control
Center Line:
Limit of upper Control:
7.16 np charts
If the widths of the sample are equal size, n then only it can only be used
Just like the way p chart was drawn
Line of center

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Statistical Process
7.17 c charts Control
Numbers of defects are counted by using a special type of charts and that is
called the c charts also the variable that is the areal spread of options of a defect
is invariable. And this can be understood by using the following example. Ex: NOTES
surrenders per 1000 feet of base material in a move of plastic film delivered. The
zone of chance could be a physical region (imperfection/1000ft), an item, for
example, scratches per screen, a measure of time, for example, broken shafts
every day or any mix of these region of chances. A very good model is presented
by using the Poisson probability distribution model or probability checking plan to
count the number of defects
If c possesses a Poisson probability distribution with parameter then
The values shown here are needed to ob-

serve over a reasonably, of for the estimation of use the the average value and
which is detonated by and where large number k, of equally spaced points in
time and use use in the calculation of average.
The average value of c is
So the center line of Centre and limits of lower and higher are for the c chart here
Center Line:
7.18 u charts
If there is a variable value of the opportunity area, then one may be interested in
using the u chart in place of the famous c chart. Let be the number of defect
over the i-th area of opportunity then the average number of defect
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The center line and upper and lower control limits for the u chart are: MANAGEMENT
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Center Line: ;
NOTES
7.19 Summary
In this chapter we focused on the importance of stabilizing and
improving a process and presented an overview of the techniques
for accomplishing this.All processes exhibit variation. We can dis-
tinguish between common causes of variation, affecting all ele-
ment of a process and special variation created by causes outside
the system.
In general only management can reduce common variation while
workers and others more directly involve with the process are
best suited to identifying sources of special variation. Control
charts enable us to identify and diffferentiate between two sources
of variation. As a result ,we are able to eliminate special varia-
tion, stablizing the process and then focus on reducing common
variation and hence improving the process. The continual reduc-
tion in variation ,even within specification is critical to increaseing
quality, predictability and customer statisfaction.
For the near future control charts can be used to peredict the
condition of aprocess based on statistical evidence of a processs
stability and process knowlegde concerning future condition that
could affect the proces
7.20 Key Concepts

Process Capability- A process is in measurable control when all
uncommon reasons for variety have been evacuated and just nor-
mal cause variety remains. Control diagrams are utilized to figure
out if a procedure is in measurable control or not. ... Capacity is
the capacity of the procedure to deliver yield that meets determi-
nations.
Centerline- A horizontal graphical line designating the mean or
median of the process measurements
Zero defects- Zero Defects is an administration apparatus went
for the lessening of deformities through counteractive action. It is
guided at spurring individuals to avoid botches by building up a
consistent, cognizant yearning to carry out their occupation right
the first run through It is a New Dimension in Quality Assurance.
Control chart- The control chart is a chart used to study how a
procedure changes after some time. Information are plotted in
time arrange. A control diagram dependably has a focal line for
the normal, an upper line for the upper control restrict and a lower
(76) TOTAL QUALITY line for the lower control restrain.
MANAGEMENT
AND SIX SIGMA
7.21 Excercise & Questions Statistical Process
Control
Q1. What are the four states in which process can be described?
Q2. What do you understand by control charts?
NOTES
Q3. Give a breif description on the following (a) c-chart (b) p-chart (c)
np-chart?
Q4. What is difference between variables and attributes?

Tracy, N. D., Young, J. C., & Mason, R. L. (1992). Multivariate
control charts for individual observations. Journal of Quality Tech-
nology. 24(2), 88-95.
Lowry, C. A., & Montgomery, D. C. (1995). A review of multi-
variate control charts. IIE transactions. 27(6), 800-810.
Mason, R. L., Champ, C. W., Tracy, N. D., Wierda, S. J., &
Young, J. C. (1997). Assessment of multivariate process control
techniques. Journal of quality technology. 29(2), 140.
Champ, C. W., & Woodall, W. H. (1987). Exact results for
Shewhart control charts with supplementary runs rules.
Technometrics, 29(4), 393-399.
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TOTAL QUALITY
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PATTERN IDENTIFICATION
NOTES Structure
8.0 Introduction
8.1 Unit objectives
8.2 Persistent disturbances
8.3 Out-of-Control Patterns
8.4 Types of control chart patterns
8.4.1 Natural Pattern
8.4.2 Mixtures
8.4.3 Sudden Shift in Level
8.4.4 Trends
8.4.5 Grouping or Bunching
8.4.6 Cycles
8.4.7 Freaks
8.4.8 Instability
8.5 Summary
8.6 Key Concepts
8.0 Introduction
We have seen that a control chart highlights special causes of variation.
Once detected only leaves process with common causes of variation .In this chapter
we present different control charts patterns that indicate the presence of these
special causes. Special causes of variation can be classified inti two types
Periodic disturbances (between group variations)
Persistent disturbances (with in group variation)
8.1 Unit objectives

To understand various types of control charts and to create specials causes
of variation that intermittently affect the process in sampled observations separated
in time hence in different subgroup .this is called between group variation
Examples that can cause between group variations

Chaotic functioning of automatic control devices
Carelessness in setting up the machine
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Loose material holding
AND SIX SIGMA
Changes in shifts , workers Pattern Identification
8.2 Persistent disturbances

Continually affect the process. This is most difficult type of varia-
NOTES
tion to identify and interpret.it creates control charts in which
subgroup statistics touch the centerline in other words, it creates
control limits too wide for the subgroup statistics CHECK YOUR
Examples that can cause within group variation Subcomponents PROGRESS
from more than one source. Persistent difference in operator.
Difference between
Variation in gauges. Both within group variation and common
common causes and
causes of variation are persistent. But critical distinction is that
persistent special
within group variation are external while common causes are in-
disturbances?
ternal to the process
8.3 Out-of-Control Patterns

Whatever is the no of efforts or readings those are lying just outside the
level of 6 sigma level are not the only indication of an out of control process or
operation but it is a clear signs of failed attempt to be near a quality level. These
things are a sign of any deviation from randomness or abnormality of the process
is showing that the process may be out of control. According to shewarts
experiments it is evident that control limits should be decided
Following are the rules regarding this. In order to determine the zones mentioned,
I suggest the following:
To start with get the standard mistake by taking the contrast be-
tween the UCL and the inside line, and gap by 3.
At that point the zone C limits are the inside line one standard
blunder and the zone B limits are the middle line two standard
mistakes.
8.4 Types of control chart patterns

Natural designs
Shift in level examples
Cycle designs CHECK YOUR
Wild designs PROGRESS
Multi universe designs Draw and explain various
types of control charts.
Instability designs
Relationship designs
8.4.1 Natural Pattern

All The data points would follow a normal curve pattern
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TOTAL QUALITY The all-important and clearly visible characteristics of such patterns is given
MANAGEMENT
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Average is the point to which all the other points are nearer to it
NOTES Some points might go upto the control limits.
It is very rare that the data points will exceeds the curve
8.4.2 Mixtures
All The data points would follow a normal curve pattern and along with that
almost all the will tend to go up to the control limits and few fall near the centerline.
The all-important and clearly visible characteristics of such patterns is given

following:
Different people accomplish the tasks in a different way
Different people uses different equipments
Different people uses different materials, machines, operators or
gauge
8.4.3 Sudden Shift in Level

All The data points would follow a normal curve pattern
Conceivable reasons for sudden movements

New creation hardware
New individuals performing check
New test sets
New machine settings
New provider
Inadequate or reexamined support
Change in gear alignment
Improved handle capacity
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8.4.4 Trends
AND SIX SIGMA
All The data points would follow a normal curve pattern Pattern Identification
NOTES
Possible causes of trends:

Equipment wear
Inadequate or enhanced upkeep
Gradual presentation of new material
Process change or decay
8.4.5 Grouping or Bunching

All or most points beyond the control limits appear quite close together
Possible causes of Grouping or Bunching
A variety of checking or inspecting things

Mistakes are plotted
8.4.6 Cycles
Repeated data in a cyclic form shows the trend in the data

gauge
8.4.7 Freaks
TOTAL QUALITY
Freaks are occasional occurrences that vary greatly from the normal pattern MANAGEMENT
AND SIX SIGMA (81)
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
NOTES
Possible causes of Freaks:

Breakdown of equipment
gauges
8.4.8 Instability
Insecurity is portrayed by unnaturally huge variances. The example displays in-
consistent good and bad times and is as often as possible crazy at both points of
confinement.
Possible causes of Instability:

gauge
Unstable test equipment
8.5 Summary
We began this chapter by explaining the different types of special
variation in an analytic study: between group variation and within
group variation .between group sources of variation are external
sources of variation that affect a process periodically, while within
a group anything that is the reason of will definitely variation
affect a process persistently
There are 15 control charts patterns whose detection is helpful in
understanding and eliminating special sources of variation in a
process: natural, sudden shift in level, trends, cycles, freaks, group-
(82) TOTAL QUALITY ing or bunching, mixtures, and stable mixtures with systematic
MANAGEMENT
AND SIX SIGMA
variables, instability, interaction and tendency of one chart to fol- Pattern Identification
low another. These are related to the rules of thumb.
In general, all must be applied cautiously in the context of the
process being analyzed
NOTES
8.6 Key Concepts
Cycles- In time series, any periodic variation may be described
as a cycle
Stratification- the classification or arrangement of something into
non similar groups.
Trends- a general direction in which something is developing or
changing.

Q1. Define different type of special variation with examples?
Q2. Give different types of control chart patterns. How they are different
from each other?

Evans, J. R., & Lindsay, W. M. (2002) The management and
control of quality. (Vol. 5, pp. 115-128). Cincinnati, OH: South-
Western.
Montgomery, D. C., & Mastrangelo, C. M. (1991) Some statisti-
cal process control methods for autocorrelated data. Journal of
Quality Technology, 23(3), 179-193.
Lorenzen, T. J., & Vance, L. C. (1986). The economic design of
control charts: a unified approach Technometrics, 28(1), 3-10.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (83)
TOTAL QUALITY
MANAGEMENT UNIT 9
AND SIX SIGMA
PHILOSOPHIES IN TQM
NOTES Structure
9.0 Introduction
9.1 Unit objectives
9.2 Components of Profound Knowledge
9.3 Demings Fourteen Points
9.4 Jurans Quality Trilogy
9.5 Is Jurans philosophy similar or different to Demings?
9.6 Crosbys Absolutes of Quality Management
9.7 Other Quality Philosophers
9.8 Malcolm Baldridge National Quality Award (MBQA)
9.9 Baldridge Award framework
9.10 Key issues addressed in each of the seven categories of the criteria for
performance excellence
9.11 Baldridge Award scoring system.
9.12 How are the Baldridge Award Criteria commonly used by companies that
do not apply for the
9.13 Baldridge criteria support Demings 14 Points
9.14 ISO 9000
9.15 Process of obtaining ISO 9000 registration
9.16 Reasons companies pursue ISO 9000 registration
9.17 Controversial ISO 9000
9.18 Summary
9.19 Key Concepts
9.0 Introduction
Deming Chain Reaction Flow chart shows how the activities are related for pro-
viding more jobs and to stay in market for a company. The process is following as
by improvements in quality the various costs are decreased that eventually led to
increase in productivity and also increase market share with very high standards
of quality at very less lower prices if this process is followed than a firm can stay
in market for very long time so it will create more jobs and greater economy also.
Demings Definition:
According to Demings definition Never defined or described quality precisely
(84) TOTAL QUALITY Focus on reduction of variability and uncertainty on production and design Con-
MANAGEMENT
AND SIX SIGMA
tinuous improvement never ending cycle (Chain reaction) System of Profound Philosophies in TQM
Knowledge (four points identified below)
9.1 Unit objectives

Understand Productivity NOTES
Understand Malcom Baldrige

Understand ISO 9000
9.2 Components of Profound Knowledge

Mutual support of four points of PROFOUND KNOWLEDGE
1. APPRECIATION OF SYSTEM: All components must work together
to be effective, all people work together to contribute improvement. CHECK YOUR
PROGRESS
2. UNDERSTANDING OF VARIATION: Comprehension of measur-
able hypothesis, first see then lessen variation through upgrades in design, What are components of
training & tech. Profound Knowledge
3. THEORY OF KNOWLEDGE: Influence of Charles Lewis, there is no
knowledge without interpretation Knowledge unrealistic without hypoth-
esis, experience is not theory. Thus it is a kind of Cause and effect rela-
tionship.
4. PSYCHOLOGY: Understand individuals, associations amongst spe-
cialists and administration how they cooperate. Diverse methods for learn-
ing for various individuals. Pay is not an inspiration. At the point when
individuals dont comprehend frameworks they accuse people as opposed
to looking for main drivers of issues.
9.3 Demings Fourteen Points

1. Make dream/show responsibility: Business is not just for benefit,
likewise a social substance.
2. Take new rationality: Business must adopt client driven strategy
to survive.
3. Comprehend investigation: Employees must assume liability for
their duties
4. Quit settling on choices in light of cost: install long haul associa-
tion with providers.
5. Enhance Constantly Forever: Do it or make it as a lifestyle as in
Thailand & Japan
6. Organization Training: Employees are most noteworthy assets,
help them with preparing and instruments to exceed expectations
7. Establishment Leadership: Instead of supervision/give genuine
direction/decide.
8. Drive out Fear: Try to acquire regard from supervisors and in
addition specialists
9. Streamline Team work: Break the work as per the ability
10. Annihilate trademarks/urgings: No mottos or publications could TOTAL QUALITY
be adequately overseen MANAGEMENT
AND SIX SIGMA (85)
TOTAL QUALITY 11. Annihilate standards: Management ought to comprehend frame-
MANAGEMENT work, and move towards improvement
AND SIX SIGMA
12. Destroy boundaries to pride of workmanship: Value and reward
specialists endeavors, dont treat them like strolling wares.
NOTES
13. Empower instruction/self-change: Continue wide training and self-
improvement/create worth of person
14. Make a move: Transform from top administration and expel con-
ventional wasteful various leveled structure.
9.4 Jurans Quality Trilogy

1. QUALITY PLANNING: In this there is process to get ready &
meet objectives.
2. QUALITY CONTROL: In this there is process of meeting ob-
jectives amid operations
3. QUALITY IMPROVEMENT: In this there is process of getting
through series of execution goals.
9.5 Jurans philosophy similar or different to

Demings?
A greater amount indistinguishable over distinctive nature may be
basic in future for worldwide businesses. Highest point
management dedication crucial. TQM recoveries cash obligation
for administration not laborers need for challenging methodology
progressions more alike than different.
9.6 Crosbys Absolutes of Quality Management &

Basic Elements of Improvement
QUALITY MEANS CONFORMANCE TO REQUIRMENTS/
NOT ELEGANCE: It must be described by organization or nobody
will acknowledge what they ought to be.
THERE IS NO SUCH THING AS QUALITY ISSUE: The is-
sue is not the quality office, these incur in utilitarian workplaces.
NO SUCH THING AS ECONOMICS OF QUALITY-DO IT
RIGHT THE FIRST TIME-IT IS ALWAYS CHEAPER: Qual-
ity is free
ONLY PERFORMANCE MEASURE IS COST OF QUAL-
ITY= COST OF NONCONFORMANCE: Most affiliations
seethe through 15-20% of offers dollars on quality expenses.
ONLY PERFORMANCE STANDARD IS ZERO DEFECTS:
Concentrate on averting absconds instead of simply discovering
them and settling them
Crosby is for the most part behavioral approach as opposed to
Deming. Utilize administration and association instead of insights
(86) TOTAL QUALITY to draw in the progressions. Few subtle elements concentrate on
MANAGEMENT
AND SIX SIGMA
administration considering. In this way very little regard for Philosophies in TQM
Crosbys beliefs.
9.7 Other Quality Philosophers

NOTES
1. A.V. FEIGEN BAUM: Instituted saying TQC/Three stages to
quality. Quality Leadership: Sound arranging administration ver-
sus response to disappointments. Consistent concentrate on lead-
ership. Modern Quality innovation: All specialist compel must
coordinate to take care of issues that customary administration
cant. Organizational Commitment: Continuous preparing and in-
spiration of whole workforce.
2. KAORU ISHIKAWA: Developed participative, base up perspec-
tive of value, trade symbol approach of Japanese administration.
Gather information, he stated, break down it utilizing basic appa-
ratuses (counting visual), utilize factual estimations, he stated, and
collaboration
3. GENIC HI TAGUCHI: Clarified monetary benefit of diminishing
variety. Expenses dont really speak to estimation of value trade-
mark the length of long as items are inside determined qualities.
His misfortune? The littler the variety, better quality, items are
steadier, aggregate expenses are less. His misfortune? The nearer
to limits, the higher the misfortune, higher irregularity, bring down
the quality.
9.8 Malcolm Baldridge National Quality Award

(MBQA)
Agenda of MBQA:
Assistance to animate US firms to enhance productivity as well
as quality00
Acknowledge achievements of firms & motivate to others too
0Set up criteria & guidelines
Provide particular directions to organizations (Fill in Demings
gaps)
9.9 Baldridge Award framework and importance of

each element in any quality system
Criteria:
Delivery of ever improving value to customers, contributing to
success
Improvement of overall organizational effectiveness
Personal and organizational learning
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (87)
TOTAL QUALITY
MANAGEMENT 9.10 Key issues addressed in each of the seven
AND SIX SIGMA
categories of the criteria for performance
NOTES
excellence
Leadership: Focus on customers and stakeholders, empowerment,
innovation, and learning.
CHECK YOUR Strategic Planning: It targets & plans systems/how to pick them
& how to quantify them
PROGRESS
Client and Market Focus: How association fabricates associa-
What are different criteria
tions with clients & markets. How consumer loyalty is accom-
for performance
plished.
excellence?
Analysis & information: How to analyses performance data and
expansion
HR Focus: Association & Motivation of staff for execution great-
ness and positive workplace
Process Management: In this there is Customer-centered outline,
item/benefit conveyance, key business & bolster forms.
Business Results: Improvement & Performance measurement in
product, customer satisfaction, and service performance.
9.11 Baldridge Award scoring system

Rate score from 0 to 100 in additions of 10 given to every thing
Approach: Methods or procedures used to finish necessities
Appropriateness
Effectiveness
Arrangement with requirements
Proof of development
CHECK YOUR Arrangement: Limit to methodologies are connected to all pre-
PROGRESS requisites of thing
What are approach and
Utilization of approach in tending to thing necessities
deployment methods?
Utilization of approach by all proper force
9.12 How are the Baldridge Award Criteria commonly

used by companies that do not apply for the
award?
Utilized for self-appraisal or interior acknowledgment programs,
so regardless of the possibility that no goal to apply for honor it
can be helpful for organizations.
Quickens change endeavors
Stimulates employees learning from criticism
(88) TOTAL QUALITY Trade of data/request help/criticism
MANAGEMENT
AND SIX SIGMA
Exchange of information/ask for help/feedback Philosophies in TQM
9.13 Baldridge criteria support Demings 14 Points

1. Make dream/exhibit responsibility: Leadership Category
NOTES
2. Take new theory: Organizational Leadership thing
3. Comprehend investigation: Process Management Category
4. Quit settling on choices in view of cost: Process Management
classification
5. Enhance Uniformly Forever: Continual change center estimation
of criteria
6. Establishment Training: Preparing, Employee Education, & De-
velopment
7. Establishment Leadership: Category One, Leadership
8. Drive out Fear: HR Focus
9. Upgrade Team work: HR Focus & Teamwork in all criteria
10. Dispense with appeals/trademarks: Moot point not straightfor-
wardly tended to
11. Dispense with shares: Strategy Development, Organizational Lead-
ership, Process Management & Analysis
12. Evacuate boundaries to pride of workmanship: Leadership, HR
Focus, Customer Satisfaction & the Relationships things
13. Support instruction/self-change: Training, Development, Employee
Education & Employee Satisfaction
14. Make a move: Leadership Category
9.14 ISO 9000

Key components of ISO 9000
CHECK YOUR
Established 1947-Swiss PROGRESS
ISO implies Equal What are ISO 9000
Quality confirmation equivalent to peers standards?
Perceived in 100 nations

FIVE OBJECTIVES
1. Accomplish/keep up/try to persistently enhance item quality
2. Enhance nature of functions to achieve client & partner needs
3. Give certainty to inside administration & representatives that qual-
ity projects are being satisfied
4. Give certainty to clients/partners that quality prerequisites are
accomplished in items/benefit
5. Give certainty that quality arrangement of administration and ne-
cessities are satisfied.
TOTAL QUALITY
Organizations can profit BUT: MANAGEMENT
AND SIX SIGMA (89)
TOTAL QUALITY Not an exhaustive business execution structure.
MANAGEMENT
AND SIX SIGMA ISO 9000 gives an arrangement of good essential rules and a
fantastic beginning stage for organizations without formal quality
confirmation programs.
NOTES
Enrollment might be upper hand, especially while benchmarking
mechanical or benefit classifications and market situating.
9.15 Process of obtaining ISO 9000 registration

Outsider reviewer sort confirmation
Handle started in UK
Recorder (Accreditation Agency) affirms organization/acknowl-
edged by all business contacts and providers
Handle: Document audit safeguard recorded quality administra-
tion arrangements
Pre-appraisal (distinguishes potential rebelliousness in documen-
tation/manuals)
Appraisal by going by group of reviewers
Observation/re-reviews to check conformance
Recertification at regular intervals ($)
Singular destinations must be investigated/enrolled separately from
corporate HQ
Each & every costs conceived by candidate
Enlistment review costs ranging from $10k-40k
Interior expenses may surpass $100k
9.16 Reasons companies pursue ISO 9000 registration

ISO STANDARDS recommend documentation for all procedures
influencing quality and consistence through examining for consis-
tent change.
Expected to apply to a wide range of organizations
In some outside business sectors, organizations wont purchase
items from providers without affirmation
Frequently vital for item accreditation
Required for universal intensity
9.17 Controversial ISO 9000

Original standards and 1994 revisions allowed companies to be
certified even if they produced poor quality products- as long as it
was done consistently.
FOCUS on passing a test in spite of enhancing quality processes
2000 REVISIONS: joining of numerous Baldridge criteria
(90) TOTAL QUALITY
In any case, ISO 9000 still not a thorough business execution
MANAGEMENT
AND SIX SIGMA structure
9.18 Summary Philosophies in TQM
The philosophy and framework deals with all the work of Deming,
Juran Malcom baldrige and other quality teachers. The masters
of quality have provided different parameters to establish the good NOTES
product or service. The firm that satisfies all the parameters also
following the ISO standard are awarded.
9.19 Key Concepts

Profound Knowledge- A four-section strategy that portrays the
relationship between the fundamental segments of frameworks
considering.
Variation-Inevitable change in the yield or aftereffect of a frame-
work (handle) since all frameworks fluctuate after some time.
Quality arranging- Deliberate process that makes an elucidation
of significant worth course of action into quantifiable targets and
necessities, and sets out a gathering of endeavors for recognizing
them inside a foreordained era.
Quality change the orderly way to deal with diminishment or end
of waste, revamp, and misfortunes underway process.
Performance Excellence-Performance perfection alludes to a
coordinated way to deal with authoritative execution administra-
tion that outcomes in. Conveyance of continually enhancing an
incentive to clients and partners, adding to authoritative manage-
ability.
ISO 9000-It is the group of related, auditable, global benchmarks
& supplementary rules on quality administration & quality affir-
mation.

1) Give a brief description on Deming chain reaction.
2) Compare Demings and Jurans philosophies?
3) What do you understand by ISO 9000?
4) Write the registration process for ISO 9000?

Ilie, L., Slgean, H. C., Gal, A. R., & Blc, B. (2015). QUAL-
ITY AWARDS: AN IMAGE OF BUSINESS
EXCELLENCE. THE ANNALS OF THE UNIVERSITY OF
ORADEA, 1120.
Karimi, A., Safari, H., Hashemi, S. H., & Kalantar, P. (2014). A
study of the Baldrige award framework using the applicant scor-
ing data. Total Quality Management & Business Excellence,
25(5-6), 461-477.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (91)
TOTAL QUALITY
MANAGEMENT UNIT 10
AND SIX SIGMA
ELEMENTS OF SIX SIGMA
NOTES Structure
10.0 Introduction
10.1 Unit objectives
10.2 Customer concern
10.2.1 Poor product quality
10.2.2 Delayed supply:
10.2.3 Wrong quality
10.2.4 High price
10.3 Organizational concern
10.3.1 High cost of quality
10.3.2 Quality costs which are avoidable
10.3.3 High manufacturing cost
10.3.4 High inventory
10.3.5 Reduction in profit
10.4 Elements of six sigma
10.4.1 Customer Centric
10.4.2 Proactive management
10.4.3 Empowered teams
10.4.4 Data driven decisions
10.4.5 Process focus and improvement
10.4.6 Process perfection
10.5 Summary
10.6 Key Concepts
10.0 Introduction
Today the word six sigma is being utilized widely. It is identifies with the
nature of any procedure yield. There is dependably variety when a similar action
is rehashed. At the point when variety in the execution is in abundance, it causes
deserts and deferrals. The initial step is to distinguish that there is variety and
afterward comprehend what brought about variety. Six sigma approaches are
about enhancing the procedure to dispose of such varieties and idealizing the pro-
cedures to perform at the most noteworthy productivity level and convey to 100
percent handle yield quality
(92) TOTAL QUALITY What do you mean by process and what is variation?
MANAGEMENT
AND SIX SIGMA
Process:- Everything you do is a process. During any process there is an input to Elements of Six Sigma
the process and there is an output. When processes are performed, there will be
variation every time, which indicates that very process has an inherent quality of
having variation in output.
Variation: - It is a difference between what is expected of a process as output NOTES
and what really comes out of a process which is quantifiable. So a variation is a
quantifiable difference between the specified outputs compared to the actual out-
put from a process.
What is sigma and standard deviation?
While measuring a sample for a parameter, and comparing with the mean perfor-
mance data, the variation can be positive or negative. It is not possible to use this
data since this will have both positive and negative variation. To make the vari-
ance positive, it is necessary to square the values of variance. By doing this,
negative values are eliminated and all the values become positive. From the squared
variance, calculate the square root which would give the standard deviation. The
standard deviation thus obtained is denoted bt the word sigma
What is a defect?
When a process output causes customer dissatisfaction, it is considered as a de-
fect. To put it differently, any process output which does not meet customer speci-
fication is considered a defect. Any non-conformance to specification is a defect.
Defects in a process output result in
Long delivery lead time
Increase in cost
Reduction in profit
Customer dissatisfaction
Disturbance in the morale of the employees
Consumption of additional material
Reduction in market share
Poor yield CHECK YOUR
PROGRESS
What is six sigma?
What are myths and
An ordinary appropriation bend has a negative & positive dispersion of 4.5. Yet, misunderstandings about
practically speaking it is watched that each procedure tends to have an inbuilt Six Sigma?
change to the degree of 1.5 spread on right as well as left of the mean. It indi-
cates that keeping in mind the end goal to convey 100 percent satisfactory quality
yield , the procedure yield must be inside 6 spread on right as well as left of the
mean as appeared in the underneath fig.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (93)
TOTAL QUALITY The principle of six sigma is what we can say is near to the perfection. It has been
MANAGEMENT
AND SIX SIGMA depicted in terms of percentage of area of acceptance
NOTES
Remembering the above truths, the procedures are to be enhanced to have 6

sigma ability, in order to accomplish 99.999 percent of satisfactory quality. At the
end of the day, the quantity of imperfections per million open doors might be under
3.4 deformities for every million.
Six sigma systems
A factual measure of the execution of a procedure or an item
A objective that scopes close flawlessness
An arrangement of administration to accomplish world class per-
formance
An excellent process to achieve highest customer satisfaction.
A certain method to eliminate waste and improve performance
efficiency
The six sigma methodologies help the organization reduce the cost and improve
their profitability. Any type of organization can use this technique to improve their
profitability
Myths about six sigma
There are numerous myths and mistaken assumptions around Six Sigma:
Six Sigma
... Works just in assembling settings.
... Does exclude client necessities.
... Is repackaged TQM.
... Utilizes hard to-comprehend measurements.
... Is a bookkeeping diversion without genuine investment funds?
... Is simply preparing.
... is an enchantment pill with little exertion
What is achieved by adapting to six sigma methodology?
1. Highest customer satisfaction
2. Improved profitability
3. Consistent best quality in all process output
(94) TOTAL QUALITY
MANAGEMENT 4. Reduced lead time and inventory
AND SIX SIGMA
5. Improved yield Elements of Six Sigma
6. Continuous improvement
7. Quantified cost savings
8. Improved employee morale NOTES
Symptoms which indicate the need for six sigma

1. Customer concerns
2. Organizational concern

To know about elements of six sigma
To know about Customer concern
To know about Organizational concern
10.2 Customer concern

10.2.1 Poor product quality
Customers often find themselves in a situation where the products received from
the supplier are to be re-inspected and segregated for poor quality. if customers
constantly complain about product quality and ask the supplier to send personnel
to fix the product problem, it is clear indication that the customer is dissatisfied if
the customer returns increase month after month due to quality problems, it would
affect the customer and force him to look for a new suppliers. The entire process
of manufacture has to be fine-tuned to maintain improved process performance to
ensure that the supplied products are to Six Sigma quality. If there are huge cus-
tomer returns, it is a clear indication that the organization needs to adapt to Six
Sigma improvement process as early as possible
10.2.2 Delayed supply

Every customer expects the supplier to supply products of good quality, specified
quantity and on time. On time delivery of the products is very critical since the
customer wants to reduce the work in progress. Delayed supplies irritates the
customer and force him to look for alternatives. Delayed supply to customer greatly
affects the customers schedule. Every customer looks for JIT supplies and any
delay by the supplier has a great impact on the supplier-customer relationship.
This is a clear symptom that the supplier has to adapt to Six Sigma improvement
process and must study the reasons for the delayed supply with a view to bring the
supply process to the Six Sigma level
10.2.3 Wrong quality

There may a situation where a customer is already upset over delayed supply, and
later on does not receive the ordered quantity from the supplier, it disrupts its
schedule. There may not product quality issues, but if correct quantities are not
supplied, it creates ripples in the customer relations.to carry out the detailed study,
it is necessary to collect data regarding defects in quantity supplied. The inability
to meet customers quantity requirements is one of the symptoms for the organi-
zation to adapt to Six Sigma.
TOTAL QUALITY
10.2.4 High price MANAGEMENT
AND SIX SIGMA (95)
TOTAL QUALITY In a competitive environment, the customer looks for optimum price for the prod-
MANAGEMENT ucts supplied. In case there is only one supplier for the product for some time until
AND SIX SIGMA
he is able to find another supplier for the same product. It is very important that
the cost of product is constantly monitored and reduced to remain competitive
NOTES constant interaction with the customers to understand their target price and work
towards meeting th target cost is possible only if the organization adapts tp Six
Sigma. Frequent price increase of the product is one of the symptoms and if not
attended by adapting to Six Sigma, may lead to serious consequences.
10.3 Organizational concern

10.3.1 High cost of quality
Quality costs are the costs incurred to prevent recurrence of defects while manu-
facturing order to provide quality products to the customers quality costs related
to customers, which are:
Prevention cost
Mandatory costs
Appraisal costs
Prevention cost: It is the cost of all the activates that are incurred to prevent
production of poor quality of products or services. They are as follows:
Quality auditing
Calibration and maintenance of test and measuring equipment
Quality training
Analysis of quality data
Quality improvement programs
Process control
Product qualification test
Mandatory costs: these are the cost which doesnt sum up the value to the client
(96) TOTAL QUALITY but are inevitable such as:
MANAGEMENT
Quality standards approval from government agencies
AND SIX SIGMA
Approval from defense agencies Elements of Six Sigma
Product approval from boards design for getting national
recognition
Cost incurred on external auditors NOTES
Appraisal costs: It is the cost that happens in light of the necessities to administra-
tions & control items to ensure a great success at all levels conformance to ex-
ecution prerequisites & quality models .these are as per the following:
Laboratory testing
Materials consumed in inspection & test
In process inspection
field testing & Sample testing
Process or service audits
Pre-delivery inspection
10.3.2 Quality costs which are avoidable
Internal failure
External failure cost
Internal failure cost: These are the costs incurred due to internl process failure.
Internal costs are definite wastes and the management should make serious effort
to eliminate them. Details of these costs are given below.
Incoming material inspection
Product inspection
Recheck
Rework
Scrap
Downtime
Operator efficiency variance
Customer returns
External failure cost: The cost which is incurred due to the unsatisfactory perfor-
mance of the product and due the customer not satisfied with the product, which
include
Product recall
Field and warranty returns
Sales cancellation
10.3.3 High manufacturing cost
In any manufacturing organization if the cost of manufacturing goes up, it calls for
the immediate attention of the management. Costs which add to the manufactur-
ing cost such as:
High labour cost
Increase in overhead costs TOTAL QUALITY
Overtime MANAGEMENT
AND SIX SIGMA (97)
TOTAL QUALITY Poor yield due to rework
MANAGEMENT
AND SIX SIGMA 10.3.4 High inventory
Organizations holding high inventory consisting of raw materials. WIP and fin-
NOTES ished goods have serious cash flow problems and this may result in closing down
their operations. Controlling the inventory is very essential. The following factors
constitute the inventory that do not add value
Excess and obsolete stockholding
Slow moving stock
10.3.5 Reduction in profit
The CEO of very organization is concerned about the profitability of his organiza-
tion. If profitability is not maintained, it will have an impact on the shareholders
and after a period time, the organization will face severe problems. Profitability is
vital for any organization and if the management finds that its profitability is com-
ing down, it is a wakeup call. This is a crucial symptom and immediate corrective
action has to be taken. One of the major aims of a Six Sigma project is to increase
the profitability of the organization by creating substantial savings.
10.4 Elements of Six Sigma

The elements are as follows:-
1. Customer centric
2. Proactive management
CHECK YOUR
PROGRESS 3. Empowered teams
4. Data driven decisions
What all the customer
basically look for? 5. Process focus and improvements
6. Process perfection
10.4.1 Customer Centric
Every activity in the organization has to revolve around the customer. Numerous
associations guarantee to give consumer loyalty and the way to accomplish this is,
to really comprehend the clients prerequisites and desires. Client driven is the
focal point of value and a definitive point of any effective procedure. All the
(98) TOTAL QUALITY
MANAGEMENT customers basically look for:
AND SIX SIGMA
On time delivery: The process of manufacture and dispatch in- Elements of Six Sigma
cluding the transportation to the customers place are to be stud-
ied and improved in such a way that supplies are consistent as
per the customers requirement
Consistent good quality:The quality of the output must be consis- NOTES
tent and should not deviate from the given specification.
Optimum price: controlling the costs at optimum level is essential
for the success of the project. To keep the price competitive, man
power employed has to be optimum and higher productivity levels
are to be achieved
10.4.2 Proactive management
CEO must assemble all the managers together and identify the problems which
are affecting the customer as well as the profitability of the company. Brainstorm-
ing sessions should be carried out and each and every problem related to cus-
tomer satisfaction must be discussed there. Active participation by all the mem-
bers of the company must done in brain storming. After collecting the data from
the members, the management must consider and take decision to implement Six
Sigma in the organization.
10.4.3 Empowered teams
No one person can bring all the required changes in any organization. The vital
element of Six Sigma is the empowered project teams. The team approach to
bring in changes in the organization would be successful only if the project teams
are empowered to bring the changes. Its empowered by:
Team selection
Team training
Team attitude and commitment
Team leadership
Management support
10.4.4 Data driven decisions
In traditional organizations all the decision are taken based on the previous expe-
rience of the management. The basic element in Six Sigma continuous improve-
ment process is that all the areas of improvement and decision to implement solu-
tions re based on statistical data.
10.4.5 Process focus and improvement
Six Sigma is all about improving the existing process or design a new process.
After the process is improved, manage that process and make sure that it is work-
ing. Whenever the existing process is not satisfying the customer, it has to be
revised so as to meet the customer requirement and improve profitability. The
process cycle normally followed while improving the process is as:
1. Process improvement
2. Process adaptation
3. Process design
4. Process management TOTAL QUALITY
MANAGEMENT
10.4.6 Process perfection AND SIX SIGMA (99)
TOTAL QUALITY The most important and critical element is to sustain the process improvement by
MANAGEMENT perfecting it. Once a company tends to achieve Six Sigma performance stan-
AND SIX SIGMA
dards, it is necessary that that the process metrics are fully recorded and commu-
nicated to all concerned. Top management has to make line managers responsible
NOTES for meeting the metrics consistently.
10.5 Summary
Six Sigma was invented by Motorola in the 1980s and intended to
target fabricating imperfections, and afterward lessen them to a
little level (under 3.4 deformities for every million open doors.
sparing a huge number of dollars simultaneously.
The strategy of Six Sigma essentials fundamentally makes up-
grades by overseeing variety and decreasing shortages in the pro-
cedures of a venture. Two potential situations are utilized as a
part of the inventive procedures that extends the mental proce-
dure to think outside about the case; they are DMAIC, and DFSS.
The main acronym remains for characterize, measure, break down,
enhance, and control. These five components concentrate on huge
process changes, the second, plan for Six Sigma concentrates on
process outline and uses IDOV, or, distinguish, outline, stream-
line, and check.
10.6 Key Concepts

Six Sigma-an arrangement of administration systems expected to
enhance business forms by extraordinarily decreasing the likeli-
hood that a blunder or imperfection will happen.
Quality cost-In process change, cost of value or quality expenses
is a way to measure the average cost of inadequacies & value
related endeavors

Q1. What do you understand by Six Sigma?
Q2. What are elements of Six Sigma?
Q3. How all the different cost incurred in the system are interrelated?
Q4. Explain the terms
a) Standard deviation
b) Defects

Evans, J. R., & Lindsay, W. M. (2014). An introduction to Six
Sigma and process improvement. Cengage Learning.
Furterer, S. L. (Ed.). (2016). Lean Six Sigma in service: applica-
tions and case studies. CRC Press.
Shokri, A., Bradley, G., & Nabhani, F. (2016). Reducing the scrap
rate in an electronic manufacturing SME through Lean Six Sigma
methodology.
(100) TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA
Six Sigma Phases
UNIT 11
SIX SIGMA PHASES
Structure NOTES
11.0 Introduction
11.2 Define
11.3 Measure
11.4 Analyze
11.5 Improve
11.6 Control
11.7 Summary
11.8 Key Concepts
11.0 Introduction
All along, organizations have been carrying out process improvements in a num-
ber of ways with no clear process/goal. As far as clear concepts are concerns of
the available techniques of process improvement the Six Sigma concept has very
clear goals and methodology for getting the right solutions. The methodology makes
it possible to identify the problems, collect necessary data regarding the problems,
identify the problem causes and find solutions. This process has proved to be very
effective for many organizations in the world.
DMAIC is a short name given to the following 5 items as
1. Define
2. Measure
3. Analyze
4. Improve
5. Control
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (101)
TOTAL QUALITY Fig.1 Deliverables-define phase
MANAGEMENT
AND SIX SIGMA The above diagram shows the various DMAIC tools to achieve Six Sigma status
for any company. The order of the all 5 items are all fixed and the following figure
NOTES describe it in the best way

Understand define phase
Understand measure phase
Understand analyze phase
Understand improve phase
Understand control phase
11.2 Define
The driving power behind this progression is to stress only on the business
issues, objective, project extension and abnormal state extend timeline. This data
is commonly caught inside venture contract report. Record what you presently
know. Try to illuminate certainties, set goals and frame the venture group. The
main purpose of taking this approach is following like to show all the Business
constants clearly, goal, potential resources, project scope and high-level project
timeline.
This information is typically captured within project charter document. Write down
what you currently know. This is a very important concept as it gives a very clear
picture of the facts, required objectives and the formation of the project team is
done by the taking the help from this very concept.
Define the following
1. Define the problem: It is the one of the most important part of Six
Sigma. No clear definition of a problem and no clear solution of
the problem. There are problems which could be easily defined
and there are problems which are complex
2. Define the key customers: customer is any person or organiza-
tion that receives a product or a service from a process. There
are some customers who fill the capacity, but there are some
customers who contribute maximum to the profitability. For man-
agement, it is necessary to decide which customer has to be given
priority while sorting problem
3. Define key customer requirement: Voice of customer (VOC) and
critical to quality (CTQs)
Technical requirement
Supply requirement
Service requirement
special requirement
4. Define the target process
5. Define the goal of intentions or intended
(102) TOTAL QUALITY
MANAGEMENT 6. Define the boundaries of project
AND SIX SIGMA
7. Define the phase deliverables. Six Sigma Phases
NOTES
Checklist define phase
11.3 Measure
The cause behind this progression is to dispassionately set up existing
baselines as the reason for enhancement. This is an information accumulation
step, the motivation behind which is to set up process execution baselines. The
execution metric baseline(s) from the Measure stage will be contrasted with the
execution metric at the finish of the venture to decide equitably whether notewor-
thy change has been made. The group settles on what ought to be measured and
how to gauge intuit is normal for groups to put a considerable measure of exertion
into evaluating the reasonableness of the proposed estimation systems. Good in-
formation is at the heart of the DMAIC procedure:
Identify the crevice amongst present and required execution.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (103)
TOTAL QUALITY Gathering the information to make a procedure execution capac-
MANAGEMENT ity benchmark for the venture metric, that is, the procedure Y(s)
AND SIX SIGMA
(there might be more than one yield).
Assess the estimation framework (for example, a gage ponder)
NOTES for sufficient exactness and accuracy.
Establish an abnormal state handle system
Checklists-measure phase
11.4 Analyze
Cause of this progression is the recognition, approve and select underly-
ing driver for end. An extensive number of definitive drivers (prepare inputs, X) of
the venture issue are distinguished through main driver investigation (for instance
a fishbone outline). The main 3-4 potential underlying drivers are chosen utilizing
multi-voting or different agreement instrument for further approval. An informa-
tion gathering arrangement is made and information are gathered to set up the
relative commitment of each main drivers to the venture metric, Y. This procedure
is rehashed until substantial main drivers can be recognized. Inside Six Sigma,
frequently complex examination devices are utilized. In any case, it is adequate to
utilize essential instruments if these are proper. Of the approved main drivers, all
or some can
Finding the difference between current performance and goal
performance
Brainstorm the data collected
Identify the special causes of variation
Generate a list of possible causes
(104) TOTAL QUALITY
MANAGEMENT Stratify the special causes
AND SIX SIGMA
Identify the relationship between causes and create a focus list Six Sigma Phases
of critical causes.
Prioritize the special causes or critical causes
Verify and quantify the causes of variation NOTES
Brainstorm the revised process
Trail run the revised process
Finalize the action plan
Checklist analyze phase
11.5 Improve
Cause for this is the advancement in techniques of recognition, test and execute
an answer for the issue; to a limited extent or in whole. This relies on upon the
circumstance. Recognize imaginative answers for dispense with the key main
drivers keeping in mind the end goal to settle and forestall handle problems. A few
undertakings can use complex examination devices like DOE (Design of Experi-
ments) However, to test using a model sort of thing where one can discover ar-
rangements without actualizing them. Screen potential cause
Prioritize the causes
Brainstorm possible solutions
Prioritize the possible solutions
Prepare revised process maps
Define operation tolerance
Carry out correlation and regression analysis
Carry out FMEA (Failure mode effect analysis)
Plot the solution TOTAL QUALITY
Carry out DOE MANAGEMENT
AND SIX SIGMA (105)
TOTAL QUALITY Estimate savings
MANAGEMENT
AND SIX SIGMA Finalize the process change
Impart training in the new process
NOTES Implement the solution in full
Monitor and collect data
Calculate and confirm Six Sigma performance level and estimate
long term saving.
Checklist improve phase
11.6 Control
The motivation behind this progression is to support the techniques or tools to
enhance the controlling of the improved process. Filtering the frequently made
enhancements to guarantee proceeded and manageable achievements. Make a
control arrange, Redesign reports, business process and preparing records as
required.
The major areas to be included in the control phase are:
1. Planning
2. Documentation
3. Process controls
4. Systems review
11.6.1 PLANNING
Planning is the first step in the control phase and the following are to be planned:
a) Training plan: training has to be imparted using the team
members who are responsible for bringing the Six Sigma
(106) TOTAL QUALITY
process change
MANAGEMENT
AND SIX SIGMA
b) Documentation plan: it includes the preparation of the docu- Six Sigma Phases
mentation plan table which include
i. Estimated time
ii. Name of the document NOTES
iii. Category of the document
iv. Identify the documents to be eliminated
v. Identify documents to be updated , revised or newly to be
prepared
vi. Schedule
vii. Person responsible
viii. Control document
c) Control plan planning : it includes
i. control area
ii. control document number
iii. decide the adequacy of the control
iv. schedule
v. estimated hours
vi. person responsible
d) monitoring system plan:- it includes
i vendor rating system
ii vendor selection
iii customer complaints
iv customer satisfaction
v customer returns
vi downtime analysis
vii shop floor rejections
e) preventive maintenance plan :- it includes
i type of equipment
ii PM process to be followed
iii Spares planning
iv Calibration plan
v Responsibility for PM
vi Frequency / schedule
vii Records to be maintained
viii Review process
f) review plan
11.6.2 DOCUMENTATION TOTAL QUALITY

MANAGEMENT
AND SIX SIGMA (107)
TOTAL QUALITY Every detail process in the process is documented. The following are to be
MANAGEMENT documented on priority:
AND SIX SIGMA
1. revised process map
NOTES 2. standard operating procedures

3. quality control procedures
vendor selection
vendor rating
incoming material quality
process control
product acceptance testing
laboratory testing
4. total productive maintenance (TPM) procedures
5. management review
6. standards
11.6.3 PROCESS CONTROL
The important feature of these controls is for the operator to visually see the
changes in quality and take immediate corrective action. The control tools used
for this are:
1. control charts
2. visual control
3. control plan
4. poke yoke
5. Jidoka
6. gauge control
11.6.4 SYSTEMS REVIEW
The systems relating to the following need changes depending upon the process
change carried out:
1. input material/information
2. changed process/control
3. product/service
4. customer feedback
5. continuous improvement
Checklist - control phase
(108) TOTAL QUALITY

MANAGEMENT
AND SIX SIGMA
Six Sigma Phases
NOTES
11.7 Summary
In this chapter there have a lot have been described about the
various techniques of quality control and one of them being is
DMAIC so it is very important to identify the ways of doing or
implementing this very concept.
An inside significance of total quality organization (TQM) depicts
an organizations mentality or approach to handle the longterm
achievements through purchasers devotion. In a TQM teams
effort, all people form a system that is foolproof and will appreci-
ate the affiliation appreciate upgrading shapes, things, organiza-
tions, and the lifestyle in which they work. A very looking inside
the system of the organization it can be shown that out of total
quality organization (TQM) depicts an organization approach to
manage longterm achievement through customer steadfastness.
DMAIC implies a data driven change cycle used for upgrading,
redesigning and settling business techniques and arrangements.
The sole aim is of the ultimate DMAIC change cycle is the inside
mechanical assembly used to drive Six Sigma wanders.
11.8 Key Concepts

DMAIC- DMAIC (an acronym for Define, Measure, Analyze,
Improve and Control) alludes to an information driven change
cycle utilized for enhancing, upgrading and settling business
procedures and plans. The DMAIC change cycle is the center
instrument used to drive Six Sigma ventures.
TQM- A center meaning of aggregate quality administration
(TQM) portrays an administration way to deal with longterm
accomplishment through consumer loyalty. In a TQM exertion,
all individuals from an association take part in enhancing forms,
items, administrations, and the way of life in which they work.
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (109)
TOTAL QUALITY Six Sigma- an arrangement of administration systems expected
MANAGEMENT to enhance business forms by incredibly diminishing the likelihood
AND SIX SIGMA
that a blunder or imperfection will happen.
NOTES 11.9 Excrcise & Questions

Q1. Describe various elements of DMAIC philosophy.
Q2. List the various tools of Six Sigma.
Q3. What do understand by Total Quality Management (TQM)?
11.10Further Reading & References

1. Dale, B. (2015). Total quality management. John Wiley & Sons,
Ltd.
2. Porter, L. J., & Parker, A. J. (1993). Total quality management
the critical success factors. Total quality management, 4(1), 13-
22.
3. Yusof, S. R. M., & Aspinwall, E. (2000). Total quality manage-
ment implementation frameworks: comparison and review. Total
quality management, 11(3), 281-294.
(110) TOTAL QUALITY

MANAGEMENT
AND SIX SIGMA
Six Sigma Tools
UNIT 12
SIX SIGMA TOOLS
Structure NOTES
12.0 Introduction
12.2 Define Phase
12.2.1 Customer requirement statement
12.2.2 Pareto chart
12.2.3 Project charter
12.2.4 SIPOC
12.2.5 Stake holder Analysis
12.3 Measure Phase:
12.3.1 CTQ tree
12.3.2 Detailed process map
12.3.3 Data collection planning sheet
12.3.4 Operational definition form
12.3.5 Six Sigma level calculation sheet
12.3.6 Process capability calculation
12.3.7 Measurement system analysis
12.3.8 Gauge R&R study
12.4 Analyze Phase
12.4.1 Histogram
12.4.2 Box plot
12.4.3 Run chart
12.4.4 Control charts
12.4.5 Scatter chart
12.4.6 Cause and effect diagram
12.4.7 Pareto analysis
12.4.8 Interrelations diagram
12.5 Improve Phase:
12.5.1 Brainstorming.
12.5.2 Affinity diagram
12.5.3 Multi voting
12.5.4 Suitability matrix
12.5.5 Linear correlation and regression analysis
TOTAL QUALITY
12.5.6 Failure mode effect analysis (FMEA) MANAGEMENT
AND SIX SIGMA (111)
TOTAL QUALITY 12.5.7 Design of experiments (DOE)
MANAGEMENT
AND SIX SIGMA 12.6 Control Phase
12.6.1 Related activity chart
NOTES 12.6.2 Value stream map
12.6.3 Standard operating procedure
12.6.4 Control chart
12.6.5 TPM (total preventive maintenance)
12.6.6 Poke-yoke
12.6.7 Management review and reporting
12.7 Summary
12.8 Key Concepts
12.0 Introduction
There are number of tools used by the Six Sigma project teams during the
five phase of DMAIC process. These tools help the project teams to achieve the
project goals in systematic way. With a little training in using these tools, the team
members will have confidence to use them. Most of these tools have been in use
by many companies.

To know about Control chart
To know about Value Stream Mapping
To know about Brainstorming
12.2 Define Phase

Tools used in the define phase:
12.2.1 Customer requirement statement (voice of the

customer)
It is a term which is used as a part of Information Technology & business (through
ITIL, for instance) to portray the inside and out procedure of catching clients
desires, inclinations and revolutions. In particular, the VOC is a statistical
surveying method that creates a point by point set of client needs and needs,
composed into a various leveled structure, and afterward organized as far as relative
significance and fulfillment with current options. Voice of the Customer
contemplates regularly comprise of both subjective and quantitative research steps.
The data to be filled in the customer requirement statement are as follows:
1. Products supplied
2. Critical to quality specification
(112) TOTAL QUALITY 3. Supply requirements
MANAGEMENT
AND SIX SIGMA
4. Service requirements Six Sigma Tools
5. Customer complaint data
6. Warranty returns
7. Special requirements NOTES
8. Customer survey
Problem Statement: It is a short portrayal of the issues that ought to be tended to
by a basic intuition gathering and should be shown to them (or made by them)
before they endeavor to deal with the issue. On the other hand, a declaration of
the issue is a claim of perhaps a few sentences in length that outlines the issue
tended to by the survey
12.2.2 Pareto chart
A Pareto outline is utilized to graphically condense & show the Relative
significance of the contrasts between gatherings of information.
A Pareto diagram can be built by portioning the scope of the information into
gatherings (additionally called fragments, canisters or classes). For instance, if
your business was researching the deferral related handling charge card
applications, you could bunch the information into the accompanying categories:
1. No mark
2. Residential address not legitimate
3. Non-readable penmanship
4 Already a client
5. Already a client
The left-side vertical hub of the Pareto outline is named Frequency (the quantity
of means every class), the right-side vertical pivot of the Pareto graph is the
aggregate rate, and the level hub of the Pareto diagram is named with the
gathering names of your reaction variables.
12.2.3 Project charter
The extend sanction is one of the instrument and a standout amongst the most
imperative parts of any Six Sigma extend. The record gives a review of the
venture and fills in as an assention amongst administration and the Six Sigma
group with respect to the normal venture result.
The project charter contains:
1. Project charter no.
2. Project name
3. Names of the champion
4. Business case
5. Problem statement
6. Cost of quality
7. Sigma level
8. Goal
TOTAL QUALITY
9. Scope
MANAGEMENT
AND SIX SIGMA (113)
TOTAL QUALITY 10. Resource required
MANAGEMENT
AND SIX SIGMA 11. Stakeholders
12. Team members
NOTES 13. Project plan
14. Project approval
12.2.4 SIPOC
SIPOC is nothing but a level process map. A high level process map gives a birds
eye view of the project. It consists of the following elements:
S- Supplier
I- Input to the process
P-process
O-output
C-customer
The following questions are to be asked prior to making SIPOC
Who supplies contribution to the procedure?
What details are set on the information sources?
Who are the genuine clients of the procedure?
What are the necessities of the clients?
12.2.5 Stake holder Analysis
Stakeholder examination in strife assurance, expand organization, & business
association, is the route toward recognizing the general population or social events
that are likely going to impact or be affected by a proposed action, and sorting
them as showed by their impact on the movement and the impact the action will
have on them. This information is used to study how the interests of those
accomplices should be tended to in a wander orchestrate, approach, program, or
other action. An accomplice examination of an problem contains weighing and
modifying most of the battling demands on a firm by each of the people who have
a claim on it, with a particular true objective to get in contact at the affiliations
dedication in a particular case.
FCFS is the most prevalent and common queue discipline.
12.3 Measure Phase

The tools used during measure phase:-
12.3.1 CTQ tree
Critical to Quality (CTQ) Trees, are outline based instruments that help you create
and convey top notch items and administrations. You utilize them to make an
interpretation of wide client needs into particular, significant, quantifiable
execution prerequisites. For instance, a guideline, for example, enhance client
administration is excessively expansive, making it impossible to do much with. In
any case, by utilizing a CTQ Tree, you can penetrate down from this expansive
objective to recognize particular, quantifiable prerequisites that you can use to
(114) TOTAL QUALITY enhance execution.
MANAGEMENT
AND SIX SIGMA
12.3.2 Detailed process map Six Sigma Tools
Processes for the most part have a tremendous measure of detail. This measure
of detail if put at one go on paper or a PC screen will scare the individual taking a
gander at it. It is for all intents and purposes difficult to comprehend such
NOTES
overpowering measure of data. Hence, a penetrate down approach is utilized to
speak to forms. The principal obvious process delineate 6 to 7 components. These
components may really be sub-forms. This implies they have their own one of a
kind procedure contained inside them. For effortlessness purpose they are being
spoken to as one component. At the point when process mapping is done which
contains the subtle elements from these sub forms, it is known as a definite
procedure outline.
Developing a procedure delineate
Step 1: Decide the limits
Step 2: list the procedure steps
Step 3: succession the means
Step4: draw fitting images
Step5: draw process map using computer
Step6: check for completeness
Step7: finalize the process map
12.3.3 Data collection planning sheet
Before commencing the data collection work, it is important to plan the data
collection. Planning the data collection ensures the consensus among all the team
members regarding the data collection. Planning the data collection is a simple
process using a planning sheet. The planning sheet is prepared after discussion
among all the team members regarding the contents of the planning data
12.3.4 Operational definition form
Operational definition form is an important document which helps all the team
members to interpret the data in the same way. In the absence of this document,
it is possible that the each member of the project start interpreting the data as they
like. Defining in clear words as to what the team is trying to measure and what
they are not to get confused while measuring is clearly specified
12.3.5 Six Sigma level calculation sheet
In the operational definition form, the team has clearly defined what is considered
as a unit, opportunity and defect. in the Six Sigma context, all the performance
must be converted into Six Sigma level.
12.3.6 Process capability calculation
process capability indicates whether the process Is capable of giving out sus-
tained output. Most, of the organizations, while procuring machinery and equip-
ment, only look at the capability of the machine for the short term. But as the
machine goes through long periods of usage, they lose their capability, especially
when the machine is not maintained properly. The ability of the procedure is char-
acterized as the natural fluctuation of a procedure without any undesirable ex-
traordinary causes; the littlest changeability of the procedure is able exclusively
because of normal causes. TOTAL QUALITY
MANAGEMENT
Ventures in figuring the procedure capacity AND SIX SIGMA (115)
TOTAL QUALITY 1. Collect no less than 100 arbitrary examples from the procedure.
MANAGEMENT
AND SIX SIGMA 2. Calculate the specimen mean and standard deviation to appraise
the genuine and standard deviation of the procedure.
NOTES 3. Create a recurrence appropriation for the information and figure

out whether it is near being regularly dispersed
4. Plot the USL and LSL on the recurrence appropriation.
5. If the part of the histogram is outside as far as possible, consider
the mean altering the intend to the middle procedure.
6. If the histogram demonstrates that the procedure spread is more
prominent than the detail spread, the procedure wont not be fit
7. Alternatively utilize the recipe Cp= USL-LSL/(6* sexually trans-
mitted disease. deviation)
Where Cp-prepare ability
USL-upper determination restrict
LSL bring down detail confine
8. If the process capability is less than 2, it indicates that the process
is likely to create defectives
12.3.7 Measurement system analysis
Its an analysis of Six Sigma measuring system is critical to the success of the Six
Sigma project. If there are in built errors in the measuring system, the same
reflected in the measurements and leads to the wrong diagnosis. The Precision &
Accuracy of a measurement process is usually established by repeatedly
measuring and obtaining a specified standard measurement. In measurement,
accuracy is the degree of reproducibility.
There are 6 Ms, which cause the measurement error. They are:
1. Man/operator
2. Machine/equipment
3. Method
4. Material
(116) TOTAL QUALITY
MANAGEMENT 5. Mother nature/environment
AND SIX SIGMA
6. Management Six Sigma Tools
12.3.8 Gauge R&R study

Gauge repeatability and reproducibility studies is a tool used during the measure
phase of Six Sigma improvement process. These are used to determine the amount NOTES
of variation in a measurement system and to determine how much variation is a
factor of repeatability and how much is a factor of reproducibility.
Repeatability can be characterized as the variety in more than one estimations by
a similar individual utilizing the same equipments.
Reproducibility can be characterized as the variety in a similar measuring hard-
ware utilized by different individuals.
STEP 1: select number of appraisers, no. of sample parts, and no. of readings
STEP 2: collect data
STEP 3: calculate the repeatability and reproducibility
1. Calculate the difference between measurements taken by ap-
praiser 1
2. Repeat the same and calculate the range between the measure-
ments taken by the appraisers 2 and 3
3. Calculate the avg. of range for all 3 appraisers
4. Calculate the avg. of the dimensions for each appraiser sepa-
rately
5. Calculate the avg. of the ranges(Ra)
Ra= Rt1+Rt2+Rt3/3
6. Calculate variation due to equipment (EV)
EV= K1*Ra
K1- is the constant used based on the number of trials given in
table given below
7. Calculate percentage variation due to equipment (% EV)
EV= (EV/USL-LSL)*100
8. Calculate variation due to appraiser
AV = (K2*Xt dif))- EV/(N*T)
Where
K2= constant used for calculation
Xt dif= difference between Xt
N= no. of samples
T= no. of trials
9. Calculating the variation due to repeatability and reproducibility
RRV= (AV)+ (EV)
10. Calculate percentage variation by dividing the individual values
by difference in upper and lower specification
TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (117)
TOTAL QUALITY
MANAGEMENT 12.4 ANALYZE PHASE
AND SIX SIGMA
The tools used in analyze phase are:
NOTES
12.4.1 Histogram
A histogram is a graphical representation of the appropriation of numerical
information. It is a gauge of the likelihood conveyance of a consistent variable
(quantitative variable) and was initially presented by Karl Pearson. To develop a
histogram, the initial step is to canister the scope of qualities that is, gap the whole
scope of qualities into a progression of interims and after that check what number
of qualities fall into every interim. The canisters are generally determined as back
to back, non-covering interims of a variable. The receptacles (interims) must be
contiguous, and are more often than not equal size.
12.4.2 Box plot
In engaging measurements, a case plot or boxplot is a helpful method for
graphically portraying gatherings of numerical information through their quartiles.
Box plots may likewise have lines developing vertically from the containers
(stubbles) showing inconstancy outside the upper and lower quartiles, thus the
terms box-and-hair plot and box-and-bristle outline. Anomalies might be plotted as
individual focuses. Box plots are non-parametric: they show variety in tests of a
measurable populace without making any suspicions of the basic factual
circulation. The separating between the diverse parts of the container
demonstrate the level of scattering (spread) and skewness in the information, and
show exceptions. Notwithstanding the focuses themselves, they permit one to
outwardly gauge different L-estimators, strikingly the interquartile go, mid pivot,
go, mid-run, and tri mean. Box plots can be drawn either on a level plane or
vertically.
12.4.3 Run chart
A run outline, otherwise called a run-arrangement plot is a diagram that
showcases watched information in a period grouping. Frequently, the information
showed speak to some part of the yield or execution of an assembling or different
business prepare. It is subsequently a type of line diagram.
12.4.4 Control charts
it is also called as Shewhart outlines (after Walter A. Shewhart) or prepare
conduct graphs, in measurable process control are devices used to figure out
whether an assembling or business process is in a condition of factual control.
12.4.5 Scatter chart
A scatter plot (likewise called a diffuse diagram, scramble outline, disseminate
gram, or dissipate chart) is a type of plot or scientific graph utilizing Cartesian
directions to show values for commonly two factors for an arrangement of
information.
12.4.6 Cause and effect diagram
Ishikawa diagrams (moreover called fishbone diagram, herringbone frameworks,
conditions and final products charts, or Fishikawa) are causal diagrams made by
Kaoru Ishikawa (1968) that exhibit the explanations behind a specific event.[1][2]
Common vocations of the Ishikawa chart are thing arrangement and quality
(118) TOTAL QUALITY deformation neutralizing activity to perceive potential components bringing on a
MANAGEMENT general effect. Each cause or reason behind imperfection is a wellspring of
AND SIX SIGMA
assortment. Causes are by and large accumulated into huge classes to recognize Six Sigma Tools
these wellsprings of assortment. The classes usually fuse
People: Any individual required with the strategy
Methods: How the system is performed and the specific NOTES
requirements for doing it, for instance, courses of action,
procedures, rules, headings and laws
Machines: Any equipment, PCs, equipment, thus on required to
complete the occupation
Materials: Raw materials, paper, pens, parts, et cetera used to
convey the last thing
Measurements: Data created from the strategy that are used to
survey its quality
Environment: It is the situation, for instance, zone, time, temp. , &
culture in which the strategy works
Fig.12.1 fish bone diagram
12.4.7 Pareto analysis

It is a procedure helpful where number of conceivable strategies are going at
another level after the consideration. Basically, the problem solver appraises the
advantage conveyed by each & every activity, then chooses some of the best
activities that convey an aggregate advantage sensibly near the maximal
conceivable one. Pareto examination is an imaginative method for taking a gander
at reasons for issues since it empowers thinking and sort out musings. In any case,
it can be constrained by its prohibition of conceivably vital issues which might be
little at first, however which develop with time. It ought to be joined with other
explanatory instruments, for example, disappointment mode and impacts
investigation and blames tree examination.
12.4.8 Interrelations diagram

An interrelationship graph (ID) exhibits how different issues are related to each TOTAL QUALITY
MANAGEMENT
other. It perceives which issues are bringing on issues and which aftereffects of AND SIX SIGMA (119)
TOTAL QUALITY various exercises are. It also shows the nature of each effect. An interrelationship
MANAGEMENT diagram involves a course of action of boxes, one addressing each issue to be
AND SIX SIGMA
considered. It is dealt with in an extended case on the page. Partner lines between
the compartments exhibits their relationship. Jolts exhibit arrange associations and
NOTES perceive causes from effects. Interrelationship diagrams can be to an awesome
degree accommodating when endeavoring to manage possible explanations
behind a specific issue. Despite the way that they dont perceive point by point
clarifications behind the issue, they do allow one to analyze more broad issues as
conditions and final products of each other.
12.5 Improve Phase

Tools used in improve phase are as follows:
12.5.1 Brainstorming
It is a gathering innovativeness method by which endeavors are made to discover
a decision for a particular issue by social event a rundown of thoughts suddenly
contributed by its individuals. The term was advanced by Alex Faickney Osborn
in the 1953 book Applied Imagination.
12.5.2 Affinity diagram
It is a business instrument used to compose thoughts and information. The
apparatus is regularly utilized inside venture administration and permits vast
quantities of thoughts originating from conceptualizing to be sorted into gatherings,
in light of their characteristic connections, for survey and investigation. It is
likewise every now and again utilized as a part of logical request as an approach
to arrange notes and bits of knowledge from field interviews. It can likewise be
utilized for sorting out other freestyle remarks, for example, open-finished
overview reactions, bolster call logs, or other subjective information.
12.5.3 Multi voting
Motivating is a cooperative choice making strategy used to lessen a not
insignificant rundown of things to a reasonable number by method for an
organized arrangement of votes. The outcome is a short rundown recognizing
what is imperative to the group.
12.5.4 Suitability matrix
It is a very important tool which helps to verify whether the identified solutions are
most suited to solving problem and eliminating the root cause of the variation in
performance. The process followed includes:-
Gather all team members
Prepare the matrix chart each of the solution is verified with fac-
tor under consideration.
If the proposed solution meets the requirement in full, mark as
5. And if does not meet the requirement the mark less than 5
After completing the marking add both horizontally and vertically.
Calculate per cent effect of solution and per cent suitability.
Solution which has scored more than 50% should be implemented
first and less than 50% should be considered later
(120) TOTAL QUALITY
Whichever suitability factor had scored less than 50 percent, it is
MANAGEMENT
AND SIX SIGMA to be re studied.
12.5.5 Linear correlation and regression analysis Six Sigma Tools
They are interconnected as in both manage connections among factors. The

connection coefficients are measure of direct relationship between two factors.
Forecasting of the connection coefficient is dependably between - 1 & +1.
NOTES
12.5.6 Failure mode effect analysis (FMEA)
It incorporates keeping an eye on whatever number fragments, social events, and
subsystems as could sensibly be relied upon to perceive disillusionment modes,
and their conditions and final products. For each portion, the mistake modes and
their ensuing results for the straggling leftovers of the structure are recorded in a
specific FMEA worksheet. There are different assortments of such worksheets.
A FMEA can be a subjective examination, however may be put on a quantitative
commence when logical disillusionment rate models are combined with a
quantifiable frustration mode extent database.
12.5.7 Design of experiments (DOE)
It is a deliberate technique or method to judge the relationship b\w components
making an impact on procedure & the yield of that procedure. This information is
relied upon to administer handle commitments to demand to update the yield. The
term is generally associated with certifiable trials in which the arrangement
presents conditions that direct impact the assortment, yet may in like manner
imply the diagram of semi investigations, in which standard conditions that effect
the assortment are decided for observation. In its slightest troublesome shape, an
examination goes for predicting the come about by exhibiting a change of the
preconditions, which is reflected in a variable called the pointer. The conformity in
the pointer is all things considered hypothesized to achieve a modification in the
second element, from this time forward called the outcome variable. Trial setup
incorporates not only the assurance of fitting pointers and results, yet
orchestrating the transport of the examination under really perfect conditions given
the objectives of available resources.
12.6 Control Phase

The tools used during control phase are:
12.6.1 Related activity chart
During the improve phase, the process changes are carried out to improve the
existing processes so as to continuously meet the customer requirement. In
addition to the process change, there are allied areas which also require changes,
so that changed process is maintained and improved. As a first step, the Six Sigma
team has to identify the areas which are affected by the change. Unless all the
areas affected by the change are also maintained, it will not be possible to sustain
the change
12.6.2 Value stream map
It is a grade gathering or slope try framework used to record, analyze and upgrade
the flood of information or materials required to convey a thing or organization for
a customer. Regard stream mapping is a paper and pencil instrument that helps
you to see and fathom the flood of material and information as a thing or
organization progresses through the regard stream. A regard stream plot (end-to-
end structure portray) into record the activity of the thing, and also the organiza-
tion and information systems that reinforce the basic technique. This is especially TOTAL QUALITY
MANAGEMENT
AND SIX SIGMA (121)
TOTAL QUALITY valuable when endeavoring to decrease handle span, since you get information
MANAGEMENT
into the essential authority stream despite the strategy stream.
AND SIX SIGMA
12.6.3 Standard operating procedure

NOTES
A technique particular to your operation that displays or shows the activities
important to complete assignments according to industries sets of parameter. Any
record that is a how to falls into the class of strategies. In an assembling situation,
the most evident case of a SOP is the well-ordered creation line systems used to
make items too prepare staff. A SOP, frankly, describes expected practices in all
associations where quality benchmarks exist. SOPs expect a fundamental part in
your autonomous wander. SOPs are systems, techniques and rules you require in
the operations, advancing and association prepares inside your business to ensure
accomplishment. These can make:
Efficiencies, & along these lines profitless
Unwavering quality, consistency & administration
Fewer mistakes in all boundaries
A solid & safe environment
Protection of managers in territories of potential risk & work force
matters
a first line of protection in any assessment, regardless of whether
it be by an administrative body, an accomplice or potential
accomplice, a customer, or a firm leading due tirelessness for a
conceivable buy
Value added to your business should you ever wish to offer it
12.6.4 Control chart

The control format is a graph used to study how a framework changes after some
time. Information are plotted in time organize. A control outline always has a focal
line for the commonplace, an upper line for the upper control constrain and a
lower line for the lower control keep. These lines are settled from chronicled
information.
12.6.5 TPM (total preventive maintenance)

In industry, mean era bolster (TPM) is a game plan of keeping up and improving
the respectability of creation and quality systems through the machines,
apparatus, strategies, and agents that expansion the estimation of an affiliation.
TPM focuses on keeping all rigging in top working condition to keep up a vital
separation from breakdowns and deferrals in gathering shapes.
The 5 pillars of Total productive maintenance (TPM) are described here
Pillar 1. Elimination of main problems
Pillar 2. Autonomous maintenance
(122) TOTAL QUALITY Pillar 3. Planned maintenance
MANAGEMENT
AND SIX SIGMA
Pillar 4. Early management of new equipment Six Sigma Tools
Pillar 5. Education and training

Theses 5 are implemented by a proper team work and disciplined work
ethics NOTES
12.6.6 Poke-yoke
It is a Japanese expression that signifies botch sealing. A poka-burden is any
component that helps a gear administrator stay away from mix-ups (poka). Its
motivation is to wipe out item surrenders by anticipating, revising, alternately drawing
in astuteness seeing human bumbles as they happen. The thought was formalized,
and the term grasped, by Shigeo Shingo as a segment of the Toyota Production
System. It was at first portrayed as baka-weight, however as this implies trap
fixing (or simpleton fixing) the name was changed to the milder poka-burden.
12.6.7 Management review and reporting

Reviewing and reporting the progress on all the Six Sigma projects to the
champion as well as to the top management by the process owners is very critical.
If there are no reviews at regular intervals, most of the projects would fail in the
course of time. The review must contain the following:
1 What is the project under review?
2 Who will review?
3 Who are the participants?
4 Who will maintain review records?
5 Who will be responsible for the completion?
6 What was the target cost savings and by what date?
7 What is the current status?
8 What is the next planned review date?
9 What is the reporting process?
12.7 Summary
An arrangement of administration strategies and methods
proposed to enhance business forms by significantly lessening
the likelihood that deformity mistake will happen. There are no.
of tools used by the Six Sigma project teams during the five phase
of DMAIC process.
Six Sigma is about 5 tools of DMAIC process. In Define Phase
Customer requirement statement, X-y matrix, Pareto chart, Project
charter, SIPOC, Stake holder Analysis. In Measure Phase CTQ
tree, Detailed process map, Data collection planning sheet,
Operational definition form, Six Sigma level calculation sheet,
Process capability calculation, Measurement system analysis
Gauge R&R study Analyze Phase Histogram, Box plot, Run chart,
Control charts, Scatter chart, Cause and effect diagram, Pareto
analysis, Interrelations diagram. In Improve Phase Brainstorm- TOTAL QUALITY
ing, Affinity diagram Multi voting, Suitability matrix, linear MANAGEMENT
AND SIX SIGMA (123)
TOTAL QUALITY correlation and regression analysis, FMEA, DOE. In Control
MANAGEMENT Phase Related activity charts, Value stream map, Standard
AND SIX SIGMA
operating procedure, Control chart, TPM (total preventive
maintenance), Poke-yoke, Management review and reporting.
NOTES
12.8 Key Concepts
TPM (add up to preventive support)- In industry, add up to
beneficial up keep (TPM) is a course of action of keeping up and
improving the genuineness of era and quality structures through
the machines, apparatus, methods, and specialists that upgrade
an affiliation.
Poke-burden- It is a tool or instrument in an incline producing
process that aids a hardware administrator retain a strategic
distance from (yokeru) botches (poka). Thus it is motivation to
wipe out product surrenders by averting, remedying, or attracting
regard for human mistakes as they happen.
FMEA-FMEA is a subjective and efficient instrument, for the
most part made inside a spreadsheet, to help experts envision
what may turn out badly with an item or process.
12.9 Excrcise & Questions

Q1. Define TQM and DMAIC
Q2. What are the 5 pillars of TPM?
Q3. Define FMEA?
Q4. What do you understand by poka-yoke?

Barchard, K. A., Verenikina, Y., Bedoy, E. H., File, C. N., IDs, P.,
& File, S. (2016). Instruction Manual for Poka-Yoke Data Entry
System Version 3.0. 75.
Stamatis, D. H. (2003). Failure mode and effect analysis: FMEA
from theory to execution. ASQ Quality Press.
Porter, L. J., & Parker, A. J. (1993). Total quality management
the critical success factors. Total quality management, 4(1), 13-
22.
Dale, B. (2015). Total quality management. John Wiley & Sons,
Ltd.
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MANAGEMENT
AND SIX SIGMA
Six Sigma Tools
NOTES
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AND SIX SIGMA (125)

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MMG401

YASHWANTRAO CHAVAN MAHARASHTRA OPEN

TOTAL QUALITY MANAGEMENT AND SIX

Unit 6 GOVERNANCE & LEADERSHIP

Director, School of Commerce & Management : Dr. Pandit Palande

Author Co-Author Editor

Instructional Technology Editing & Programme Co-ordinator

- Dr. Gunjan Soni

UNIT 11: Introduction, Define, Measure, Analyze, Improve, Control.

Unit No. Unit Name Page No.

(10) TOTAL QUALITY

1.22 Further reading and references

1.1 Unit objectives

1.2 History of Quality Assurance

1.2.1 Industrial Revolution: rise of inspection and separate

1.2.2 Quality control during World War II

1.2.3 Quality management in Japan

1.2.4 Quality awareness in U.S. manufacturing industry

1.2.5 Quality in service industries, government, health care,

1.2.6 Current and future challenge: keep progress in

1.3 Contemporary Influences on Quality

1.4 Definitions of Quality

1.6 Customer-Driven Quality

1.7 Total Quality

1.8.1 A focus on customer and stakeholder.

1.9 Continuous Improvement

1.10 Demings View of a Production System

1.12 Infrastructure, Practices, and Tools

1.14 Competitive Advantage

1.16 Evidence that Quality Impacts Business Results

1.17 Three Levels of Quality

1.18 Quality and Personal Values

1.21 Exercises & Questions

1.22 Further Reading and References

TOTAL QUALITY MANAGEMENT

2.1 Unit objectives

2.3 New definition of Quality

2.4 Quality Gurus

Name some quality gurus

2.5 Symptoms of Non Quality Business

What are the benefits of Higher productivity

2.7 The dimensions of Quality

Reliability: High employee moral

2.8 What is Total Quality?

2.9 Obstacles in TQM Implementation

2.12 Excercise & Questions

2.13 Further Reading & References

(26) TOTAL QUALITY

3.11 Further Reading & References

Reports that are conveyed to a larger number of individuals than

3.4 Jurans Trilogy

3.5 Improvement Strategies

3.6 PDSA Cycle

Target performance measures are defined. If something cannot

3.9 Key Concepts

3.10 Exercise & Questions:

3.11 Further Reading & References

4.2 Maslows Hierarchy of needs

4.3 Hertzberg Two Factor Theory

4.4 Achieving a Motivated Workforce CHECK YOUR

NOTES - Manager must know employee interest and dream and

4.6 Decision making method in team work

NOTES Best choice

4.8 Performance Appraisal